The overwhelming cause of shrink in your store is most likely due to Employee Theft. Knowing what to look for and how to prevent it from perpetuating is the key to a healthy business. There are several key indicators of potential dishonest employees that, with proper training, your managers can que in on and stop a theft before they happen; or minimize the loss once discovered.
Employee Theft Reduction Training should be standard for all supervisors and managers that you employ. As a business owner, you may not be in your store, on the floor every minute of every day. That is the reason you employ managers, right? Every Employee Theft case that I’ve ever worked or been a part of has had some of the same things in common. When you train your managers, make sure to discuss the following points, as they are almost universal.
Making Big Purchases
While this is often not a nefarious action, it can be a sign of Employee Theft. Most managers are aware of the financial situations of their employees. Managers know the employee’s salary that is to say. If you suddenly have an employee spending amounts that are much greater than what you are paying them, then something may be amiss. They could potentially be taking advantage of an employee discount for their friends and family.
Having Friends Come in the Store
It’s always great to have a family member or friend drop by work, especially if they bring food! Again, on the outset, it wouldn’t appear improper if this was a non-common occurrence. However, if you notice an employee that has friends coming into the store, especially if they are a cashier, then something may be going on beneath the surface. Part of any Employee Theft Reduction Training should also be how managers can review register activity, as well as how to operate your cameras. Those employees that always seem to have friends over could be giving away product, or failing to ring up all of their purchases at the cash register.
Complaining about Money and Hours
We’d all like to make more money, right? Most people have that desire, however employees who constantly bring up their pay rate and discuss their financial problems could be a huge red flag for a well-trained manager. If an employee feels there is no way out of their current situation, they may resort to stealing from you to either help their current situation, or as “payback” for you not paying them a wage they feel they are entitled to.
Taking out the Trash
While this may sound silly on the surface, be sure to include this tidbit in your Employee Theft Reduction Training. Generally speaking, no one is really thrilled to have garbage duty. I mean, it stinks! This task does present a perfect opportunity for Employee Theft, since chances are, the employee will have unfettered access to the back door, and will generally be unsupervised. You can limit this risk by always having a manager open outside doors and using clear plastic trash bags. Never let an employee, no matter how tenured, have full access to go in/out of your store without supervision.
Get more information on how to stop shoplifting, contact us or call 1.770.426.0547 today.
When it comes to store efforts to stop shoplifting has it ever crossed your mind that store associates can be biased? How frequently do we look at someone and assume they will NOT steal from the store? The kind of bias I am talking about is making a snap judgement about people who may have a physical disability or a child with them when they enter a store. We may look at the way they dress, wearing a suit or dress or we may see a couple carrying a baby and decide there is no way someone with an infant would ever shoplift. I came across a news article about a pair of shoplifters who had shoplifted hundreds of dollars in merchandise from a cosmetics store. Nothing is different about this case from any other shoplifting incident except in this case one of the women has only one leg and is pushed in her wheelchair by her partner. The women were in a store that specializes in cosmetics, fragrances and skincare products. Somehow they were able to steal hundreds of dollars in merchandise and leave. The report even says the pair and a man had stolen from the same store a couple of months prior to this. How do I know that biases can influence associate interactions with potential shoplifters? I know because I have allowed it in my own career.
It was not intentional but I recall a shoplifting incident in which a person in a wheelchair was rolling around a high theft area of my store. This person had a bag on the back of the chair and I intentionally talked myself out of watching this shopper. I was uncomfortable with the idea of watching someone bound to a wheelchair. Instead of watching this person as I would anyone else in a high theft department I began looking for other suspicious people. For some reason I eventually decided I was not watching the customer simply because they were in a wheelchair. I went back to my observation of this person and wouldn’t you know it they did start placing merchandise in the bag! I nearly failed to stop shoplifting because I chose to focus on the person and not the area they were in. When I did stop the suspect I also had the benefit of Sensormatic labels setting off the electronic article pedestals. The alarm gave me confirmation a theft took place when I was still in somewhat of a state of disbelief.
As I read through the article and watched the attached video clip I was interested to see that the store had electronic article surveillance pedestals at the doors. As the two exited I did not see any lights flashing from the towers or note any signals that alarms were sounding that would have indicated merchandise with Sensormatic labels or any security tags was being taken (krqe.com, “Shoplifting suspects grab hundreds of dollars in merchandise from Ulta”, Jackie Kent, Sep. 23, 2018). I can only take an educated guess based off of my own experiences but assuming the electronic article surveillance equipment is working there are three possibilities. The merchandise the suspects took was not tagged, the merchandise was removed from the packaging or the suspects were using booster bags to steal. Booster bags are foil lined bags that are intended to defeat some security systems. It is important to point out that acousto-magnetic Sensormatic labels are not affected by foil lined bags and are an outstanding deterrent to professional shoplifters. I do not know this retailer’s security procedures and what they do or don’t tag. I do know that many major retailers will not tag every item in the store focusing only on high shrink merchandise. To stop shoplifting a comprehensive tagging program must be in place and as many items as possible should be protected.
