Loss Prevention in the Retail World

Loss prevention is a broad topic in the retail environment.  Its expanse can make it difficult for a business owner to identify what aspects may be beneficial to his or her organization.  By learning more about what options are available to combat loss, businesses can choose what is right for them.

Loss prevention is any type of policy or procedures a business chooses to use to reduce loss of inventory and increase profits.  Apprehending shoplifters is one aspect of retail loss prevention, but proactive measures are also important.  For example, teaching your employees to provide excellent customer service can help prevent theft.  Shoplifters do not want employees’ attention – so that is exactly what a business must provide.

Also important is making sure that basic controls are implemented and followed.  If your business has a fitting room, make sure that employees are trained to monitor what enters that room.  If there is merchandise that is locked up in cases, make sure all employees understand the importance of keeping the merchandise secure until it is purchased by the customer.  You’d be surprised how many employees will unlock a case, and then hand the secured merchandise to a customer instead of ensuring that the merchandise immediately goes to the cash register.

Key controls are also important.  Make sure that keys to back doors, secure merchandise cases, fitting rooms, etc, are properly logged and only given to responsible associates.  Employee theft is common enough without lax controls within the business aiding the process.

Anyone can be a potential shoplifter – the rich, the poor, the elderly or the young.  Loss prevention is an important part of any business that has a vested interested in protecting their assets.

 For more information contact us: loss prevention  or call 1.866.914.2567.


Posted October 7th, 2010 by Staff Writer and filed in Uncategorized

Loss Prevention and investigations using POS applications

Many Loss Prevention departments find the benefits of using POS monitoring applications on a daily basis. Activities of dishonest employees take place while working on the register and while utilizing much of the data, Loss Prevention can do their job.

In this example, I’ll use exception based reporting systems. Tied into a company’s Point of Sale system, exception reports provide employers with valuable information by identifying employee trends. Price check, price inquires or price verifies are one of the most common methods dishonest employees will use to try and fool the ever watchful manager.

A part time employee under the age of 25 ringing on the register has a couple of friends bring up some beer and liquor. To the manager, the employee appears to scan the merchandise correctly. The manager assumes all is well and moves to his next task. What the manager didn’t see was the dishonest employee pressed the price check button on the register. The customer hands the employee cash and are on his way out of the building.

Loss Prevention runs the exception reports as part of their everyday tasks. Several transactions are found on this employee where the price check button is used. The Loss Prevention Investigator digs deeper and finds transactions where the price check button was used to purchase beer and liquor. The loss prevention investigator reviews the available CCTV footage of the transaction date and time. After review, the loss prevention investigator finds the employee never actually scanned the merchandise as a regular transaction, only scanning under the price check button. The Loss Prevention Investigator arranges for the interview/interrogation of the employee and the losses are stopped. Continuous monitoring via exception based reporting systems by loss prevention will help deter future occurrences. The issues found are used by the store management as training and coaching opportunity.

For more information visit us at loss prevention or call 1.866.914.2567


Posted October 7th, 2010 by Staff Writer and filed in Uncategorized

Retail Loss Prevention and the use of CCTV (Closed Circuit Camera system)

How can retail loss prevention boost your profits? Use CCTV.

Retailers worldwide benefit daily thru the use of CCTV to protect assets, increase safety and give a piece of mind. In the world of Retail Loss Prevention, CCTV is a staple. From Investigations of dishonest employees to reviews of customer alleged slip, trip and fall instances and other potential risks and liabilities.

A retailer in a metropolitan market found a return on their investment when the use of CCTV equipment helped the local police department recover thousands of dollars in stolen merchandise. An undercover loss prevention agent working the particular store, observed a team of suspects enter the health and beauty aisle. The suspects, working in teams of 4, quickly cleared off several bottles of shampoos, baby formula and men’s razorblades. The people worked so efficiently, they were sometimes in and out of the store before the loss prevention agent could get out to the salesfloor.  After the last 3 times these suspect had “hit” this store in the last week, the loss prevention agent quickly notified the local police department of the suspect’s presence. Working the store’s CCTV system, the agent kept uninterrupted surveillance on the suspects. While on the phone with the local police department, the loss prevention agent was able to position the responding police officers outside of the store. As the suspects exited, the agent maintained surveillance as the local police department apprehended all four of them.

