Retail Store Loss Prevention and Security Integration

Introduction

Preventing loss is one of the primary goals of the security system of any retail store. Various tools, equipment, applications, and strategies are used for retail security. This paper adopts a simple yet innovative approach to preventing loss across three identified auto spare parts stores: integration. Integration is an approach that seeks to improve the effectiveness of each specific loss prevention technology by thoughtfully assimilating all components into a single working system. Integration allows all security systems to work as a unit, thereby enhancing their collective power and streamlining overall security (Greggo & Kresevich, 2016).

This paper is written from the perspective of a Security Director overseeing three auto spare parts stores. It presents a discussion of how the various security measures outlined below will be brought together with the primary objective of preventing the vices that contribute to financial losses. The discussion covers loss prevention, applicant screening, both internal and external loss-related threats and how to counter them, internal and law enforcement investigations, fraud prevention, risk management, emergency management, and workplace safety in each of the retail stores.

Applicant Screening

The first and arguably the most important step in improving in-store security and loss prevention is ensuring that applicants are who they claim to be, that they pass the security checks established for the job, and that they meet all employment requirements. Applicant screening will be a vital part of promoting personnel security. It will be important for uncovering any information concealed or misrepresented by the applicant and for identifying any security concerns (Huang & Cappelli, 2010). The screening elements will include:

Applicant screening will be an important element of human resource security; however, it will not be a complete solution on its own. Screening will be a continuous part of the personnel security regime for the stores. Continuous screening is necessary because people and their attitudes can change over time, or suddenly in response to events. A genuine and honest employee can become a perpetrator of malicious acts, as motives and loyalties can shift after recruitment (Huang & Cappelli, 2010). Continuous screening will take a holistic approach that includes a security-oriented workplace culture, monitoring for protection, and access control.

Loss Prevention and Shoplifting

It is the primary goal of the Security Director to ensure the successful protection of property across all three stores. However, this goal is constantly challenged by loss and theft. In the auto repair sector, losing a single part can have serious financial consequences, potentially leading to an inability to absorb ongoing losses (Bamfield, 2012). This challenge is compounded by cash losses and other crime-related events originating from both inside and outside the stores. Money directed toward investigations and reactive measures — including civil processes following theft — all carry significant financial costs (Hayes, 2007).

Investing in loss prevention measures is, by contrast, financially beneficial. There are numerous options available to a retail store for preventing loss, including optimizing the store format, adopting e-commerce, using catalogs, and utilizing home shopping resources that are gaining traction among customers as a result of the ongoing technological revolution (Bamfield, 2012). Given the competitive nature of today's market, protecting goods and promoting a safe, welcoming environment for customers is essential for both profitability and competitive advantage.

Shoplifting accounts for over 40% of losses in the American retail sector and continues to be a major challenge for retail owners and security managers (Finklea, 2011). As a result of shoplifting, the American retail sector loses approximately $15 billion each year (Beck & Peacock, 2009). Shoplifting takes many forms, and while all are harmful to business, the most damaging perpetrators are professional shoplifters known as "boosters." These are career criminals who steal goods and convert them to cash through fencing, online auctions, street vendors, and flea markets. Boosters pose a particular threat because they are familiar with store security systems and are effectively equipped with tactics to circumvent them (Finklea, 2011).

Various methods are used to deter shoplifters, including Electronic Article Surveillance (EAS), closed-circuit television (CCTV), and shelf guards. To be more effective, each store will need to adapt the available tools to better identify theft patterns, provide timely alerts of shoplifting attempts, and reduce false alarms. Each of the three stores will prevent loss by integrating the various stand-alone alarm and monitoring systems into a more effective, transaction-oriented information system (Finklea, 2011). Integration of these systems will occur at all levels — hardware to hardware, hardware to software, and software to software — and will be driven by data management.

Internal Threats and Countermeasures

Of all the loss-related threats a retail store faces, internal threats are arguably the most insidious. Internal fraud and theft account for billions of dollars in losses annually and occur in the form of stolen supplies, inventory, and store funds. Internal threats are a major concern because employees — who are the perpetrators — possess insider knowledge of and access to procedures and goods. An employee knows how and where cash is kept, which passwords and alarm codes are in use, and may have access to duplicate keys, safe combinations, and details of the security procedures and systems deployed in the store (Hayes & Rogers, 2003). An employee can assess the risk of getting caught, identify potential collaborators among colleagues, gauge which coworkers are ignorant or indifferent, and determine when managers and supervisors are least attentive.

Countermeasures against employee theft will include screening of employees, creation of an honest workplace culture, motivation of good behavior through an award system, and making clear that dishonest conduct will attract harsh consequences. In addition, each store will adopt a loss prevention system that is thorough, effectively monitored, and accurate (Hayes & Rogers, 2003). Employees will also need to know that the security system is robust, because any perception that the system is weak will encourage some individuals to exploit it. Measures to be adopted include in-store controls, access and detection control technology, a reward system to reinforce employee honesty, and a punitive system to deter dishonest behavior.

Theft of goods in transit is a common occurrence among retailers and represents a growing source of losses. Losses related to cargo theft in the American market account for $10–$20 billion annually (Boyd, 2007). The causes of cargo theft include collusion with drivers, the hijacking of entire trucks through distraction by a decoy, armed robbery, and drugging of drivers. Successful cargo theft may involve group collusion among loaders, guards, dispatchers, and contracted drivers who steal goods from warehouses, distribution centers, and trailer drop-off points. Theft can also be carried out from slow-moving or parked trucks.

To prevent losses through cargo theft, each store will deploy new detection technologies including radio frequency identification (RFID), cabin CCTV systems, and Global Positioning Software (GPS) (Finklea, 2011). In addition, to prevent losses through driver collusion, store drivers will be provided with information about goods being transported strictly on a need-to-know basis.