Retail Security Information

Retailers lose nearly $36 billion a year through theft and fraud.

Retailers must remain on guard against theft. Even a small store will have a great deal of stock, and accomplished thieves find it easy to steal merchandise from many stores. According to the Information Technology Laboratory, retailers lose nearly $36 billion via theft and fraud. This isn't just a store problem; to maintain a profit retailers must raise prices to cover some of the loss.

Checkpoints

Larger stores will have an employee stationed at the entrance, partly to greet shoppers coming in, but also to check customers leaving the store. Other employees may check people in and out of fitting rooms, or watch activity in departments particularly prone to shoplifting. Customers may be asked to leave backpacks or large purses at a checkstand before shopping.

Scanners

In larger stores, these exit checkpoints may include scanners which can read encoded tags placed on big-ticket purchases. A cashier will electronically disable the tag, and the scanner will go off if a tag hasn't been cleared by the cashier. This can, however, create problems. False alarms are not uncommon, and a shopper may be offended if he is singled out because of a beeping scanner.

Cameras

As you shop, the camera watches.

Some stores will have cameras in strategic areas of the store, and the largest stores may have a surveillance worker monitoring the cameras. Much of the technology is borrowed from casinos, as the cameras may be hidden under dark hemispheres attached to the store ceiling. Even if unmannned or inoperative, a camera may deter some shoplifters.

Store Layout

Smaller stores may not afford the extra help that larger stores may use to combat loss, but will be designed so the cashier has a good view of the entire sales floor. In addition, all outgoing traffic may be funneled close to the checkstand so that no one leaves the store without the cashier knowing about it.

Inside Jobs

While checkpoints and efficient store design will cut some loss, much shrinkage may come from light-fingered employees. According to a 2003 University of Florida study, employee theft accounts for 47 percent of retail losses, and the average employee theft is $1,762 compared with $265 for the average shoplifting incident. A strong vetting process before employees are hired will cut some of this, along with security policies designed to keep employees in line. Employees often must go through the same checkpoints as customers when entering or leaving the premises, and some companies may require employees to leave their personal belongings in a designated area or even require them to carry personal items in see-through bags.

Train Your Help

While technology helps to control shrinkage, a retailer's first line of defense in loss prevention is his work crew. An attentive floor worker who routinely offers help to shoppers is in position to watch any suspicious activity on the floor, and lets the customers know they are being watched without being obvious about it. A well-trained cashier will be able to tell if someone is trying to sneak items past the checkstands, and to tactfully and safely confront the shopper if he suspects a shoplifting attempt.

References

• Information Technology Laboratory: Video Surveillance Technologies for Retail Security
• Crime Doctor: Retail Loss Prevention
• Crime Doctor: Employee Theft
• University College, London: Retail Security Decision Making

Resources

• Loss Prevention: The Magazine For LP Professionals