Archive for March, 2010

eBay Teams With Retailers to Fight Theft

March 29, 2010

Working Together
Last week, the National Retail Federation and eBay announced that they will be teaming up to fight organized retail crime.  Together, they’ll be working with the FBI to help identify illegal items being sold on-line. And they’ll work with legislators to draft anti theft legislation.

Significance of this agreement
There are many reasons this is an important step in the fight against shoplifting and retail theft. I’ll just touch on a few of them.

Retailers

  1. First and Foremost this is an important step forward because it recognizes that eBay and other online sites are often used to sell stolen goods. Some online auctioneers, sellers and buyers have said that there is nothing to this allegation. They say it’s just retailers slamming lower priced competition.
  2. To the extent that it cuts down on fencing operations that turns stolen property into cash, it will help in the fight against shoplifting. Over the past several months eBay has implemented programs to help fight the sale of stolen merchandise.  This is another step in that direction.
  3. eBay brings some important technological expertise to the table. Hopefully they can identify problematic selling patterns.

Consumers

  1. For the consumer the agreement may add a level of protection. Many honest people wouldn’t, I believe, knowingly purchase stolen goods. But they might not ask why a product is priced so low. They’re just happy to get a good price.
  2. Stolen goods are sometimes out of date, spoiled or not maintained and stored properly. Particularly as this relates to food, health and nutritional items, this can be a safety issue for consumers.

Online sales are often very cost-effective and a good source of products for consumers. It’s valuable for retailers as well. Retailers can find supplies and new markets. But traditional retailers and online sellers have often been at odds over issues related to the sale of stolen items online. So eBay’s move may prove be a significant step to help make sure that online retailers are both reputable and competitive.

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Grocery Story

March 19, 2010

From the Momlogic website comes this interesting, and understandable story.

Freelance publicist and mom Christina Montoya Fiedler was at her local grocery store with her small son. It was a busy day at the store and a busy day for Christina. Rushing through the store and through the checkout Christina thought she was on her way.

anyone can be a shoplifter (from Momlogic.com website)

As she passed Ralph’s Checkpoint Electronic Article Surveillance antennas at the door, the alarm sounded. Christina did the right thing. She stopped, talked with the security guard, showed him her receipt and bags. The guard found eight packs of $9.00 batteries that hadn’t been rung up.

Now, Christina is a regular customer at this store. She appears to know the cashier well. Christina responded properly and respectfully to store security. Turns out that her little boy grabbed the batteries while she was checking out.

Do We Look Like Shoplifters?
Like many in this situation, Christina was beginning to question the situation.

Seriously? Did we look dangerous? To my rescue came our checker — the dear lady who we checked out with nearly every time we came, but only because she gave us a balloon and endless patience.

How Serious a Threat is Loss
Christina probably understands that shoplifting is a very serious concern for supermarkets.  She may not understand how serious.

Supermarket News says “shrink” (theft, loss and errors) equals the total profitability in some stores. National research shows average per store loss due to shrink is approaching half a million dollars per year. Supermarkets which run on very tight margins might have to sell nearly $1000 worth of product to make up for the $72 that almost walked out the door.

Respectful, Upstanding Regulars… Shoplifting
Christina may also not understand that shoplifters are often regular customers and people who appear to be respectful, honest and upstanding citizens (all of which I’m sure she is). Stores I work with often tell me of regular customers and people with good careers who they’ve caught stealing.

Successful Loss Prevention
Supermarket security and management seem to have responded properly and respectfully in this situation. They should respond to each anti-shoplifting alert…not in an accusatory manner, but in a questioning way.  Even as this was not a case of shoplifting, it certainly was loss prevention.

Lessons Learned
So thanks to Christina and Ralph’s Supermarket for these important reminders.

  • Loss Prevention also stops inadvertent product loss
  • Shoplifters don’t have a particular look
  • Many shoplifters also make purchases
  • Respond to each alarm
  • Respond respectfully, in a non-accusatory manner. Mistakes happen. You won’t lose a good customer.

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The Shoplift/Return Cycle

March 12, 2010

Drowning in Merchandise
From Madison, Wisconsin comes this report of three women arrested for shoplifting. “Drowning in merchandise,” said a police spokesperson. “There was brand-new merchandise filling the entire passenger compartment of the car.”

"There was brand-new merchandise filling the entire passenger compartment of the car," according to police. (note: image is not car apprehended)

The arrested women said they were part of a group that targeted a particular group of stores. Police filled up “seven or eight” large garbage bags with items from the car.

Converting Stolen Goods to Money
After being arrested one of the women told police how easy it was to return items to stores to get gift cards. In fact, police found gift cards from several stores along with the stolen merchandise.

This is just one of the ways thieves convert your stolen goods to cash.

What Can You Do?
Here are a few suggestions to help fight this type of theft.

  1. Protect Your Merchandise – as with all aspects of shoplifting, your normal loss prevention techniques will make it more difficult to steal from you.
  2. Ask for Receipts for returns – and offer gift receipts when requested.
  3. Notice Unusual Return Patterns – Do you have customers who seem to return an unusual number of items?
  4. Returns from Other Stores in Your Chain – If you are a chain store, take notice of unusual patterns of returns from your sister stores.
  5. Keep Abreast of Thefts in Your Area – Do returns match items reported stolen from area stores?
  6. Re-tag Returned Merchandise – If you use Electronic Article Surveillance, Benefit Denial or similar anti theft devices, be sure to tag returned products before putting them back on your shelf.

Please share your techniques to help fight the shoplift/return cycle.

