Retail Loss Prevention Expert Article

In this article, loss prevention and security expert John Hassard provides an introduction to loss prevention and the strategies that retailers use to control shrink, while maintaining a safe environment for employees, shoppers, and shoplifters alike.

Retail Loss Prevention: Shoplifting Investigations

Policies and procedures related to shoplifting are an important responsibility for every retail store. In retail operations, the term “shrink” is used to describe the difference between recorded and actual inventory. Retail shrink is generally caused by internal theft (employee theft), external theft (shoplifting), and administrative error.

Internal theft and administrative error are addressed through training, auditing, and loss prevention personnel. Shoplifting is addressed through the level and manner of customer service, training, and the policies and procedures implemented by store associates as well as store loss prevention and security associates. Proper shoplifting policies and procedures should provide for the safety of customers, employees, and shoplifters.

Shoplifting Deterrence Through Customer Service

Many retailers focus their shoplifting efforts on deterrence instead of apprehension, especially retailers without in-store loss prevention personnel. Deterrence measures focus on implementing customer service by identifying and interacting with shoppers in a positive manner. This is achieved by approaching the customers and engaging them in conversation that is directed towards interactive customer service.

An example would be a store employee approaching a customer suspected of shoplifting and saying: “I noticed you were looking at our new shirts; we have some matching ties I’d like to show you.”

This focus on customer service serves to deter the shoplifter; criminals rarely like to be observed and engaged.

Apprehending & Detaining Shoplifters

Retailers should have policies and procedures regarding detaining shoplifters. Many retailers have loss prevention personnel who are properly trained and authorized to approach and detain shoplifters.

Other retailers without full-time loss prevention associates allow only a properly trained manager or supervisor to detain a person for shoplifting. Some retailers may not allow any detention of shoplifters; focusing strictly on deterrence through customer service and notification of local police.

State laws allow retailers to stop and detain a person who has stolen merchandise. These laws vary by state. In order to meet the requirements in each state, most retailers have adopted a variation of these accepted elements, all of which must be met by their associates before a shoplifting detention may be initiated:

1. The employee must see the customer enter the area where the subject item is displayed.
2. The employee must see the customer select the item.
3. The employee must see the customer conceal, carry, push, or pull the item from its location.
4. The employee must maintain constant and uninterrupted observation of the customer from the original location of the item to the point of detention.
5. The employee must see that the customer failed to pay for the item.
6. The employee must approach the shoplifter after they have passed the last point of sale.

Many retailers prohibit any use of force when detaining a shoplifter. If a retailer chooses to allow use of force, that force should be specified in detail and properly trained and documented for each authorized employee.

Fleeing shoplifters may pose a danger to other customers, employees and themselves. As a result, many retailers prohibit pursuits of shoplifters.

Retailers should have policies and procedures regarding the processing of detained shoplifters. Retailers can notify the police or recover the merchandise and release the shoplifter. Issuance of a trespass notice is sometimes part of the policies and procedures of the retailer. Proper procedures for managing juvenile shoplifters should be specifically addressed by the retailer as well.

Searching a shoplifter for weapons and recovering the stolen item(s) should be addressed in company policy and procedure. Notification of the police, detention of a shoplifter, and searching a shoplifter should be in compliance with state law and company policy. A detailed report should be completed and retained for all detentions regardless of the final disposition.

Civil demand statutes in many states allow stores to recover monetary damages in addition to either of the two aforementioned custodial outcomes. The retailer’s policies should identify when a civil demand is implemented.

By properly addressing shoplifting through effective training coupled with reasonable policy, procedure and supervision, a retailer can effectively manage that portion of shrink that is caused by shoplifters. Proper policies and procedures, and adequate training and management of personnel regarding those policies and procedures ensure a reasonable response to shoplifting incidents.

Retail Security Investigations

Retired retail loss prevention directors, former police officers, retired FBI agents, and professors of forensic science all contribute to the impressive capabilities of our security and law enforcement practice. Our forensic experts are often tasked with reviewing the actions of police, forensic investigators, and security professionals. Our experts have received the highest levels of training and have done the work at every level of law enforcement, retail loss prevention and corporate security.

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Featured Expert

John Hassard, M.SC., CPP, CFE, LPC

Loss Prevention & Security Expert

John Hassard is a security and loss prevention expert with more than 30 years of experience in retail loss prevention, premises security and safety, physical security systems and corporate and fraud… read more.