5 Approaches to Lessen Retail Theft & Shoplifting In Your Business

U.S. companies lose around $60 billion yearly to retail shrinkage. The vast bulk of the reductions are attributable to retail theft. Before your business can stop shoplifting and decrease shrinkage, you have to implement careful stock management. Once that is set up, there are a number of affordable approaches to reduce retail theft at your company.

Among the main theft-prevention tools you can implement will of course be a safety system. ADT provides video surveillance, burglary monitoring, panic buttons, and a number of other services which will help safeguard your assets. Click here to get a free quote.

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5 Steps to Reduce Retail Theft & Shoplifting

1. Identify Wherever Your Losses Are Coming From

Before you can reduce retail theft, then you need to understand who is accountable for your own losses. According to some 2017 study by the National Retail Federation, there are 3 main reasons for retail loss, also known as shrinkage.

Your Customers

Shoplifting accounts for around 37 percent of retail decrease in the United States. Items can be obtained for personal use or resale. Health and Beauty, attire, and electronic stores are most vulnerable to this kind of theft. Ensure offense policy is contained in your insuranceplan.

Your Employees

In the united states, employee theft is the primary cause of retail psychologist. In reality, it makes up roughly 30 percent of merchants’ total shrinkage. There are a variety of reasons that employees steal from their companies. Some desire to give buddies a bargain (sweethearting)others are dissatisfied with their employers/bosses, and a few steal because they need extra money. We’ve written about how a modern POS system can considerably decrease this kind employee theft.

Additional: Providers, Contractors, Management, and Administration

The remaining 34 percent of retail theft has been immobilized on suppliers and contractors and management and administrative errors. Suppliers and contractors may overcharge you, leading to costs for services or products that you never really obtained. Small businesses with more informal/less-organized contracts are especially susceptible to this kind of theft. Management and administrative mistakes, such as mismanagement of stock (ordering too much solution, etc.) and pricing items incorrectly would both be examples of errors that will add up to substantial losses.

Read how to utilize Lightspeed POS to manage inventory and reduce theft.

2. Teach Your Employees

Your first line of defense is your staff. You need to educate them how prevent shoplifting and employee theft.

How to Reduce Shoplifting

Some common ways workers can help with shoplifting prevention include:

• Be aware at particular times like peak hours, opening, closing
• Keep an eye on shoppers with bulky clothing, handbags, strollers
• Be aware of common tactics like label switching, returning product, theft in changing rooms
• Pay attention to shoppers who spend too long viewing staff, those entering and exiting the shop without purchasing anything, and several people in a dressing room

Most times employees don’t have to intervene. They can simply ask whether a shopper wants help. This can be enough to prevent shoplifting. If you do have to intervene it’s probably best to get a manager or call the police.

How to Prevent Employee Theft

The best way to prevent employee theft would be to educate them on the measures you’re taking to prevent it.

• Explain that you’re monitoring inventory
• Tell employees what is being accepted and how much
• Describe any measures you’re taking to prevent employee theft such as video cameras

3. Organize Your Store and Setup Signals and Mirrors

Store Organization

Nearly all shoplifters steal in response to an urge. The National Association for Shoplifting Prevention (NASP) conducted a poll which found that around 73% of shoplifting incidents are not premeditated. With appropriate deterrents in place, shoplifters are much less inclined to really act on their impulses. Here are some ways to arrange your store to get better shoplifting prevention:

• Have open floor layout so the Majority of the store is observable
• Keep screens from moving to high and separating shop visibility
• Keep often or most easily stolen things are nearer to the cash register
• Have your checkout near the front of the shop instead of at the back
• Design it so cashiers have a clear line of web site throughout the store while they checkout shoppers
• Order lighting so there are few if some dimly lit areas

Should you want more help in preparing your shop design take a look at our step-by-step instructions.

Setup Shoplifting Signs and Security Mirrors

We predicted Joe Frawley, former police sergeant in Cambridge, MA police department and also former owner of Eastern Security Inc, to chat about decreasing retail theft. He said that among the most important things is to put up shoplifting signals like the ones below. These signs are important not only as deterrents, but also for legal reasons. If you ever intend to take a shoplifter to court, you need to have your shop submitted. Joe also mentioned the importance of safety mirrors. If there are areas in your store which have taller shelving or are more secluded, security mirrors can be a fantastic low-cost hindrance option.

