4 Steps To Stop Retail Thieves
 By Amanda C. Garrett

Almost every small retailer is struggling with the pullback in consumer spending. On top of decreased sales, retailers are also facing increased losses from retail shrinkage.

The results of a National Retail Security Survey released in June found that retail losses increased last year to $36.5 billion, up from $34.8 billion in 2007. The survey was a collaborative effort between the National Retail Foundation (NRF) and the University of Florida.

According to the survey, the majority of retail shrinkage last year was due to employee theft, at $15.9 billion, which represented 44 percent of losses. The survey found that 14 percent of those cases involved collusion with outsiders. Shoplifting accounted for $12.7 billion, or 35 percent, of losses. Other losses included administrative error ($5.4 billion and 15 percent of shrinkage), and vendor fraud ($1.4 billion and 4 percent of shrinkage).

“While the economy plays a role in the amount of shoplifting around the country, these crimes are mostly the case of greed instead of need,” says NRF senior asset protection advisor Joe LaRocca. “People aren’t stealing to feed their families; they’re stealing iPods, handbags and other discretionary items.”

So what can you, a small retailer, do to prevent theft in your shop? Here are four steps you should take.

Step 1
Run pre-employment background checks on new hires
As you ramp up your store for back-to-school shopping and the upcoming holiday season, hire temporary help carefully.

Conduct pre-employment background screenings on all temporary employees. Use your AFS benefits to save money on the screenings. With e-Check Online background screening services, you can protect your business and your property. AFS Members save up to 50 percent compared to other pre-employment background screening services. You pay no startup fees, and there are no contracts.

With e-Check Online, you get screening services such as:

• Criminal history – by county, state or nationwide
• Motor vehicle report
• Social Security verification report
• Plus choose from many more reports and screening tools

Step 2
Rein in new employees
Limit the duties and responsibilities of new hires until they have proven themselves reliable and honest.

Don’t give new workers access to such areas as:

• Petty cash
• Business checks, credit cards or debit cards
• Stock rooms
• Cash registers or safes
• Keys to company vehicles

Step 3
Train your team
You and your sales associates can reduce shoplifting with five easy words, “How can I
help you?”

Shoplifters want to go unnoticed. They want to operate under your radar. By approaching customers with a smile and a friendly greeting, you’ll encourage potential thieves to leave – and deter them from returning to your store.

Customer service can go a long way to securing your shop.

Step 4
Balance security with merchandising
You can tempt customers to buy and protect your merchandise at the same time by following these tips:

• Maintain tidy aisles to show shoplifters that you’re keeping track of your inventory
• Install lighting that prevents shadows and eliminates dark areas in your shop
• Open up your sight lines by displaying tall items along the walls and keeping display racks at eye level in the center of your shop
• Keep expensive items near the check out area where you or a sales associate can keep a close eye on the merchandise

(Posted August 2009)

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