Top tips for preventing shoplifting…
Top tips for preventing shoplifting
Pretty basic list...
1. Install visible security
2. Minimise access
3. Consider anti-theft technology
4. Train staff
5. Keep an accurate inventory
6. Consider civil recovery
Some great videos from Frank Abagnale
Here is a link to some great videos from Frank Abagnale.
- Employee theft
- Positive pay
- Exclusive credit card use
- Counterfeit money
- Shredder
- Check fraud
Key Control
I just read this news story about employee theft at a Kmart where one of the suspects had a master key to the store! This is absolutely crazy. I'd love to know how this person got the master key to the store.
Fergus Falls K-mart Requests Theft Charges Against Second Employee Within Year
The 19-year-old employee may have been caught after another man, Jason Draak, was found in Fargo with a master key to the K-mart in Fergus Falls. Officials believe the 19-year-old sold Draak that key.
Key control is a basic requirement to loss prevention.
Off the top of my head, when I think of key control I think of...
1. Change locks when you change anyone who has access to keys.
2. Multiple "levels" of keys. The master key needs to be in the GM's hands, and other people need keys that only access what they need to access in the course of their job.
3. Keys should be tracked to whom they are issued to...
4. Keys should be locked in a safe or key cabinet when not used.
5. If a set of keys are lost, it should be treated like a 911 emergency.
Top 5 Fundamentals to controlling inventory shrink?
This is my list... any additions or changes?
1. Review of exception reports.
2. Walk the salefloor.
3. Look for unsecured merchandise (no tags, not locked, etc.)
4. Ask employees for receipts on all items (especially consumables).
5. Responding to cash over and short reports every day.
Disclaimer: I don't think the above are the complete answer to controlling shrink (I wish it were that easy!). I do think these 5 items go a long way to reduce the immediate causes of shrink.
Discuss this blog post on LPDiscussions.com.
Reduce shoplifting with great customer service
Customer service is an over looked tool in the LP arsenal. Good customer service can dissuade the casual shoplifter, and deny opportunity to the determined shoplifter. The hardest part is training your staff to provide great customer service.
Using customer service to limit shoplifting:
-Train your staff to be friendly and outgoing. They need to approach every customer on the sales floor. They should never walk past someone without making eye contact and asking if they need assistance.
-Try to greet everyone coming through the door. This let's people know from the time they walk in the door that you are aware of them.
-Train your staff to know the visual indicator of a person likely to shoplift. Then make sure they contact the appropriate person immediately (LP or manager).
-Schedule to your business. Have the right number of people working at the right time. Tight labor budgets mean you need to effectively deploy your staff.
Controlling Risk: Slips, trips, and falls
Exterior
- Parking lot is in good repair.
- Curbs are flush with sidewalks.
- Sidewalks are level and obstruction free.
- Water drains away from sidewalks/parking areas.
- Sidewalks and parking areas are well illuminated.
- Changes in exterior surface levels/elevations are marked.
- Snow and ice removed; surfaces treated (seasonal only).
- Stairsteps have a non-slip surface.
- Stairwells are illuminated, clean, and unobstructed.
- Handrails are present, tight, and in good condition.
Interior
- Public areas are clean, well illuminated, and unobstructed.
- Carpeting is tight, smooth, and free of tears and rips.
- Doormats are flat, slip-resistant, and clean.
- Mats absorb tracked-in moisture.
- Stairwells are illuminated, clean, and unobstructed.
- Handrails are present, tight, and in good condition.
- Changes in interior floor level elevation are marked.
- Emergency lighting is operational.
- Emergency phone numbers clearly are posted.
- Trash is regularly removed.
General
- Make regular surveys of the property.
- Follow up promptly on items needing corrective action.
- Record completed work.
- Train staff to identify, mark, and report potential hazards for prompt follow up.
- Train staff to contact emergency phone numbers and to assist injured parties.
LP Strategies to reduce litigation risk
Just read a great article on reducing risk from from retail loss prevention activities. Tons of great information.
While the goal of any loss-prevention program must be to prevent loss, a well-crafted program will be designed to minimize the risk of collateral litigation, which can arise under both state and federal law.
One line in particular is interesting:
On a broader level, stores should emphasize preventing the loss over making the apprehension. Detentions and recovery quotas should be de-emphasized.
Full article can be found at BlankRome.com.
I think this is very important. One bad stop can result in major problems for a retailer. Each shoplifter stopped is an unknown variable. You don't know what they will do to avoid being detained. (Read news stories about shoplifting stops that went bad at LPDiscussions.com) This doesn't mean you never stop a shoplifter, but you need to take extra care to ensure the safety of your staff and minimize exposure to the business.
New Project : LPDiscussions.com
I've started up a new forum website focused on Loss Prevention. LPDiscussions.com is focused on the open sharing of loss prevention tactics and strategy. I hope everyone will take a few minutes to join and start participating.
High refunds as a % of sales?
On LinkedIn the following question was asked in the Loss Prevention Professionals group:
I am looking for advice or suggestions on how LP can help reduce the refunds % to sales in a single location.
There are two cases as why a store's return/sales ratio would be higher than like stores.
1) Refund fraud by employees.
2) Refund abuse by customers.
In both cases it is important to close loop holes. Define a policy and procedure on how refunds are completed, and then put in place a method to detect deviations from policy/procedure.
Ask yourself the following questions:
-Who does the transaction? (Manager/supervisor?)
-How should the refund be approved? (Double verification? Two employees sign off?)
-Where should the refund be completed? (I designate a specific register that has good camera views of the customer and the employee. Using any other register for a return is a major red flag.)
-What documentation is required? (ID? Original receipt?)
-Where does refunded product go? (I require a manager to see every returned product. This helps ensure that product is actually returned.)
Investigate every transaction that varies from procedure, and document these occurences.
Use available data to zero in on problem transactions:
-Multipe refunds, one receipt: Can indicate that a customer returned one item, and the cashier/manager is using the receipt to refund the remaining items for cash.
-UPC keyed, not scanned: Could mean that cashier/manager is using a found receipt to key in UPCs of items to refund (since the actual item isn't at the desk).
-Multiples of a single item: Item may be available or near the register, and cashier/manager uses that item to refund for cash.
-Percent of refund dollars to sales dollars/Percent of refund transactions/sales transactions: Deviation from the company/store average can indicate fraudlent refund transactions.
-Multiple refunds to same credit card: It's not unusual for a person committing refund fraud to refund the money to their own credit card/debit card(or an accomplice's card).
-Loose receipts at register: Receipts left behind by customers or reprinted receipts are left at register instead of being thrown away immediately.
-Reprinted receipt used for refund: A reprinted receipt (your receipts do indicate "Not original receipt" or "Duplicate" when reprinted?) is used for a refund could indicate cashier/manager reprinted the receipt to use for a refund.
-Look for refunds that occur before the store opens or after it closes. (You could be surprised!)
Four steps to having a great operating store
1. Hire the right people.
2. Train them to do their jobs.
3. Hold them accountable.
4. Treat them with respect.