Implement an effective security system
Retail theft forms part of the largest crime category in Australia, costing businesses more than $4 billion each year*. Mike Ramsay, director of loss prevention specialists Charter Resources, shares a few tips to stop shoplifters in their tracks.
Where to begin
Submit all aspects and operations of your retail business to a thorough and professionally managed risk assessment - identifying areas where the business is suffering or could suffer loss. Seek training for your staff to recognise warning signs and the impact of: collusion between staff and customers; proactive customer service; trends and techniques of professional shoplifters; and legal responsibilities and limits on searching and detaining customers
What next?
Develop a loss prevention program incorporating some or all of the following risk management strategies and products:
* Electronic - CCTV and surveillance, electronic tagging, access control, video and audio intercom systems, integrated security and fire systems, alarms and alarm monitoring;
* Manpower - uniformed guard services and professional loss prevention officers, covert loss prevention officers;
* Professional employee / management awareness training - provides employee ownership;
* Physical & barrier security - security systems, safes/records protection;
* Operational - regular spot checks of deliveries and stock transfers;
* Technological - IT security, firewalls, virus protection;
* Protection of confidential information (marketing strategies and financial data) - systems need to be accessed regularly to ensure appropriate levels are in place.
Things to remember
Ensure the loss prevention program in place is constantly monitored and updated in response to environmental and business changes. Remember not all shoplifters are external threats. In fact more than one third of all shrinkage is caused by internal fraud. While accurate figures as to the cost of retail theft are difficult to come by, what is known is at least 45 per cent of Australian and New Zealand organisations believe they have been the victims of fraud during the past three years, with small to medium sized businesses the most vulnerable to professional shop stealing*.
Australia's rate of shrinkage - 1.5 per cent in the retail sector - is not addressed as a loss prevention issue because most retailers automatically write-off 2 per cent of their budget to shrinkage.
Retailers need to bring shop stealing onto their business agenda by putting measures in place to enable them to report all incidences of theft - simply writing off shrinkage is ignoring the epidemic of professional shop stealing.
In most cases prosecution of thieves will end up costing more than the theft itself which is why retailers need to prevent professional shop stealing rather than punish it.