Electronic Article Surveillance – 4 WC Blog 409
Stop Shoplifting -4
Poor Inventory Results? Take Action To Stop Shoplifting And Operational Losses By Creating A Shortage Action Plan
Change quite often can be uncomfortable. Have you ever noticed that usually when people are sitting at their dinner table everyone has a particular seat they sit in? I know that in church my wife and I have a tendency to sit in the same seats. Consider your routines when you wake up in the morning. I have a set order I do things, I wake up, shower, walk the dogs, drink a pot of coffee, read from my Bible, brush my teeth and head off to work. I detest being late for something so I set my watch 10 minutes ahead (of course when I am going to go somewhere with my wife and I feel we are running late she tells me my watch is 10 minutes fast, “What’s the rush?”).The point I am trying to make is that we all get into routines and whether we want to admit it or not it can be difficult to change whether it is something about ourselves, something about our habits or something having to do with our environment. I believe retail owners who are reluctant to take adequate steps to stop shoplifting with the use of electronic article surveillance systems are avoiding changes they are not comfortable with.
Electronic article surveillance systems use radio frequency waves transmitted from a tag or label and picked up by a receiver tower to sound an alarm when tagged merchandise is carried in the field of a tower. Some of the tags also have their own internal alarms that activate when a shoplifter tries to pry it off of merchandise. Because of the variety of tags and labels on the market through Checkpoint Systems and other companies, there are very few items that cannot be protected in one manner or another to stop shoplifting. There are labels that can be peeled from a roll and applied to boxes, shrink wrap, cloth and cardboard hang tags, etc. Hard tags are available that can be pinned to merchandise and not pulled off or detached without a removal key. Tagged goods are items that shoplifters prefer to leave alone. When shoplifters know that merchandise is protected with electronic article surveillance labels or tags they frequently choose to find another store rather than take the risk of being caught stealing.
It is funny but when I first started as a Loss Prevention Manager we would conduct our inventory and get the results back. When I would begin work on a shortage action plan I remember trying to get other managers to give input. Inevitably the very first cause of shortage for almost ANY category was attributed to theft. Why? Well, first it is always easy to attribute shortage to theft, the primary responsibility for actions to address it fall on Loss Prevention in a big store. If other areas are identified that are related to operations, it meant someone else would have to take an active role in the plan. That also meant following up to ensure any action step was being followed. Lastly, it meant taking a hard look at one’s own department and taking responsibility for things that may not have been done correctly.
I am of the opinion this is why many managers in retail don’t like to make shortage action plans or if they do make them they don’t always follow up on their plans after the first few weeks. I’ve run into this as a Loss Prevention Manager trying to work with the “store side” managers to create realistic plans and then follow through with them. They say it takes 21 days to form a habit…with shortage action plans I would say 21 months is more like it. For stores experiencing high inventory shortage, it is important to identify the areas/departments with the highest losses, look at the possible causes of the shortages and create action plans with action items, follow-ups and due dates. When theft is the issue, identify it and look for way to stop shoplifting or internal theft. When the issue involves operations call it as you see it, make a plan to fix the problem, execute the plan and follow up to make the store is doing what you committed to doing. If you are only making a plan for the sake of making a plan, don’t waste your time and don’t expect shortage to come down.
Electronic article surveillance can go a long way to stop shoplifting. Controls over vendors, stockroom access, shipment check-ins, etc. can make a significant impact on operational shortage. Remember, improving shortage results impacts profits and sales.
Get more information on electronic article surveillance, contact us or call 1.770.426.0547 today.
Change quite often can be uncomfortable. Have you ever noticed that usually when people are sitting at their dinner table everyone has a particular seat they sit in? I know that in church my wife and I have a tendency to sit in the same seats. Consider your routines when you wake up in the morning. I have a set order I do things, I wake up, shower, walk the dogs, drink a pot of coffee, read from my Bible, brush my teeth and head off to work. I detest being late for something so I set my watch 10 minutes ahead (of course when I am going to go somewhere with my wife and I feel we are running late she tells me my watch is 10 minutes fast, “What’s the rush?”).The point I am trying to make is that we all get into routines and whether we want to admit it or not it can be difficult to change whether it is something about ourselves, something about our habits or something having to do with our environment. I believe retail owners who are reluctant to take adequate steps to stop shoplifting with the use of electronic article surveillance systems are avoiding changes they are not comfortable with.
