The Top Five Most Common Mistakes Retailers Make in Loss Prevention
Retailers must be vigilant and fight a never-ending battle to keep thieves and crooked employees from stealing merchandise.
That being said we’ve found that committing a few very common mistakes can hamper LP efforts, so to that end, below are are five of the biggest mistakes retailers seem to be making when it comes down to security and loss prevention:
No security cameras or “fake” cameras
Security is an investment, one in which you get what you pay for, as they say. Retailers who hang security camera signs (with no cameras) or install fake cameras — hoping this will deter shoplifters are hoping for the best — but not prepared for the worst. Cameras can deter both shoplifters and employee theft.
Poor placement of cameras
Think you know exactly where to place cameras in your store? You know the critical sites: checkout, outside dressing rooms, the back room, and entrance/exit to monitor customers and employees. The entire sales floor needs to be viewed to see between shelves and behind displays. Make sure you have cameras that can capture faces and license plates for prosecution (these are a specific product features…not all cameras offer that capability).
No CCTV with Digital Recording
It is difficult to find the time to watch your security camera feeds all day which means you might miss a fake slip and fall or a customer carrying an item out of your store. Digital recordings of events like these on DVRs are valuable to local law enforcement and in court. Having the ability to pull up what happened in aisle three on a certain day can help your store prosecute those who steal. This system can also be a deterrent to employees pocketing items. From sweethearting to clocking in for a friend, it can all be recorded to view on a TV screen or computer.
Choosing the Wrong Burglar Alarm System
Some retailers purchase a burglar alarm system — without fully considering whether the system they selected is the most appropriate for their needs. Some burglar alarms are just a loud sound to hopefully scare thieves away, others send alerts to local law enforcement. However, by the time the police arrive, there is little to detect with just a standard alarm. Motion, glass break and perimeter detection, as well as video remote verification, can provide quicker, more effective alerts. Another factor to consider: some insurance companies offer lower rates to business owners with UL-rated security systems.
Not Training Employees to Spot Shoplifters
Any new hire should receive training in spotting shoplifters. If you want to lower your shrink and build profit, have a training session for all employees to teach them how to recognize shoplifters. A reward for an employee that stops or spots a shoplifter is not a bad idea either. Training a new employee about this crucial area before he or she begins working in your store can be time well invested. And do not forget to train new hires to alert management when other employees steal.