27 Tips to Prevent $hoplifting 27 Tips to Prevent
27 Tips to Prevent $hoplifting
$hoplifting It’s a word many retailers and store managers cringe at. This is because businesses pay the costs of lost merchandise and security-related expenses when shoplifting occurs. Consumers also suffer due to shoplifting because retail prices inevitably increase to offset the store’s losses.
• As many as 1 in 12 customers is a shoplifter • Shoplifters commit an average of 50 thefts before being caught • Shoplifting can cost retailers billions of dollars per year • About 1/3 of total inventory shrinkage is due to shoplifters
What Shoplifting Can Cost Your Business Theft of a $2.00 item for a company operating on a 10% profit margin requires the sale of $20.00 in merchandise to make up for the loss. Low margin stores (1%) such as supermarkets and gas stations must sell $300 worth of goods to account for the theft of a $3.00 item... And these numbers only increase exponentially the more expensive the item.
So... what’s your profit margin? Types of Shoplifting Include:
1. Switching price tags 2. “Putting in pockets”
2
Profile of a $hoplifter The truth is, there is no typical shoplifter because they come in all shapes, sizes, ages, sexes, ethnic background, education and economic status. Most shoplifters are considered amateurs, but there are plenty of highly skilled shoplifters stealing from businesses across the country.
Here’s a breakdown of the 4 major types of shoplifters: 1. Some steal for the adrenaline rush, desire, need and peer pressure. Others even do it for the simple fact it is a business transaction to them. 2. Some shoplifters are compulsive, some are opportunistic and some are even mentally ill and don’t know any better. 3. Other shoplifters are desperate from drug addiction, alcoholism, or are homeless and living on the street. 4. Finally, children and the elderly some -times steal without knowing they are even committing a crime. To avoid getting caught, shoplifters often “work” during certain times of the day when employees are apt to be less alert. For example, store opening and closing, lunch hour, dinner or shift changes. Plus, they learn to take advantage of crowded stores during peak hours because the more customers are in the store, the fewer eyeballs can be focused on them. They often “team up” with others while using distraction and misdirection to help them in their stealing endeavours. No matter the type, most shoplifters rationalize their actions by thinking a large retailer can afford the loss.
3
27 Tips to Prevent $hoplifting 1. Install CCTV cameras (Closed Circuit Televisions). This one’s the most obvious, which is
why we’re listing it first. These can act as your “eye in the sky,” but don’t think having them installed is enough to deter shoplifters. You need to look at the tape, too, so you can get to recognize shoplifters’ faces.
2. Find vulnerabilities. Think of this like the movie Oceans 11, or any other heist film. If you were to shoplift, how would you do it? Circle your most vulnerable areas and put your least valuable merchandise in these locations. The point of sale is often one of the least vulnerable areas so it makes sense to put your least valuable inventory here. Plus, there’s an added benefit: this can also create impulse buys from customers!
3. Camera domes. Wal-Mart is well known for installing this security measure
and they have them sprinkled throughout their stores. Cameras are becoming more common and can reduce shoplifting more than you think. The trick is to have “more domes than cameras.” This way, shoplifters will not know which domes have cameras and which are dummies.
4. Require a receipt for all returns. It is not uncommon for shoplifters
to steal with full intention of returning the item(s) to the store for a cash refund. Of course, this can potentially create a problem with providing quality customer service. Fortunately, there is a simple solution: require receipts for cash refunds and store credits, and same-item only exchanges without one.
5. Be smart about E.A.S. tag placements. E.A.S. tags are the plastic fixtures typically found on clothing and must be removed before exiting the store to avoid the alarm going off. Concealing the tags in a specific place such as underneath the seam or label is good but having two tags is even better, one obvious, the other concealed. This way, a shoplifter might be able to remove the obvious tag, but not the hidden one, thus setting off the alarm.
6. Exceptional customer service. This is very underrated, but is the single most effective action a store
can take to deter shoplifting. Greet your customers as they walk in your store, offer assistance, make eye contact so they see you seeing them, anticipate their needs and know where they are at all times. Not only will you appear more friendly and helpful to all customers, but a deterrent to shoplifters. It’s a win-win!
7. Alternate clothing hanger directions. For department stores, this is one of the easiest prevention
tips to implement because it does not cost a dime. Should you encounter a shoplifter who tries to grab what he can while fleeing the scene, this makes it harder for him to steal from you. Try it yourself and you’ll see.
