Bill Bittner

Staffing Levels Playing Into Retail Crime

March 5, 2010

FROM RETAILWIRE:
Results of a new survey by the Retail Industry Leaders Association (RILA) show that criminal activity at retail continues to grow. Roughly one-third of retailers in the RILA study report that loss prevention/security staffing models have changed due to economic circumstances at retail. What do you see as some of the best responses, in light of staffing levels, to reduce losses?      [more...]

There are a bunch of areas retailers must evaluate in this slow economy. As "would be" consumers walk the store aisles, there is no doubt that some are going to be motivated to attempt to steal something. Staff members are pushed to try their own methods of stealing. DSD vendors are also challenged. I always remember a discussion with a DSD vendor who said the best route was one that ended with a few chain stores. He was talking about packing out extra inventory, but in today's economy it can also mean a few short deliveries in order to pocket cash from mom and pop deliveries.

Staffing levels must have a direct impact on shrink. On one hand, a thief depends on secrecy to accomplish their goal, the more staff there are around, the less opportunity a thief has to take something. But staff can also be the source of theft, so it is also important that organizations work hard to maintain the morale of their employees. The senior managers may be the obvious source for quick bottom line effects, but the impact on their staff may have a larger effect on shrink.

The challenge with using automation to detect and punish theft is the possibility of a "false positive." The worst thing that can happen in any justice system is the false arrest of an innocent person. Statistically based screening and monitoring systems have built in error rates by nature. Retailers have to be careful when they put these systems in place to make sure they don't falsely accuse someone of doing something. This is not just a moral question, but the lawsuits it could generate would wipe out any savings. Just like any tool, these systems require an intelligent operator.