Chapter 19

Retail Security

Goal: To provide students with a general view of retail security.

Objectives:

• Identify and explain the various ways retail establishments can experience losses (Shoplifting, Checks, Internal Theft)
• Identify and explain the different measures that can be implemented to counter each type of loss.

Lecture:

The three principle sources of loss to the retailer are the external losses from Theft (Shoplifting), internal losses from Employee Dishonesty (Pilfering), and losses that come from carelessness or mismanagement (Weak or non-existent Procedural Policies). These losses in assets are collectively referred to as Shrinkage. In this chapter we see that it is virtually impossible to assess the full dimension of the shoplifting problem. All we know is that the is no "typical" shoplifter, and that most of them apprehended (only about 1 in 35), are amateurs. Preventive measures include Closed Circuit Television (CCTV), Electronic Article Surveillance (EAS), and the store detective of floor walker. In arresting a shoplifter we again see the store's concern in the areas of Respondeat Superior and Vicarious Liability. Checks and credit cards comprise up to 80% of all retail transactions (Dynamic Risk). Have a clear, well-understood store policy on check cashing, and always examine ALL checks for authenticity. This includes requiring at least one piece of picture ID. Social Security cards and employee identification badges/cards should not be accepted. You won't catch all the bad checks, and they will be returned for Not (or non) Sufficient Funds (NSF). Remember, a business is not required to cash a check; this is a service.

Turning to Internal Theft (Pilfering), most losses occur at the cash register. A cashier, while usually working alone, may be in Collusion with another employee or a family member who is a customer. In all cases, the retailer should pay attention to employee morale on the one hand, and develop a system of procedural controls that includes employee education.

Some points to consider:

Frequent theft targets (retail environment):

tobacco

athletic shoes

clothing

designer jeans

lingerie (why this? Think about it: embarrassment and maybe even a little self-justification: the idea that maybe this a "sinful" commodity so it serves the store right that the items get stolen. )

Who shoplifts?  The book talks about the professionals, the amateurs, the drug abusers, and the thrill seekers.  While retail and shoplifting are not my areas of expertise, here are three stories that show how it's hard to profile all shoplifters:

Story #1: I once worked for an Army one-star general (brigadier general).  He was very highly decorated; a real combat vet.  He went into the Base Exchange on an Air Force base (sort of a department store for service members).  He was in uniform so, being in an Army uniform on an Air Force base, and being a general, he was noticed.  He went to the ladies lingerie area and was noticed by a clerk.  The clerk noted that he selected some racy items and then headed to the men's fitting room. He came out a few minutes later carrying nothing.  The clerk notified store security and as the general left the store, the security person stopped him.  He immediately said, "You got me."  It turned out he was a transvestite and had been his entire career.  He just never got caught until then.  Of course, his career ended very quietly.  Those of us who worked for him never liked him much but we never suspected this!

Story #2.  An elderly man was picked up by security as he left a supermarket.  The surveillance cameras caught him putting something in his pocket and leaving the store without paying.  He had slipped a box of condoms in his pocket.  He said he had never stolen anything before and he was too embarrassed to present the condoms to the female clerk at the cash register. You never know who might steal from you!!

Story #3. When I was in college in the early 60's (yes, there were colleges then - we rode our horses and buggies there!), I was an athlete.  At the end of the season, we had a big party.  One of my buddies and his girlfriend said they'd take care of getting the drinks and music.  We found out later, when we asked him what we owed him and he said, "Nothing," that they had "heisted" everything.  They pulled several cases of Cokes from a Coke truck when they were all stopped at a traffic light and his girlfriend went into a record store (yes, we had records then!!) and walked out with about 10 albums under her skirt.  She just stuck them between her thighs and strolled out the door.  We could all certainly have afforded to buy this stuff.  This was an example of the "thrill seeker" theft and I am ashamed that we thought it quite funny, though we all knew it was wrong.  (We had a little reunion a few years ago and we talked about this event and still felt bad about it.)

Assignment: next time you go into a store, look for evidence of countermeasures that are in place to deter shoplifting.  Look for things such as warning signs, attentive clerks, electronic article surveillance (EAS) systems, CCTV, special packaging, etc.  Think about how much this all costs and consider that we are all paying for these measures.  Nothing to submit; just think about what you note.