FastTrack to Retail Failure – Shoplifting

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August 30, 2008 · Posted in Avoiding Scams, Small Business Matters, Starting a new retail of wholesale business 
by Robert Cyr


Shoplifting, coupled with employee theft accounts for 30% of all business failures. How do you curb theft in your store?

An arresting development: 10 billion is the price tag to retailers each year for people intent on creating their own discounts by shoplifting! That’s according to National Crime Prevention Council, citing that 25% of those caught lifting the merchandise were between the ages of 13 and 17. It could be said that it’s a sign of the times, but be careful how you read that sign. Some said they stole because of extreme need or peer pressure, but most of the sticky fingered teenagers said they did it because they were bored! That should be a billboard for all of us. Another sad statistic is that 75% of all adults have helped themselves at one time or another.

Shoplifting can take many forms: switching price tags, removing security tags, switching sizes on one half of a two piece suit are all forms of stealing. And then of course, there’s the five fingered discount that comes with just leaving the store with the merchandise concealed.

How can retailers curtail shoplifting in their establishments…..Begin with simple strategies that let potential shoplifters know you’re serious.

If you are involved in retailing, you need to become proactive in loss prevention…

  • Less accessibility to small, pocket or bag sized merchandise
  • Acknowledge all that enter your store with a friendly greeting…it works for Walmart
  • Better clerk to shopper ratios
  • Surveillance systems can send the right message
  • Install ceiling mirrors which will offer visibility down side and back aisles
  • Not only customer shoplift, but employees have “Sticky Fingers” as well and can contribute to tremendous revenue loss!

The bottom line for most retailers is that their profits depend on being known for taking a tough stand on shoplifting. Individuals who steal aren’t going to bother with a store that makes it too hard. For the health of their operation, retailers need to adopt the health care adage, “an ounce of prevention is worth a pound of cure.”

As a retailer you must educate yourself in handling a shoplifter as well as creating a “Loss Prevention” guideline for your employees to follow. Make sure to check local laws as they apply to a “Citizens Arrest” procedures.  Here are a couple of basics:

  • You must see the suspect take and conceal the item
  • You must never lose sight of the suspect after you see him take the item. The reason is
    simple, you need to be sure they still have the item on them when they leave the store
  • The suspect must leave the store before you can arrest them

The punishment for theft varies from state to state based on the charges filed, the value of the merchandise, prior convictions, and age of the person arrested. As a retailer make sure to prosecute all who attempt to shoplift in your store…Send a strong signal to the community that theft will not be tolerated!

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Tags: no tags   |   Categories: Avoiding Scams, Small Business Matters, Starting a new retail of wholesale business

Comments

4 Responses to “FastTrack to Retail Failure – Shoplifting”

  1. Jason Prescott on August 30th, 2008 6:30 pm

    Hey Robert–intriguing information. Is the $10billion loss from shoplifitng a USA figure or does that figure work into some international areas as well?

    Jason

  2. Robert Cyr on August 30th, 2008 7:04 pm

    Hey Jason,

    Sorry to say that from my research, this is a $10 Billion hit to the United States.

    Breaking it down further:

    It is estimated that shoplifting occurs 330 – 440 million times per year at a loss of $10 billion dollars and climbing. Nationwide, that equates to 1.0 – 1.2 million shoplift incidents everyday at a loss rate of $19,000 – $25,300 dollars stolen per minute

  3. Jason Prescott on August 31st, 2008 10:40 am

    unbelievable figures. I(t seems that the more we invest in anti-theft devices, the higher theft rates seem to go. Maybe we should try some good old school thinking and start trusting shoppers instead of encouraging them to beat the system and letting them know that “we” already don’t trust them.

  4. Marie on September 1st, 2008 8:15 am

    Just to throw some grease into this Shoplifting Fat Fire … :)

    About 6 months ago, I read “merchandise loss” figures for Big Box mega-store retailer Wal-Mart. What blew my circuits was the data trend showing higher loss levels from the FOOD aisles compared to losses from Sporting Goods and, even, Toys.

    The shoplifting opinions I read on all the above were: (a) Food theft is mainly an EMPLOYEE theft issue; and (b) Maybe The Big W-M isn’t paying its “Sales Associates” enuf to feed their families. (Cue: Discussions on minimum wages and lack of health insurance for part-time workers).

    Bizarro, eh? And insider-theft is a much tougher nut to crack.

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