Controlling Cargo Theft
Chapter 5 Shoplifting
All businesses are vulnerable to theft from their own employees and, to some extent, vendors, but only retailers experience the theft of their merchandise on a routine basis by their customers in the form of shoplifting. According to the 1989-90 edition of the IMRA, Ernst and Young security survey, shop- lifting costs retailers approximately 3% of their gross annual sales.1 This cost is generally absorbed by consumers in the form of higher retail prices.
In an effort to prevent these losses, this chapter familiarizes retailers with the different types of shoplifters, some current theft methods, and various shop- lifting prevention techniques.
TYPES OF SHOPLIFTERS
Retailers frequently ask experts to determine the typical shoplifter particular to their stores. The retailers need to know the types of merchandise that are taken most frequently and how the merchandise is stolen. In most cases, the store manager can provide this information.
Experts on the subject of shoplifting agree that there are different types of shoplifters and each type is based on motive. The most common type of shoplifter is the opportunist or amateur. A subset of this type of shoplifter in- cludes juveniles and other impulse shoplifters. The opportunist is often a customer who frequents the store and who is suddenly placed in a situation in which the opportunity to steal presents itself. Examples of this type of situation include an unattended fitting room or an unwatched merchandise aisle. Generally, the type of merchandise taken is the merchandise that is sold in the greatest quantity and is highly desirable and easily resold. In grocery stores, tobacco, beer, health and beauty aids, and deli meats are targeted the most. In drug stores, health and beauty aids, and over-the-counter drugs are most frequently taken. In clothing stores, athletic shoes, women's apparel, and jogging suits are frequent targets. In hardware and specialty stores, im-
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34 Retail Risks: Problems and Solutions
pulse items are stolen most frequently. Small quantities of these items are usually taken by amateurs and rarely does a first-time thief take more than one item. The most common places in which merchandise is concealed in- clude a pocket, purse, or shopping bag.
The type of shoplifter that costs retailers the most may well be the profes- sional shoplifter. Professional shoplifters operate at different levels of sophistication. At the bottom of the hierarchy are basic diversion groups or individual hard-core shoplifters who steal to make money to buy illegal drugs, such as "crack" or "crank." The next level of professional shoplifter includes diversion groups, which have complicated schemes to divert store employees' attention from the theft activity, and order-buy groups, members of which often wear beepers or use car phones to take "steal-orders" (i.e., orders to steal specific merchandise). This type of professional shoplifter may go through the store and mark targeted goods, such as steaks, cigarettes, and designer jeans, for an accomplice. At the top of the hierarchy of professional shoplifters is the true professional whose sole source of income is shoplifting.
These individuals are very difficult to detect and, if stopped, are adept at get- ting released. When stopped they may either create a scene or appear so remorseful that they are not turned in to the police. True professionals steal high-ticket items, such as compact disks, high-quality meats, and expensive clothing. Very often, this merchandise is returned directly to the retailer for a refund. Sometime professionals have insurance quote printers that can precisely duplicate store receipts.
SHOPLIFTING METHODS
The methods shoplifters use to steal are as varied as the human imagination and the list grows every day. Opportunists usually conceal merchandise in their socks, pockets, purses, or packages. They may also simply wear or carry the item out of the store (known in some regions of the U.S. as hit-n-git or hit-and-run); conceal it in a woman's elastic girdle, put it in elastic pantyhose, socks, spaghetti strainers attached to a bra (which make them appear preg- nant), or in a "booster box" or "booster coat" with hooks. Often times, profes- sionals will place the stolen items in a purse or box that is lined with foil, in an attempt to defeat electronic security devices. Many shoplifters switch price tickets on items rather than attempt to steal the goods. Bar coding and price checks help defeat this practice.
Several shoplifting schools and how-to manuals have been discovered by private security and law enforcement authorities in Florida, Texas, and California in recent years. These schools operate out of prisons and hotels, for example, and concentrate on teaching basic theft techniques and ways to spot store security and management. See Appendix 1 for an unedited how-to manual for shoplifters.