The loss prevention agent was subpoenaed to court and was able to provide the local prosecuting agency with video evidence of the multiple instance of theft this group had conducted. As a result of the proper use of the CCTV equipment, the store was able to recover a large amount of its losses after the local police department recovered thousands of dollars in stolen merchandise from the suspects.

Retail loss prevention  can create, write and execute loss prevention policies for most companies that can dramatically improve their overall profitability.

For more information visit: retail loss prevention or call 1.866.914.2567


Posted October 5th, 2010 by Staff Writer and filed in Uncategorized

Retail loss prevention initiatives necessary for success & profit

By definition, retail loss prevention  is a type of private investigation into larceny or theft. It is police and detective work for the private business instead of the general public. Businesses that do not take into consideration basic loss prevention and asset protection procedures will not survive.

The focus in retail loss prevention is on shoplifting, fraud and employee theft. According to the 2006 National Retail Security Survey, shrink is divided into five categories:

46.8% Employee theft
31.6% Shoplifting
14.4% Administrative error
3.75% Vendor error
2.86% Unknown error

To understand  retail loss prevention , a business needs to understand shrink. Shrink is merchandise or assets that are unaccounted for – and the loss is usually identified during an inventory. A business’s books will tell how much merchandise the business is supposed to have, based on receivings, shipments, etc. The difference between the books and what merchandise is actually there is called shrink.

A business must analyze its operations in order to identify factors that contribute to loss. Strategies must then be implemented to combat shrink. As illustrated in the statistics above, employee theft creates the most loss for a business and has to be taken into consideration when creating a program to reduce shrink. Many businesses only focus on shoplifting as a contributor, but employees can actually steal much more.

Retail loss prevention is a necessary effort in order for a business to be successful and profitable.

For more information contact us: retail loss prevention or call 1.866.914.2567.


Posted September 30th, 2010 by Staff Writer and filed in Uncategorized

Security and Loss Prevention similar but not the same

If you are or work for a small to medium sized retailer with less than ten locations you may be thinking security and loss prevention are one in the same.  Most retailers that size do not have a loss prevention staff or even a program in place.  Many that I run into will respond, “I have a security system” when I ask about their loss prevention situation.  What they mean to say is “I have a burglar alarm.” 

A burglar alarm, known as a security system, is armed when the facility is closed and no one is in the location.  Just stating the obvious, when a protected point such as a door or window is breached it sets of the burglar alarm which triggers a string of events that will result in the police being dispatched to the location. 

Retail loss prevention will include a burglar alarm to protect assests when the facility is closed; however, most retail losses accur when the store is open.  Taking a look at other security and loss prevention solutions are CCTV (surveillance cameras).  CCTV systems are great for recording events where loss occurs so that you can retrieve the evidence for use in court etc…

An active loss prevention security solution is an EAS (Electronic Article Security) system such as Checkpoint Systems.  Checkpoint systems involve installing antennas at doors that detect anti theft devices that are placed on merchandise.  These anti theft devices are either pinned on or are labels that are stuck on.  When a shoplifter approaches an exit with merchandise that has not been paid for the Checkpoint system will alarm alerting staff of the issue.  This catches the shoplifting in the act, thus a Checkpoint system is considered an active  loss prevention security method.

For more information and or to learn about your options for protecting your merchandise visit:  security and loss prevention 


Posted September 28th, 2010 by Staff Writer and filed in Uncategorized

The basics of Loss Prevention

Loss Prevention, traditionally, is a department or part of many retailers and businesses throughout the world. The responsibilities are generally the same; prevent losses.

Through a proactive approach, loss prevention can be a real asset to any company interested in protecting themselves from a number of different losses. Shoplifters, employee theft, receiving/delivery issues, vendor fraud and other administrative related concerns are the reality retailers and businesses face.