Electronic article surveillance systems use radio frequency waves transmitted from a tag or label and picked up by a receiver tower to sound an alarm when tagged merchandise is carried in the field of a tower. Some of the tags also have their own internal alarms that activate when a shoplifter tries to pry it off of merchandise. Because of the variety of tags and labels on the market through Checkpoint Systems and other companies, there are very few items that cannot be protected in one manner or another to stop shoplifting. There are labels that can be peeled from a roll and applied to boxes, shrink wrap, cloth and cardboard hang tags, etc. Hard tags are available that can be pinned to merchandise and not pulled off or detached without a removal key. Tagged goods are items that shoplifters prefer to leave alone. When shoplifters know that merchandise is protected with electronic article surveillance labels or tags they frequently choose to find another store rather than take the risk of being caught stealing.
It is funny but when I first started as a Loss Prevention Manager we would conduct our inventory and get the results back. When I would begin work on a shortage action plan I remember trying to get other managers to give input. Inevitably the very first cause of shortage for almost ANY category was attributed to theft. Why? Well, first it is always easy to attribute shortage to theft, the primary responsibility for actions to address it fall on Loss Prevention in a big store. If other areas are identified that are related to operations, it meant someone else would have to take an active role in the plan. That also meant following up to ensure any action step was being followed. Lastly, it meant taking a hard look at one’s own department and taking responsibility for things that may not have been done correctly.
I am of the opinion this is why many managers in retail don’t like to make shortage action plans or if they do make them they don’t always follow up on their plans after the first few weeks. I’ve run into this as a Loss Prevention Manager trying to work with the “store side” managers to create realistic plans and then follow through with them. They say it takes 21 days to form a habit…with shortage action plans I would say 21 months is more like it. For stores experiencing high inventory shortage, it is important to identify the areas/departments with the highest losses, look at the possible causes of the shortages and create action plans with action items, follow-ups and due dates. When theft is the issue, identify it and look for way to stop shoplifting or internal theft. When the issue involves operations call it as you see it, make a plan to fix the problem, execute the plan and follow up to make the store is doing what you committed to doing. If you are only making a plan for the sake of making a plan, don’t waste your time and don’t expect shortage to come down.
Electronic article surveillance can go a long way to stop shoplifting. Controls over vendors, stockroom access, shipment check-ins, etc. can make a significant impact on operational shortage. Remember, improving shortage results impacts profits and sales.
Get more information on electronic article surveillance, contact us or call 1.770.426.0547 today.
Stop Shoplifting – 4 WC Blog 451
Checkpoint Security System – 4
Employees With A Vested Interest In Shortage Reduction Can Make A Checkpoint Security System More Powerful
Lowering stock shortage and how to stop shoplifting are topics we frequently talk about in retail. We discuss issues related to improper markdowns and front end cashiering errors. We make shortage actions plans to try to nail down how we are going to focus on improving high shrinkage departments. We talk about theft and fraud and the need to prevent it but when it comes down to the rubber meeting the road what do we really do to stop shoplifting? What are store owners and managers really willing to do to make an impact on this aspect of shortage? I am going to ask if a store owner is willing to take it seriously enough to invest in a Checkpoint Security System.
What is a Checkpoint Security System? It is a system built to directly stop shoplifting and retail theft through the use of radio frequency enabled tags and receiving pedestals. Tags and labels that send out radio waves are applied to all sorts of merchandise. Hard tags can be pinned to clothing, bedding, towels and other softlines goods. Labels can be placed on all sorts of surfaces, cardboard, shrink wrap, plastics, etc. Electronic Article Surveillance (EAS) pedestals are set up near the store exits and entrances have a detection field designed to pick up the radio waves being sent out by the tags and labels. When tagged merchandise is carried into this detection field alarms sound and LED lights in the pedestals flash warning store employees that tagged merchandise is being carried out of the store. Trained employees know how to respond to these alarm activations and resolve them through receipt checks. Usually recoveries are from shoplifters attempting to get merchandise out of the store but some recoveries include merchandise that was overlooked in the bottom of a shopping cart. Think about the implications that has on shortage reduction from attempted theft AND operational errors at the point of sale.
