Traditional Loss Prevention is not working.

Traditional Loss prevention gifts under $20 is not working. If this was working, the retail globe would not still be suffering $35, 000, 000 or more a day in losses. If it was working, retail owners in addition to store directors would not be under-going security and loss prevention representatives or the security companies they symbolize like the free samples they often hand out to customers. Security experts plus loss prevention companies would not possibly be constantly scrambling for new accounts, or even be in conflict with the accounts that they service.

Shoplifting is one of the least discovered and most unreported crimes. Stock handle in many stores is so deficient that few retailers know how many products they are losing to shoplifters or their own staff. Statistically, so long as shrinkage does not exceed 2-3% of goods available, retailers pay little attention to shoplifting. There are also financial incentives for supervisors to increase the bottom line profits. The bonuses they receive are often based on profit margins, and paying for security services can be a drag on profits. Managers are under continuous pressure to justify expenses in a corporate world driven by revenue.

Retailers have spent millions wanting to address the problem of shoplifting. These people invest in cameras and recording machines and hire plainclothes officers or even uniformed officers in an attempt to catch the shoplifter. Our personal experience offers taught us that many retailers' perception is that if shoplifters are not being caught and arrested; the security corporation is not doing its job. Busts are a tangible result in the eyes of numerous retail managers and administrators. It truly is justifiable proof that the money they are simply spending on loss prevention is indeed settling and as a result there is a stink in the air. You can find often an unspoken expectation directed toward the loss prevention/security officer, which should go something like this: "If you are not making arrests, you must not be doing your job. If you are not doing your job, why are we paying a person? "

Let's think outside the box for a minute. If there was a method of effectively deterring shoplifters, and officers were powerful at it, would retail managers and administrators recognize it? In the end, there will be very few arrests if the "prevention" part of loss prevention is successful. Actually if the officer is doing the job nicely they will be making fewer arrests and having fewer confrontations; not more. Most of us encourage retail managers and facilitators to take the time to fully understand the problem of shoplifting, along with the legal and wellbeing challenges the security officer faces in most interaction they have with a customer or perhaps potential shoplifter.

Good security businesses are hard to find, but those who excel understand their business. They hire fine officers, use sound techniques, teach their officers well and manage personnel to the best of their capacity. Unfortunately the "way we have generally done business" holds many of their own abilities captive. Rather than becoming a spouse in deterring theft, the loss reduction officer becomes a necessary evil. The particular officer is often disdained by the stores that hired them, yet is needed in order to reduce liability and stop theft.

Defining the Main Issues

The largest problem in the area of retail reduction is the inability of Loss Elimination Specialists to convince and persuade store owners and managers to improve their particular security based on solid research.

Retailers install state of the art camera devices, and then fail to train officers using them effectively. Sometimes retailers do not maintain their camera systems. Or simply the cameras are not placed in crucial locations. Some hidden cameras will need to actually be exposed.

Many suppliers and some security companies use sentiment rather than research to guide critical judgements regarding officer work hours and loss prevention methods.

Vendors under-staff shifts which results in officers if she is not effective. Imagine one checkout attendant to 100 customers. Yet, the way to find an expectation that one officer working will be able to effectively monitor cameras, patrol the property, make regular rounds plus address any safety issue of which spontaneously arises in addition to catching all of the shoplifters. The statistics tell us that just one in 11 people shoplift. How exactly does one officer effectively accomplish this all?

Retailers put an enormous level of pressure on officers to produce outcomes. This landed one retailer in the middle of a lawsuit as officers went further than the legal limits to produce benefits. It cost the retailer above $50, 000 in the resulting court action. 50K goes a long way. Depending on the method that you work the numbers, this amount is equal to the amount it would have got cost to employ one loss avoidance officer for over 3, 000 hours. The manager responsible for the ordeal wanted results. He was heard saying to his officers; "Go stir something up. Let's get something proceeding. " He received costly benefits.

The Retail Industry does not listen. I recently provided consultation to a retailer where one of the managers insisted plainclothes officers confront customers car parking in "no parking" zones; even though the retailer had sworn consistent police officers patrolling the parking lot anytime the store was open. Common sense might dictate the police officer would be the reasonable one to speak to customers about parking violations; not the loss prevention officer.