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Enhanced Performance With Your EAS System

March 10, 2010

Once  you’ve installed an Electronic Article Surveillance (EAS)  System, you want to tag your highest theft products.  With your smallest items you often face size limitations. As a rule of thumb it’s said that smaller tags mean a lower detection rate.

Checkpoint Enhanced Performance labelsEnhanced Performance Labels
This rule of thumb is no longer entirely correct.

Meeting the challenge, Checkpoint Systems, the industry leader in radio frequency based EAS systems, has successfully developed smaller tags that match the performance of their own high quality standard anti shoplifting tags.

Called Enhanced Performance tags, Checkpoint’s newest line of tags are as small as one inch square, or 33 mm (1.29″) round. This allows retailers to protect smaller, previously difficult-to-protect items like health and beauty products.

As a retailers, you can securely stock more items on your shelves, enhancing sales.

How well do they work?
According to Checkpoint, TUV Rhineland, an independent group that documents quality and safety, evaluated the Enhanced Performance Labels.

TUV found that EP labels enable Electronic Article Surveillance (EAS) systems to provide better detection compared to larger labels using standard technology.

And, when combined with the latest Evolve RF anti shoplifting technology (we’ll discuss that another time), Enhanced Performance labels can get up to 60 percent better detection and up to 30 percent wider aisle lengths.

How are they working in the real world?
Very successfully. In early March, Checkpoint announced that more that 1.5 billion of the labels have already been shipped. That a record sales rate for any EAS label. They’ve been embraced by large retailers and source tagging manufacturers.

Are Enhanced Performance Labels For You?
Maybe.

  • If you have smaller products that need to protect
  • If you are having detection problems with certain products
  • If you’re using lower quality labels and having “reactivation” issues

Then Enhanced Performance Labels may be for you.

Call (866-416-0999 or 847-972-6540)  or email American Theft Prevention Products. We’ll help you find the best anti theft tool for your application.

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Thieves are “Targeting” TurboTax

March 4, 2010

An obvious example of Organized Retail Crime.
A group of shoplifters are focusing on a specific product…TurboTax (Deluxe and Premier).  And they’re stealing it in large quantities. It’s a bit unusual that they are concentrating on a single chain of stores. Reports are that “every  store from Titusville to West Melbourne” has been hit. That’s about 45 miles away. They’ve taken more than $7,000 worth of software.

TurboTax is being "targeted" by theives in South Florida

Click on the image to see the news report and video

According to the news report “One other puzzling element is that the stolen software may not have the lasting value of other items, like jewelry or electronics, considering most people only use the software up until the April 15 tax deadline.”

What The Reporter Didn’t Understand
It’s true that shoplifters often like products like electronics and jewelery, with a lasting value. They also like anything they can use or resell. Boxed software is extremely easy to sell.

So now, at a time when TurboTax is in great demand, it is particularly vulnerable to theft. It’s not clear why the reported called this aspect of the theft “puzzling.” I don’t think most retailers would agree.

Why Target?
I’d say that’s “puzzling.”

But one thing I do know. Target has an extremely sophisticated and aggressive anti theft program.  You can bet they’re looking at why them.  And to other retailers, it reminds us that there is no easy solution.

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Are Your Anti-Shoplifting Efforts Effective?

March 3, 2010

You’re concerned about shoplifting because you know you have a problem, or you believe you do. No matter who you are, no matter how large or small your business, no matter how well-funded you might be…your resources are limited.

So after you’ve implemented an anti-theft effort, take a look at your return on investment. From the US Department of Justice, Office of Community Oriented Policing Services (COPS) (and some I’ve added) come these hints that your anti shoplifting efforts are successful:

Potential Indicators of Your Effective Anti Shoplifting Efforts:

  • Fewer Repeat Offenders
  • Decreased Shrinkage
  • Change in Number of Apprehensions
  • Reduced Shoplifting Attempts
  • Shift in Products Lost
  • Increased Sales
  • Increased Profit

What would you add to this list?

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Small Retailer Anti Shoplifting Grants

March 1, 2010

Most small retailers recognize the need for loss prevention and anti shoplifting programs. Research shows the biggest hurdle keeping storeowners from implementing these programs is the sense that it costs too much.

Yet techniques and tools can almost always be implemented that will show a positive return on investment.

American Theft Prevention Products works with retailers to help prevent theft.From our friends in the UK comes this innovative program to help showcase the positive impact of implementing anti theft programs.

The Small Retailers Capital Grant Fund
Announced last August the British Home Office developed a program offering grants to help small businesses implement anti theft tools. The aim of the program was

  • to reduce the risk and occurence of crime against small retailers…
  • to show creative and effective means to tackle crime against small retailers which can be shared more widely in the business community

The fund offered around a thousand grants worth up to £3,000 (≈ $4,600) to individual businesses or £50,000 (≈ $76,000) to groups of retailers working together. The total allotted for the program was £5 million (≈ $7.63 million).

Suggested uses for the grants included shoplifting alarm systems, cctv systems, benefit denial products like ink tags, as well as other creative anti-theft related programs that retailers might develop.

(note to British readers:  Grant applications were due last September.)

Why Offer Security Grants
The purpose was simple.  While overall “acquisitive crime” (i.e. theft)  in the UK is down, “shop theft” (shoplifting) increased by 10%, according to 2009 British statistics.

Small businesses are an important part of economic growth, especially as our/their economy struggles. Reducing theft has a wide economic impact, helping economically secure businesses and jobs as well as stimulating growth.

What About in the US?
I’m not aware of any similar programs here in the US. If you are, or if you’d like to work with me to see what can be done, leave a comment here, or email info@AmTheft.com.

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