Continuing with my point on taking shortage reduction seriously employers need to understand that theft related shortage comprised 81% of shortage in North America according to the 2014-2015 Global Retail Theft Barometer. This leaves only 19% of losses attributed to operational errors and problems and vendor shortage and fraud. If an employer is focusing a shortage action plan and most efforts on these areas it is a poor plan. A better plan would be to spend money on a Checkpoint Security System and the tags, labels and accessories associated with it. Also spend the time training the store staff on how to tag merchandise properly and how to respond appropriately to EAS alarm activations. When employees are trained on proper tag placement, tagging becomes consistent and fewer pieces of merchandise are missed in the process. Trained employees answer the pedestal alarm with tact and with the knowledge of how to do a thorough inspection of a receipt and packages. They have the confidence to approach someone who has activated that alarm and can recover unpaid merchandise without making accusations of shoplifting even if that was the offender’s intent.
Why should employees expend any more effort on shortage reduction than any other aspect of the business? There’s incentive for the store owners, it makes the business more profitable profitable when shortage is brought down. In some stores managers receive bonuses when they meet certain financial goals for a store, such as low shortage and meeting sales objectives. Often the store employees receive no additional incentive to help the store reduce shrinkage. I worked for a retailer that would give bonuses to store managers for the achievements of goals which included beating shortage objectives but the hourly employees had no additional perks. The only benefit that the employees would receive was a better percentage increase at annual review time if the store met financial goals. The company I work for now has just announced that if a store beats its shortage objective this year full time and part time employees will receive bonuses. That is a great incentive for employees to buy into a theft reduction plan for a store.
So what should a business expect when employees have a vested interest in the profitability of the store? Employees will not just speak of great customer service they will demonstrate it to discourage theft and improve sales. They will be aggressive in tagging products to stop shoplifting. They will want to learn how to properly use the Checkpoint Security System, testing the equipment and learning how to respond to alarms properly. Find out for yourself how profitable your company can be when you invest in Checkpoint Systems and the talented people who work for you.
For more information about Checkpoint Security Systems contact us or call 1.770.426.0547
Lowering stock shortage and how to stop shoplifting are topics we frequently talk about in retail. We discuss issues related to improper markdowns and front end cashiering errors. We make shortage actions plans to try to nail down how we are going to focus on improving high shrinkage departments. We talk about theft and fraud and the need to prevent it but when it comes down to the rubber meeting the road what do we really do to stop shoplifting? What are store owners and managers really willing to do to make an impact on this aspect of shortage? I am going to ask if a store owner is willing to take it seriously enough to invest in a Checkpoint Security System.
What is a Checkpoint Security System? It is a system built to directly stop shoplifting and retail theft through the use of radio frequency enabled tags and receiving pedestals. Tags and labels that send out radio waves are applied to all sorts of merchandise. Hard tags can be pinned to clothing, bedding, towels and other softlines goods. Labels can be placed on all sorts of surfaces, cardboard, shrink wrap, plastics, etc. Electronic Article Surveillance (EAS) pedestals are set up near the store exits and entrances have a detection field designed to pick up the radio waves being sent out by the tags and labels. When tagged merchandise is carried into this detection field alarms sound and LED lights in the pedestals flash warning store employees that tagged merchandise is being carried out of the store. Trained employees know how to respond to these alarm activations and resolve them through receipt checks. Usually recoveries are from shoplifters attempting to get merchandise out of the store but some recoveries include merchandise that was overlooked in the bottom of a shopping cart. Think about the implications that has on shortage reduction from attempted theft AND operational errors at the point of sale.
Continuing with my point on taking shortage reduction seriously employers need to understand that theft related shortage comprised 81% of shortage in North America according to the 2014-2015 Global Retail Theft Barometer. This leaves only 19% of losses attributed to operational errors, problems, vendor shortage and fraud. If an employer is focusing a shortage action plan and most efforts on these areas it is a poor plan. A better plan would be to spend money on a Checkpoint Security System and the tags, labels and accessories associated with it. Also spend the time training the store staff on how to tag merchandise properly and how to respond appropriately to EAS alarm activations. When employees are trained on proper tag placement, tagging becomes consistent and fewer pieces of merchandise are missed in the process. Trained employees answer the pedestal alarm with tact and with the knowledge of how to do a thorough inspection of a receipt and packages. They have the confidence to approach someone who has activated that alarm and can recover unpaid merchandise without making accusations of shoplifting even if that was the offender’s intent.
