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August/September 2010

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By Tony DeMasi, editor
ere come the holidays! Here comes bigger business… and bigger losses. Shoplifters love the holiday season. They know stores will be more crowded than usual, and merchants will be more distracted than usual. There’s no getting around it, but there are plenty of things you can do to make sure it doesn’t get around you.

Last year, United States retail businesses lost almost $12 billion from shoplifting alone. Holiday shopping accounts for nearly 25 percent of retail sales and an increase in dollar volume lost due to theft increases in proportion during that period.

What can you do to keep shoplifters from hitting your store? Plenty! Contact your local law enforcement officials and insurance agents. Let them go through every inch of your business — from the front to back door, every room, etc. They are professionals and can give you the cold facts about what to do regarding making your store less of a target for thieves. Most likely these services will be free.

No shoplifter is too old, young, or cute; too well or poorly dressed. No one is too whatever. Everyone is a potential shoplifter — on both sides of your counter. Listen to Ben Franklin, “An ounce of prevention is worth a pound of cure.”

Here Are Some Shoplifting Tips of which to Be Aware:

  • Notice late and loud shoppers. It’s almost closing time when a customer begins shouting at one of your sales people. The entire store focuses on the commotion while another customer steals your merchandise and walks out the door.

  • Pay special attention to “hot” merchandise categories. Teenagers tend to steal things that they either can’t afford or are prohibited from buying, such as recorded music, cosmetics, stylish apparel, tobacco products and consumer electronics.

  • Watch everyone — not just “the usual suspects.” A majority of shoplifters are adults. However, juveniles are a disproportionate percentage of shoplifters as compared to their representation in the U.S. population. Teenagers between the ages of 13-17 represented 25 percent of all shoplifters, the largest single age group of shoplifters. Males accounted for 43 percent of the shoplifters reported, 34 percent were female, and gender data was not included for 23 percent of the cases. There is no profile of a typical shoplifter. Men and women shoplift about equally as often.

  • Your store is not immune to shoplifters!

  • Many shoplifters buy and steal merchandise in the same visit. Watch anyone who buys something and then continues to walk through the store holding your shopping bag.

  • Shoplifting is often not a premeditated crime. Seventy-three percent of adults and 72 percent of juvenile shoplifters don’t plan to steal in advance.

  • Shoplifters say they are caught an average of only once in every 50 times they steal.

  • Shoplifters are turned over to the police 50 percent of the time.

  • Approximately 3 percent of shoplifters are “professionals.” That is, they steal solely for resale of the goods for profit. “Professional” shoplifters are responsible for 10 percent of the total dollar losses.

  • Most shoplifters (about 41 percent) were recorded as Caucasian, while African Americans accounted for about 29 percent, Hispanics about 44 percent and Asian Americans about 1 percent.

  • Almost 18 percent of all reported apprehensions took place on Saturday. About 15.4 percent occurred on Friday, and the other five days ranged between 13 and 13.6 percent. This indicates that thefts take place anytime, with “amateur hour” occurring on the weekends.

  • Less than 1 percent of the apprehensions occurred between midnight and 6 a.m. Only 9 percent occurred between 6 a.m. and noon. About 55 percent of the theft apprehensions took place between 2 p.m. and 8 p.m., with about 32.5 percent occurring between 2 and 6 p.m.

Your staff is the first line of defense against shoplifting. Reinforce to understand that their first priority is the customer. They should avoid socializing among themselves or being so involved in stocking merchandise they become unaware of their surroundings.

Train your staff to routinely make eye contact with customers entering your store, and offer to help them. This tells potential shoplifters that your sales staff is watching them. The more obviously your staff is paying attention to customers, the less attractive your store will be to shoplifters.

Many shoplifters, especially young people and professional shoplifters often work in teams. They create distractions while a different member of the group steals from another area of your store. Shoplifters generally like to visit stores when staff and customer counts are low — perhaps lunch time or just before closing. They often use shopping bags, umbrellas, large purses, baggy clothes, strollers and other items that can be used as containers for their stolen goods.

Take shoplifting seriously. Do not let the shoplifter walk away or listen to a thief’s tale of woe. Most professional shoplifters will give you a heart breaking story and then claim it was their first time. Both are lies.

Here Are Some Other Tips:

  • Clearly post signs throughout your store that shoplifters will be prosecuted.

  • Place your register area on a six to eight inch platform for a better view of your store.

  • Arrange all aisles so they are clearly visible from the registers.

  • Keep displays away from doors and exits. If necessary, put them in large plastic cases.

  • Place small, easily concealed items in locked displays.

  • Keep displays neat and label shelves so you can see if anything is missing.

  • Work schedules should be arranged so the sales floor is covered at all times, preferably by more than one person.

  • Educate employees about store prices to avoid price switching.

  • Use multiple hidden price tags or labels.

  • Use preprinted price tags.

  • Staple customer receipts to the outside of their packages.

  • Place electronic tags on merchandise.

  • Emphasize to cashiers that they must diligently remove or deactivate electronic tags to avoid unpleasant confrontations and explanations. Conduct frequent and informative review sessions on detecting shoplifting. Train your staff to:

  • Check the seals on boxed items to be sure the contents match the box.

  • Watch for tag switching.

  • Be attentive to customers who frequently shop during hours when staff is low, as well as customers who wander into restricted areas, or loiter near the storage areas.

  • Be alert when a customer asks you to check the storage room for an item.

  • Watch customers who carry merchandise into remote areas of the store. Watch customers who use the store’s lavatory.

Employees can be thieves, too. A major study of shoplifting crimes shows that as much as half of a store’s inventory shrinkage can come from employee theft. Another 15 percent can happen due to administrative error — such as overpaying a bill or not keeping good inventory records. Close to 6 percent of your store’s inventory shrinkage may happen because of vendor fraud — the vendor short shipped you but billed you for the entire order.







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