4
8. Look for hidden items in the cart.
Larger items can easily conceal smaller ones. Products with lids can be closed, hiding smaller items. For multiples of the same product, count the total amount, don’t just take the customer’s word for it.
9. Watch the Self Check-Out (SCO) area closely. Failing to do this can cause significant losses to your store, both intentional and unintentional. In the event customers need assistance and a clerk is not available, the customer may get too frustrated and simply walk out with the merchandise. Having appropriate staffing in place for the multiple kiosks is important for customers who need ID verification and other assistance.
10. Merchandise sold in pairs should be displayed separately. The best example of this are shoes in which one is on the shelf, the matching shoe is in the box or “in the back.” he moral of the story? Don’t entice thieves by giving them the entire product. T
11. Encourage employees to wander. Have your employees walk back and forth throughout the store, changing their route each time. Don’t just walk through the center, walk down different aisles and along the wall. And the bigger your store, the more important this is. Not only does this foster better customer service, but makes employees less predictable to shoplifters.
12. Scan every item. A common trick is
the switching of a SKU with a different SKU number of a lower value. In this scam, the customer switches just one SKU and leaves the other identical items in the cart. The cashier scans the lower value several times rather than scan each of the other identical items separately.
13. Have minimal exits. Stores with more than one or two entrances and exits give shoplifters more routes to choose from when making their escape. Kind of makes sense right?
5
14. Tidy up. Organize and clean up your store. Clear all aisles of debris. Clean up any spills or fallen merchandise. Full displays and straightened shelves let your employees see at a glance if an item is missing.
15. Make your signage visible and creative. Post signs near dressing rooms, exit doors and cash registers. Also, keeping a running tally of “shoplifters prosecuted to date” can help deter theft at your store and influence shoplifters to take their craft elsewhere.
16. Install convex mirrors. Similar to camera domes, this helps store personnel have better visibility around corners, and aisles and can also provide different angles if they are installed on the ceiling.
17. Watch customers with baggy or “inappropriate” clothing. This doesn’t mean discriminate but if a customer walks in wearing a snow parka on in the middle of summer, he may be up to something, or he may just think your air conditioning is up too high.
18. Watch customers with backpacks and baby strollers. Again, this doesn’t mean discriminate against these types, but they may require a more watchful eye. This is because strollers and backpacks allow for merchandise to be hidden easier under blankets, and in pockets. Plus, be wary of customers with newspapers as these can hide small objects as well.
19. Watch for customers walking with short, unnatural steps. Besides this being funny to witness, this is another common sign that a customer is concealing merchandise.
20. Employ “beefy” security personnel. Just having anyone in a security uniform is not enough anymore. To really deter shoplifters you need to have someone who looks the part; they need to be intimidating. Granted, we’re not talking about recruiting Mr. Universe, but someone who is fit and looks like they are really “securing the premises.”
6
21. Provide proper training. This applies to temporary workers, more or less, during peak shopping periods such as the holiday season. Temp workers often have less loyalty to the company than do full time personnel, and are more likely to make costly mistakes. Plus, chances are, if one temp worker makes a mistake, others will too.
22. Elevate the cashier’s platform. This allows sales people to see over and around displays, making potential shoplifters continually feeling watched.
23. Keep display racks away from entrances and exits. This helps discourage hit-and-run thieves from grabbing items on their way out of the store and into a waiting getaway car.
24. Keep fitting rooms locked when not in use. Although this can be irritating to customers, it allows store employees to better monitor where customers are located. Keeping a tally of merchandise items for each customer in the fitting room also helps management keep an accurate inventory.
25. Lock up specific merchandise.
Don’t assume that having certain items behind a glass case is enough to deter shoplifters. Lock it up. Smaller items such as jewelry and electronics are prime examples that apply here. Plus, legitimate customers will not object to this because they will most likely consider it a necessary evil to doing business.
26. Install one-way glass. Doing this for offices enables employees to see into the store without customers being able to see what is behind the glass. Think police interrogation rooms, except nobody is handcuffed to a chair.
27. Prosecute all thieves. If you don’t alert authorities each time you catch a shoplifter, thieves will think you are soft and continue to steal from you. Even if they’re juveniles, prosecute them fully to make examples of them.