Why should employees expend any more effort on shortage reduction than any other aspect of the business? There’s incentive for the store owners, it makes the business more profitable profitable when shortage is brought down. In some stores managers receive bonuses when they meet certain financial goals for a store, such as low shortage and meeting sales objectives. Often the store employees receive no additional incentive to help the store reduce shrinkage. I worked for a retailer that would give bonuses to store managers for the achievements of goals which included beating shortage objectives but the hourly employees had no additional perks. The only benefit that the employees would receive was a better percentage increase at annual review time if the store met financial goals. The company I work for now has just announced that if a store beats its shortage objective this year full time and part time employees will receive bonuses. That is a great incentive for employees to buy into a theft reduction plan for a store.
So what should a business expect when employees have a vested interest in the profitability of the store? Employees will not just speak of great customer service they will demonstrate it to discourage theft and improve sales. They will be aggressive in tagging products to stop shoplifting. They will want to learn how to properly use the Checkpoint Security System, testing the equipment and learning how to respond to alarms properly. Find out for yourself how profitable your company can be when you invest in Checkpoint Systems and the talented people who work for you.
For more information about Checkpoint Security Systems contact us or call 1.770.426.0547
Checkpoint Systems-4 WC Blog 427
Checkpoint Tags-3
Stop Shoplifting-3
Checkpoint Systems And Other Theft Prevention Tools Are Only Effective When Employees Use Them Every Day
My daughter has been working for a clothing retailer for about three years now as a sales associate. She is trained to do some Manager on Duty functions and has made her interest known that she wants to move up in management. Recently she has been asked to help fill in as an opening and closing manager for two stores in her area. During one of her shifts one of the cashiers working with her took two counterfeit bills. She did not learn of it until closing time and then had to get the store recovered and get the team out of the building. When I picked her up she was telling me about the incident and how she came across the bills and they felt and looked fake. She said their stores have counterfeit bill readers and so she asked the cashier if he had used it before accepting the money. He acknowledged he had not and told her he rarely does use it. My daughter had taken pictures of the bills on her phone and showed them to me. There was no excuse for these to have been accepted under any circumstance, bill reader or not. Because I used to be a Loss Prevention Manager for quite a number of years I asked if she had contacted her District Loss Prevention Manager. I told her that he would probably want the employee written up at a minimum or possibly even fired. Being new to managing a store she said she had not contacted him. I urged her to text him and send the pictures. She did so and he did tell her to write up the employee. Often we have the tools at our disposal to stop shoplifting and theft in our stores but we fail to properly use those tools. For example we may have Checkpoint Systems installed but we don’t conduct receipt checks when the system alarms. Failing to use these systems leads to increased theft and shortage in the long run.
The Checkpoint Systems have several key components that make the system work properly. The Checkpoint pedestals are set up at entrance and exit points and have receivers in them that pick up radio frequency waves emitted by Checkpoint tags. Hard tags are supposed to be removed at the point of sale when an item is purchased and soft tags are to be de-tuned or de-activated by a de-activation pad installed at the point of sale. If people are being trained properly and equipment is functioning as it should the only alarms that sound will be when shoplifters attempt to steal merchandise. Portable scanners can be used to test de-activation pads to make sure they are working as they are supposed to. Test cards are used to ensure pedestals are detecting tagged merchandise properly. When one part of the system is not working correctly it can cause issues for customers and employees alike.
As I pointed out in my daughter’s situation the employee was not using equipment that was provided to them to prevent fraud. Several fraudulent bills were accepted and this caused a financial loss to the store. Similarly when Checkpoint Systems are being used in a store to stop shoplifting and they are not being used properly or maintained they are costing money in terms of unchecked theft. I have done observations in stores to monitor employee behaviors related to Loss Prevention training they have undergone. During some of those observations I have watched associates ignore alarms set off by Checkpoint tags that were not properly de-tuned at the register. I have seen associates fail to remove hard tags from clothing and customers get frustrated at having to walk back to a register to have a tag removed. I have done covert surveillances and watched supervisors who were supposed to test pedestals and deactivation pads in the absence of Loss Prevention fail to do so. Had the pedestals not been working and no Loss Prevention Personnel in the building, it would have taken additional time to determine there was a problem and a service call to be placed. It would have also hindered efforts to stop shoplifting.
