Chapter 16 Retail Security

Retail Establishment Crimes  Shoplifting.  Burglary.  Vandalism.  Bad checks.  Fraudulent credit cards.  Employee theft.  Robbery.

Legal Definition of Shoplifting  Shoplifting is the theft of retail merchandise by a person lawfully on the premises.  Concealment of merchandise is prima facie evidence of intent to shoplift.  In many states price changing is also considered shoplifting.

Types of Shoplifters  Amateurs:  Students.  Housewives.  Vagrants.  Alcoholics.  Drug addicts.  Kleptomaniacs.  Professionals: Those who steal for resale of merchandise.

Shoplifting Methods  Palming objects.  Dropping articles into a receptacle.  Placing items inside clothing.  Wearing items out of the store.  Switching price tags.

Curtailing Shoplifting  Single most effective deterrent is surveillance by an alert, trained sales force.  This may be supplemented by security officers or floorwalkers.  Security officers are prevention oriented, seeking to deter crime by their presence.  Floorwalkers are apprehension oriented, seeking to arrest and prosecute shoplifters.

Merchandising Techniques to Deter Shoplifting  Keeping displays orderly and not stacking merchandise too high.  Returning to the display any item looked at and not bought.  Keeping small, valuable items locked in display cases.  Placing identifying tags on all merchandise.  Displaying only one of a pair.  Not displaying expensive merchandise near exits.  Having small, easily stolen items located by the checkout.

Deterrent Procedures for Shoplifting  Keeping unused checkout lanes closed.  Locking the back door.  Having package checks.  Carefully checking price tags and bar codes.  Maintaining tight controls on fitting rooms and restrooms.  Issuing receipts.  Controlling refunds.  Establishing a communication system.

Physical Controls for Shoplifting  Changing the actual store layout.  Posting signs.  Installing locks and alarms.  Installing surveillance equipment such as convex mirrors and/or CCTV.

Apprehension of Shoplifters  Someone must actually see item being taken and concealed or be reasonably certain item has been taken.  Suspect must be kept under continuous observation until apprehension is made.  This may occur on the premises or outside the premises depending on state statute.  Must have reasonable or probable cause.

Prosecution of Shoplifters  Establish reasonable guidelines for prosecuting shoplifters.  Consider the value of the article, along with the person’s age, number of offenses and attitude.  Guard against illegal detention, malicious prosecution and slander suits.

Deterring Bad Checks  Teach personnel to recognize the different types of checks and the common types of bad checks.  Establish a check-cashing policy and adhere to it.  Train personnel to examine checks and identification.  Record relevant information on the backs of all checks cashed.  Reconcile identity documents with check passers’ characteristics.

High-Risk Checks  Second-party checks.  Counter checks.  Illegible checks.  Post-dated checks.  Out-of-town checks.

Types of Bad Checks  Forged or altered checks.  No-account checks.  Nonsufficient funds checks.

Check Examination  Look at the printed name and address.  Check number, date, payee, numerical and written amount, bank and address and signature (for endorsement).  Accept no checks that are illegible, that are not written in ink or that contain erasures or written-over dates or amounts.

Check Identification  Persons presenting checks to cash should be required to produce identification containing a physical description (preferably a photograph) and a signature.  The description should be compared with the person.  The signature should be compared with the signature on the check.

Credit Card Loss  Compare the signature on the card with that on the sales slip.  Check the card’s expiration date.  Establishing a reasonable floor release limit.

Special Employee Security Problems  Access to merchandise and cash.  Specific pricing procedures, cash-handling procedures and refund procedures are essential.  Personnel should be rotated periodically.  Responsibilities should be separated.

Deter Employee Theft by Price Alterations  Allow only authorized employees to set prices and mark merchandise.  Mark merchandise by machine or rubber stamp, never pencil.  Conduct periodic audits of prices recorded and prices changed.  Check on the “popular” salesperson.

Reduce Losses of Cash  Establish strict cash-handling procedures.  Use a tamper-proof recording system.  Have each clerk responsible for his/her own receipts.  Have cash receipts balanced by someone else.  Perform unannounced audits.  Use honesty shoppers.

Honesty Shopping  Honesty shopping, or a shopping service, tests the honesty of sales personnel who handle cash.

Refunds  Require all employees to comply with the return/refund policy.  Keep tight control of all credit documents, and match items to the return vouchers.  Conduct periodic audits of return vouchers.

Shopping Center Security  The primary objectives of shopping center security are loss prevention and public relations.

Summary Questions  What are the most frequent crimes committed against retail?  What legally constitutes shoplifting?  How are shoplifters classified?  What methods are commonly used to shoplift?  What preventive methods can be used to curtail shoplifting?

Summary Questions  What basic difference exists between security officers and floorwalkers?  What merchandising techniques, procedures and physical controls can be used to deter shoplifting?  When and how should people suspected of shoplifting be apprehended?  What factors influence when prosecution is advisable?

Summary Questions  How can losses from bad checks be deterred?  What types of checks are considered high- risk?  What are the most common types of bad checks?  How should checks be examined?  What identification should be required?

Summary Questions  How can credit card loss be deterred?  What types of employee theft frequently occur in retail and what preventive measures can be taken?  What is honesty shopping?  What are the two primary objectives of shopping center security?