In Business to Sell Shoplifted Items

Shoplifting along with employee theft has become big business. In a number of cases, storefronts have been set up for the sole purpose of reselling shoplifted items for huge profits. In other cases shoplifters as well as grocery store employees have made arrangements with unscrupulous restaurants to supply them with stolen merchandise, primarily meat products for a cut rate price. Meanwhile other shoplifters have gone into business for themselves selling a variety of shoplifted items on one of the many online auction and classified sites.



Recently I ran across a story where a business located in southern California was busted for selling stolen goods. This is not something really new as there are countless unscrupulous businesses that purchase goods for resale. What is unique about this case is the business which specialized in women’s apparel is believed to have been set up for the sole purpose of selling shoplifted items. This highly organized business would have members go from shop to shop; from city to city lifting items from various clothing stores all for the purpose of stocking up there own business. This operation ran successfully, with relatively few incidences for more than four years and was estimated in making more than two millions of dollars in profits. When local authorities finally discovered the illegal business it wasn’t because one of the members got caught shoplifting and confessed, but rather it came from an anonyms tip. For several months authorities staked out the business before they were able to close in and make several arrests. With the widespread use of various criminal organizations in shoplifting this certainly is by no means and isolated case. It can be difficult to track and to prosecute especially if items do not have a serial number.

This certainly got me thinking of how many other businesses purchase stolen goods for the purpose of resale. Although it is very difficult to get an accurate statistic, some of the shoplifters that I had interviewed were involved in selling stolen goods to other businesses. During the research stage of the Shoplift Prevention Training Program I had interviewed almost 300 anonym’s shoplifters in order to get a thief’s perspective and learn more about their trade. This proved valuable in learning how to better prevent shoplifting as well as internal theft. What I learned in my interviews is that although some businesses were willing to buy virtually any merchandise, as long as it did not have a serial number stamped on it, a few of the shoplifters focused on stealing items, which they supplied to restaurants. In most cases, meat appeared to be the highest item in demand. One of the shoplifters I spoke with made a very comfortable living by supplying a local restaurant with an assortment of meat products, including crab, beef, lobster, and fish. Over a period of time the thief was able to recognize the easy grocery store targets and perfected his shoplifting methods. Although at times the owner of the restaurant would make special requests, generally he would base his daily menu on the stolen items available. The restaurant owner was able to maximize his profits because in most cases he paid about 1/3 of the store price for the illegal food stuff. In more than 2 ½ years the shoplifter I interviewed had only gotten caught once but was able to talk the manager out of calling the police. He claims that the grocery stores are one of the easiest and low risk businesses to steal from because the level of security is relatively low. He also pointed out that some grocery stores are much easier to lift items then others.

In another case an employee of a grocery store, was closely working with another restaurant by supplying them with cases of stolen meat. Every day or two the employee worked out a system where he would sneak out a case of frozen meat and then would supply a small restaurant with the goods. For more than a year the employee thief had been successful without raising too much suspicion  making more money from reselling the stolen meat than his regular pay.

Of course not all thieves steal to supply other businesses; some steal and run their own business. This is often accomplished by selling stolen goods on one of the many online auction and classified ad sites. In the past shoplifted items would be sold from the back of ones car, or at flee markets, but now with the growing number of online auction houses it is becoming an easy, hard to track method of making money. Too often law enforcement simply do not have the resources to follow the trail of stolen goods on auction sites / classified ads and in most cases buyers are not too concerned about where the items came from as long as they got a good deal. With tougher economic times and an increase in unemployment, it is predicted that shoplifting as well as employee theft for the purpose of resale is expected to continue to increase. For the first time you may be see individuals who in the past never would have considered theft now crossing the line and shoplifting for the purpose of making money in an attempt to maintain their lifestyle.


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

Simple Low Cost Method which Helps Reduce Shoplifting

Can a small simple sign on your entrance door and perhaps strategically placed throughout your store help to reduce profits from walking out your door? Well the answer is yes, well kind of, at least to some degree. Since shoplifting has doubled since 2000 and statistics show that approximately one in ten shoppers is a shoplifter. In other words ten people walk in your doors and start shopping; one of them is stealing. One hundred people enter; ten of them are stealing. You get the idea. Now ask yourself: How many customers do you get per day, week, or month? Although these numbers are averages, and individual locations can vary more or less in their percentages, the dollar amounts can take a large toll on your profit therefore anything you can do to reduce theft should be explored.

