September 22nd, 2008

This warning is meant to send a message to would-be petty criminals explaining the prize is never worth the consequence. But, to the retailer, crime does not pay either. When the kid stuffs a DVD in his pants and walks from your store….He is not paying for your merchandise!

In the last few weeks I have spent some time researching shoplifting and the direct impact it has on the retail industry. Retailers, small and large faced with slumping sales due to our current state of economy should probably leave the room before reading any further. 

Retail shoplifting (including employee and vendor theft) costs an estimated $10 billion per year here in the US alone. By contrast, bank robberies net only $25 million, and most bank robbers get caught. It is purely logical to state  when “times are tough” retail shoplifting increases. 

Some anti-theft measures that have been effective in reducing, though not eliminating, shoplifting include: store detectives, exit bag checks, strategically placed mirrors, electronic devices attached to products, locked display cases, closed circuit TV, and more. Simple precautions include maintaining good sight lines from a checkout station to displays of those items most attractive to shoplifters, circulating through the store on a frequent basis greeting customers, and generally being alert to suspicious behaviors.

Do not confront a suspected shoplifter without sufficient cause (check your local laws regarding detaining and charging suspects) and never do it alone – the most pervasive shoplifters are career criminals and should be considered dangerous.

Some retailers feel it’s not even worthwhile having a shoplifter arrested when it’s frequently so difficult to prove an item has actually been intentionally stolen. There’s also the matter of employee time lost in testifying against an accused in court. Moreover, counter-lawsuits against a retailer for false arrest are rife in shoplifting cases.

At the other end of the spectrum, some large retailers enforce a zero-tolerance policy against shoplifting and make it known they will not go easy on shoplifters; they post signs throughout the store, “Shoplifters will be Prosecuted.” 

What loss control measures do you have in place at your retail location?

How much revenue have you lost due to theft?

 

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