Whatever tools your store has in place to prevent theft, whether they are counterfeit bill readers or Checkpoint tags, they have to be used in order to be effective. It also takes everyone to be on board with the program. One person not testing bills or failing to do regular system checks on Checkpoint Systems and the effectiveness of a theft prevention strategy is greatly impaired. Make sure your store remains profitable get ALL of your associates involved in your theft prevention program.
Need information on Checkpoint Systems? Give us a call at 1.770.426.0547 now.
My daughter has been working for a clothing retailer for about three years now as a sales associate. She is trained to do some Manager on Duty functions and has made her interest known that she wants to move up in management. Recently she has been asked to help fill in as an opening and closing manager for two stores in her area. During one of her shifts one of the cashiers working with her took two counterfeit bills. She did not learn of it until closing time and then had to get the store recovered and get the team out of the building. When I picked her up she was telling me about the incident and how she came across the bills and they felt and looked fake. She said their stores have counterfeit bill readers and so she asked the cashier if he had used it before accepting the money. He acknowledged he had not and told her he rarely does use it. My daughter had taken pictures of the bills on her phone and showed them to me. There was no excuse for these to have been accepted under any circumstance, bill reader or not. Because I used to be a Loss Prevention Manager for quite a number of years I asked if she had contacted her District Loss Prevention Manager. I told her that he would probably want the employee written up at a minimum or possibly even fired. Being new to managing a store she said she had not contacted him. I urged her to text him and send the pictures. She did so and he did tell her to write up the employee. Often we have the tools at our disposal to stop shoplifting and theft in our stores but we fail to properly use those tools. For example we may have Checkpoint Systems installed but we don’t conduct receipt checks when the system alarms. Failing to use these systems leads to increased theft and shortage in the long run.
The Checkpoint Systems have several key components that make the system work properly. The Checkpoint pedestals are set up at entrance and exit points and have receivers in them that pick up radio frequency waves emitted by Checkpoint tags. Hard tags are supposed to be removed at the point of sale when an item is purchased and soft tags are to be de-tuned or de-activated by a de-activation pad installed at the point of sale. If people are being trained properly and equipment is functioning as it should the only alarms that sound will be when shoplifters attempt to steal merchandise. Portable scanners can be used to test de-activation pads to make sure they are working as they are supposed to. Test cards are used to ensure pedestals are detecting tagged merchandise properly. When one part of the system is not working correctly it can cause issues for customers and employees alike.
As I pointed out in my daughter’s situation the employee was not using equipment that was provided to them to prevent fraud. Several fraudulent bills were accepted and this caused a financial loss to the store. Similarly when Checkpoint Systems are being used in a store to stop shoplifting and they are not being used properly or maintained they are costing money in terms of unchecked theft. I have done observations in stores to monitor employee behaviors related to Loss Prevention training they have undergone. During some of those observations I have watched associates ignore alarms set off by Checkpoint tags that were not properly de-tuned at the register. I have seen associates fail to remove hard tags from clothing and customers get frustrated at having to walk back to a register to have a tag removed. I have done covert surveillances and watched supervisors who were supposed to test pedestals and deactivation pads in the absence of Loss Prevention fail to do so. Had the pedestals not been working and no Loss Prevention Personnel in the building, it would have taken additional time to determine there was a problem and a service call to be placed. It would have also hindered efforts to stop shoplifting.
Whatever tools your store has in place to prevent theft, whether they are counterfeit bill readers or Checkpoint tags, they have to be used in order to be effective. It also takes everyone to be on board with the program. One person not testing bills or failing to do regular system checks on Checkpoint Systems and the effectiveness of a theft prevention strategy is greatly impaired. Make sure your store remains profitable get ALL of your associates involved in your theft prevention program.
Need information on Checkpoint Systems? Give us a call at 1.770.426.0547 now.