As an example, a local grocer I worked for some years ago faced a number of challenges. They were a smaller business, competing against the likes of Ralphs, Vons and other big name grocers. However, they had a niche, the community loved them. They were profitable and able to open to more local stores. As the business grew, so did the issues. More employees increased the likely hood of employee theft and dishonest employees. The operations department did not have the time or the experience on detecting and preventing such occurrences. They needed help, and fast. The company I worked for at the time was hired. The operators of the loss prevention organization came in with a fury. They quickly identified the issues and worked with the management on creating a plan to aggressively go after those causing the losses and rolled out a plan to help prevent them from occurring in the future. Initially, we launched several investigations into large dollar losses various departments were suffering. We uncovered everything from a local delivery company not delivering all the goods, and working with a dishonest employee to keep some of the company merchandise for his own little side business to big name, brand name vendors delivering only part of the merchandise ordered and fudging the numbers on invoices to reflect otherwise. Today, this grocer is thriving. They have about 21 locations and are looking forward to growth in the future.

Loss Prevention is an important and integral part of a business. A solid program delivering better than expected results should always be the outcome.

For more information visit us at loss prevention or call us at 1.866.914.2567


Posted September 27th, 2010 by Staff Writer and filed in Uncategorized

Why Employees Steal In Retail Loss Prevention, Atlanta

Over the years many of the employees caught in retail loss prevention theft investigations that I have conducted have given me a lot of reasons why they did it. The most common is “as a favor to help friends out” or commonly called peer pressure. Think of it, an employee commits a felony that will land them in serious trouble to help out a buddy.

My fellow loss prevention and security professionals have heard this so many times. Why does the employee do it? There are several factors. One being age. We mostly hear this from 17 to 22 year olds. I believe that this is because they think that fitting in with so-called “friends” is more important than anything else. This thought process is pretty alien to the rest of us until you start thinking back to your own life at that age. You may have started smoking or did something else that you now look back and say, “what was I thinking?”. All of this in order to “fit in”.

Employees in that age group also tend to feel like they are bullet proof and that they wont get caught. In that situation I always laugh about the security and loss prevention investigations I conducted where a 19 year old cashier thought that she was the only one that ever thought up refund fraud, cash theft, void fraud or some other retail loss prevention theft that I had already put 600 people prior to her in jail for.

There was one retail loss prevention investigation in particular that I think is a good example. Two 18 year olds, male and female who were boyfriend/girlfriend decided that they would steal merchandise and cash to the tune of several thousand dollars. They thought that no one knew what they were doing. Clearly they believed that they were smarter that the rest of us including the store manager.

The manager contacted me to start a retail loss prevention investigation after he noticed variances in both cash and merchandise. In a very short time I had the evidence pulled together and narrowed it down to the two eighteen year olds. The interviews with each of them revealed the reason, they were stealing for each other (isn’t love grand?) and they didn’t think anyone would notice. They got to spend the next two years on probation paying back the business with interest and 50 hours of community service each (separate community service details as the Judge thought the love needed a break).

Your loss prevention security program must take this type of reason in to account if you want to keep your money on the bottom line. You must make clear to employees of all ages that you will not tolerate any theft of any type. The only thing they are allowed to leave the store with that they did not bring in is the air in their lungs. The rest is hands off.

Security and loss prevention professionals help you to balance loss prevention with sales, operations and human resource issues and concerns.

For more information on loss prevention security , retail loss prevention or loss prevention in general please contact us in Atlanta at: security and loss prevention or call 1.866.914.2567

LPSI is the Atlanta area loss prevention security experts.

Posted September 25th, 2010 by Staff Writer and filed in Uncategorized

Loss Prevention Security Policy And Procedure

Loss prevention security is achieved with many programs and concepts running at the same time. However, the foundation of all of this is the company policy and procedure manual. Is it a living-breathing document that is emphasized daily by upper and middle management? Or is it used only and a means to prop open the office door?

Your P & P should clearly spell out how the company operates and when someone asks a question the first source that the person should be referred to is that manual. You must create a loss prevention security culture when employees automatically start with the P & P manual. This accomplishes several goals.

One of the biggest time and profit wastes in a company is reinventing the same wheel over and over. A policy and procedure manual creates a standard. Do it that way. Another issue that a P & P manual solves is the constant interruptions for information that should be readily available to employees.

