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Grocery industry at high risk of theft

Written by: Fred Tarasoff

Article Overview: Shoplifting is very common in the grocery stores, especially now that most stores have expanded to carry much more than just your stable grocery items. The combination of higher end consumer items combined with relatively low levels of security make it an ideal target for shoplifters. With tougher economic times it is projected that theft both internal as well as external is expected to dramatically increase. With small profit margins grocery stores need to seriously consider the prevention of shoplifting as a key component in reducing losses.

Grocery industry at high risk of theft

In the past grocery stores primarily sold grocery items but today the average grocery store has expanded in size and product line to become a “full service, one stop shopping” experience. The list of inventory has expanded from your basic staples to higher end lines of health and body care, pharmaceuticals, vitamins, and even electronics. The type of shoplifter has also changed. In the past the average shoplifter was an individual who stole only groceries perhaps to feed a struggling family or to finance an addiction and now in many cases it has become a highly organized operation where thieves or groups of thieves can lift several hundreds of dollars worth of high end merchandise in one visit. In most cases the prime motivation is the resale of these stolen goods. During my research for my Shoplift Prevention Training Program I interviewed almost 300 shoplifters in order to learn more about the shoplifters tricks of the trade. Interestingly many interviewed shoplifters told me they preferred stealing from a grocery store environment because it was relatively ease and low risk or getting caught. Many thieves claim that grocery stores are one of the easiest targets in the retail field. First most grocery stores have very little in the form of anti-theft security devices. Those that have limited surveillance equipment are usually easy to outsmart. Stores often have many hidden areas with in the floor space that create the ideal conditions for thieves to “lift and pocket” items. The grocery industry often relies on the services of LPO’s (Loss Prevention Officers) to limit theft. Generally LPO’s are considered effective in foiling attempts by amateur impulsive shoplifters who in a moment of weakness may stuff a bag of pistachios in their pocket. But when it comes to the seasoned thief or the pro, LPO’s are relatively easy to spot. Most experienced thieves can recognize a “Loss Prevention Officer” simply by their actions and mannerisms. The shoplifters which I had interviewed claim that LPO’s rarely prevent them from stealing, they either comeback at a different time, or will move the items of interest into a different isle before stealing them.


So the question is what can be done to reduce theft?

Often the services of a security professional can help in reducing losses. It should be viewed as a small investment that can save you in thousands of dollars in a relatively short period of time. In many cases, simply improving lighting, reducing hidden areas and displaying anti-shoplifting signs and posters can be helpful as well as inexpensive. I often recommend that every isle should be equipped with a large surviallance dome preferably smoked. Some of these domes can have a fully operational camera, while others can be left empty. The important thing is to make the potential thief think twice. In some cases simply a employee walking up and down the isles talking and connecting with customers can help.



Most grocery stores have a razor thin profit margin on the merchandise they sell therefore it is imperative for shrinkage to be kept to a minimum. For example with a profit margin of 5% a store must sell 500 dollars in merchandise just to cover the cost of a 25.00 dollar item. In one year a store with merely twenty five dollars of losses a day must increase sales by 175,000 dollars to break even. Keep in mind that for many supermarkets 5% profit margin is high as some grocery stores work on a 2% or 3% margin and a 25 dollar per day loss in a high volume industry is grossly underestimated. But for demo purposes it gives you a fairly good idea of how theft can quickly add up. It is important to recognize that even a small amount of theft can have a sever impact on a companies bottom line.

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Article Tags: floor space, grocery industry, grocery stores, hidden areas, loss prevention officer, loss prevention officers, mannerisms, moment of weakness, pistachios, prevention training, prime motivation, retail field, security devices, shoplifter, shoplifters, staples, store environment, surveillance equipment, theft security, thieves



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