To Catch a Thief - A Shoplifting Experiment

Several years ago I challenged a friend who owned a Health Food / Vitamin Store to an experiment. Over a three day period an accomplice and I would try to rob his store blind. The owner was confident that his staff was alert and he had some good anti-theft devices. Equipped with special “booster bags and packs” we walked into the premises on two different occasions while the store was understaffed and relatively busy. Virtually unnoticed we stuffed the packs and bags with various items, purchased a handful of items and quickly slipped out the door. After the experiment we ended up shoplifting a little more than $2000 worth of merchandise ranging from vitamins to natural body care products from athletic supplements to grocery items. What makes this experiment even more interesting is the fact that we were not experienced shoplifters. Much of what I had gathered and learned was while I was doing my research for a shoplift prevention training program where I had interviewed approximately 300 shoplifters. Although my friend, the shop owner was shocked at the ease and the high volume of stolen goods, the good new is that this was only an experiment and all his goods were returned but this is not an uncommon scenario. External theft accounts for more than a third of retail shrinkage, and most stolen goods are gone for good: For every dollar recovered, $30 is lost. For every shoplifting incident detected, approximately fifty go unnoticed. Many establishments are just unaware of how widespread the problem is unless they have strict inventory controls. While a secure floor plan that limits hidden areas and provides an open view of the store is important defence against thieves, a well trained and alert staff is by far the most effective in dealing with loss prevention. It is important to have potential shoplifters think twice and make them uncertain if and when they may be under surveillance. If shoplifters identify a store as an easy target, losses will climb quickly. Even with the latest anti-theft devices shoplifting continues to skyrocket because many shoplifters have become very sophisticated and can get around most anti-theft devices... In working with retailers, I have found that an establishment does not necessarily need to spend tens of thousands of dollars on sophisticated surveillance equipment in order to effectively reduce losses. Too often retailers feel that as long as they have security systems in place, they are protected. Well that is not enough, for many retailers it simply gives them a false sense of security. To be effective in reducing shrinkage sometimes just a few tweaks in store layout along with a fully trained staff in shoplift prevention will make a big difference in security.




Biography

After losing a business to shoplifting and two years later being a victim to a shoplifting assault FJ Tarasoff made a commitment that he would help retailers protect their assets as well as the safety of all staff members. Twenty years later, Tarasoff is a leading authority in retail loss prevention, he conducts training workshops on various loss prevention techniques, including shoplifting and intenal theft and is the developer of “The Shoplifting Prevention Program” an affordable online training program. He has also been interviewed by numerous media outlets including, The CBC, The Globe and Mail, Small Business report, Hardware Magazine, Grocer Magazine, GlobeandMail.Com, Canadian Retailer and is a member of Retail Loss Prevention professionals Group, Security and Loss Prevention for Retail Industry and the UK Loss Prevention Group.

For more information go to http://www.shopliftprevention.com

or email: info@shopliftprevention.com

Grocery Industry at High Risk of Theft

Overview:

Shoplifting is very common in the grocery stores, especially now that most stores have expanded to carry much more than just your stable grocery items. The combination of higher end consumer items combined with relatively low levels of security make it an ideal target for shoplifters. With tougher economic times it is projected that theft both internal as well as external is expected to dramatically increase. With small profit margins grocery stores need to seriously consider the prevention of shoplifting as a key component in reducing losses.