 

Although “Anti-theft Signs” may have little effect on the professional shoplifter and only a limited effect on the compulsive thief as these thieves are fully intent on “ripping you off” prior to entering your premises. A well designed sign may have a positive effect in helping to minimize shoplifting by the “Impulsive Shoplifter”. This type of shoplifter can be best described as a person who usually will not steal but may be tempted if a good enough opportunity presents itself. This type of shoplifter represents the majority of the population as most people have been tempted at some point to take something without paying for it. Although the “Impulsive Shoplifter” may feel extremely guilty and remorseful after taking an item, in a moment of weakness and if a good opportunity presents itself, this normally law abiding citizen may be tempted to “try and get away” without paying for merchandise.

 

Unlike with the professional shoplifter, the solution to prevent this type of theft is relatively simple. Even a small amount of shoplifting prevention will be effective Studies indicate if you simply eliminate the opportunity or if a person suspects that they are under any suspicion or surveillance they generally will not be tempted to steal.

 

Will a sign on its own be effective in stopping shoplifting? Possibly not, but when combined with other loss prevention strategies, including a staff well trained in shoplifting prevention an anti-theft sign strategically placed will generally help discourage this type of shoplifting behavior.

 

Therefore even if your business is relatively well protected from shoplifting with various anti-theft devices it is still maybe worth to include anti-theft signage. It only makes sense as another layer of shoplifting protection and best of all it is highly affordable. The cost of signage can easily be offset by helping to prevent one or two shoplifting incidents.

 

Now although you can purchase “shoplifting prevention signs” at your local office store, I suggest that you get creative and either print or purchase something that will be instantly noticed by everyone entering your premises.

Check out samples here



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

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

How I Lost My Business to Theft

1/3 of business go bankrupt due to shrinkage

Yes this happened to me and unfortunately this is something that can happen to you and your business especially if you are not fully aware of the devastating impact of retail loss and do not have a proactive loss prevention strategy in place. According to the Certified Fraud Examiners approximately 1/3 of all bankruptcies are due to internal and external theft.

This is how I became one of those theft statistics.  

In 1989 a store I owned called "Malibu Records and Gifts" was forced to close its doors forever. Three years earlier my partners and I were extremely excited about opening a new business that sold a wide selection of unique gifts and music cassette tapes. This was a time when a cassette tape was how music was played just prior to the CD revolution.

My partners and I were young, full of energy and full of spectacular dreams. Our plan was to eventually open a chain of stores across the region. So when the news came that our company was in a financial crisis we were all in a state of shock. We were even more shocked when we discovered the main reason for the crisis was due to shrinkage. In a span of less than three years almost a quarter of our stock had gone missing. I am still not certain whether the losses were due to internal or external theft but I could only presume that it was a combination of both. Three years of hard work and an investment of tens of thousands of dollars our dreams were shattered and our company was going out of business despite the fact that sales were generally good.

Although this incident occurred almost 25 years ago I still remember some of the anger and frustration I felt at that time. I was angry at myself for not being more vigilant as well as angry at those people who stole from us. As I look back now I am really not that surprised at the course of events that had occurred.

Being highly inexperienced we did not keep strict inventory controls. Had we, perhaps we would have been alerted to the problem much sooner.

We did not conduct background checks on our employees. Had we, perhaps we would have weeded out some of the potential problem employees.

We did not have much in the form of loss prevention. Had we, perhaps we would have stopped at least some of the theft. There were so many areas that we had taken for granted. Although we were somewhat aware that our retail industry generally had a high shoplifting rate, we didn't think this could happen to us especially since our products were protected, or at least so we thought. Each individual cassette tape was protected by an oversized security case.

Now here is how it was supposed to work. The customer would take the security case with the enclosed cassette tape to the cashier who would use a special "key-like" tool to remove the tape from the security case. The customer then would pay for the item and the transaction would be complete.

