How To Reduce Shoplifting

Fred has been finding empty packages all over his store for months now.  But he never seem to ever see the people stealing all his merchandise.  

That's because shoplifters pay more attention to what he was doing, then he does to them. 

But, Fred doesn't know who is stealing from his store.  So what is he supposed to do?

The most common reason shoplifters steal from a retail shop, is because they can.  No one in paying any attention them. 

  In my current position I  have supermarket customers coming up to me looking for help.   I see the fustration on thier face when I tell them I don't work there.  They all say the same thing.  "Nobody works here", " I can't find anyone".  

I see employees everywhere.  As a consultant it's my job.  But, customers shouldn't have to jump through hoops to get some help. 

Shoplifters take advantage of this void in customer service.  Everyone is busy doing thier job and no one is concerned with the customer down aisle 5. 

The best defense against shoplifting is a strong offense of GOOD CUSTOMER SERVICE !

Be aware of and greet every customer that walks in the door.   A large store should have a door greeter or security guard up front.   A small store should use a door chime and have the cashier's in sight of the doors at all times.

Watch your customers you will start to see things.  You see the customers who are walking out just because they can't find what they want, even though it's there. 
You will also see the Customers hiding in the back always looking to see who's watching.  

A real shoplifter will get annoyed when you watch them.  Annoy them enough they will leave.  A real customer will appreciate you helping them and may even buy more. 

A trick to use when your overwhelmed with too many customers to watch.  Page security!

See who looks concerned or walks out.

What is an Easy Store to Steal or Shoplift From?

What is an easy store to steal from?

It doesn't matter if you're from New York or California, from Boston or Miami.
Small stores are easier than large stores to shoplift from.

Small retail stores with few employees are easier to go under the radar when shoplifting. If your the manager of a small store it is your responsibility for shrink control. Train your employees about all forms of shoplifting.

15 ways in How shoplifters steal from retail stores

Don't ever forget who is the number one shoplifter in small retail stores. The employees are the biggest shoplifters stealing a lot more than a candy bar.

Professional Shoplifters are more likely to pick a small family owned supermarket before stealing from a large chain supermarket. why? Because even with a camera everywhere, its less likely anyone is paying attention.

  I worked for a small 14 store chain of closeout stores. One night after inventory the district manager put together A bag painting supplies. He explained they were painting the office. There was no accounting of the merchandise and the store manager didn't question it.

   Same store I caught a teenage neighbor of the owner stealing from the register. She was smart she didn't steal directly from the store. What she did was give the customers the wrong change. when no one was looking she would take money out of the cash Register. I caught her by watching for signs of a their and doing an audit. Because it was a small company and she was a friend if the owner, nobody seemed to care. "Well she wasn't stealing from the company", they said.

  Today that company is out of Business. Control Shrink or shrink will control you. I'm pretty sure it wasn't lack of sales or a low gross margin that killed that company. More likely it was Poor Management.

   If your reading this blog you are either a retail manager or a thief. Read my past posts and learn how to stop shrink. Then teach what you have learned. Pass on this blog to your fellow employees.

  Think Shrink !


How To Turn Pe

How to be a Better Retail Store Manager!

How do you be a better retail store manager?

Ask yourself.  "Do I want to be a better store manager"?

"Can I be a better store manager than the last one"?

"How can I be a better store manager"?

" What's the benefits of being a better store manager"?

Having a retail store manager job is something to be really proud of. Part of you still might be nervous about your new management job.

You've probably been training as an assistant 

retail store manager, so are well aware of

the misconceptions of the store manager's duties.

We don’t need to tell you it’s more than being in charge of the store and keeping customers happy.

Your  role will involve being in charge of just the store’s sales, keeping an eye on stock levels, reordering supplies and managing and motivating your staff .

 You’ll also need to set an example to your employees and stick to company policies . It's a lot of work being a retail store manager but it's worth it.

Not sure what skills you're going to require to do the job?

How to keep the team happy?

Motivating your employees will become one of the most important parts of your job, without their help you’re in big trouble, and could even go out of business. So how do you keep your staff happy while still getting their respect?

• Take an interest
• Keep them in the loop
• Compliments cost nothing

Keep in mind how your felt when you were in there shoes.   Things that motivated you will Motivate your employees.  Things that disgruntled you will do the same to them.

