Organized retail crime is a common — and expensive —problem for retailers. The 13th annual Organized Retail Crime (ORC) study by the National Retail Federation released in November 2017 found that 96% of retailers had been the victims of organized retail crime in the past year. Losses averaged $726,351 per $1 billion in sales, up from $700,259 per $1 billion in sales in 2016.
You can fight back. There are ways to spot organized retail crime and reduce its incidence at your store:
Identify Shoplifters
Shoplifters, whether “professional” members of an organized shoplifting ring or working as an individual, exhibit certain common characteristics. For example, they often carry multiple purses or bags or wear long coats to hide the merchandise they intend to steal. Others attempt to conceal stolen items in the basket or bottom of a baby stroller or inside their clothing. Still others use their umbrellas or bags containing merchandise for which they’ve already paid. Admittedly, not every individual who fits this profile is a shoplifter. Nonetheless, carefully watch those who do.
Certain behavior can also point the finger at possible perpetrators of organized retail crime. These include paying more attention to store employees than to merchandise, to ensure that store associates are out of sight before attempting to steal it. Other behaviors that may identify a shoplifter encompass pretending to look at random items and walking in the opposite direction upon encountering store employees.
Take Preventive Measures
Evaluating your store’s layout is as important a step toward minimizing retail theft as knowing how to identify shoplifters. The fewer the areas on the sales floor where customers cannot be observed, the better, so eliminate blind spots.
Proactive customer service can be a major deterrent to organized retail crime as well. This means stationing employees in strategic areas of your establishment to assist customers and identify those who may, if unobserved, attempt a theft. Think the end of store aisles, near displays of expensive merchandise, and outside dressing rooms, for starters. And of course, the more your employees engage with customers, the less likely those customers will be to attempt a theft.
The inventory control component of your point of sale (POS) system should come in handy here, too. Review reports to zero in on patterns of theft, such as the disappearance of a particular type of merchandise. Then, take such action against organized retail crime that may be targeting that merchandise, relocating these items to a more visible display area. You may also want to consider installing inventory control system that sounds an alarm when thieves attempt to remove unpaid merchandise from your store.
Implement Procedures to Address Shoplifting
Learning how to identify shoplifters and taking steps to curtail their activities is only half the battle when it comes to theft perpetrated against stores. You also need to create a plan that spells out how you’ll address shoplifting when it occurs, because shooting “from the hip” will only lead to more headaches.
Your plan for addressing incidents involving organized retail crime and other types of theft must indicate whether or not suspects will be confronted. The policy should also spell out whom to call or contact in the event of a theft or attempted theft and what documentation concerning the incident is required. Don’t just instruct employees about what to do when theft occurs or they believe it may happen. Role play to ensure that they completely understand the plan and store policies.
If you’re like many retailers, you want to believe that customer-perpetrated theft simply won’t be a problem for your store. However, the truth is that organized retail crime is a reality and can happen at anywhere at any time. A proactive approach that includes planning, training and taking countermeasures is the best course of action.