4. Install Surveillance Equipment

Though training, signs, and mirrors are usually enough to lessen retail theft for the small business operator, another step up in security is installing surveillance equipment such as smart phones and RFID tags.

Fake Surveillance Cameras

A very cheap way to use cameras to avoid shoplifting is to buy a fake security camera. They can vary from only a couple of bucks to a few hundred dollars depending how realistic they look. For example they may come armed with faux lights, rotate upon the store, etc..

Video Surveillance Systems

Video security cameras not only permit you to check on your own customers/employees, they also supply an evident visual deterrent to would-be shoplifters. Although innovative security camera systems can be expensive, a fundamental system does not have to be. In fact, like most electronics these days, security camera programs have observed their quality drastically improve while their prices have dropped. Today, a fantastic multi-camera system with a DVR or NVR can operate as much as $200.

Discreet cameras are not really the best option. Be sure that the camera is obviously a camera and large enough to see clearly. These cameras are especially effective when paired with a monitor that’s placed in a public space where people can see themselves .

For all the information you need to pick the right safety camera and system for your small business, visit our guide to the best security cameras.

Premium Video Surveillance/Analytics System

The most recent thing in retail security is known as video analytics software. This is a high-end video surveillance system which digitally monitors your customers and employees in real-time and alarms you when it senses suspicious behavior. Additionally, it allows you to look up any trade and see the video footage related to any product on the reception.

Stoplift is among the largest movers and shakers on this industry, and among their systems will cost between $7,000-$8,000 in startup costs, based on the quantity and quality of cameras needed, and then around $300 a month in service charges for an 8 voucher retail shop. Stoplift also has the power to incorporate with video surveillance programs which are already in place.

Two other providers of innovative security methods are SimpliSafe and ADT. You can read our in-depth review of them both here.

Although relatively costly and likely overkill for most small-business owners, video analytics software will not have the capability to significantly reduce retail theft and free you up to focus on other areas of your business.

RFID Tags

Retail RFID tags are sticker or pin-tag radio-frequency identification devices that connect to your products. If a customer walks out with a product that still has an RFID tag on it a detector alert near the door will go off.

RFID tags differ in cost, depending on the amount of elegance and range. A refurbished method will often be cheaper and just as effective. It is possible to find several different refurbished RFID package options here which include 1000 tags, 1-2 detector wands, and several label removers for between $2,000-$5,000.

Though professional thieves can bypass this system utilizing foil-lined buying totes, RFID tags are a good choice to discourage the majority of shoplifters.

5. Hire a Security Guard

If you’re looking to hire a security guard, expect to pay around $15-$25 an hour to get unarmed guards to about $50-$100 an hour for an armed guard. Depending on the form of security guard as well as your geographic location, it could cost your business about $40,000-$100,000 annually.

Uniformed guards are a great visual deterrent, but also have the potential for making faithful customers uncomfortable. Plainclothes guards are often more effective in capturing thieves, because they look like a regular customer, but are not nearly as effective of a general deterrent.

If you just want to test drive having a safety guard or want one right away for a short while, think about working with a company like Bannerman Security. They provide on-demand protection guards. The guards may work stores, restaurants and bars, office parties/events, and office lobbies, plus a whole lot more.

All of their guards pass background checks from the FBI and DOJ, but in addition they get rated by other Bannerman users. Price is around $35 per hour. This can be an extremely reasonable way to try out a security guard at your business. If it appears to be a good fit, you can undertake a search to get a fulltime guard. When it’s not a fantastic match for your business, no problem.

Currently, Bannerman only works in New York, Los Angeles, San Francisco, and Sacramento but they have plans to expand to other cities soon.

Bottom Line on Reducing Retail Theft & Shoplifting

Although retail theft may be a big problem, the fantastic thing is that there are an assortment of theft-reduction solutions out there for the small business-owner.

1. Identify Where Your Losses Are Coming From
2. Teach Your Employees
3. Organize Your Shop and Put Up Cameras and Signs
4. Insert Surveillance Equipment
5. Hire a Security Guard

If you decide that a full-fledged security process would be the best path for the company to take, be sure to see ADT and get a free quote to see how to safeguard yourself without breaking the bank.

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