7
If $hoplifting Occurs . . . Even if you implement all 27 tips, there is no guarantee shoplifting will be 100% prevented. With that being said, there are a few things you should NEVER do in the event you suspect someone of shoplifting, or actually witness someone committing the act. These include:
• NEVER accuse anyone of stealing • NEVER try to physically stop a shoplifter • NEVER lock the door to keep a shoplifter from leaving • NEVER chase a shoplifter out of your place of business You and your business can find yourself in legal trouble if you accuse a customer of stealing, so tread lightly when doing so. Customers can look unassuming, so if you attempt to physically stop a shoplifter, the situation can escalate quickly. Maybe the customer has a weapon, maybe he or she knows some form of martial arts and you are not prepared to apprehend him? Finally, if you lock the exit doors preventing shoplifter(s) from leaving, they will feel cornered and threatened. This can also escalate the situation, and is therefore, not a smart thing to do for your sake. Not to mention, chasing the perpetrator out of your business has its own inherent dangers. The moral of the story: keep your distance from the person(s).
Instead, we recommend you do the following: • Remain at least an arm’s length away from the shoplifter(s) • Give the person(s) a chance to pay or put back the item. Ask he or she, “are you ready to pay for (name the item)?” • Plan how to escape - it is important you are able to get away from a dangerous situation. Think about the escape routes in advance. • Get help as soon as possible. Call the police and, if you need to, leave your place of business and go for help.
8
About CrossCheck, Inc. CrossCheck, Inc., an established leader in the payments industry, processes and approves billions of dollars worth of check transactions annually for retail and dealer outlets throughout the U.S. For 30 years, its goal has been to increase merchants’ profits by providing efficient and affordable check approval, guarantee and conversion services that can help increase sales and reduce risk. The company is headquartered in Petaluma, California with additional offices in Phoenix, Arizona and Dallas, Texas. CrossCheck’s suite of services includes check conversion technology, ACH, web-based transactions and remote deposit capture products and, through subsidiary Optio Solutions, cost-effective debt management tools.
Visit www.cross-check.com for more information. CrossCheck, Inc. 1440 North McDowell Boulevard Petaluma, CA 94954 (888) 937-2249 [email protected] www.cross-check.com
©2013 CrossCheck, Inc. All Rights Reserved.
$hoplifting It’s a word many retailers and store managers cringe at. This is because businesses pay the costs of lost merchandise and security-related expenses when shoplifting occurs. Consumers also suffer due to shoplifting because retail prices inevitably increase to offset the store’s losses.
• As many as 1 in 12 customers is a shoplifter • Shoplifters commit an average of 50 thefts before being caught • Shoplifting can cost retailers billions of dollars per year • About 1/3 of total inventory shrinkage is due to shoplifters
What Shoplifting Can Cost Your Business Theft of a $2.00 item for a company operating on a 10% profit margin requires the sale of $20.00 in merchandise to make up for the loss. Low margin stores (1%) such as supermarkets and gas stations must sell $300 worth of goods to account for the theft of a $3.00 item... And these numbers only increase exponentially the more expensive the item.
So... what’s your profit margin? Types of Shoplifting Include:
1. Switching price tags 2. “Putting in pockets”
2
Profile of a $hoplifter The truth is, there is no typical shoplifter because they come in all shapes, sizes, ages, sexes, ethnic background, education and economic status. Most shoplifters are considered amateurs, but there are plenty of highly skilled shoplifters stealing from businesses across the country.
Here’s a breakdown of the 4 major types of shoplifters: 1. Some steal for the adrenaline rush, desire, need and peer pressure. Others even do it for the simple fact it is a business transaction to them. 2. Some shoplifters are compulsive, some are opportunistic and some are even mentally ill and don’t know any better. 3. Other shoplifters are desperate from drug addiction, alcoholism, or are homeless and living on the street. 4. Finally, children and the elderly some -times steal without knowing they are even committing a crime. To avoid getting caught, shoplifters often “work” during certain times of the day when employees are apt to be less alert. For example, store opening and closing, lunch hour, dinner or shift changes. Plus, they learn to take advantage of crowded stores during peak hours because the more customers are in the store, the fewer eyeballs can be focused on them. They often “team up” with others while using distraction and misdirection to help them in their stealing endeavours. No matter the type, most shoplifters rationalize their actions by thinking a large retailer can afford the loss.
