This past week, I held a regional LP conference at work. Investigators and market associates from across the country all came together to discuss fraud trends and ways to combat the prevalence of organized retail theft. The one thing that everyone said, no matter what part of the country they were from, was that return fraud was the biggest fraud scheme affecting their stores. That’s why we use Alpha Shark Tags.
Chances are, this scheme is affecting your store as well. It’s an easy way for a criminal to make an easy buck. This scheme has two different, yet distinct methods of operation. First, a dishonest customer can buy tons of designer clothing at full price. Wear the product once, then return it. This allows them to keep up with all the latest fashion designs and trends, all while not really spending a single penny.
The second form of return fraud, and the form most devastating to a retail store is fraudulent returns. Here a booster will steal product from one store, then drive across town to the second location. Here, the merchandise is return for (normally) a store credit. In the past, if you were a thief, you couldn’t do much with a store credit. Now, every time I turn the corner I see another pawnshop or website advertising that they buy gift cards. I hate pawnshops… but we’ll talk about that some other time.
So, how do Alpha Shark Tags prevent return fraud? The tag alone will not stop the fraud. You have to take a multi-step approach to do so. First, tighten up your return policy. I know, I know, an easy return policy keeps your customer’s coming back. It also keeps your thieves coming back as well. At the very least, require a phone number during purchases (think major hardware stores). This way, any returns without receipt for your legitimate customers can easily be located with their phone number.
Once you get a solid return policy in place, you can use the Alpha Shark Tags to secure your products. Remember to tag them in a very visible location of the garment, but in a location that does not obstruct wear of the item. In your return policy, you also need to clearly state that garments need to still have the tags attached in order to receive a refund. This prevents those dishonest customers who want to rent your merchandise.
The Alpha Shark Tag will also be a very visible deterrent to shoplifting. A thief will more than likely break these tags off the clothes once their stolen as they will fear that they will set off the door alarms. Now you have the thief in a catch-22. Breaking off the tag means they can’t’ return the product. Not breaking the tag (in their mind) poses a threat of the door alarm going off (even though it won’t). In my experience, the thief will not take that chance and will more than likely move on to an easier target. With one very simple tagging method, coupled with a strong return policy, you can practically shut down the most prevalent fraud scheme impacting retail stores today.
For more information about Shark Tags, contact us or call 1.770.426.0547
Almost every consumable retailer asks the same question: How can I protect razor blades? According to the National Retail Federation and the Food Marketing Institute, razor blades are among the highest shrink categories for consumable retailers. The combination of high price, consumer demand, and concealable size lead to a very large market for stolen razor blades. Organized Retail Crime groups and local boosters target razor blades as a main source of income. A quick check of online auction sites will show how prevalent the problem is by the sheer number of razor blade offerings at prices significantly below retail (usually 50% or more).
The option we’ve chosen to protect razor blades is the Alpha Keeper. It is a clear case that the product goes inside. There were several factors that helped us make our decision. First, the keeper makes the item less concealable by making it a larger item. Second, the keeper activates our EAS system that we already had in place. Third, it didn’t hurt sales in that no key is required to get the product off the peg and the customer can view the entire package. Lastly, it made the product less desirable to ORC fences (buyers of stolen products), as it could be easily proven that razor blades inside an Alpha Keeper were most likely stolen; especially when paired with a company label.
The keepers also reduced other types of loss. In addition to helping us prevent theft, they reduced damaged product by protecting the packaging from everyday wear. We also saw a reduction in losses from the casual shoplifter who opened the packages and took only one or two razor blades. We took less markdown dollars on the product as we didn’t have to discount ripped, damaged, or partial packages.
On the customer service end, there was no negative to using keepers to protect razor blades. Customer service scores went up almost immediately in the area of on-hand availability since the product remained on the peg in the store, rather than being stolen. Speed of checkout was not impacted as the opening of the Alpha Keeper didn’t take any longer than soft tag deactivation. Feedback from customers was also received that the keepers were better than soft tags, as employees frequently placed the soft tags right over information that customers wanted to read. Visual display attractiveness also improved because the keeper doesn’t rip while hanging on the peg, causing the product to fall to the shelf below.