While store employees and yes, even Loss Prevention Associates may slip and make unintentional, biased judgements electronic article surveillance labels don’t judge. People may assume someone “looks” honest, or wouldn’t steal because of a perceived disability it happens. It could be the shopper reminds the associate of their grandfather and grandfathers would never steal. I even once briefly stopped watching a young lady who was pregnant because I was sure a pregnant woman wouldn’t take anything. After a few moments I watched again when she entered a high shrinkage clothing department. You guessed it, she was shoplifting. Put Sensormatic labels on all of your merchandise and shoplifters who choose to try to steal from your store will set off your security system regardless of age, height, disability or if they have a child with them.
Get more information on Sensormatic labels, contact us or call 1.770.426.0547 today.
I listened to a radio commercial recently for a job search site that touted their applicant management process. This company wanted the listeners to know that if they post jobs to this site that they can tailor questions that will help weed out applicants not suitable to the job. Well, I suppose this is a good thing. Who wants to hire someone that is simply throwing around their resume at any position they see in order to try to land a job…ANY job? If an employer wants to ensure they are getting qualified applicants it would make more sense to bundle more options in an applicant tracking system. Wouldn’t it be good to know that an applicant did not have a criminal history or maybe you want to avoid a user of illegal drugs being on your team? Bill Bregar, founder and CEO of Loss Prevention Systems Inc. recognized the importance of having more than just a cursory insight into who may work in your store. This is the reason that Loss Prevention Systems Inc. (LPSI) offers an applicant management system that can include drug screening and background investigations along with other options to employers.
According to merriam-webster.com, system is defined as, “a regularly interacting or independent group of items forming a unified whole.” This is exactly what LPSI’s applicant management system can do. It can allow employers to choose independent pieces in their hiring process to make a stronger, unified team of employees. Do you want qualifying questions that will screen out unqualified applicants? They can do that. Do you want to eliminate the safety risks and potential theft concerns associated with employees who use illegal substances? LPSI offers drug screening to identify applicants that could cost you money in accident claims or losses incurred through carelessness or worse, theft. Concern over hiring someone with a criminal background or even a poor driving record can be addressed with background investigations. LPSI can even tailor the background checks to include credit history, sex offender registries, employment, and education verifications. If you are finally tired of keeping track of paper applications this application management system allows for electronic tracking and filing of all the associated documentation. Even a candidate’s electronic authorization permitting a credit check can be accomplished in an electronic format.
Sometimes an employer may have a concern that electronic personnel files may not meet federal guidelines. This is an unfounded concern. According to the U.S. Department of Labor, Fact Sheet #21, Record Keeping Requirements under the Fair Labor Standards Act (FLSA), “Every covered employer must keep certain records for each non-exempt worker. The Act requires no particular form for the records” (emphasis added by writer). https://www.dol.gov/whd/regs/compliance/whdfs21.pdf There are certain documents that employers are required to retain but how they are maintained is up to the employer. LPSI’s applicant management process is compliant with federal guidelines and employers keep files in one secure location. Because an applicant can choose to undergo drug screening or release information required for a background investigation these documents are not required to be retained by the employer but the release forms are kept in the electronic personnel file anyways.
Using a job search website to post your positions is a good way to get the word out that you are looking for candidates. They may even be helpful in building resumes for job seekers. When it comes to weeding out workers you wouldn’t want from a pool of applicants, placing your trust in a company that has experience in Loss Prevention and investigations is a better choice. Loss Prevention Systems Inc. has all of the tools available in its applicant management process to ensure your applicant pool is filled to the rim with well-qualified workers.
Get more information on an applicant management process, contact us or call 1.770.426.0547 today.
Retail Theft Prevention-3 WC Blog 676
Stop Shoplifting – 4
Want To Stop Shoplifting? Then Don’t Take Half Measures In Your Security Strategy
When it comes to retail theft prevention there are some things that just drive this old L.P. guy bananas!