Retailers and Loss Protection Specialists have little respect for every single other. Time and time again retail managers own expressed their frustration with the police officer who is assigned to their store yet shows up late, in a dirty clothes and is more interested in fraternizing with staff rather than catching shoplifters. This is a legit complaint and the burden rests straight on the hiring procedures and education requirements of the Loss Prevention/Security Business.

In summary, there are many retailers and reduction prevention personnel who just don't get it. Neither one wants to spend money to facilitate sound loss protection principles in the spirit of fineness. The retailer wants to dictate the particular mission of loss prevention with out looking at the available research. Shops are good at what they do; selling details. They are not security and loss reduction experts. Yet, they demand effects.

Can you imagine the response to the loss protection officer who walks into the selling manager's office and suggests that they might better price some of their things? Conversely, loss prevention companies protest about the way they are treated by retailers while providing them officials that are indifferent and unprofessional. Right now there needs to be some open dialogue about these issues.

To wage a conflict one first must understand the opposing forces. To find any solution it is desirable to know the problem first. Let's take a look at who else the shoplifter is.

Shoplifting Information

Information and statistics provided by the National Association for Shoplifting Elimination, a non-profit organization.

Greater than $13 billion worth of goods are usually stolen from retailers each year. That is more than $35 million per day.

There are approximately 27 million or even 1 in 11 people, who have shoplift in our nation today. Well over 10 million people have been caught shoplifting in the last five years.

Shoplifting affects more than the offender. That overburdens the police and the courts, contributes to a store's security expenses, prices consumers more for goods, charges communities lost dollars in revenue taxes and hurts children and even families.

Shoplifters steal by all types of stores including department stores, specialized shops, supermarkets, drug stores, discounters, music stores, convenience stores and music shops.

There is no profile of a typical shoplifter. Men and women shoplift about just as often.

Approximately 25 percent involving shoplifters are kids, 75 per cent are adults. 55 percent regarding adult shoplifters say they started shoplifting in their teens.

Numerous shoplifters buy and steal merchandise in the same visit. Shoplifters frequently steal from $2 to one-hundred dollar per incident depending upon the type of store and items chosen.

Shoplifting is often not a premeditated crime. 73 percent of adult and 72 percent of juvenile shoplifters don't plan to steal in advance.

fifth theres 89 percent of kids say they find out other kids who shoplift. 66 percent say they hang out using those kids.

Shoplifters state caught an average of only once in every twenty four times they steal. They are made over to the police 50 percent of the time.

Approximately 3 percent of shoplifters are "professionals" who steal only for resale or profit as the business. These include drug addicts who grab to feed their habit, hardened professionals who steal as a life-style and international shoplifting gangs who seem to steal for profit as a business. "Professional" shoplifters are responsible for 10 percent belonging to the total dollar losses.

The vast majority of shoplifters are "non-professionals" who take, not out of criminal intent, economical need or greed but as a response to social and personal pressures in their life.

The excitement generated by "getting away with it" creates a chemical reaction resulting in what shoplifters describe as an incredible "rush" or "high" emotion. Many shoplifters will tell you that this increased is their "true reward, " rather than the merchandise itself.

Drug addicts, who have become addicted to shoplifting, illustrate shoplifting as equally addicting when drugs.

57 percent associated with adults and 33 percent regarding juveniles say it is hard for them to end shoplifting even after getting caught.

Most non-professional shoplifters don't use other types of crimes. They'll never grab an ashtray from your house and can return to you a $20 bill you could have dropped. Their criminal activity is fixed to shoplifting and therefore, any rehabilitation program should be "offense-specific" for this transgression.

Habitual shoplifters steal typically 1. 6 times per week.

Statistically, the majority of shoplifting incidents happen late in the week, between Wed and Saturday. Other high-risk moments include non-school days, late days and late afternoons into the evening.