Retail Theft Prevention-3 WC Blog 363
Checkpoint Security System-3
Being Cheap In The Short Term Can Hurt Retail Theft Prevention In The Long Term
Over the past 6 months one of the two vehicles my wife and I own had started making some very disturbing noises. It was purchased as a used vehicle but because the price seemed right at the time I did not take time to look at vehicle reviews or do any research on this particular make and model. I did not bother with an extended warranty either which would have cost me an additional $2,000. As the problems persisted and got worse, I went online and started to look at reputable websites and consumer reviews. Low and behold, many other owners reported similar problems with the transmissions on this year and model of car. Stupid me, I should have done the research in advance, even when the deal seemed good to me. How many times do retailers make similar short sighted decisions? The cheap way may seem to be the most cost effective, but is that necessarily true? Does it make sense when operating a store to try to save money by not spending any on retail theft prevention measures? How many times do stores reduce payroll in an effort to save money? How much research is done prior to making these types of decisions? What may seem like a great way to reduce expenditures may actually cost money in the future.
Retail theft prevention comes in many forms, from installing closed circuit television (CCTV), installing a Checkpoint security system with electronic article surveillance technology and even staffing a store with enough people to provide ample customer service. It also includes the proper training of staff on how to detect and deter shoplifting while still promoting customer service. Sometimes theft prevention includes hiring professional Retail Loss Prevention Associates who can conduct receipt checks at doors or catch and prosecute shoplifters. Different strategies require different levels of investment and levels of commitment. The amount to invest in retail theft prevention is an individual choice and has to be balanced with the annual sales for the store and how much merchandise shortage will be an “acceptable” level of loss. Bear in mind that merchandise shortage includes shoplifting, dishonest employee activity, vendor shortage and administrative shortage with shoplifting and employee theft accounting for about 80% of all losses.
So what happens when a store owner decides on a means of merchandise protection? What kind of assumptions come into play in the decision? Obviously cost is the first thing that is going to be considered. What will it cost me to install cctv or a Checkpoint Security System? How many people do I hire to properly meet the needs of my customers, ring sales, stock freight and do I include Loss Prevention staff? All of these are important considerations, a children’s gently used clothing store probably does not need the same amount of security or staffing as a jewelry store would need. This does not mean theft will not occur it will be a difference in the cost of each loss and what it will take to recoup the loss. Unfortunately, what often happens when sales stagnate or shrinkage begins to impact profits, rather than look at the root causes of those issues, owners and managers begin to look for ways to reduce expenses. If they use Checkpoint Systems they may reduce the number of sku’s they protect by tagging fewer items. I have seen companies that have Loss Prevention staff reduce the hours and the number of people in those departments, at the cost of increased theft. Then there are the sales floor associate hours that are trimmed. Sure, it seems like it will save money, but if your merchandise protection strategy includes customer service to deter theft (and drive sales) trimming those hours hurts a company twice.
Being careful when looking at expenses only makes sense. No business can last long if money isn’t being spent wisely. On the other side of that coin, when sales start to flag, a company needs to look at all of the factors that may be contributing to the problem. Has a new policy been implemented? Is the weather played a part? Are merchandise lines being discontinued that were popular? When was the last time a new sales display or endcap set up? There are many things that can impact sales and cutting corners to save a few dollars may wind up costing you more in the long run. Before you start cutting things such as staff hours, Checkpoint Security System budgeting, or even reducing store hours, make sure you look at the big picture. Sometimes it is easier to look at the quick fixes rather than analyzing the external influences.
Get more information on Retail Theft Prevention, contact us or call 1.770.426.0547 today.
Over the past 6 months one of the two vehicles my wife and I own had started making some very disturbing noises. It was purchased as a used vehicle but because the price seemed right at the time I did not take time to look at vehicle reviews or do any research on this particular make and model. I did not bother with an extended warranty either which would have cost me an additional $2,000. As the problems persisted and got worse, I went online and started to look at reputable websites and consumer reviews. Low and behold, many other owners reported similar problems with the transmissions on this year and model of car. Stupid me, I should have done the research in advance, even when the deal seemed good to me. How many times do retailers make similar short sighted decisions? The cheap way may seem to be the most cost effective, but is that necessarily true? Does it make sense when operating a store to try to save money by not spending any on retail theft prevention measures? How many times do stores reduce payroll in an effort to save money? How much research is done prior to making these types of decisions? What may seem like a great way to reduce expenditures may actually cost money in the future.