3
27 Tips to Prevent $hoplifting 1. Install CCTV cameras (Closed Circuit Televisions). This one’s the most obvious, which is
why we’re listing it first. These can act as your “eye in the sky,” but don’t think having them installed is enough to deter shoplifters. You need to look at the tape, too, so you can get to recognize shoplifters’ faces.
2. Find vulnerabilities. Think of this like the movie Oceans 11, or any other heist film. If you were to shoplift, how would you do it? Circle your most vulnerable areas and put your least valuable merchandise in these locations. The point of sale is often one of the least vulnerable areas so it makes sense to put your least valuable inventory here. Plus, there’s an added benefit: this can also create impulse buys from customers!
3. Camera domes. Wal-Mart is well known for installing this security measure
and they have them sprinkled throughout their stores. Cameras are becoming more common and can reduce shoplifting more than you think. The trick is to have “more domes than cameras.” This way, shoplifters will not know which domes have cameras and which are dummies.
4. Require a receipt for all returns. It is not uncommon for shoplifters
to steal with full intention of returning the item(s) to the store for a cash refund. Of course, this can potentially create a problem with providing quality customer service. Fortunately, there is a simple solution: require receipts for cash refunds and store credits, and same-item only exchanges without one.
5. Be smart about E.A.S. tag placements. E.A.S. tags are the plastic fixtures typically found on clothing and must be removed before exiting the store to avoid the alarm going off. Concealing the tags in a specific place such as underneath the seam or label is good but having two tags is even better, one obvious, the other concealed. This way, a shoplifter might be able to remove the obvious tag, but not the hidden one, thus setting off the alarm.
6. Exceptional customer service. This is very underrated, but is the single most effective action a store
can take to deter shoplifting. Greet your customers as they walk in your store, offer assistance, make eye contact so they see you seeing them, anticipate their needs and know where they are at all times. Not only will you appear more friendly and helpful to all customers, but a deterrent to shoplifters. It’s a win-win!
7. Alternate clothing hanger directions. For department stores, this is one of the easiest prevention
tips to implement because it does not cost a dime. Should you encounter a shoplifter who tries to grab what he can while fleeing the scene, this makes it harder for him to steal from you. Try it yourself and you’ll see.
4
8. Look for hidden items in the cart.
Larger items can easily conceal smaller ones. Products with lids can be closed, hiding smaller items. For multiples of the same product, count the total amount, don’t just take the customer’s word for it.
9. Watch the Self Check-Out (SCO) area closely. Failing to do this can cause significant losses to your store, both intentional and unintentional. In the event customers need assistance and a clerk is not available, the customer may get too frustrated and simply walk out with the merchandise. Having appropriate staffing in place for the multiple kiosks is important for customers who need ID verification and other assistance.
10. Merchandise sold in pairs should be displayed separately. The best example of this are shoes in which one is on the shelf, the matching shoe is in the box or “in the back.” he moral of the story? Don’t entice thieves by giving them the entire product. T
11. Encourage employees to wander. Have your employees walk back and forth throughout the store, changing their route each time. Don’t just walk through the center, walk down different aisles and along the wall. And the bigger your store, the more important this is. Not only does this foster better customer service, but makes employees less predictable to shoplifters.
12. Scan every item. A common trick is
the switching of a SKU with a different SKU number of a lower value. In this scam, the customer switches just one SKU and leaves the other identical items in the cart. The cashier scans the lower value several times rather than scan each of the other identical items separately.
13. Have minimal exits. Stores with more than one or two entrances and exits give shoplifters more routes to choose from when making their escape. Kind of makes sense right?
5
14. Tidy up. Organize and clean up your store. Clear all aisles of debris. Clean up any spills or fallen merchandise. Full displays and straightened shelves let your employees see at a glance if an item is missing.
15. Make your signage visible and creative. Post signs near dressing rooms, exit doors and cash registers. Also, keeping a running tally of “shoplifters prosecuted to date” can help deter theft at your store and influence shoplifters to take their craft elsewhere.
16. Install convex mirrors. Similar to camera domes, this helps store personnel have better visibility around corners, and aisles and can also provide different angles if they are installed on the ceiling.
17. Watch customers with baggy or “inappropriate” clothing. This doesn’t mean discriminate but if a customer walks in wearing a snow parka on in the middle of summer, he may be up to something, or he may just think your air conditioning is up too high.