Employee fraud aside, we believe the most important statistic is: The vast majority of shoplifters happen to be "non-professionals" who steal, not outside of criminal intent, financial need or even greed but as a response to cultural and personal pressures in their life, and shoplifting is addicting.

Differentiating Types of Shoplifters

Author Terry Shulman (JD, MSW, CSW, ACSW, CAC-I) divides shoplifters into six distinct groups, each with certain identifiable characteristics in addition to expected responses if they are caught. The percentage that follows is Shulman's estimate regarding the percentage of the total shoplifting inhabitants that the particular group comprises. Please note: These percentages will change to some degree according to demographics of the area.

The Addictive-Compulsive Shoplifter represents 85% for the shoplifter population. This group emotionally has a lot of repressed anger and sometimes exhibits signs of other compulsive harmful habits, such as overeating, shopping, drug work with, or gambling. These people often give others and don't take care of themselves. Generally, they will steal items that are often inexpensive, and then give them to others as gift ideas. If caught, they will show guilt, shame, or remorse. Often, they are going to breakdown and cry when captured and confronted.

The Professionals are those who steal for profit or even lifestyle and they represent 2% on the shoplifter population. Professionals will try of stealing high-end, expensive items, often robbing multiple items at one time. Many take tools and utensils on them to aid with the theft. Most likely, this party will resist arrest if faced and will attempt to flee the store. If perhaps caught and detained, they will stay cool and calm, showing no remorse or emotion.

Typically the Impoverished are those who steal out from economic need and they represent concerning 5% of the shoplifter population. Generally, they will steal necessities, like foods, diapers, toiletries, or children's attire. Often, their manner of dress together with hygiene may be poor. If trapped, they will usually show remorse, although state their frustration with their insufficient money, and may voice hostility against a "System" that keeps them destitute.

The Thrill Seeker steals on a dare or for the excitement. They represent 5% of the shoplifter inhabitants. These shoplifters will often steal throughout groups. Many teenagers fall into its kind.

Drug Addicts steal to pay for their particular drug habit and they represent 2% of the shoplifting population. Like Specialists, they prefer stealing expensive, high end items, usually multiple items at this time. Their appearance often shows signs of substance abuse. They often carry drugs or drug paraphernalia on themselves. They are usually significantly less careful than the Professional, but will very likely flee the store if confronted.

Kleptomaniacs are people who steal regarding no apparent reason and they signify 1% of the shoplifter population. Kleptomaniacs are impulsive and often careless. They will often take items they don't need together with can't use, like stealing shoes and boots that don't fit. If trapped, many will admit they are kleptomaniacs and do not feel much remorse or perhaps shame. They will often use common cop out, like "I don't remember spending it", or "I don't know exactly why I took it because I don't even need it".

Reducing the Focus

The focus of loss elimination should be prevention. Prevention policies in addition to techniques should be aimed at the people responsible for 85% of losses; the Addictive-Compulsive Thief.

The behavioral characteristics that needs to be considered when looking toward techniques that are effective with this group are:

There is a recurrent failure to withstand obsessive, addictive, or compulsive ideas and urges to steal objects.

There is already an ever-present anxiety in their lives well before commission of your theft.

The act regarding shoplifting brings pleasure and pain relief at the time of, or just after committing thievery.

They usually feel guilt or even shame afterwards.

The thieving is very often acting-out behavior operating out of anger, or a way of trying to "make life right. "

Typically the stealing is not due to Conduct Dysfunction or Antisocial Personality Disorder. The majority of people who steal are good, caring, law-abiding people.

This group of people is a risk of cross-addiction.

You now have a behavioral snapshot of the psychology behind the people primarily responsible for most of the shoplifting in the usa. The customer causing most of the loss inside retail is doing so compulsively, efficiently, often, spontaneously and is undeterred as soon as caught. This person is possibly as addicted to shoplifting as is the drug should be to the drug.

Fear of consequences would not deter this type of shoplifter. Prosecuting shoplifters does not deter future shoplifting. Various have been arrested before and have found that the potential of jail is there, but they are as well smart to get caught.