Complete Text:

In the past grocery stores primarily sold grocery items but today the average grocery store has expanded in size and product line to become a “full service, one stop shopping” experience. The list of inventory has expanded from your basic staples to higher end lines of health and body care, pharmaceuticals, vitamins, and even electronics. The type of shoplifter has also changed. In the past the average shoplifter was an individual who stole only groceries perhaps to feed a struggling family or to finance an addiction and now in many cases it has become a highly organized operation where thieves or groups of thieves can lift several hundreds of dollars worth of high end merchandise in one visit. In most cases the prime motivation is the resale of these stolen goods. During my research for my Shoplift Prevention Training Program I interviewed almost 300 shoplifters in order to learn more about the shoplifters tricks of the trade. Interestingly many interviewed shoplifters told me they preferred stealing from a grocery store environment because its relatively ease and low risk of getting caught. Many thieves claim that grocery stores are one of the easiest targets in the retail field. First most grocery stores have very little in the form of anti-theft security devices. Those that have limited surveillance equipment are usually easy to outsmart. Stores often have many hidden areas within the floor space that creates the ideal conditions for thieves to “lift and pocket” items. The grocery industry often relies on the services of LPO’s (Loss Prevention Officers) to limit theft. Generally LPO’s are considered effective in foiling attempts by amateur impulsive shoplifters who in a moment of weakness may stuff a bag of pistachios in their pocket. But when it comes to the seasoned thief or the pro, LPO’s are relatively easy to spot. Most experienced thieves can recognize a “Loss Prevention Officer” simply by their actions and mannerisms. The shoplifters which I had interviewed claim that LPO’s rarely prevent them from stealing, they either comeback at a different time, or will move the items of interest into a different isle before stealing them.

So the question is what can be done to reduce theft?

Often the services of a security professional can help in reducing losses. It should be viewed as a small investment that can save you  thousands of dollars in a relatively short period of time. In many cases, simply improving lighting, reducing hidden areas and displaying anti-shoplifting signs and posters can be helpful as well as inexpensive. I often recommend that every isle should be equipped with a large surveillance dome preferably smoked. Some of these domes can have a fully operational camera, while others can be left empty. The important thing is to make the potential thief think twice. In some cases simply an employee walking up and down the isles talking and connecting with customers can help.

Most grocery stores have a razor thin profit margin on the merchandise they sell therefore it is imperative for shrinkage to be kept to a minimum. For example with a profit margin of 5% a store must sell 500 dollars in merchandise just to cover the cost of a 25.00 dollar item. In one year a store with merely twenty five dollars of losses a day must increase sales by 175,000 dollars to break even. Keep in mind that for many supermarkets a 5% profit margin is high as some grocery stores work on a 2% or 3% margin and a 25 dollar per day loss in a high volume industry is grossly underestimated. But for demo purposes it gives you a fairly good idea of how theft can quickly add up. It is important to recognize that even a small amount of theft can have a severe impact on a companies bottom line.

Theft of a $2.00 item from a store operating on a 10% profit margin requires the sale of $20.00 in merchandise to make up for the loss. Supermarkets and other retailers operating on low margins of 1% must sell $500.00 in merchandise, just to cover the Cost of a $5.00 stolen item. It's easy to see how out-of-control Shoplifting can quickly threaten the viability of a business.
The Cost of Shoplifting is high and is expected to skyrocket due to the global economic crisis. Retailers need to re-examine their level of security and should begin to take a more proactive role in the battle against retail theft. Most retail loss experts agree that in order to be successful there needs to be a combination of anti-theft devices combined with good staff training in the prevention of retail shrinkage.




Biography


After losing a business to shoplifting and two years later being a victim to a shoplifting assault FJ Tarasoff made a commitment that he would help retailers protect their assets as well as the safety of all staff members. Twenty years later, Tarasoff is a leading authority in retail loss prevention, he conducts training workshops on various loss prevention techniques, including shoplifting and intenal theft and is the developer of “The Shoplifting Prevention Program” an affordable online training program. He has also been interviewed by numerous media outlets including, The CBC, The Globe and Mail, Small Business report, Hardware Magazine, Grocer Magazine, GlobeandMail.Com, Canadian Retailer and is a member of Retail Loss Prevention professionals Group, Security and Loss Prevention for Retail Industry and the UK Loss Prevention Group.

For more information go to http://www.shopliftprevention.com

or email: info@shopliftprevention.com