Loss Prevention

1
Loss Prevention

• Employee Theft

2
Loss Prevention

• Inventory shrinkage is a serious problem
  throughout the retail industry.
• One of the major causes of lost profits can be
  pinpointed to employee theft.
• Retail theft accounts for a full one-third of
  business failures.

3
Loss Prevention

• Internal Theft
• A dishonest act committed by a store employee.
• Statistically, internal theft is a greater
  threat to store profits than shoplifting or
  external theft.

4
Loss Prevention

• Reasons For Internal Theft
• State funding pays for this merchandise. So the
  school gets paid back.
• My efforts are unappreciated.
• Everyone else does it.
• I will not get caught.
• My friends are doing it.
• Friends are asking me to.
• Threats from external sources.

5
Loss Prevention

• Inventory Shrinkage
• This refers to merchandise shortage.
• It is the difference between the recorded
  inventory and the physical inventory.
• All employees are responsible for controlling
  shrinkage.

6
Loss Prevention

• Methods of Employee Theft
• Lower prices for friends.
• Failure to ring after accepting cash for
  merchandise.
• Hiding merchandise in backpacks, clothing,
  trash cans, etc. (pick-up later)
• Sweethearting Special deals for friends.

7
Loss Prevention

• Preventing Employee Theft
• POS Data
• Video Monitoring
• Advisors observations
• Educating employees about the risks of theft.
• Common sense
• Management control

8
Loss Prevention

• Shoplifting
• Occurs when a customer steals merchandise.
• Approximately one in every eleven Americans
  shoplifts.
• Have you shoplifted?

9
Loss Prevention

• Preventing Shoplifting
• Serve customers promptly
• Acknowledge all customers
• Never turn back on customers.
• Never allow customer to loiter in the store.
• Never leave store unattended.
• Lock registers when not in use.
• Never stock merchandise on counter.
• Never allow merchandise to block your view.
• Use common sense.

10
Loss Prevention

• Counterfeiting
• Computers have made it very easy to make
  realistic counterfeit bills.
• (Yes we have had some)

11
Loss Prevention

• Counterfeiting
• Pay attention to the customers and the money
  they give you.
• If counterfeit bills show up in your till, you
  will be asked who gave them to you.
• Be aware.

12
Loss Prevention

• Checks Credit Cards
• The student store does not accept checks without
  the advisor approval.
• The student store does not ever accept credit
  cards.
• The student store does not make change for
  students unless they are customers.

13
Loss Prevention

• Robbery
• Robbery involves taking store merchandise by
  force or threat.
• Employees should not be confrontational.
• Pay special attention to the robber so that you
  can identify them later.
• Contact advisor immediately.

14
Loss Prevention

• Robbery
• Robbery involves taking police action.
• Report all attempts.
• When you first come into store look for any
  evidence of things that have been disturbed.
  Contact advisor.

15
Loss Test

• A serious cause for lost profits can be
  pinpointed to be _________________?
• Retail theft accounts for
• _______________ of all
• business failures?
• Please describe the meaning of internal theft?

16
Loss Test

• Please list at least three reasons for internal
  theft?
• 1.
• 2.
• 3.
• Please describe the meaning of inventory
  shrinkage?
• Please describe some methods of employee theft?

17
Loss Test

• Please list at least three methods for
  preventing employee theft?
• 1.
• 2.
• 3.
• Describe shoplifting?
• Describe counterfeiting?

18
Loss Test

• If you observed another employee taking store
  inventory without paying, what should you do
  about it?
• Is it ok to take things from the store without
  paying if you dont get caught?
• What are the consequences for employee theft?