Management styles

If you’re still lost and unsure about how to manage your team effectively, don’t panic! There are several different styles of management you can try.

A Better Store Manager is a Hands on Retail Manager.

• Work with your retail associates.  Teach them the right way and the wrong way to do the task at hand.  Show that your willing to help out when needed.   If your the manager who sits in the office and only comes out on the sales floor the critique, expect disgruntled employees.   
• Lead by Example!  The Ruff-riders followed  Teddy Roosevelt into battle.  He didn't stand back and say go charge up that hill alone. 

The Delegator  

Although it’s important to be aware of everything that’s going on, don’t do everything yourself, remember as manager it’s now your job to get more done than you can do yourself.

As long as you know what needs to be done, you can delegate the work to the best person and your store will still run efficiently. 

Stay Calm and Collected

Stay calm in a crisis and leave the excitement to your staff; remember if anything goes wrong the staff will look to you to lead the way. 

As a manager, you are  responsible for the whole team. You are the voice of reasoning for the group when dealing with company-wide issues. If your team let you down, you have to take it on the chin, but equally if they do well, you can be credited with the success – and that is the most rewarding part of the job.


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Do Your Employees Steal From Your Store?

Do Your Employees Steal from your retail store?

Yes they do.  Call it what you will, someone is stealing from you.  Studies have shown that more than half of all employees have taken something from their job with out permission.  

Employee theft accounts for more than 50% of shrink in a retail store.  A lot of it happens right in front of you and your blind to it.

Do you know what happens when your not there?   I've seen employees go right up to the candy aisle and help themselves.  They don't even think there is anything wrong with it.  Well the boss knows, he lets us eat the open candy.  "Oops, this is open, now I can eat it".  

Family is worst of all.  They take for themselves, they give there friends all while other employees watch.  "What's good for the them is good for me too"!    

If your employees are disgruntled, they are more likely to steal from you.  So what can you do about it?

1. Set rules that everyone must follow, even you.
2. Damaged merchandise should be writen on a log, boxed up and labeled.  
3. If you decide to give away the damaged or open goods, they should be done privately.
4. Log all merchandise used for store use.  Only management should approve taking something for store use.  Store use is an expense, this log is needed for bookkeeping.  Not logging the expense causes shrink!
5. Employee purchases should be witnessed if not rung up by management.  
6. Employees should not be allowed to ring up friends or family with out management approval.  And should be witnessed.
7. If you do take merchandise for your own personal use from your business.  It should be done privately and be written down on a log for bookkeeping purposes.
8. Keep moral high.  You can be nice to your employees with out giving away your store.

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When is The Best Time To Go Shoplifting?

This post is written in the eyes of a shoplifter. In this way retail store managers have a better idea what to look for to catch shoplifters and lower shrink.
When is the best time to go shoplifting?

1. During the busiest part of the busy holiday shopping days. 
2. late morning when the lines are out the door. Before lunch / shift change fewer employees are in duty.
3. Dinner time, again when lines are long and before shift change. Less employees are in the store and the ones that are, are more concerned with leaving than looking for shoplifters.
4. End of the night. Again less employees in store. Manager is in back room making deposits.

Shoplifters will scope out your store and know who's usually where, when they come to steal from you.

The day after Holiday is the best time to take something off the shelf and return it for credit.  

1. shoplifters will have something to return with a real receipt. This takes the suspicion away from the shoplift theft.
2. Take 2 other items off the shelf.
3. Bring all 3 to the register and tell the cashier. You want to return items ( only one you have the receipt for). And buy the third.
4. This is known as the buy one steal one trick.
5. Find a receipt on the floor a few days before. Then return to the store with a bag. This looks as if you entered. The store with the item . Then take it off the shelf and to the register to return.  

These shoplifting practices work best in smaller stores.  Where the small retail store owners and managers don't know whats going on.   That's why they should read THE RETAIL CONSULTANT and see what they are missing!

Shrink Tip: How To Catch A Cashier Stealing from a Retail Store

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Cashiers in local retail shops today are smart.  They know that a local retail store is open 10 - 14 hours a day, even with cameras , its very unlikely they will be caught stealing money out of the cash register  You can't see every second of what' happening.

A savvy store cashier will be on the look out for when the store manager is not near the register or video monitor.   You should do a video review and a surprise cash draw audit randomly on each store cashier.