Shoplifting 35 DETECTION OF SHOPLIFTERS
Shoplifters can be detected via physical and behavioral characteristics. By picking up on different types of cue, the trained manager or loss prevention specialist can spot most shoplifters. Physical characteristics of shoplifters include inappropriate dress for the season (including not wearing any shoes), carrying a large open purse while shopping, carrying cash in-hand while shopping to distract attention from their theft activities, and carrying back- packs, plastic garbage bags, large worn shopping bags, and very worn shoes or other clothing that may be switched for new items without paying for them.
Shoplifters tend to give off behavioral clues that indicate their intentions.
This is primarily due to the anxiety that builds up and the subsequent release of adrenalin when the decision to steal is made or when suspects feel they may be discovered. Examples of this behavior include quick glances or scop- ing (during which subjects are looking for witnesses to their activity; holding the hands down low to conceal items (rather than holding the hands up like most customers who are studying price, quality and style), moving quickly about the store, holding quick conversations with other suspicious individ- uals, and shopping quietly right after store opening or right before closing.
SHOPLIFTING PREVENTION
Every retailer needs a shoplifting prevention program. The best programs are those that are basic and uncomplicated. Physical design, systems (which will be discussed in more detail in Chapter 13—Security Systems), and store per- sonnel are the primary elements of any effective prevention plan. Environ- mental design and layout of the store and its merchandise is the first place to start in reducing loss. Most stores display their merchandise in ways that are designed to induce customers to buy something. Many times, this prac- tice runs contrary to good security. However, a happy medium between effective merchandise display and good store security can often be reached.
Store merchandise can be physically protected by restricting access to it or by restricting its mobility. Display cases, display models, and cable tie-downs are examples of restricting the movement of merchandise. Visibility of mer- chandise is also very important in deterring theft activity. High-ticket or high- loss items should be easily visible by trained employees. Another effective physical shoplifting prevention method involves the use of electronic (or dye) article tags. The placement of a notification sign, the detection antenna, and the actual EAS tag on merchandise serves as a deterrent to theft. Many shop- lifters avoid stores that have EAS systems, security agents, cable tie-downs, or display alarms. Would-be shoplifters often head to other stores that do not employ these theft prevention techniques.
36 Retail Risks: Problems and Solutions
Examples of prevention methods that involve employees include aware- ness programs, plainclothes agents, and fitting/dressing room control.
Employee Awareness and Training
Employee awareness is probably the most important method of theft preven- tion. Ensure that senior management, district management, store manage- ment, and store employees are aware of how shoplifters work and know how to stop them. Hold meetings during which employees can learn about current theft and prevention techniques. These meetings should be relatively short in duration (between 45 minutes to an hour) and should highlight basic actions that employees can take to prevent theft. Meetings should be not only infor- mative, but entertaining as well. Upbeat video training kits are available to retailers for this purpose. Examples of appropriate employee participation include providing good customer service, taking time to make price checks, making security announcements over public address systems, and using effective incident-reporting procedures.
Plainclothes Agents
Retail operations that gross more than $50 million in annual sales may employ some type of in-house loss control specialist. Plainclothes agents are very effective at curbing losses from shoplifters. It is very important that indi- viduals chosen for plainclothes agent positions be thoroughly trained. Figure 5-1 is a sample of the curriculum used to train loss prevention specialists.
Each retail operation should have a complete training course set up for all personnel who are authorized or expected to detect and detain shoplifting suspects. A qualified consultant should be able to recommend the specifics for creating such a training workshop. Another available option is to hire graduates of a high-quality retail/security training course. Also, be aware that there is an interactive computer training simulator on the market that is used to train store detectives. These simulators, when used in conjunction with a comprehensive security curriculum of approximately 100 hours, teach train- ees with the complexities of detecting, surveilling, and apprehending shoplifters. The simulators provide the trainers with reports that indicate the trainee's discretionary judgment skills and aggressiveness. Different retail organizations have different titles for these detectives—retail protection specialist, agent, operative, and detective are the most common. It is impor- tant to provide quality, documented training; competitive salary and benefits;
a suitable title; and senior management support of loss control personnel.
This allows the retailer to attract and retain the high-quality personnel needed to implement and run an effective loss prevention program.