On the profit protection side, there have been some other positives. There was no increase in labor cost between soft tagging and placing the product inside keepers. We have this done as soon as the product is received, as part of a check-in process. This has led us to discover some distribution center shortages that we’ve been able to file claims on, as we were billed for a certain amount of product but received significantly less – this saved us a lot of loss. Also, by having them placed into keepers as they come off the truck, we are able to protect razor blades from employee theft, as the entire process is done immediately and in view of a CCTV camera. We were able to add to our bottom line through a significant reduction in markdowns and damage-to-zero on the product as the keepers protect the packaging as well. We’ve found that the keepers do a lot more than just protect razor blades. Using the keepers has been a total loss reduction solution for our business and was a great investment.
For more information about how to protect razor blades contact us or call 1.770.426.0547.
When adults involve children in theft, they know they are less likely to be caught. I’m in the retail pharmacy business, and I’ve had to deal with this problem before. Once I had a man come in with a little boy that looked to be about three to four years old. He held the child’s hand while walking through the store, and no one, including me, paid him any attention. Then he went and wiped out a whole section of cough/cold items. I found it on video later when I discovered the empty shelves. Now I use tools from Alpha Security to protect those items.
That’s what I hope happens at a liquor store I read about recently. They showed a picture of the place. The point was to get out a picture of a woman that used a five year old girl to steal, but it also showed their lack of any type of liquor bottle security. It was the typical layout, with high shelves of bottles as far as you can see. So this woman comes into the store with the child and walks around with her in tow. Then when they are in an aisle alone, she looks around and points at a specific bottle. She then walks away and leaves the child there by herself. The little girl picked up the bottle and put it behind her back. Then she sneaks out the front door, and not a single staff member sees her. They never looked up, and they never suspected a thing. The staff saw the theft on video later, after they found the empty spot where the missing $40 bottle should have been. The police watched the video, and the little girl acted like she had done it all before. It was like she was completely comfortable stealing for the woman, presumably her mother.
The worst part is that the little girl has no idea what she’s doing is wrong; children simply aim to please adults. If the store had bottle locks on their inventory, this problem would have likely never happened. If the woman did instruct the child to still try and steal the liquor, the gadget would have caused an alarm to sound when she got too close to the door. I’m sure this horrible woman will simply explain it away, and pretend to scold the child if she does get caught in the act. The good thing is that if she tries it at enough places, someone is bound to catch on.
Either way though, the crime has already happened and now the store that was victimized needs to address their shortcomings. If they are losing inventory to five year old children, they are probably losing even more to adults. This store needs to take a look into the products offered by Alpha Security like bottle locks. At least if they have these on all the bottles, the store staff can monitor the inventory a little easier. The locks have different levels of alarm capabilities, so the store can decide on which ones to invest in. Liquor bottle security is nothing to take lightly. That store has to get that corrected so they are not involved in any incidents with any other minors getting alcohol. Whether they steal it or manage to buy it, the store they got it from can still be held responsible if anything bad happens to them because of it. Bottle locks can be the deterrence they need to stop it from ever happening.
For more information on bottle locks, contact us or call 1.770.426.0547 or Bottlelock.net
It’s already October! Can you believe just how quickly this year is going by? Just yesterday it seemed like we were enjoying the spring time. You and I both know that in a blink of an eye that wonderful, magical, pain in the rear time of year will be here. The holiday shopping season, of course is what I’m referring to. It all starts on Black Friday, which falls on November 27 this year. For those of us keeping track. Let’s talk about your strategy to prevent shoplifting this year, shall we?
I hate this time of year. I find myself battling with our buyers on a daily basis. While they are busy seeking out this year’s hottest trends, I’m left trying to protect those from shoplifters. Where they see sales, all I see is shrink. With all these new electronics coming into the stores, I at least I know I can rely on Alpha Spider Wraps to get me through.