Having shrink controls in place to deter cashier shoplifting theft is your best course of action.   Its very important that only one cashier rings on a cash draw.  If something should be off, you have an idea who did it.

Things you should look for if you think a cashier is stealing from your local retail store.

•  Loose coins on top of the register.  May only be a few cents.  The cashier may use that to keep track of how much extra money is in the cash draw.  They may be shorting customers on change and storing it up for later retrieval.  The coins on top could mean there's that much extra in dollar bills in the register. 
• Do a surprise cashier audit on this register.  Take the draw to the count down room. With the cashier present, count it back and check the totals. 
•  The total should never be more or less than $2 off the reading.  Keep a log and watch for big unexplained overs and shortages in the register.

 If you catch a cashier stealing.  You can't under any circumstances let them continue to be a cashier.  Doesn't matter if its your sisters kid, it only says its ok to steal to every one else.

Remember a good store manager keeps calm, stays in control and is respected by their employees.  A manager who isn't, is more likely to have his or her employees take advantage of them. 

Be professional all the time. 

Control Your Shrink!
Don't let it Control you!

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What Should I do If I See Someone Shoplifting or Stealing From My Store?

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Catching a Shoplifter can be very tricky.  You have to be very careful or you can be in more trouble than the shoplifter. This is why many retailers find it's more important to deter shoplifting before it ever happens.  Here are some things to consider before stopping a shoplifter.

1. Know the Law.   You need to know all the laws in your Country, State, and local government.  More than Just those laws that have to do with shoplifting may apply.
2. Who saw the shoplifter?  Are you 100% positive the person still has the item concealed on them?  If you stop and accuse a person of shoplifting, you have to prove it!  Falsely accusing someone of shoplifting can cost you 1000's of dollars in law suits and legal fees.
3. Always have a witness.  After stopping a shoplifter, never go alone with them into a closed room or office.   If the person is of the opposite sex it is wise to have witness of that sex.  If you are accused of inappropriate behavior, even if your innocent it will cost you in legal fees to defender yourself.
4. Never use physical force to stop a shoplifter.  If a shoplifter gets hurt while trying to leave your store, you may be at fault.  If an employee gets hurt you may be at fault.   Either way you are going to pay legal fees to defend yourself.  Is it worth getting hurt or killed over a $10.00 item? 

Before you stop someone for stealing from your store, consider what it may cost you.  Is it worth it?  This is why more time and money is put into stopping shoplifting before it happens.

Bookmark and follow this blog to learn more on ways to deter shoplifting, and decrease the shrink it causes.

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15 Ways How Shoplifters Steal from Retail Stores and Create Shrink!

   A Shoplifter is described as a person who lifts or steals items from a shop or store.  There are many ways people do this. Here I will teach you the most common ways thieves steal from stores.  Once you know how they shoplift the more likely you will be able to spot them.
   
     Always be on the lookout for the odd person looking to see if he is being watched, also large groups and overly friendly people.  These overly friendly people usually distract you while their friends steal from you.

15 Ways How Shoplifters Steal from Retail Stores and Create Shrink!

• Shoplifters will Stuff merchandise in there pocket or conceal it in some way. Sometimes they steal the whole item. Other time they take it out of the package. 

• After all ready paying for one item at the cash register they walk back into the retail store and add things to their store logo shopping bag when no employee is watching.

• Thieves will put one item inside another. Such as putting a lunch box inside a school bag. If the cashier asks any questions the customer will say they thought they went together. Or they wedge merchandise inside wrapping paper tubes. A Thief will try anyway they can to hide the merchandise the want to steal.

• Shoplifters will open sealed boxes and put other loose items inside.An example would be opening a board game and placing a computer memory card inside the box. The Shoplifter then pays for the board game and  is getting the memory card free.

• Customers eat food while they shop. Leave the empty package and never pay for it a the register.

• Try on new shoes or clothing item and wear it out the of the store. Return to store with receipt for item purchased the same of different day and try to walk out with a new one waving receipt to prove he paid for it. If you don’t look at the receipt carefully you wouldn't notice it was and old receipt.

• Walks into store with nothing and brings item to register for return with no or old receipt. Just because some one hands you a receipt doesn’t mean they came into store with the item. They could of found the receipt on the floor and took the item off the shelf and try to return it for money. If you didn’t see the thief come in you have no proof. If you turn down the return he still walks out the door with free merchandise.