• Walking into a store, touring the entire floor and never being acknowledged
• Getting a sigh when I ask for assistance
• Dirty or Broken Public View monitors when I walk into a business
• Electronic Article Surveillance pedestals that are in obvious disrepair
• Merchandise in cardboard packages with lightweight plastic hang tabs on locking peghooks
• Employees who remove an item from a locking showcase and allow you to walk around the store with it
• Inconsistent merchandise tagging or use of anti-theft devices
• Fitting rooms with empty hangers, clothing tags and worn out clothes left in them
• Inconsistent merchandise tagging or use of anti-theft devices
I bring this up because my wife and I were shopping in a clothing store today and while she was looking at the purses I was looking at the security tags on the handbags. First, I didn’t recognize the tags or the symbols on them so I had NO idea what company they are using for anti-theft devices. Second, some bags were tagged and others were not. Being curious I thought that perhaps the store was tagging based on price point. It is a strategy I disagree with vehemently but I understand the thought process. In this instance price point was not the factor, purses could have tags and the same price point of another style was not protected. I shook my head and just followed my wife as she shopped. I have seen similar situations in the store I work at. We sell ink cartridges for printers and some are in protective plastic cases and others are not, even though the price points may be the same. It bugs me if you couldn’t tell.
What is it that influences one retailer to only take half measures in terms of retail theft prevention while another seems to go all out to stop shoplifting and theft? Having been involved in Loss Prevention for as long as I have been I know that cost can influence theft prevention strategies. The money spent on payroll to tag nearly every piece of merchandise a store carries can seem to be too expensive. Then there is the cost of electronic article surveillance tags and protective devices that are used. What is not always considered is that many devices such as the Sensormatic Flexible Safer are reusable over and over and over again. They are made of strong plastics that are intended to get extensive use. An expensive item such as an ink cartridge can be stored inside them so customers can look at the merchandise but cannot open the package. It takes a cashier with a Sensormatic detachment device to remove the merchandise and the Safer is stored until it is needed for the next load of freight that comes in. As far as the tagging and application of security devices it requires some time but if merchandise is protected as it gets on the floor and over time employees can get quick at the tasks. The other thing many store owners don’t consider is that as they stop shoplifting with a focused tagging program the shortage dollars go down and offset any addition money being spent on tagging efforts.
You may not be aware of this but I’m not the only one that goes into stores and makes judgements of how seriously that store’s management takes security. While it may sound like and oxymoron criminals can be very good at their craft. They evaluate your store the way I do and they look at the condition of equipment. They look at things like Sensormatic Flexible Safers and how they are used. If there are certain items not being tagged or protected in a Safer those are the pieces they will steal. Your retail theft prevention strategy will only stop shoplifting if an item is tagged or stored in a retail anti-theft device.
There are things that drive this old Loss Prevention Manager nuts and half measures in retail security strategies are on the top of my list. If you want to avoid being on my list or simply want help to improve your shortage reduction strategy talk to the folks at Loss Prevention Systems, Inc. Their boss, Bill Bregar is a former Retail Loss Prevention Director for national retail chains. He can give you tips to stop shoplifting and improve your profit line. His business is helping YOUR business make more money and that is what you want too.
Get more information on retail theft prevention, contact us or call 1.770.426.0547 today.
When it comes to retail theft prevention there are some things that just drive this old L.P. guy bananas!
• Walking into a store, touring the entire floor and never being acknowledged
• Getting a sigh when I ask for assistance
• Dirty or Broken Public View monitors when I walk into a business
• Electronic Article Surveillance pedestals that are in obvious disrepair
• Merchandise in cardboard packages with lightweight plastic hang tabs on locking peghooks
• Employees who remove an item from a locking showcase and allow you to walk around the store with it
• Inconsistent merchandise tagging or use of anti-theft devices
• Fitting rooms with empty hangers, clothing tags and worn out clothes left in them
• Inconsistent merchandise tagging or use of anti-theft devices
I bring this up because my wife and I were shopping in a clothing store today and while she was looking at the purses I was looking at the security tags on the handbags. First, I didn’t recognize the tags or the symbols on them so I had NO idea what company they are using for anti-theft devices. Second, some bags were tagged and others were not. Being curious I thought that perhaps the store was tagging based on price point. It is a strategy I disagree with vehemently but I understand the thought process. In this instance price point was not the factor, purses could have tags and the same price point of another style was not protected. I shook my head and just followed my wife as she shopped. I have seen similar situations in the store I work at. We sell ink cartridges for printers and some are in protective plastic cases and others are not, even though the price points may be the same. It bugs me if you couldn’t tell.
What is it that influences one retailer to only take half measures in terms of retail theft prevention while another seems to go all out to stop shoplifting and theft? Having been involved in Loss Prevention for as long as I have been I know that cost can influence theft prevention strategies. The money spent on payroll to tag nearly every piece of merchandise a store carries can seem to be too expensive. Then there is the cost of electronic article surveillance tags and protective devices that are used. What is not always considered is that many devices such as the Sensormatic Flexible Safer are reusable over and over and over again. They are made of strong plastics that are intended to get extensive use. An expensive item such as an ink cartridge can be stored inside them so customers can look at the merchandise but cannot open the package. It takes a cashier with a Sensormatic detachment device to remove the merchandise and the Safer is stored until it is needed for the next load of freight that comes in. As far as the tagging and application of security devices it requires some time but if merchandise is protected as it gets on the floor and over time employees can get quick at the tasks. The other thing many store owners don’t consider is that as they stop shoplifting with a focused tagging program the shortage dollars go down and offset any addition money being spent on tagging efforts.
