Loss Prevention Spending – What’s Your Goal?

A South African newspaper recently featured an article about a woman caught on video stealing a variety of products. (http://www.bit.ly/AmTheft_i1).  When the shoplifter is caught, this recording should provide effective evidence toward conviction.But as a shop owner, you have to think about your loss prevention objective. Would you prefer to deter theft or to prosecute shoplifters? 

Like all costs, anti-theft programs and equipment require an understanding of what you can expect from your dollars spent.

In the case of Security Cameras (CCTV) systems, you can expect some degree of deterrence. But unless you’re a large retailer and spending the money to have someone watch monitors all day long, its deterrence impact is limited. Video recordings are particularly effective, however, in the area of prosecution (…if you use quality cameras and quality recordings. When you can’t clearly indentify the criminals, they are of limited value). CCTV is also effective in monitoring and spot-checking employees, particularly at cash registers, or when you may already have some suspicion.

For most retailers theft prevention and deterrence is preferable to prosecution. Preferable both in terms of cost effectiveness and peace of mind.

All loss prevention tools have their place and limitations.  Understand the role of each tool you use. Implement a multi-pronged approach to theft deterrence reflecting your situation.

Electronic Article Surveillance (EAS) systems, when effectively implemented, are another good prevention tool. Small tags attached to merchandise set off electronic alarms at your doors. They’re more effective at deterrence than many other tools, sending potential shoplifters to unprotected stores as well as alerting you to unauthorized products leaving your store.

But you do have to think about the products you’re safeguarding and the best way to protect them. Tags are available to secure just about every type of merchandise.  If you’re implementing a system like this, work with your supplier to make sure that the tags and tools you’re using are effective for your product mix.

Packaging has also been proven to make a difference. Many of us remember the long CD boxes that used to help prevent pocketing of music. Those are no longer in use as manufacturers have cut back on packaging cost and reduced waste packaging. The problem is that cd’s and dvds are now easier to hide and steal. 

Other high theft items — cosmetics, bottled items, electronics, gift products …anything small enough to easily conceal and remove from your store — face the same problem.

In this era of  “Green Merchandising,” protective packaging, such as “Keeper” (or “Safer”) boxes can be effective at theft deterrence. Reusable locking polycarbonates boxes allow the product to fully seen in its original packaging, yet make it difficult to pocket. You’ve probably seen these in use at just about every electronics and office supply store. They’re now being used with increasing acceptance in other areas of retailing. Keepers are now manufactured with a “high end” look in mind.

A recent Loss Prevention Research Council study focused on the impact of Keeper use on health and beauty product theft. Their study showed lower shrink and higher sales in test stores that used Keepers. And there was a positive “return on investment” within just months.

There is no single solution that you can set and forget. In addition to CCTV, EAS and Keepers, there is a wide range of effective products and techniques that can help minimize loss and theft from your store.

Before you spend another cent on loss prevention think about your goal.

Contributed by Alan Herbach, who is President of American Theft Prevention Products, Inc. (www.AmericanTheftPrevention.com) which provides retailers with tools to effectively combat shoplifting. Alan can be reached by email at aherbach@AmTheft.com and can be followed on Twitter under the name AmTheft. You can also visit his professional blog at http://AmTheft.wordpress.com.

Ways to Avoid Retail Theft

This past February, the National Retail Federation (NRF) announced that retail theft if on the rise due to our struggling economy. While theft is always an issue, this recent report cited that there are more organized groups than ever before committing retail theft and then reselling the stolen goods to gain profit from their illegal actions. These groups, referred to as Organized Retail Crime (ORC) result in a loss of over 30 billion dollars a year for retailers. As independent retailers, there area a few things you can do to help decrease your odds of being a part of theft.

1. Research shows that communicating with your customers decreases theft. Say hello to all customers that walk into your store within 30 seconds or a minute at the most so that they know you are aware of their presence and are alert with their actions. Continue to acknowledge them while they are in your store with engaging questions about your store, your product, or how you can help them. By reaching out to them throughout their store visit, they will have less likely of an opportunity to feel alone enough to commit a crime. An added bonus – since most customers are not in your store to shop lift, this simply provides increased customer service!

2. Make sure that you are aware of the inventory in your store. Keep an accurate checklist, whether manually, through Quickbooks or your own excel spreadsheet, so that you are aware of what is currently in stock, out of stock, damaged, sold, or missing. If you find that certain items are missing, it is likely they are a high theft item. Be aware of what may be considered high theft to avoid their potential loss as well as to provide extra overview on these products. You can do this by merchandising these products close to the cash wrap or where ever you and your staff are the most often. Another idea is to secure them with security tags that will alarm if they leave the store.

3. Install video cameras in your store. The catch? Even cameras that don’t work will alert thefts and persuade them NOT to shoplift. You can purchase video cameras that appear to be real or even buy real but used cameras that no longer work. Of course, working cameras would be your best bet but this is a costly investment that not everyone can afford. One company to check out for these options would be Security Tag Store, www.securitytagstore.com.

4. The floor plan of your store can increase or decrease your chance for theft. Try and balance your store space so that you have visible access to all areas in which a customer may be, with exception to a dressing room, of course. Use mirrors to see challenging corners that may not otherwise be visible. Lock up expensive merchandise in glass cases or with security tags. Do not allow customers access to dressing rooms without having to be let in by a sales associate and limit the number of items they can take into the room with them. When they come out of the room, count the products that came out with them to make sure nothing is missing. You can also use alarms on doors that should not be opened so that customers cannot sneak out a back door. Even customer bathrooms should be locked so that you can monitor who is going in and out of them. While this may seem like a few more extra steps then there is time in your day, all of these actions will provide valuable store security if you need it. In addition, it also provides supportive customer service.

5. Signage can be used to reinforce security messages. Let shoppers know you have security cameras or that your store has a security alarm system. Make sure potential thefts are reminded that you have sales associates watching both customers and products throughout the store. Don’t be scared to alarm them with “Shoplifters will be prosecuted” signs, as well.

Finally, make sure that your store is well kept in an effort to help you see what is out of place or possibly stolen. Tidy up every day throughout the day and make sure all of your sales associates do this, as well. Remind everyone, including yourself, that is not just to have a great looking store but also to avoid theft.

We need to hope that most customers are still honest and trustworthy, but as the saying goes – better safe than sorry! Make sure you are taking care of your store by  taking control of your store security.