Retail theft prevention comes in many forms, from installing closed circuit television (CCTV), installing a Checkpoint security system with electronic article surveillance technology and even staffing a store with enough people to provide ample customer service. It also includes the proper training of staff on how to detect and deter shoplifting while still promoting customer service. Sometimes theft prevention includes hiring professional Retail Loss Prevention Associates who can conduct receipt checks at doors or catch and prosecute shoplifters. Different strategies require different levels of investment and levels of commitment. The amount to invest in retail theft prevention is an individual choice and has to be balanced with the annual sales for the store and how much merchandise shortage will be an “acceptable” level of loss. Bear in mind that merchandise shortage includes shoplifting, dishonest employee activity, vendor shortage and administrative shortage with shoplifting and employee theft accounting for about 80% of all losses.
So what happens when a store owner decides on a means of merchandise protection? What kind of assumptions come into play in the decision? Obviously cost is the first thing that is going to be considered. What will it cost me to install cctv or a Checkpoint Security System? How many people do I hire to properly meet the needs of my customers, ring sales, stock freight and do I include Loss Prevention staff? All of these are important considerations, a children’s gently used clothing store probably does not need the same amount of security or staffing as a jewelry store would need. This does not mean theft will not occur it will be a difference in the cost of each loss and what it will take to recoup the loss. Unfortunately, what often happens when sales stagnate or shrinkage begins to impact profits, rather than look at the root causes of those issues, owners and managers begin to look for ways to reduce expenses. If they use Checkpoint Systems they may reduce the number of sku’s they protect by tagging fewer items. I have seen companies that have Loss Prevention staff reduce the hours and the number of people in those departments, at the cost of increased theft. Then there are the sales floor associate hours that are trimmed. Sure, it seems like it will save money, but if your merchandise protection strategy includes customer service to deter theft (and drive sales) trimming those hours hurts a company twice.
Being careful when looking at expenses only makes sense. No business can last long if money isn’t being spent wisely. On the other side of that coin, when sales start to flag, a company needs to look at all of the factors that may be contributing to the problem. Has a new policy been implemented? Is the weather played a part? Are merchandise lines being discontinued that were popular? When was the last time a new sales display or endcap set up? There are many things that can impact sales and cutting corners to save a few dollars may wind up costing you more in the long run. Before you start cutting things such as staff hours, Checkpoint Security System budgeting, or even reducing store hours, make sure you look at the big picture. Sometimes it is easier to look at the quick fixes rather than analyzing the external influences.
Get more information on Retail Theft Prevention, contact us or call 1.770.426.0547 today.
Checkpoint Tags- 4 WC Blog 342
Clothing Security Tags-5
Clothing Security Tags Can Help Or Hinder Customer Service; Tips To Ensure You Are Keeping Customers Happy – Part 1
Browsing the internet there are any number of articles on clothing security tags. Some sites purport to tell the readers how to remove tags themselves and some discuss how tags work. Others are customers who have become frustrated at getting merchandise home after traveling some distance from the store only to find the tags left on the clothing. I give little credence to the first two types of articles; one because they are often written by thieves, petty crooks or wannabe’s who just wants attention. Those discussing how tags work may or may not know what they are talking about, but if I want the real scoop on Checkpoint Tags I’ll go to the source, Checkpoint Systems. As for customer service issues I’ve had to handle those situations and I have sympathy for those customers. As a Loss Prevention Manager and a Manager on Duty, I have seen the frustration those patrons have experienced when a tag was not removed or detuned properly.
For readers who are not familiar with Checkpoint Tags a discussion of what they are is in order. Clothing security tags can be soft electronic article surveillance (EAS) sensitive tags that can be applied to manufacturer hang tags or in some cases stuck inside a pocket of a dress, slacks, purse, etc. Hard tags are two piece designs that are pinned to an article of clothing and even softlines accessories such as purses or shoes. The tags are designed to set off alarm towers at the front doors when a tagged piece of clothing or any item for that matter, is carried too close to the door. When the alarm activates a trained employee responds to the door, asks for a receipt and determines if something was not paid for or if clothing security tags were not removed. If it is a matter of a tag not deactivating properly or not being removed that can be resolved quickly. If the merchandise was not paid for, the customer can be offered a choice of returning the item or purchasing it.
