Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

‘TIS THE SEASON - ALMOSTPREPARE FOR INCREASED SHOPLIFTING

A r t i c l e c o n t r i b u t e d b y B i l l C a f f e r t y ,R e t a i l L o s s P r e v e n t i o n C o n s u l t a n t

November 2010LP CornerA monthly publication brought to you by the Retail Loss Prevention department. Providing

Ace Hardware retailers with professional, cost-effective loss prevention services since 1994.

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While the “official” holiday season doesn’t begin for another three weeks or so, you’re already

displaying everything from indoor and outdoor Christmas lights and decorations to a variety of other

items that target the holidays. These displays seem to go up earlier and earlier each year; but then

comes BLACK FRIDAY and the real race to meet your financial goal begins in earnest.

As we all know, sales between Thanksgiving and Christmas typically exceed those of any other 30-

day period in the year. Unfortunately, losses to shoplifting will keep pace with, or even exceed, this

increase unless you plan for and consistently take the actions necessary to prevent increased losses.

Considering that the economy is at its worst point in years, with millions of people out of work with

little or no money to spend on Christmas, along with businesses reducing their workforce in order

to stay profitable, this year’s holiday season shoplifting problem is predicted to be the worst ever.

What to do - what to do? It really boils down to three key elements.

POLICY

• You must have a clearly stated policy (ideally in writing, provided to all associates and

discussed in a store meeting as soon as possible) that addresses the responsibility and

authority of store associates and managers during shoplifting incidents.

• You must have a PLAN - and it must be known by all associates. Following are just a few of the many concerns that must

be addressed in your shoplifting prevention plan.

Q: What does an associate do when he/she suspects that a customer is about to shoplift - or has shoplifted? Is the customer allowed to

(a) continue to shop and eventually walk out of the store and then be detained - or (b) should a pre-emptive action be taken, such as

approaching the customer and stating, “I see that you’re interested in (the item you saw them pocket) - is there anything I can do to

assist you in making your decision?”

A: (a) If the decision is to follow the customer outside and detain him/her, a manager/supervisor should the primary person involved

and should always be accompanied by an associate. If the customer is female, either the manager or accompanying associate should be

female. (b) If the customer is approached inside the store, be alert for that person's actions following the question about providing

assistance; look for him/her to dispose of the item(s); do not be flustered if the customer makes a comment like “What—do you think

I've shoplifted something?” Simply state you noticed that they were interested in the item and that you simply want to assist in any

way possible.

Q: What is the code word or code phrase that all associates know to use when a suspicious situation is observed?

A: “Mr. Black to the office” or any other common (bogus) announcement which alerts management to contact the associate who made

the announcement; or “Mr. Black, you have a call on line 11” - which would mean that something has or is about to happen in aisle 11

and any associate who is not busy with a customer should head that way.

Announcements &Upcoming Events

Retailer Team Meetings:

• Please contact us to be aguest presenter at your nextretailer team meeting!

Announcements:

• RLP has partnered with RiskManagement Services, Inc.to provide excellence in in-store services. Call us for more information or visit them on the web atwww.RMSLP.com

CONTACT US:Phone:(630) 972-2670www.acelossprevention.com

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‘TIS THE SEASON - ALMOSTPREPARE FOR INCREASED SHOPLIFTING

Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

Q: What does the cashier do when he/she sees two or three

teenagers walk into the store and split up, each going to a

different part of the store?

A: Sound the alert (e.g., “Mr. Black to the office.”)

Q: What do you do when you see a customer enter a

restroom with product and that product is not visible when

the customer exits the restroom?

A: If you have reason to believe that your restrooms are

frequently used by shoplifters, consider keeping the

restroom doors locked (with signage on the door to contact

an associate to unlock the door, and stating that merchandise

is not allowed in the restroom). Provide a key to all associates

with instructions to not allow customers to enter the

restroom with product. If, however, the restroom door is not

locked, immediately check the restroom, looking inside

every commode tank, as well as any cabinet or other

furniture with a door and, if appropriate, above the drop

ceiling, for packaging or other evidence. If the observed

product packaging is found, or if the product is small and

could have been secreted on the person’s clothing without

removal from the packaging, probable cause exists to

presume that the product is still in the customer’s

possession. It is important that surveillance of the customer

continue by another associate while the restroom is being

checked.

Q: What action should the cashier take when a manager

gives him/her the “high sign” that the customer who just left

the store is about to be detained for shoplifting?

A: Call 911, report the incident and request that a police

officer be dispatched to the store.

Q: What specific action/dialogue should take place between

the supervisor/associate and the shoplifter when approached

outside the store?

A: No touching; no use of the words “thief” or “steal” -

simply say “Excuse me,” identify yourselves and ask

him/her to please return with you into the store to “resolve

a discrepancy.” The customer will know what you really

mean. If they ask why, state that it is a matter that is better

discussed inside the store, rather than in public.

Q: What happens when the shoplifter refuses to accompany

you back into the store?

A: Advise the customer that if he/she does not accompany

you back into the store, that you will be forced to notify the

police (do not say that you have already notified them).

Q: What is the best way to accompany the shoplifter back

into the store; what room within the store do you take

him/her; and where do you seat the shoplifter?

A: One associate walks beside the shoplifter and the other

walks behind so that you will know if the shoplifter attempts

to dispose of the shoplifted item(s); designate a room for all

shoplifters to be taken; sit the shoplifter so that you can

constantly see his/her entire body, including their hands.

A: What do you do/say after seating the shoplifter?

Q: Advise the shoplifter of what they were seen doing and

ask for an explanation. Ask him/her to place the item on the

desk. Ask for identification. Record ID data and other

appropriate information on the Ace Incident Report form

(http://www.acelossprevention.com/upload/IncidentReport.pdf).