We recognize you can find store managers who, regardless of homework, cling to "old-school" techniques including capturing as many shoplifters as possible, believing phrase will spread around the community that will their store is one the shoplifter should avoid because of aggressive observance. The key here may not be in mailing everyone to jail, but in rearing the perception the shoplifter will get caught. If you choose this route, it's prudent accomplished by catching as many shoplifters as possible and processing them quickly. It may be well worth considering just trespassing typically the offender, by-passing the arrest reviews and waiting for the police to arrive. In the event the merchandise is recovered and the shoplifter can be quickly processed this way, phrase will spread. By doing so a store could easily create an illusion they are catching every person. However, this strategy does not address typically the core problem.

Framing the Solution

There are had significant professional experience with those people who are struggling with addiction. Additionally, I have possessed contact with a large number of rehabilitation and recovery programs. There is one principle within addiction you can almost always count on. Till the addict reaches their own personal underside, outside intervention has little impact, as evidenced by the large majority of shoplifters who have been caught but continue to keep shoplift. Additionally, addicts are authorities at manipulation and deceit. These people know how to reach their goal.

Many addicts in recovery have their own story to tell; how they hit bottom. It truly is unlikely that the Retail and Damage Prevention industry is going to facilitate the particular recovery of the shoplifting addict because not part of their mission. Nevertheless, they can put some simple things in place to get the addict to think about their habit. One of the soundest techniques with obsessive and impulsive people is to get those to slow down; to think through their actions and the potential consequences. Retailers can accomplish this.

Impulsive people tend to develop psychiatric problems, be substance abusers and therefore are characteristic of anti-social personality problem. Normal inhibitions, which most of us have got, get no time to rise in these individuals. If the impulsive person's internal inhibition had a voice, it would be saying; "I am not responsible for my life. inches If the impulsive person's external inhibited had a voice, it would be saying; "I have no control; my life is ruled by external events. " The requirement to satisfy immediate needs is all they focus on. This impulsivity is most successfully diffused by keeping them in the "here and now", not yesterday or even tomorrow.

The technique of getting them to delay and think about what they are about to perform is central to many cognitive-behavioral surgery for the addict. It teaches all of them how to stop before acting impulsively and think about the cause and effect relationships of their intended behavior. Past that, it encourages them to explain in words to themselves or others the actual will do, and then do the chosen habits. Again, the purpose of the technique is to be able to slow down the impulsive thinking long enough to get them into the "here and now".

Before we apply this principle to loss prevention, let's look into some loss prevention research. Then, we will consider some simple methods with the primary focus and objective being to pull the impulsive shoplifting addict into the here and now.

Loss Prevention Research

Loss prevention is not complex. Once the asset or merchandise to get protected is determined, figure out what losses you are willing to accept. Then, based on finances, begin to put barriers set up between that merchandise and the particular person intent on stealing it. A person implement these barriers in concentric circles, starting from the outside perimeter doing work in towards the identified merchandise.

1 . One well-known study showed that when particular merchandise was prominently marked with large red stars as being frequently taken by shoplifters, shoplifting was nearly eliminated. Researchers explained that widely identifying specific items made the particular threat of detection and apprehension tangible.

2 . Research suggests that plainclothes store detectives have only a minimal impact on shoplifting. A study in a big London music store showed their grocer would need to hire 17 times more than 4 store detectives they had on duty to catch all the shoplifters required to enter the store. Advertising an officer's presence (uniformed officer) has a greater deterrent effect than a plainclothes police officer, but it may also mean that shoplifters exercising greater caution. Little is known out of research about the effectiveness of the uniformed security guard. In general, guards who continuously move around, creating an active, visible existence, are likely to be more effective.

3. There is tiny evidence that prosecuting ordinary shoplifters is an effective preventative measure. Consequently, you can find considerable value in making the police arrest procedure more efficient.

4. Civil Restoration: In nearly of these cases, the sums are paid. Detrimental recovery is not meant to be a substitute for legal proceedings. Rather, it is meant to offer an additional shoplifting deterrent.

5. Banning known shoplifters: Little is known regarding the effectiveness of this practice, but it might have some limited value.