Unfortunately this is how often it actually ended up. Shoplifters would simply steal the protective security case including the cassette tape. Then once outside of the store they would use a set of pliers or a large screw driver to pop the cassette out of the security device.

Another area that we lacked was Loss Prevention training. Had we, along with our entire staff been involved in even some basic shoplifting prevention training there is a good chance we would have been more aware and alert if and when a shoplifting incident was about to occur. Perhaps we would have learned how to better reduce at least some of the theft occurring within the store instead of becoming labeled as an easy shoplifting target.

Although this was an expensive lesson, it did make me more aware that we were not alone and every year tens of thousands of businesses go under do to shoplifting and employee theft. Most business owners work too hard to have profits walking out their door and often a few simple preventative steps can help protect those profits and perhaps protect the business from shutting its doors.

 

 

 

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

 

What are the Most Shoplifted Items

No retailer is safe when it comes to shoplifting. Retail crime is now a bigger problem than ever and effects the bottomline of virtually every retailer. Here are some of the Most Shoplifted Items. Some won't surprise you but some will.

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Shoplifting

 

 

 

 

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



Employee Theft - How to Stop Employees from Stealing

Sometimes your best customer is a shoplifter and your best employee is a thief

If you are in the retail business and you have employees there is a good chance that one or more of them is stealing from you on a regular basis. The US Chamber of Commerce estimates that 75% of employees steal from the work place and most steal on a repeated basis. On average, it takes more than 18 months for an employer to catch an employee who is dishonest and stealing.

Every year billions of dollars are lost to internal theft and it appears this figure is rising. This is especially tough on the smaller businesses which often are less able to absorb a loss than larger businesses.  A small business usually lacks the resources of a loss prevention department and loss prevention personnel therefore often internal theft can go unnoticed for a much longer period of time, sometimes it is never recognized.

With the rise in both shoplifting as well as employee theft a greater number of businesses are shutting their doors because losses exceed profits. For the first time employee theft has overtaken shoplifting as the number one cause of shrinkage which is of great concern.

Now although there may be more incidences of shoplifting the losses per incident for employee theft is much greater. According to the "Annual Retail Theft Survey" conducted by Jack L Hayes International. On a per case average, dishonest employees steal $665.70 or 5.9 times the amount stolen by shoplifters.

Statistic:

Employee theft alone accounts for about 33% of the businesses bankruptcies that occurred each year prior to the recession

 

 

Although it may be impossible to totally eliminate all internal theft a proactive strategic approach will certainly help to minimize this source of loss.

Following good hiring procedures, performing strict inventory controls and having clear policies if an employee is caught stealing will help. Also maintaining a good positive work environment will be a positive step towards reducing theft. But perhaps the most effective method of reducing theft is employee involvement in loss prevention
 

 

Make Your Employees the Solution

Some studies are now suggesting when employees are involved in the overall loss prevention process there is a reduction in all forms of theft including internal theft.

Including staff members in discussions regarding shoplifting issues during staff meetings can be a step in the right direction. Ask for their suggestions and feedback on areas that they would improve to reduce shoplifting theft. Also involve them in loss prevention training. The participation in Shoplifting Prevention Training by all staff members may be one of the most cost effective tools. Not only does training help to reduce shoplifting but it has been shown to reduce internal theft as well. Psychologists believe that employees who are involved in the process of reducing shoplifting tend to take a greater level of personal responsibility to reduce all forms of retail shrinkage including internal theft. Often they are more vigilant in keeping a closer eye on coworkers as well. Overall training sends all employees a strong message: that you, the retailer take all forms of loss extremely seriously.

 

For larger businesses direct training by a Loss Prevention Specialist can be a good method in the reduction of internal as well as external theft but may be cost prohibative for the smaller establishments. Smaller businesses with less than 20 employees may benefit from ongoing online training whereby each staff member including part timers participate on a fairly regular basis.

 

 

It is unlikely that employee theft will go away anytime in the near future and every business owner works too hard to have hard earned profits walking out the door, taking loss prevention steps will help keep more of thoses hard earned dollars out of the hands of both internal and external thieves.


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 infomation or question contact me at info@shopliftprevention.com
or go to www.shopliftprevention.com