18. Watch customers with backpacks and baby strollers. Again, this doesn’t mean discriminate against these types, but they may require a more watchful eye. This is because strollers and backpacks allow for merchandise to be hidden easier under blankets, and in pockets. Plus, be wary of customers with newspapers as these can hide small objects as well.
19. Watch for customers walking with short, unnatural steps. Besides this being funny to witness, this is another common sign that a customer is concealing merchandise.
20. Employ “beefy” security personnel. Just having anyone in a security uniform is not enough anymore. To really deter shoplifters you need to have someone who looks the part; they need to be intimidating. Granted, we’re not talking about recruiting Mr. Universe, but someone who is fit and looks like they are really “securing the premises.”
6
21. Provide proper training. This applies to temporary workers, more or less, during peak shopping periods such as the holiday season. Temp workers often have less loyalty to the company than do full time personnel, and are more likely to make costly mistakes. Plus, chances are, if one temp worker makes a mistake, others will too.
22. Elevate the cashier’s platform. This allows sales people to see over and around displays, making potential shoplifters continually feeling watched.
23. Keep display racks away from entrances and exits. This helps discourage hit-and-run thieves from grabbing items on their way out of the store and into a waiting getaway car.
24. Keep fitting rooms locked when not in use. Although this can be irritating to customers, it allows store employees to better monitor where customers are located. Keeping a tally of merchandise items for each customer in the fitting room also helps management keep an accurate inventory.
25. Lock up specific merchandise.
Don’t assume that having certain items behind a glass case is enough to deter shoplifters. Lock it up. Smaller items such as jewelry and electronics are prime examples that apply here. Plus, legitimate customers will not object to this because they will most likely consider it a necessary evil to doing business.
26. Install one-way glass. Doing this for offices enables employees to see into the store without customers being able to see what is behind the glass. Think police interrogation rooms, except nobody is handcuffed to a chair.
27. Prosecute all thieves. If you don’t alert authorities each time you catch a shoplifter, thieves will think you are soft and continue to steal from you. Even if they’re juveniles, prosecute them fully to make examples of them.
7
If $hoplifting Occurs . . . Even if you implement all 27 tips, there is no guarantee shoplifting will be 100% prevented. With that being said, there are a few things you should NEVER do in the event you suspect someone of shoplifting, or actually witness someone committing the act. These include:
• NEVER accuse anyone of stealing • NEVER try to physically stop a shoplifter • NEVER lock the door to keep a shoplifter from leaving • NEVER chase a shoplifter out of your place of business You and your business can find yourself in legal trouble if you accuse a customer of stealing, so tread lightly when doing so. Customers can look unassuming, so if you attempt to physically stop a shoplifter, the situation can escalate quickly. Maybe the customer has a weapon, maybe he or she knows some form of martial arts and you are not prepared to apprehend him? Finally, if you lock the exit doors preventing shoplifter(s) from leaving, they will feel cornered and threatened. This can also escalate the situation, and is therefore, not a smart thing to do for your sake. Not to mention, chasing the perpetrator out of your business has its own inherent dangers. The moral of the story: keep your distance from the person(s).
Instead, we recommend you do the following: • Remain at least an arm’s length away from the shoplifter(s) • Give the person(s) a chance to pay or put back the item. Ask he or she, “are you ready to pay for (name the item)?” • Plan how to escape - it is important you are able to get away from a dangerous situation. Think about the escape routes in advance. • Get help as soon as possible. Call the police and, if you need to, leave your place of business and go for help.
8
About CrossCheck, Inc. CrossCheck, Inc., an established leader in the payments industry, processes and approves billions of dollars worth of check transactions annually for retail and dealer outlets throughout the U.S. For 30 years, its goal has been to increase merchants’ profits by providing efficient and affordable check approval, guarantee and conversion services that can help increase sales and reduce risk. The company is headquartered in Petaluma, California with additional offices in Phoenix, Arizona and Dallas, Texas. CrossCheck’s suite of services includes check conversion technology, ACH, web-based transactions and remote deposit capture products and, through subsidiary Optio Solutions, cost-effective debt management tools.
Visit www.cross-check.com for more information. CrossCheck, Inc. 1440 North McDowell Boulevard Petaluma, CA 94954 (888) 937-2249 [email protected] www.cross-check.com
©2013 CrossCheck, Inc. All Rights Reserved.