6. WIRED. Research indicates the value of cameras is without a doubt directly related to the sophistication on the system used. Effectiveness is usually very marked in the first few months following installation, but then tapers off. The explanation for this by researchers is that can be offenders become increasingly desensitized to be able to CCTV. We think it is also likely that officers eventually get into work designs that may reduce their time in CCTV monitoring.

7. Using Electronic write-up surveillance and tagging (EAS). Several studies have shown this practice may reduce inventory shrinkage from 35-75%. There are, however, considerable costs in ordering and running EAS systems.

Referrals

Before implementing any strategies, you must make attempts to measure the difficulty first. Is there an inordinate quantity of roll-outs occurring? Where are the a lot of opened items and cases found? It is good to define the maximum areas of vulnerability, and then employ methods that target the vulnerability. Highest risk items should be given greatest security.

Parking Lots: Keep the parking lot and outside entry doors clean and neat. Mount an evident camera in the area. Keep "no parking" areas clear.

Cameras: Mount LOW LUX at the front entrance of the store: buyers will see themselves on television while walking into the store &amp; when leaving. Monitors should be conspicuously placed. With regard to covert surveillance it is preferable to have camera camouflaged, as most internal digital cameras are. Use these cameras in order to catch the offender doing a problem without advertising they are being watched. Most people do not look up in any environment unless prompted to do so. That is why these types of cameras work well in those circumstances. However, for deterrence, you want visitors to know there is a camera watching all of them. The camera does not have to be proper, but it should be obvious. After all, notion is most people's reality.

Signs at the Store Entrance: These signs need to indicate that the store is watched by camera surveillance, security personnel, and even undercover officers and that the store has a zero tolerance policy towards shoplifters.

Several years ago I was asked to consult for just a store that was leasing space with a major mall for a limited time and energy to sell clearance products. I recommended them to put signs at the entry to the store space indicating the store was being monitored by electronic and human surveillance. Within 24 hours your local store owner was approached by shopping center administrators telling them to remove the clues, because they did not want the public getting the wrong impression. This, of course, manufactured no sense at all, and was clearly based on the administrator's fear that such a sign might plant the particular perception of a criminal presence in to the mind of shopper.

We advise something new and different; a direct statement to the person responsible for 85% of the shoplifting - the addictive/compulsive thief. The sign might read; "If you might be struggling with shoplifting addiction, we advise you consider the consequences of shoplifting. You will be arrested and prosecuted vigorously. You will have legal charges you will incur. You are trespassed from this store and posting your picture. We also speak to one immediate family member and inform them of your actions. Please consider getting in touch with Shoplifters Anonymous at xxx-xxx-xxxx or ShopliftersAnonymous. com. " We would travel as far as to suggest perhaps right now there be pamphlets available as well for the shoplifting addict. This provides further intervention and a public relations side benefit is definitely the obvious concern the store has for the people struggling with addiction.

Suggested Sign Dialect

These premises under Online video and Officer Surveillance. We prosecute all security offenses.

We all reserve the right to inspect all hand bags entering or leaving this center.

Warning! All activities can be recorded on video to aid in the criminal prosecution of any crime committed upon these premises.

Notice! To get security reasons individuals entering or even leaving the premises may be be subject to search of their parcels or some other unusual items.

Free! Ride in a police car if you shoplift from this store.

Attention Addictive Shoplifters! If you are struggling with shoplifting cravings, we recommend you consider the consequences associated with shoplifting. You will be arrested and charged vigorously. There will be legal charges you definitely will incur. You will be trespassed from this retail outlet. We also contact one quick family member and inform them of your activities. Please consider contacting Shoplifters Private at xxx-xxx-xxxx or ShopliftersAnonymous. com.

Attention all shoppers! Goods marked with red stars can be items being frequently taken by shoplifters.

Instruct your employees and reduction prevention or security officers to help with making direct eye contact and speak to as many customers as possible. Customer service is one of the quickest and most effective ways of deterring the particular shoplifter. A shoplifter needs privateness to steal. Good customer service greatly reduces the particular customer's privacy through visible speak to and direct communication. This direct communication translates into an unconscious personal message of "bonding" between the store plus the potential thief. It unconsciously deters the notion of shoplifting. It is more difficult to steal from someone you know than a complete stranger. Make the customer feel desired. Make the customer happy. Make the client feel that you are ready to help them with their store shopping needs. Start a conversation; anything to make a bond with the customer.

