While temporary store closures due to the Covid-19 Pandemic resulted in fewer thieves being caught stealing in 2020, the average shoplifting case value increased 13.0% and the average dishonest employee case value increased 3.8% over 2019. As expected, the Covid-19 Pandemic clearly affected apprehensions and recovery dollars in 2020, with shoplifting apprehensions and recovery dollars down 43.8% and 36.5% respectively; and dishonest employee apprehensions and recovery dollars down 20.3% and 17.2% respectively. However, those participant retailers designated as “essential”, saw overall apprehensions rise 7.9% and dollar recoveries increase 9.1% during 2020.
SHOPLIFTING
Reasons cited by survey participants why their Shoplifting apprehensions and recovery dollars increased or decreased in 2020:
Increased:
. ORC continues to be primary factor
. Less stores to choose/steal from
. Major increase in “theft for need”
. Increasing felony thresholds
. More ‘hit n run’/fleeing shoplifters
Decreased:
. Store closures; less shoppers
. Deterrence focus during pandemic
. Fitting rooms closed extended time
. Focused on better customer service
. Less LP/AP staff during transition
Shoplifting Prevention Tips
. Use a Greeter: Position an associate at store entrance(s) to greet all customers and offer assistance.
. Focus on good customer service and not ‘tasks’: Shoplifters want and need privacy; so take it away from them. When they respond, “I’m just looking”, teach associates to say, “Ok great, I’ll keep my eye on you in case you need any assistance”. Honest customers are ok with this, and this is the last thing a shoplifter wants to hear.
. Have associates walk the sales floor: Keep visible, and keep displays neat and organized (so missing items can be more easily noticed).
. Have good sight lines on the sales floor: Do not block the view of high value/highly popular items.
. Limit item quantity on sales floor: Limit the number of high value/ highly pilferable items on the sales floor. This will reduce vulnerability to large losses of these items.
. Hire honest and motivated associates: Train them to prevent shoplifting (what to look for, how to respond to a possible shoplifter, etc.).
. Store Location: Stores facing parking lots need to keep an eye on area outside of store for possible get-a-way car(s) setting at the curb.
. Control Fitting Rooms: Lock fitting room doors and monitor usage.
. Use/Manage technology: EAS, CCTV, mdse alarms, ink/dye tags, product tie-downs, Keeper boxes, etc. must be managed. Also ensure P&P regarding technology is adhered to.
. High Shoplifting Stores: If needed, use off-duty police or guards.
. Communications: Talk with other stores in your center/mall to stay current on local theft issues.
. Prosecute shoplifters: Thieves know which retailers prosecute and those that do not. Prosecution can be a good deterrent.
EMPLOYEE THEFT
Reasons cited by survey participants why their Employee apprehensions and recovery dollars increased or decreased in 2020:
Increased:
. More focus towards associate theft
. Improved technology/analytic tools
. Fewer associates; less supervision
. Increase in loyalty card fraud
. Increase in discount abuse cases
Decreased:
. Store closures; less associates
. Less focus on apprehensions
. Additional technology at POS
. Reduced travel by LP/AP staff
. Decrease in LP/AP staff
Employee Theft Prevention Tips
. Pre-Employment Screening: The first step to controlling employee theft starts at the point-of-hire; do not hire the “bad apple”. Money spent up-front in the screening process to identify ‘quality’ associates will result in savings from reduced turnover and losses.
. POS Exception Monitoring: Use an up-to-date POS exception-based monitoring program to quickly identify possible fraudulent transactions at the point of sale.
. Confidential Reporting Line & Reward Program: Establish and promote a confidential line and reward program for associates to report acts of theft and abuse.
. Training & Awareness: Invest in a loss prevention training and awareness programs for both new-hires and current associates.
. Door Controls: Keep overhead doors closed/locked, and designated emergency exit doors alarmed to prohibit unauthorized use.
. Trash Controls: Supervise the trash removal process, use clear bags, flattened all cartons, and keep dumpsters locked where possible.
. Package/Bag Checks: Conduct a package/bag check whenever an associate exits the location.
. POS Controls: A key-holder should witness and verify refunds, voids, price overrides, etc.
. Sales Verifications: “Pass-outs” are an easy way to steal with friends, so have management conduct daily unannounced sales verifications to ensure all product sold was properly rung thru the POS register.
. Opening and Closing Coverage: Where possible, at least two associates (one a key-holder) should always be present at the opening and closing of the store. This is both a security and safety issue.
. Auditing for Compliance: Ensure consistent compliance to company P&P by conducting unannounced loss prevention/shrink audits on a regular basis. Auditing not only helps keep awareness high, but by reducing the opportunity, you reduce the chance of theft/loss. $
The full survey can be viewed and/or downloaded/printed from on our website at:
