The percentage of loss of products between what comes in your back door and what goes out your front door is called shrinkage (shrink). The average shrink in the retail industry is about 4% of all sales and is going up yearly.
Prevent Shoplifting and Shoplifters
• Install fake security cameras to give the illusion that the shoplifter is on camera. This will make the amatuer think twice before shoplifting.
• Install bright lighting in your store. Shoplifters like dark areas since it is less noticeable for employees to see.
• Remind employees of company policies: ie) not to run after a shoplifter.
• Mirrors are a great way to allow your employees to see "blind spots" in your store.
• Hanging up anti-shoplifting signs is a great way to show people as soon as they walk in that they are ON CAMERA and being watched. It's a cheap way to show you have loss prevention.
• If you know an item is expensive and is a "hot" item... don't stock as much! Keep low quantites of high-theft items on the shelf.
• If a shoplifter is caught in your store (per policies of course), call your local newspaper to add it to the police blotter. This is a great way to show the world WE PROSECUTE!
Shoplifter Methods
Many of these thieves work in groups of two or more to distract the sales staff while they pilfer. Shoplifters learn to take advantage of busy stores during peak hours or they may hit at times when employees are less alert, such as opening, closing and shift changes.
Hiding merchandise is the most common method of shoplifting. Items are concealed in the clothing of the shoplifter, in handbags, strollers, umbrellas or inside purchased merchandise. Bold shoplifters may grab an item and run out of the store. Other methods include price label switching, short changing the cashier, phony returns, and so on.
Spot the Shoplifter
Unfortunately, there is no typical profile of a shoplifter. Thieves come in all ages, races and from various backgrounds. However, there are some actions that can serve as red flags for retailers. While the following characteristics don't necessarily mean guilt, retailers should keep a close eye on shoppers who exhibit the following:
- Spends more time watching the cashier or sales clerk than actually shopping.
- Wears bulky, heavy clothing during warm weather or coats when unnecessary.
- Walks with short or unnatural steps, which may indicate that they are concealing lifted items.
- Takes several items into dressing room and only leaves with one item.
- Seems nervous and possibly picks up random items with no interest.
- Frequently enters store and never makes a purchase.
- Enters dressing room or rest rooms with merchandise and exits with none.
- Large group entering the store at one time, especially juveniles. A member of the group causes a disturbance to distract sales staff.
Sales Floor Procedures
Be on the sales floor as much as you can. When walking the floor, continually observe and respond to:
open showcases: this is just a shoplifters dream! Leaving a case open or unlocked is inviting a shoplifter to steal your merchandise.
unlocked security fixtures: you want to make sure any locked cases or fixtures are locked when they are suppose to be.
empty packages: this is a great way to determine WHAT is being stolen! If you see the same item over and over most likely it is the same customer.
suspicious customers: be sure to watch anyone that is acting oddly, hanging out, or just being weird!
inoperative security equipment- security cameras and EAS systems are great way to deter theft...but if they aren't working that defeats the purpose!
cashiers not properly ringing sales - you can easily lose money if you are not ringing items properly!
coupons not controlled - don't take expired coupons! Also, be sure the coupons are legit as many are fraudulent lately.
Instruct employees to greet or acknowledge every customer who enters the store.
• Provide personal customer service to as many customers as possible.
• Instruct employees to make frequent eye contact with customers who wish to browse on their own.
• Assign zones for staff coverage so that vulnerable areas aren't left unattended.
Cash Wrap & Money Handling Procedures
• Lower displays around the cash register that block the cashier's view of the selling floor.
• Keep low amounts of cash in the till. A great way to do that is with our drop box.
• Sign voids or "overrings" and authorize a refund in the presence of the customer.
• Go behind the counter to authorize a void or "overring" so you can observe potential problems (i.e., bagged merchandise which could be handed out to friends, consumables not paid for, money not in its proper slot in the till or too much cash in the drawer).
• Don't allow employees to write up, ring up or wrap purchases for themselves or relatives.
• Review cash over/short reports and daily exception reports highlighting excessive voids, overrings, no sales, refunds and other suspicious activity every day and respond appropriately.
• Limit the number of employees authorized to ring up other employees' sales, reducing the opportunities for collusion.
• Require management authorization of employee purchase transactions.
• Occasionally offer to assist employees in completing a customer transaction to verify that the amount paid and the merchandise in the bag is correct (particularly when suspicious).Never allow employees to work with an open cash drawer. They must close the register drawer before ringing the next sale.
• Limit the number of "NO SALE" rings by defining under what special conditions they will be permitted.
• Require all receipts to be given to customers and employees to immediately destroy (i.e., tear twice in half) any receipts left by a customer.
• Don't allow register transaction numbers to be cleared by anyone at the end of the day. They should continue ad infinitum to ensure that the register tape was not removed from the register.
• Make bank deposits daily at different times. Also, two people should be doing bank deposits for safety and security reasons.
Shipping & Receiving Procedures
• Close Receiving doors immediately following a delivery, or pull a wire mesh gate across the opening if the door must be left open for ventilation. Keep the gate padlocked or alarmed.
• Post a sign that prohibits freight line drivers from entering the Receiving area beyond the point necessary to unload merchandise from their truck.
• Accept only one freight delivery at a time unless adequate personnel are present to provide proper control.
• Secure all shipping labels unless part of an authorized, register-validated sales receipt.
• Don't allow merchandise to be removed from Receiving until it is properly checked-in and marked.
• Don't allow vendors to count their own product! Only the receiving person for the store should count product.
Visit our friend's website at http://www.LPSpy.com to read funny shoplifting stories, get some tips, and have fun!
If you have any more ideas please email them to sales@stampoutshrink.com and we will add them!
