subject: Eight Options For Ending Inventory Loss [print this page] Retailers are in a severe predicament regarding the protection of their merchandise. Risk arises from waste, mistakes, accidents, and theft by staff, vendors and shoplifters. In addition to loss of inventory, additional risks, such as being vulnerable to civil lawsuits, hover everywhere a retailer turns.
Shoplifting alone presents the following maze of difficult decisions:
1. If store policy is to not detain shoplifters, that fact gets out and the store attracts thieves.
2. If a shoplifter is detained but not prosecuted, that fact gets out and the store attracts thieves.
3. If a store detains a shoplifter but only prosecutes if over a certain dollar value is stolen, it gets out that a thief can shoplift up to a certain amount without fear of prosecution.
4. If store policy is to arrest and prosecute regardless of the amount taken, law enforcement, the prosecuting attorney, and the legal system will take issue.
5. If a shoplifter is arrested and prosecuted but found innocent in court, the store is vulnerable to a lawsuit.
6. If store policy includes arrest and prosecution, but for some reason, e.g. a staff member in charge of security was not subpoenaed or is an ex-employee whose whereabouts are unknown, and the case is dismissed by the legal system or prosecuting attorney, the store could be exposed to a lawsuit.
7. If a shoplifter is detained and released without signing an admission, the store can be exposed to legal action for false arrest.
8. If a shoplifter is detained and released after signing an admission, the store can be exposed to legal action for being accused of its agent committing extortion to obtain the signature, e.g. made a promise or threat to get the signature.
9. If a store detains but has a no force policy, it becomes a target for thieves since, if caught, they simply have to pull away or resist and walk.
10. With a no chase policy, it gets out that a store is an easy target, since a shoplifter need only run to escape.
11. If store policy is to detain and use reasonable force, it risks injuring bystanders, and the thief and store are vulnerable to legal action on the grounds of negligence or use of excessive force.
12. If store policy is to detain and use reasonable force, it takes the chance of injured security staff and being exposed to claims for workmans compensation.
13. If a shoplifter is detained and the store calls the authorities who arrive after a significant delay (since the transport or citing of a shoplifter holds low priority for law enforcement), the store is vulnerable to legal action on the grounds of false imprisonment for holding the detainee for a long time.
14. If a shoplifter is detained and concedes guilt but claims misconduct on the stores part, e.g. the detainee was denied use of the phone to make arrangements to pick up a child, or was refused use of the bathroom or of medical attention, or an agent made a racial slur, the store could be exposed to legal action.
15. A shoplifter is detained, arrested, and prosecuted because the store has a perfect case that includes written admission by the accused. Regardless, the case can be lost in trial for several reasons and the store could be sued.
What can a store do?
Merchants must formulate a strategic plan focused on PREVENTION. Preventing and discouraging shoplifting, even by employees, can avoid confrontations and detentions.
How can it do that?
Contemplate the below list of basic strategies, the result of which will most likely be the minimization of inventory shrinkage:
1. Do not grant employment based on appearance or unchecked background. Millions of Americans have served jail sentences and have been fired for lying and misconduct. Where are they now?
2. Make a list of the expectations you hold for employee performance, and the rules you enforce, and make employees aware of it. For example, is your staff knowledgeable of when it can and cannot give discounts to its family members?
3. Be cognizant of your employees actions and conduct. Rule of thumb: your staff will do what you inspect, not what you expect.
4. Enact the golden rule: treat your staff the way you want to be treated.
5. Protect high-ticket merchandise in inventory areas under lock and key.
6. Take inventory of arriving merchandise to confirm that youre getting what you paid for.
7. Use technologies like closed circuit television cameras and make their presence known in order to discourage theft by customers, vendors and staff. Camera technology ranks #1 due to its proactive and reactive attributes, e.g. it acts as a deterrent, helps with witnessing a crime, and gives evidence of the event.
8. Work toward an atmosphere in which your staff members identify with the companys objectives, care about the business, and can visualize their future within the stores continuing success. The optimal way to achieve this is through QUALITY CUSTOMER SERVICE. It is difficult to shoplift while a staff member is approaching you with an eagerness to assist, direct and advise.