In many communities, it is beneficial to the retailer to install and promote a consistent prosecution and civil action plan. When "the word" gets out to neighborhoods and schools that a store has security systems and well-trained
Shoplifting 37
Day 1 Intro, to the Retail Industry Intro, to Retail Loss Prevention Problems Retailers Face Today Day 5 Shoplifting
—apprehension
—escorting Employee Awareness Quiz 1 Individual Evaluations (PM) Day 9
Computer Testing Oral Board Awareness Presentations Emergency Procedures
Day 2
Laws that Affect:
Our Company, Our Jobs and Our Customers Our Policies on External Theft:
Shoplifting, Refund Fraud, Electronic Article Surveillance Day 6
Processing Report Writing
Computer Testing Make-up
Awareness Presenta- tion Make-up Oral Board Graduation
FIGURE 5-1 Sample training course curriculum
loss prevention specialists that prosecute and sue shoplifters, if you're caught stealing, the result is usually a drop in shoplifting activity.
Closed-circuit television (CCTV) combines a physical surveillance system with human, loss prevention specialists. CCTV offers an exciting array of possibilities to retailers. These systems can be used to simultaneously detect and deter shoplifters and dishonest employees, deter and record an armed robbery, track customer buying and shopping patterns, activate burglar alarms, and much more. Many departments within a retail chain can benefit from CCTV. Time-lapse recorders and "dummy" systems are also available to retailers, including a new mount that has a visible false lens that can be quickly replaced with a "live" lens. One drawback to using CCTV on shoplift- ers is the need for two loss prevention specialists—one to observe the subject on CCTV and one to follow and apprehend the suspect. This additional man- power requirement incurs a greater cost than other theft prevention methods.
Day 3 Shoplifting Detection Physical Security Shoplifting Surveillance
Day 7 Civil Liabilities
Bad Stops Case Studies Decision Making Privileged for Counsel Reports Final Exam Review Day 10
Day 4 Shoplifting Surveillance Report Writing Review for Quiz 1 Day 8 EAS Systems Employee Theft Courtroom Testimony Professionalism Final Exam
38 Retail Risks: Problems and Solutions Fitting/Dressing Room Control
Many apparel retail stores have fitting/dressing rooms in their stores. These areas provide shoplifters with ideal locations to steal unless some type of con- trol is established. Dressing room control procedures provide retailers with a tremendous opportunity to prevent thefts. A good dressing room control program should ensure that either an employee is assigned to the dressing room area on a full-time basis or that salespeople escort customers to the dressing rooms. Limit the amount of items permitted in a dressing room to eight per person. Provide the customer with a pre-numbered tag that corre- sponds to the number of items taken into the dressing room. The retailer may also use plastic tags that have a specific number of notches on them that cor- respond to the number of hangers being taken into the room. Control of these tags is very important. Keep a logbook or post a display board out of the cus- tomer's reach to track merchandise flow to and from specific dressing rooms.
Be aware that shoplifters may steal #0, #1, or #2 tags for later use. A typical shoplifting scenario at a dressing room may be one in which the subject takes eight garments and a #8 tag into the room. Once inside the room, the subject conceals the #8 tag, hides seven items, and exits with one item and a #1 tag that was previously stolen.
Clerks assigned to the dressing room area can prevent losses while increasing sales. While checking customers into the dressing room, the clerk can make positive comments about the customer's taste in garments and can suggest additional sales. Smart managers put their best sales people in the dressing room area. Clerks in this area are often the first employee the public sees and this is the retailer's chance to make a good impression.
FIVE STEPS TO FOLLOW PRIOR TO DETAINING A SUSPECT
Many retailers take action against shoplifters in the form of deterring a theft in progress (a "burn") by letting suspected shoplifters know they are being observed or by choosing to apprehend the offender. In either case, retailers need to be familiar with the criminal laws in their state. Two factors tend to create the most problems (in terms of costly law suits) for merchants- unlawful detention and unreasonable detention. Detaining individuals with- out good reason is a major cause for concern. Although some states have pro- visions within their specific statutes that allow for shoplifter detentions based on concealment or probable cause, managers or security specialists should follow five simple steps before detaining anyone.
1. Watch the subject approach the merchandise, to eliminate any question about where the merchandise came from.
Shoplifting 39 2. Watch the subject take the merchandise.
