A question frequently asked by the typical retail customer—and even some loss prevention professionals just getting started in their careers—involves many of the smaller stores where they shop, and how shoplifting and other retail shrink concerns are managed in retail stores with no loss prevention team.
First and foremost, there are very few retail companies that actually attempt to manage their stores with no loss prevention program. Considering the significant impact that retail shrink can have on the business, most retailers recognize the crucial need to manage merchandise losses and protect all of the various assets of our retail stores. As a result, a loss prevention program often exists, but is managed in a different way than might be expected in a traditional department store setting where resources are devoted to loss prevention personnel that are specifically charged with identifying and apprehending shoplifters.
Similar Expectations, But a Different Approach
For example, in many of the smaller, “specialty” stores, it may appear to the untrained eye that these retailers manage the stores with no loss prevention. However, most of these companies have many different programs in place that are intended to help the store manage merchandise theft and other losses. Often the program is locally managed by having loss prevention personnel cover multiple store locations in the capacity of an “area,” “district,” or “regional” loss prevention capacity. The focus of the loss prevention initiatives in these settings is often placed on prevention and deterring theft and other incidents before they happen rather than utilizing store resources to actively attempt to apprehend shoplifters.
From an asset management standpoint this will involve several different levels of deterrence. Physical security tools are often the first resource that comes to mind. This might include common tools such as locked showcases, security lanyards and other physical security devices. Closed circuit television (CCTV) technology can be utilized in many different forms, and can be monitored both locally and remotely, some of which can be accessed by a smartphone app and the touch of a finger.
Managing the various operational controls through the effective use of loss prevention audit programs is another important means of controlling retail shrink in these settings. Limiting opportunity is a prime factor in theft prevention, and stores that fail to run a tight ship in terms of these critical control measures are those that are most likely to have retail theft issues.
Most certainly, investigative measures play a significant role in controlling losses. Some companies might have loss prevention team members that cover multiple store locations dealing with shoplifting and related theft and fraud issues. Others will create task forces to deal with different scenarios. For example, organized retail crime task forces may be created that may even be collaborative efforts with law enforcement teams or other retailers. Software programs often come into play that help monitor point-of-sale transactions and other store functions. Covert surveillance operations are a common tool. Critical skills such as interview and interrogation training then play a much bigger role in program success.
But perhaps the most important skill for loss prevention professionals to possess in stores with no loss prevention staff present on a day-to-day basis is the ability to teach and train. Loss prevention professionals must reinforce the value of good customer service skills within the sales team, and the critical role that this plays in deterring theft and controlling losses. They must strive to increase store awareness of ongoing shrink issues and the latest shrink trends. By the same respect, a skilled loss prevention professional in this type of setting will be able to tie good loss prevention practices with all of the primary aspects of the retail setting: merchandising, operations, housekeeping and other related retail roles. The ability of the loss prevention team to carry business acumen and retail perspective and then apply those skills appropriately in the stores then becomes a badge of success; leading a program rather than simply supervising a team or executing a role.
Complement the Culture
Different types of retail require different types of management, and the loss prevention culture must be modified to best meet the needs of the business. It’s not simply a matter of the size of the building or the product being sold. It’s about the countless other factors that can and will influence the way that the business operates. One type of program isn’t necessarily better than any other. But they are different, and that should be our focus. Whether learning something for the first time or revisiting fundamental concepts of the business and the profession, all of us must adapt in order to remain relevant.
An education in retail loss prevention is an ongoing process, but in many ways constants are just as important as change. The fact remains that every successful retail organization must have an effective loss prevention culture in order to be successful. Some of the best loss prevention practices are invisible. Whether shopping in these stores or considering a career move in loss prevention embracing that mindset might take your professional development in a new direction. Keep in mind that it’s often just as important to understand what we don’t see, and how that might ultimately change our perspective and a loss prevention career path.
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