You may not be aware of this but I’m not the only one that goes into stores and makes judgements of how seriously that store’s management takes security. While it may sound like and oxymoron criminals can be very good at their craft. They evaluate your store the way I do and they look at the condition of equipment. They look at things like Sensormatic Flexible Safers and how they are used. If there are certain items not being tagged or protected in a Safer those are the pieces they will steal. Your retail theft prevention strategy will only stop shoplifting if an item is tagged or stored in a retail anti-theft device.
There are things that drive this old Loss Prevention Manager nuts and half measures in retail security strategies are on the top of my list. If you want to avoid being on my list or simply want help to improve your shortage reduction strategy talk to the folks at Loss Prevention Systems, Inc. Their boss, Bill Bregar is a former Retail Loss Prevention Director for national retail chains. He can give you tips to stop shoplifting and improve your profit line. His business is helping YOUR business make more money and that is what you want too.
Get more information on retail theft prevention, contact us or call 1.770.426.0547 today.
How do you handle clothing security for your store? What I mean is this, what controls do you have in place to prevent theft? Who may be stealing in your store and where is it happening? If you are operating a store and selling any type of apparel you need to ask yourself these questions. Psssst…store owners who don’t sell clothing I recommend you don’t stop reading. You may not sell clothing but the information will be relevant to you too. The first thought that you probably have is this is an article on shoplifting. Yes and No. Shoplifters are a big concern for stores and more so for those stores that are not using any type of security tags on clothes. It is important that you don’t discount the chance that you have employees who may also be stealing from you. Retail anti-theft devices can deter theft at all levels and theft accounted for approximately 66.5% of retail shortage in 2017 according to the 2018 National Retail Security Survey (pg. 5).
With 17 years of Retail Loss Prevention experience under my belt I will unequivocally tell you that if you are not using a retail security system in your store you are inviting theft into your building. Those stores that have a Sensormatic security system and use security tags on clothes (and nearly all other merchandise) are deterring criminals from stealing and sending them where? That’s right, to YOUR store. Criminals know what security systems look like when they walk into a store and they know what security tags and labels on clothing look like. Theft is always risky and the bad guys know that but they make every effort to avoid being detected and going to jail. So, when they enter YOUR store because they ran into security equipment at the store just down the block you are inviting theft in. You aren’t without recourse you can join those who have installed a Sensormatic system and have added clothing security to their merchandise. If you have any questions about the purchase of a system and tags Loss Prevention Systems, Inc. can give you information you need to make a smart decision.
Getting back to the original question though, how do you handle clothing security? Bearing in mind that employees and customers will steal from you there must be steps in place to cover all of your bases. Here are some tips to help you control the opportunities for merchandise theft:
• As we have already discussed retailers should be using security tags on clothes. I recommend Sensormatic hard tags to make forced removal of tags an almost impossible task without damaging garments.
• Train employees on the importance of customer service. Teach them how it can help increase store sales and how it can deter theft. Note: Training employees on how to stop shoplifting through customer service is a skill and Loss Prevention Systems, Inc. does offer training seminars that will teach associates the best methods to identify it and stop it…SAFELY.
• Have locked fitting room doors if you cannot afford a dedicated fitting room attendant. All items must be separated piece by piece to prevent items from being hidden between layers. Use number chips to track how many items a customer takes in and limit that amount to 6 pieces at a time. The rule must apply to employees who are shopping as well as customers.
• Do not allow employees to ring up family or friends at the register.
• Require employees (including all managers) to have purchases and bags checked before leaving at the end of the shift.
• Conduct manager training on how they can prevent employee theft. Again, Loss Prevention Systems, Inc. does offer this in a training seminar as well as other training sessions.
• Do not allow employees to keep personal belongings at a cash register or on the sales floor. Provide lockers or locking cabinets for the storage of personal effects while the associate is on the clock.
• If it is in the budget consider a limited closed circuit television system to keep an eye on cash registers, front doors and even hard to see sales floor areas.
• Finally consult with Loss Prevention Systems, Inc. on a theft evaluation of your store and areas of vulnerability. They can also assist with a shortage action plan.
Clothing security is not hard it just requires having the right resources and knowledge of theft related issues. Loss Prevention Systems, Inc. has knowledgeable staff that can point you in the right direction to bring down shortage. Sensormatic has the right tools to protect your clothing (and other merchandise) to send crooks to the next retailer that has not put a security system in place.
Need information on clothing security? Give us a call at 1.770.426.0547 now.