3. Watch the subject conceal the merchandise (if he does).
4. Observe the suspect at all times, watching carefully for any signs that the merchandise will be "dumped" or "ditched."
5. Watch the subject pass the last point of sale without paying for the merchandise.
If there is a group of suspects or a potentially violent subject and the deci- sion is made to apprehend, for safety purposes the security specialist may wish to detain the subjects prior to their leaving the premises.
Once you have detained the suspect, obtain statements from witnesses and ring a "no-sale" on area cash registers. This precludes subjects from later claiming that they did, in fact, buy the merchandise.
WHEN SHOPLIFTING IS SUSPECTED
Most retailers are advised to attempt to get suspects to drop the goods before they leave the premises, rather than attempt an apprehension. There are sev- eral ways to recover merchandise, but remember that customers should never be accused of stealing. Retailers should attempt to intimidate subjects enough so that they will ditch the merchandise. Shoplifters avoid eye contact and don't like salespeople waiting on them or working around them. By look- ing directly and frequently at the subject, while "working" in close proxim- ity, the subject may go and dump the shoplifted items if they're given a little room. Another method to get the suspects to drop the merchandise is to directly confront them without making accusations. Ask "helpful" questions such as, "Can I help you find a shirt to go with those pants?" This confronta- tion may make the shoplifter nervous. Continue making eye contact and stay close, but give the subjects enough room to ditch their merchandise.
If the shoplifter attempts to leave the store before the first two "bluff"
techniques can be employed, a manager should walk quickly and loudly behind the subjects as they approach the exit. Many shoplifters will detour back into the store and dump the merchandise. If you wish to apprehend the suspects at this point, "spook" the suspects before they are so close to the exit, that they are psychologically committed to exiting the store. Many shop- lifters would rather risk apprehension than be too obvious in returning to the store. If a shoplifter confronts a store employee, the employee is best advised not to escalate the situation by arguing with a suspect. If all five steps have been followed, an apprehension may be attempted. If these steps have not been followed, the subject should be allowed to move on.
The point of these different techniques is to signal to suspects that a store employee is aware of their activity and is ready to take action. The retailer's ultimate goal is to recover merchandise without accusing a customer of theft.
40 Retail Risks: Problems and Solutions
Retailers should realize that while burns or bluffs often work, they are tempo- rary measures, since many shoplifters return to a store to steal again. This is especially true in the case of true professionals who often steal merchan- dise in order to obtain cash for illegal drugs.
APPREHENDING THE SHOPLIFTER
If the decision is made to apprehend a shoplifter (and all five steps have been followed), the manager or security specialist may wish to use some of the fol- lowing suggestions.
Wait until the suspect passes the last point of sale with the stolen mer- chandise. While not a requirement in many jurisdictions, this action helps to prove the suspect's intent to steal the merchandise in question.
When possible, a second person should accompany the security specialist making the stop and act as a witness and back-up.
Move quickly behind suspects, then step in front of them to impede their direction of travel. Do not touch the suspect. If a suspect attempts to strike you or attempts to escape, use reasonable force to either defend yourself or detain the suspect.
Identify yourself by saying, "I am a [manager/security specialist] for [company name]. I'd like to talk to you inside the store. Please come with me." At times, suspects may ask why you want them to return to the store. Without making an accusation, simply say, "I want to talk to you about some merchandise that may not have been paid for." Never suggest that the suspect "forgot" to pay for the items; this can be used as a defense in court. Don't get into an argument or discussion with suspects at this time. Encourage them to return to the store by saying that you'll discuss everything in the office. This is a good method to recover stolen merchandise in a low-key manner.
Remember the first words of the suspect, especially if they resemble a "confession." Often, a suspect will say, "Can I just pay for it?" This is your assurance that the suspect has the item and may cooperate.
Escort suspects back into the store to a back room or office—some place that provides some privacy. Observe their hands at all times to be certain that they do not dump the items prior to entering the office or pull some kind of weapon. Have suspects carry packages. This will impede their actions and leave you free to deal with any situations that are created.
DETAINING THE SHOPLIFTER
After the subject has been apprehended, the security specialist must handle the situation in a professional manner. Many states have statutes or laws that