• They just carry items right out the door. Shoplifters wait until you turn your back and will just walk right out the door. Some times they use a partner that will try to distract the person covering the front door so the other person can take merchandise and walk out the door with it. I’ve seen a team of three work together. One drives the get a way car waiting in front. Second person distracts employees while third carries out full floor shippers or hand baskets full of merchandise right out the door into the car and takes off. The distractor acts like he’s not involved. They are so good at it sometimes you don’t notice it ever happened until you realize the display is missing.

• They don’t steal merchandise but from other customers. Picking pockets or stealing purses. Ever hear an announcement in a supermarket “ If you have the wrong cart please return it”. It is found down another aisle with out the purse that was left unattended.

• Shoplifters with take anything of value. A portable tv/dvd used for demonstrations. Put in a shopping cart and wheeled right out the door.

• Purposely letting very young children hold expensive items then walking out the door and having the child carry it. This way they can say it was an accident.

• Customer drops change on the floor over the register counter while cash draw is open. When cashier bends down to pick it up the thief takes money from register with out being seen. If seen he runs, if not you may end up blaming cashier for shortage. But whose fault was it. The Cashier or the managers for not teaching the cashier to never turn your back on an open cash draw.

• Counterfeit money. Thief may hide bad bills mixed in the middle of good ones so if you don’t look carefully at it you don’t notice.
  

  

• Confuse cashier while making change while still in middle of sale. Thief always walks away with more money then he should of.



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Retail 101: Controling Paper Shrink!

Because there are different kinds of shrink there are different ways to control it.  There are three kinds of shrink, Paper, internal and external.  Large companies have Loss prevention departments who's job it is to stop shrink.  The truth is the best defense to control shrink is education and training. 

                                      
PAPER SHRINK

Paper shrink is a mistake made on paper that causes a loss of money.  Putting the wrong price on an item and giving it to the customer at that price is a loss of money.  I hear all the time on TV news such and such  store was caught scamming people because the items are marked one price and the register scans another.  Every retail manager who hears this knows the store didn't do this on purpose. Somebody didn't do their price changes correctly.  Worse management didn't follow up and check to see that price changes were done correctly. 

A good manager audits the price changes to make sure they are being done correctly.

Signing for merchandise unseen is a major way to cause shrink.   When merchandise is received it needs to be checked for discrepancies.  Then the Bill when received must be checked again for price and quantity.  Make sure your only paying for what you got.  Even if your a large company who automates the check in process of company packed deliveries, mistakes happen. 

One mistake many retail stores make goes unseen a lot of the time. 

Example #1: You receive a case  packed 12 mini boom box radio's which scan at $9.99 each.  The Distribution center labeled the box pencils packed 144 with price labels $1.99 each.  No big deal you think just change the price stickers to read $9.99.  But you just lost $168.68 in paper shrink. 

Why?  You sell the 12 radios for  $119.88  your company bookkeeper thinks you received 144 boxes of  pencils and sold them for $286.56.  When you do inventory at the end of the year your short $168.68 and think it must of been stolen. 

Now what if that happens 10 times a year?  Well now that's $1,686.80  in shrink.  This happens every day.  If you don't find the errors and correct them you will shrink on your inventory. 

Train your employees to receive merchandise correctly.

Example #2: The meat department manager in a grocery store needs to transfer hot dogs from another store to his store.  So he goes to the nearby store asks for 5 cases of hot dogs to transfer.  He goes to the managers office and tells the manager he needs to transfer 5 cases of hot dogs to his store. 

The store manager takes out a manual transfer book and fill in the information. 

Without ever looking for himself he asks what are your transferring?  Hot dogs. How many? 5 cases  packed 12 each = 60 pieces total.  How much does it retail for?  $2.99. 

The department manager goes back to his store and hands in the transfer slip with out anyone ever checking in the merchandise.  Only the hot dogs are packed 10 to a case and the correct price is $4.99.  on sale for $2.99. 

So now two stores inventories are off.  One short and one over by $70.10.  

Train your employees to do paper work correctly.  Lead by example and never assume some one else did it right.  If you don't check it your self never sign your name to it! 

Last make sure you get a good count on your inventory.  If your stores a mess you will not get a good count.  You have to be organized, have not only your merchandise in order but your paperwork as well.