If the customer asks if the police will be called, advise

him/her that it is store policy to notify the police in all cases.

There is no need to volunteer that the police have already

been notified, but if asked, it’s OK to confirm.

Q: What do you do when the shoplifter, after being escorted

to the office, states he/she has to use the restroom?

A: Allow him/her to use the restroom, but with an associate

(same sex) in attendance. DO NOT allow the shoplifter to

close a stall door.

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Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

‘TIS THE SEASON - ALMOSTPREPARE FOR INCREASED SHOPLIFTING

Q: What do you do after 30 minutes and the police have not

shown up?

A: One associate leaves the room, calls the police (911) and

advises the 911 operator that a police officer has not arrived

and ask to speak to the shift sergeant so that you can be

advised as to how to proceed (e.g, continue to detain the

shoplifter, release him/her if you have their ID, etc.).

NOTE: If the shoplifter refuses to provide ID, this should be

made known to the 911 operator and shift sergeant, as it can

mean that you’ve detained a professional shoplifter.

• You must take necessary actions to deal with atypical

situations. Your shoplifting prevention measures

cannot be “business as usual” when the season or the

event is not business as usual.

For example, what additional or unique protective measures

are you planning to take to reduce the opportunity for

shoplifting the AFTER THANKSGIVING SALE items

that are, by their nature, more prone to being shoplifted?

Should you put one on display and keep the others secured;

should you display them all, but inside a locked display; or

should you just display them near a manned POS terminal?

Items in this category this year include (but are not limited

to) the “VENGEANCE” RADIO CONTROLLED CAR,

the CAMERA BINOCULARS and the CUP INVERTER.

These, plus others that are going to be unique Black Friday

items, must be recognized as having an increased risk of

theft and provided enhanced protective measures, both

physical and human.

HARDWARE

CCTV SYSTEMS: Do you have a CCTV system? Is the

DVR operating properly? Are all cameras operating and

properly aimed and focused? Have high-risk product

displays been moved, but the cameras covering them have

not? If you answered NO to any of these questions,

NOW IS THE TIME TO DEAL WITH IT!

NOTE: Obtain more information about recommended

CCTV systems at

http://www.acelossprevention.com/upload/CCTV

Surveillance in Ace Hardware Stores1.pdf and

http://www.acelossprevention.com/default.aspx?Id=CCTV

ELECTRONIC ARTICLE SURVEILLANCE SYSTEM:

If you have an EAS system installed, is it functioning

properly? When is the last time it was tested (walk slowly

through the pedestals with a tagged product in your hand)?

Are all cashiers trained on how to respond to EAS alarms?

NOTE: Obtain more information regarding EAS systems,

their use and policies at

http://www.acelossprevention.com/default.aspx?Id=EAS

PRODUCT ALARM SYSTEMS: If power tools are

displayed out of their boxes, do you have a power tool alarm

system that allows customers to handle them, while

protecting them from theft?

NOTE: Obtain more information about power tool and

other display alarm systems at

http://www.acelossprevention.com/default.aspx?Id=Product

Security

LOCKABLE DISPLAYS: Are the locks on all lockable

displays functioning properly? Do you have a “lock it up -

walk it up policy” (if the product is displayed in a locked

display, it must be carried to the POS by an associate)?

Remember, any item that is theft prone to the extent that it

must be displayed in a locked display should receive that

same degree of protection all the way to the point of sale.

MISCELLANEOUS SHOPLIFTING PREVENTIONTOOLS: Do you have “annunciators” mounted in aisles

that are out-of-the-way and where you either find evidence

of shoplifting or items displayed in those aisles are among

those most shoplifted? Annunciators and other shoplifting

prevention devices can be obtained from Se-Kure Controls,

our preferred vendor-partner for this type of equipment. Go to

http://www.acelossprevention.com/default.aspx?Id=Product

Security for more information on these useful and

cost-effective devices.

HUMAN

While the policies, procedures and hardware are important,

the absolute most important element of your shoplifting

prevention program is your workforce. It is vitally important

that every manager and associate is on-board with your

commitment to reduce losses to shoplifting. And what is the

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Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

‘TIS THE SEASON - ALMOSTPREPARE FOR INCREASED SHOPLIFTING

single most important thing your team can do in addition

to following your basic plan?

PROVIDE GREAT CUSTOMER SERVICE!

• Shoplifters like privacy and do not like attention. Ace

Hardware is known for its outstanding customer

service, and it is customer service that not only

promotes sales and retains customers, but also reduces

losses to shoplifting. From the friendly greeting that

cashiers give each customer as they enter the store, to

the attention that floor associates pay to them, to the

“did you find everything you were looking for?”

question asked by the cashier when checking them

out, it is the combination of these actions that do

more to reduce shoplifting than any camera system or

shoplifting prevention device.

• When approaching a customer, take the magic

question “What can I help you find today?” one step

further. If you see a customer looking at circuit

breakers, for example, ask “Which circuit blew in

your house?” If you ask a question that is specific to

the product and get a quick answer, chances are the

customer is legitimate; however, if the customer does

not answer immediately or stammers or hems and

haws, you may have just interrupted the thought

process of a shoplifter, and thus it is appropriate that

you pay extra attention to that person.

• A store - or an associate - cannot be criticized for

providing too much customer service. Do not be

deterred by “I'm just looking” or “I don't need any

help.” Be persistent in your dedication to provide

world class customer service.

The above recommendations are not all-inclusive, but

rather are intended to speak to the primary elements of a

shoplifting prevention program. If there is a unique situation

at your store that is not adequately addressed here, please

contact Retail Loss Prevention and discuss your concerns

with one of our loss prevention professionals.

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SALES + LOSS PREVENTION = GOOD BUSINESS

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