In the event that typically the officer or employee suspects a customer is attempting to steal, they should right away approach the customer and offer assistance. The actual shoplifter is likely to think they have simply just been observed shoplifting. If they consider they are caught, they may want to abandon the stolen item in the store. There are numerous ways of handling this. The official can just back off so the shoplifter can "unload" the item. If there is a few certainty they have concealed an item, a staff might offer to hold it for these people at the register until they are all set to check out. Most employees have minor interest in acting in a security or perhaps loss prevention capacity. This outlook must be nurtured by managers.

Match up a uniform officer with a plainclothes officer for every hour of loss prevention coverage. They provide two incredibly distinct functions. Our research signifies this is the best combination to prevent theft. One without the other just lacks the overall effectiveness they have coming together. If the budget allows only one officer, we recommend a uniform police officer who spends a great deal of their time concentrating on the primary issues presented in this article.

Mount an obvious camera, or dummy camera, in areas of commonly taken items. If using a camera housed in the fiberglass bubble, the real estate should be placed low enough and so the potential thief can see it.

Environment Design is important. Access to the shoplifter's target should be time consuming. Mirrors can be used to see around corners, or to make the potential shoplifter think they are getting watched. Electronic tags are a opportunity for the small, expensive items that food markets sell like health and beauty products together with cigarettes. Sign and posters may be used to reinforce security messages. They should be set where potential shoplifters will see all of them and around the store in various locations, particularly around high-risk merchandise. It raises the particular perception that the store is interested in security. Direct customer traffic. Utilize less entrances and exits. Reduce passageways, blind corners and invisible alcoves. Reduce high displays that will conceal shoppers. Arrange aisles that will staff can easily survey from one conclusion to the other. Remember, goods on the ground floor and near entrances are at better risk of theft, because the shoplifter is in the store for less time and is thus on less risk of getting caught. Move hot products into higher security and safety zones.

Post an officer or employee near the entrance just to look for a receipt. You may have noted at some of the Superstores like Costco plus Sam's there is restricted customer entry-and-exit. Most have to enter and leave through one door. When getting out of, there is an employee standing there to look at the customer receipt and match this against their merchandise. This, we realize, may be unrealistic in a food setting, but just checking for a receipt, and not checking it from the merchandise may have an overall effect.

Make sure you consider the study in which specific goods was prominently marked with big red stars as being frequently used by shoplifters and shoplifting was almost eliminated.

We like keeping stuff simple and this one is a "no-brainer". Both post store personnel close to the region most items are taken from or have those items and move those to an area where they are in immediate eye-line sight of employees. Inadequate these actions, we suggest you put up a camera or joker camera in the area and make the digital camera obvious, or post a uniformed security guard in that area.

I recently chatted to a retail manager at a major chain who indicated he has suggested, for many years, that the aisle containing frequently thieved items be moved to an area within just employee view. The suggestion contains fallen on deaf ears. Individuals who are in authority over him decided aesthetics and consistency between retailers takes precedence over these losses. In these incidences little can be done to prevent reduction.

We encourage all the traditional approaches of loss prevention, but only when they are effective. We do believe there needs to be a shift within the focus of loss prevention from guarding the merchandise to directly addressing typically the shoplifter responsible for most theft. Damage Prevention and Retail Operations should begin to communicate more effectively, taking a fresh look at how they approach shoplifting.

The Bottom Line

In summary, you have just read an important amount of information which, if applied, can have a profound impact on losses.

1 . Determine the focus of the problem.

2 . not Implement strategies based on solid homework.

3. Hire the right people. Apply integrity screening/testing tools. Remember, assessment stores have far less employee fraud than non-testing stores.

4. Educate your people properly.

5. Keep the employees happy. You can solve approximately 50% of your problems simply by to get employee happy.

Terry Hipp 2010

AssaultPrevention. info