Last year, I think I must’ve found just about every use for a Alpha Spider Wrap there could possibly be. I used them on television sets, gaming consoles, headphones, and just about whatever else I thought would be a thief magnet. I think one of the most popular items last year was a home CCTV system. Lots of people are getting proactive to home burglaries and installing cameras around their homes. Our stores had a large display set up with the boxes stacked high. Each one of course was secured with a Alpha Spider Wrap, my not so subtle approach to prevent shoplifting.
I think I may have said this once, or twice before. Sometimes, no matter the solution used, some thieves will still steal. You can never fully prevent shoplifting. So, here it is, 2 weeks before the big day. I’m on the cameras and a known thief walks in the door. We immediately begin surveillance and he heads directly to the camera display. He picks up 4 units, using the Spider Wraps as handles, and makes a bee-line towards the door. He looked like those people who will only make one trip from the car to the house with their groceries…There was something very ironic and darkly humorous about a guy stealing cameras that are meant to deter criminal activity. Once out the door, he was quickly apprehended by law enforcement.
I think about that incident and that particular shoplifter and I realized that was the only time someone tried to steal those cameras. As a store and as a company, we sold out of that product. It was so successful that we began to carry it and a number of home CCTV systems year-round. I think we have gotten a significant return on investment with Alpha Spider Wraps and I can almost bet that you will too.
For more information about Alpha Technology, contact us or call 1.770.426.0547
RUN THROUGH THE ENDZONE WITH CHECKPOIT TAGS
It’s finally football season again! It’s been a long, long off season. While, my team completely bombed today, sales for licensed apparel gear across the country have skyrocketed. There is no doubt that team spirit is a huge boost for sales. All those team emblazoned shirts, hats and jerseys can make your profits fly down field. So, what does Jeremy Johnson and stolen jerseys have in common? They both turn over really, really well. So if you’re in the business of selling team apparel, you should have checkpoint tags in your playbook.
Of many things, my stores carry a large array of both professional and collegiate apparel and I can tell you from personal experience, people are stealing this product every hour of every day. This is especially true as the home teams do even better, since demand gets higher. It I weren’t using clothing security tags, I really don’t think we’d be very profitable.
Last season, I had a particular store who was seeing high shrink in this area of the store. We stepped up the LP presence but it didn’t seem like it was making a difference. Shipments would arrive to the store, the apparel team would apply the checkpoint tags and put the items on the floor. Even with the additional security measures, we were still losing thousands a month. It seemed like every 3rd or 4th shoplifter we were busting was stealing licensed apparel, but again, on paper, we weren’t making a dent. I had to help this store stem the losses, or the season would be a disappointment (like today’s Saints game…)
There was a new shipment of product coming in on the next Monday morning. I decided to watch the process (from CCTV) of when the product was received, through the time it was placed on the shelf. I watched as the delivery driver dropped off 4 cases of shirts. The manager signed for the delivery and staged the merchandise in the warehouse. 3 hours later, an associate began applying checkpoint tags, then eventually merchandised them on the sales floor. I went to personally count the inventory and that’s where I found a discrepancy. The driver should’ve dropped off 6 cases. The manager failed to properly account for the delivery and only assumed that it was correct. A little camera work and some digging through invoices should the same thing had been happening over and over again for months. We’ve now reached the two minute warning. It was time to put this to an end.
I set up surveillance for the following delivery date. I had the invoice faxed to me from the vendor, so I knew that there should be 7 cases dropped to the store. I also talked with our vendor rep and they did me a favor by attaching some clothing security tags to the merchandise with my store’s name on them. So, there in the parking lot of the store at 3:30am, I sat. Right on time, the driver shows up and unloads 5 cases of merchandise. The lackadaisical manager again blindly signs for the shipment and goes on about his day, unaware that this delivery driver is robbing him blind. The driver pulls out of our lot, with me right behind.