In most cases alarm activations at the towers are the result of unpaid merchandise that is being carried out of the store, more often than not due to a shoplifting attempt. I will caution that this is not always the situation. There are times when merchandise is accidently overlooked in a shopping cart by the customer and the cashier. The customer pays for the items that are bagged and when they get to the doors the alarm sounds and an inspection of the receipt reveals a small item, perhaps a scarf or pair of gloves with Checkpoint tags on them was overlooked under the child seat portion of the shopping cart. It happens more than you might think. While these issues are inconvenient to the customer, if properly handled the customer can still leave with an overall positive customer service experience.
What will frustrate and anger your customers is what I mentioned in my introduction, patrons getting home after shopping and finding they can’t wear a garment they bought because the clothing security tags have been left on them. How can this happen if the tags are supposed to cause the pedestals to alarm when the customer starts to walk out with tagged clothing? It happens in stages and in part 2 of this article we will look at what happens (or doesn’t happen) that affect the customer shopping experience and can hurt your sales in the long term.
Loss Prevention strategies to reduce theft and fraud are critical to running a profitable business. Checkpoint Tags are a proven tool to significantly cut down clothing shortage, keep prices low and customers happy when used properly. Find out how clothing security tags can benefit your store(s).
Checkpoint Tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.
Browsing the internet there are any number of articles on clothing security tags. Some sites purport to tell the readers how to remove tags themselves and some discuss how tags work. Others are customers who have become frustrated at getting merchandise home after traveling some distance from the store only to find the tags left on the clothing. I give little credence to the first two types of articles; one because they are often written by thieves, petty crooks or wannabe’s who just wants attention. Those discussing how tags work may or may not know what they are talking about, but if I want the real scoop on Checkpoint Tags I’ll go to the source, Checkpoint Systems. As for customer service issues I’ve had to handle those situations and I have sympathy for those customers. As a Loss Prevention Manager and a Manager on Duty, I have seen the frustration those patrons have experienced when a tag was not removed or detuned properly.
For readers who are not familiar with Checkpoint Tags a discussion of what they are is in order. Clothing security tags can be soft electronic article surveillance (EAS) sensitive tags that can be applied to manufacturer hang tags or in some cases stuck inside a pocket of a dress, slacks, purse, etc. Hard tags are two piece designs that are pinned to an article of clothing and even softlines accessories such as purses or shoes. The tags are designed to set off alarm towers at the front doors when a tagged piece of clothing or any item for that matter, is carried too close to the door. When the alarm activates a trained employee responds to the door, asks for a receipt and determines if something was not paid for or if clothing security tags were not removed. If it is a matter of a tag not deactivating properly or not being removed that can be resolved quickly. If the merchandise was not paid for, the customer can be offered a choice of returning the item or purchasing it.
In most cases alarm activations at the towers are the result of unpaid merchandise that is being carried out of the store, more often than not due to a shoplifting attempt. I will caution that this is not always the situation. There are times when merchandise is accidently overlooked in a shopping cart by the customer and the cashier. The customer pays for the items that are bagged and when they get to the doors the alarm sounds and an inspection of the receipt reveals a small item, perhaps a scarf or pair of gloves with Checkpoint tags on them was overlooked under the child seat portion of the shopping cart. It happens more than you might think. While these issues are inconvenient to the customer, if properly handled the customer can still leave with an overall positive customer service experience.
What will frustrate and anger your customers is what I mentioned in my introduction, patrons getting home after shopping and finding they can’t wear a garment they bought because the clothing security tags have been left on them. How can this happen if the tags are supposed to cause the pedestals to alarm when the customer starts to walk out with tagged clothing? It happens in stages and in part 2 of this article we will look at what happens (or doesn’t happen) that affect the customer shopping experience and can hurt your sales in the long term.
Loss Prevention strategies to reduce theft and fraud are critical to running a profitable business. Checkpoint Tags are a proven tool to significantly cut down clothing shortage, keep prices low and customers happy when used properly. Find out how clothing security tags can benefit your store(s).
Checkpoint Tags are important and we can help you with them. Call 1.770.426.0547 and let’s talk.
