External loss prevention
External loss prevention
Place small, easy-to-steal items in displays that are harder to reach. Talk about inventory protection during team meetings and provide proper training. Train Employees on Loss Prevention Loss prevention is much more than preventing internal theft; it is also preventing external theft and preventing fraud-related activities. Surveillance cameras enable you to catch shoplifters before they ever leave the store, and signage reminding customers about cameras and your willingness to prosecute shoplifters can go a long way in deterring that behavior. Since the dishonest associate represented the company, the reputation of the company may have been tarnished, relationships with business partners may suffer or terminate, and the possibility of lost business opportunities with new clients. Require an ID to track returns: Regardless of your return policy and staff training, some fraudulent returns slip through. They can also include the inaccurate counting of merchandise to improper discounting and mistaken sales transactions. Failure of the former associate to pay the civil restitution may result in the company filing a civil lawsuit. This could be a single guard who stands by the entryway or a third-party security company which specializes in preventing retail theft. Although some may wonder why employee theft would be the largest category of loss, hands down, every survey, study and comparison across industries has shown time and time again that those who steal from a business the most are employees. These are one of the most common and effective loss prevention tools you can use. The last major area of loss in retail operations is through errors. Because associates have access to the entire building and during non-business hours, they are capable of costing the company substantial losses over a longer period of time. American Apparel, for example, used video recordings to analyze foot traffic and how customers moved through the store.
Why do you need a loss prevention function? She also encourages staff to move about the space, making their presence known not only from an LP standpoint but also for customer service.
There are a few scenarios where a certified loss prevention agent will pull an associate based on a tip, rumor, or intuition and conduct a "cold interview" to attempt to acquire a verbal admission, but most companies do not allow cold interviews, as the implementations of the interview may be perceived by the associate to be an accusation of theft and have issues with civil liabilities that may result.
Most losses occur in three categories; internal theft, external theft and through errors. One must observe the subject exit the store.
Loss prevention ideas for retail
These errors can include the inaccurate counting of merchandise to the improper discounting or accounting of a sale or tender. State laws vary and allow business owners or representatives of the company to detain shoplifters with "reasonable force" for a "reasonable amount of time" until law enforcement arrives. Talk about inventory protection during team meetings and provide proper training. External theft[ edit ] External theft is when customers intentionally cause shrink by theft, fraud, or vandalism. Theft occurs less in establishments that have great engagement, which for a thief means fewer opportunities. Require an ID to track returns: Regardless of your return policy and staff training, some fraudulent returns slip through. Others are desperate who will steal essentials for their family, but only if they have the opportunity. Several companies have designated trained individuals who are allowed to detain shoplifters according to company policy. Recent Posts. Loss Prevention is the concept of establishing policies, procedures and business practices to prevent the loss of inventory or monies in a business.
Detaining an individual who did not take merchandise is referred to as a "bad stop", and depending on the severity of the situation and if force was used against the innocent business patron will depend on the severity of the consequences for the loss prevention agent.
Several companies have designated trained individuals who are allowed to detain shoplifters according to company policy.
Loss Prevention What is Loss Prevention? Some of the typical elements are: Observe the subject enter the store or department Observe the subject select merchandise Observe the subject conceal merchandise Know what the subject selected and where it was concealed Maintain unbroken observation of the subject In some companies, entering a restroom or fitting room is broken surveillance and elements must start over.
Like any other part of your business a loss prevention function or established program helps make the business better. Most losses happen in three categories: internal theft, external theft and through errors.
How do I know if I may have a loss prevention problem? Measure your video data against other analytical data, such as what departments experience the most theft, or what makes an area most vulnerable to theft.
Retail loss prevention tips
You can use basic cameras that simply record the scene or employ more advanced technology. How does an administrative error translate to retail losses? While each company will approach loss prevention differently, every business should have a loss prevention culture and a clear plan in place. Cameras covering registers can reduce and deter point-of-sale POS fraud. If your store carries expensive or frequently shoplifted items, consider locking them away in a case. To guard against chronic and emergent sources of loss, retailers need to be proactive in implementing loss prevention strategies. Video surveillance systems and access control systems not only help identify problems and reduce theft, they add value to the top end of the company by improving productivity, enhancing safety, and much more. In a lot of theft cases, the company loses property that cannot be returned or recovered. If a customer tries to walk out of your store with a tagged item, the EAS will alert them and your staff along with the rest of the store. Administrative error. For a more human touch, consider hiring security staff.
In a lot of theft cases, the company loses property that cannot be returned or recovered.
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