A few miles down the road, he makes a stop at a corner store. There, he grabs two boxes from his truck and heads inside. So do I. I grab a cup of coffee and watch and he and the owner of the store exchange two cases of licensed apparel product for a few hundred bucks in cash. They shake hands and the driver says, “I’ll see you next week, buddy!” as he drives off to continue his shift.
I head back to the car and make a phone call to local police. I have an officer meet me at the store where I explain to him what just occurred. We both go inside to meet with the owner who vehemently denies any knowledge of any shipments. I see the boxes behind the counter and ask for them to be opened. There, in plain sight were the jerseys I was missing. I was able to prove beyond any doubt they were mine, as they each had a clothing security tag firmly attached… with my store’s name on it.
For more information, contact us: Check Point Tags, or call 1.770.426.0547
It’s finally football season again! It’s been a long, long off season. While, my team completely bombed today, sales for licensed apparel gear across the country have skyrocketed. There is no doubt that team spirit is a huge boost for sales. All those team emblazoned shirts, hats and jerseys can make your profits fly down field. So, what does Jeremy Johnson and stolen jerseys have in common? They both turn over really, really well. So if you’re in the business of selling team apparel, you should have Checkpoint tags in your playbook.
Of many things, my stores carry a large array of both professional and collegiate apparel and I can tell you from personal experience, people are stealing this product every hour of every day. This is especially true as the home teams do even better, since demand gets higher. It I weren’t using clothing security tags, I really don’t think we’d be very profitable.
Last season, I had a particular store who was seeing high shrink in this area of the store. We stepped up the LP presence but it didn’t seem like it was making a difference. Shipments would arrive to the store, the apparel team would apply the checkpoint tags and put the items on the floor. Even with the additional security measures, we were still losing thousands a month. It seemed like every 3rd or 4th shoplifter we were busting was stealing licensed apparel, but again, on paper, we weren’t making a dent. I had to help this store stem the losses, or the season would be a disappointment.
There was a new shipment of product coming in on the next Monday morning. I decided to watch the process (from CCTV) of when the product was received, through the time it was placed on the shelf. I watched as the delivery driver dropped off 4 cases of shirts. The manager signed for the delivery and staged the merchandise in the warehouse. 3 hours later, an associate began applying checkpoint tags, then eventually merchandised them on the sales floor. I went to personally count the inventory and that’s where I found a discrepancy. The driver should’ve dropped off 6 cases. The manager failed to properly account for the delivery and only assumed that it was correct. A little camera work and some digging through invoices showed the same thing had been happening over and over again for months. We’ve now reached the two minute warning. It was time to put this to an end.
I set up surveillance for the following delivery date. I had the invoice faxed to me from the vendor, so I knew that there should be 7 cases dropped to the store. I also talked with our vendor rep and they did me a favor by attaching some clothing security tags to the merchandise with my store’s name on them. So, there in the parking lot of the store at 3:30am, I sat. Right on time, the driver shows up and unloads 5 cases of merchandise. The lackadaisical manager again blindly signs for the shipment and goes on about his day, unaware that this delivery driver is robbing him blind. The driver pulls out of our lot, with me right behind.
A few miles down the road, he makes a stop at a corner store. There, he grabs two boxes from his truck and heads inside. So do I. I grab a cup of coffee and watch and he and the owner of the store exchange two cases of licensed apparel product for a few hundred bucks in cash. They shake hands and the driver says, “I’ll see you next week, buddy!” as he drives off to continue his shift.
I head back to the car and make a phone call to local police. I have an officer meet me at the store where I explain to him what just occurred. We both go inside to meet with the owner who vehemently denies any knowledge of any shipments. I see the boxes behind the counter and ask for them to be opened. There, in plain sight were the jerseys I was missing. I was able to prove beyond any doubt they were mine, as they each had a clothing security tag firmly attached… with my store’s name on it.
For more information about Check Point Tags contact us or call 1.770.426.0547