For example, you have a procedure for receiving. Everyone that touches that area should know the correct way to receive product. It should be the same way and not open to interpretation. Security and loss prevention is only achieved when everyone is doing the same things the same way.

Of course all of this is only possible if you keep the manual up to date with relevant and current information that has changed with your business changes. Loss prevention security personnel should be involved along with all other areas to review and insure that changes are made as business changes.

Security and loss prevention personal can then focus more on prevention and go after the money that is leaking off the bottom line in more complex areas. Loss prevention security should be a profit center. You will never achieve that until you have a stable foundation.

Make your policy and procedure manual and loss prevention a corner stone in your companies profit model.

For more information about security and loss prevention in Atlanta contact us at: loss prevention security or call 1.866.914.2567



Posted September 23rd, 2010 by Staff Writer and filed in Uncategorized

Security and Loss Prevention – Providing the same outcome thru different tasks

Security and Loss Prevention have, throughout their history, been lumped together as one in the same. Some call Loss Prevention, Security, some call Security, Loss Prevention.

I personally believe they are different, here’s why.

Security is, as its name indicates, a position of securing, keeping secure or providing a secure environment for people, places and things. When you hear the name security, you automatically think of a person in a uniform, assigned to patrol or monitor a particular area.

When you hear the name of Loss Prevention, you think of a plain clothes store detective or undercover loss prevention agent. Both working to protect the assets of the company through a pro-active approach, one is overt the other is covert.

Security and Loss Prevention, different or not, should have the same goal. Provide the retailer or business with a safe, secure and profitable environment.

Through shared responsibilities, Security and Loss Prevention offer a great partnership.

Retailers must have their fingers on the pulse of the business to truly identify what is needed. Is it a uniformed security program, or should they develop a full blown loss prevention program? What is the environment? What is the business? What do the stores or business look like? Large box or smaller boutique styles? The demographic can also dictate when and where a uniformed security presence is best suited versus the undercover loss prevention personnel working to apprehend would-be thieves. Having uniformed security personnel at the front of a business can sometimes deter customers. Having a poorly trained and uneducated loss prevention program can lead to bad business practice. It’s no easy task. Security and Loss Prevention are two business needs that should be address by every retailer, business owner and manager alike.

Consult a Loss Prevention professional to asses your specific situation and recommend the security a loss prevention services that best fit your goals.

For more information visit us at security and loss prevention or call us 1.866.914.2567

Posted September 21st, 2010 by Staff Writer and filed in Uncategorized

Retail loss prevention solution a click or call away

Retail Loss Prevention has been around for many years. Names like Store Detective, In house Detective, Grocery Cop, Loss Prevention Agent, Undercovers, and more have been bounced around and used all over the place. Whatever the name, the job of a person in Retail Loss Prevention is ever-changing. 

From Apprehending shoplifters, to running an inventory, leaders in Retail Loss Prevention are always out to find the best return on the investment. This is no small feat. As most business people would probably agree, a knowledgeable and effective loss prevention department can seriously impact the business. Now, whether this impact is negative or positive depends on the organization.

Knowledge is power. In this day and age, it is important for loss prevention leadership to look at ALL aspects of the retail business. Is the retailer suffering from shoplifters? What about organized retail crime rings? Are they having issues with cash shortages? Maybe their receiving habits have gone unchecked for too long. What about employee awareness? Deciding what works best and building a custom program to each retailer should be the goal.

By far, one of the best ways Retail Loss Prevention can impact their business and partners is by helping build the awareness of all employees. Most employees are not aware of losses other than shoplifters. They don’t know about markdown abuse, price adjustments, refund fraud, discount abuse and other point of sale schemes used by the dishonest employee. Employee awareness impacts shrink and losses effectively when managed appropriately.

As experts, Loss Prevention Systems, Inc. provides a valuable service to the retailer working closely with management, ownership and or operations, they can advise on all aspects of the business where opportunities for improvement exist to reduce losses and boost profits.

For more information visit us at retail loss prevention or call 1.866.914.2567


Posted September 21st, 2010 by Staff Writer and filed in Uncategorized