The Bunker Blog

A study released in December, 2008 shows that many companies are seeing an increase in workplace crime, and specifically, theft related crime. Of course, this just serves to further support what we have already been saying all along. Those of us working in the field don’t really need studies to tell us that there has been a definite increase in internal and external theft issues. But, this does give us some more ammunition, in the form of facts, to help combat the problem.

Awareness, training, accountability; these three are still the keys to reducing incidents, and to catching internal theft early. Many companies are increasing their audit cadence this year so that issues can, hopefully, be identified earlier. Inspecting what we expect has always been a key to success in shrink reduction, but it is much more crucial today.

We face an up-hill battle against shrink, and we have to fight a tougher fight with fewer troops this year. Less eyes in the stores means more opportunities for theft.

Employees who feel the pressures of this down economy, including reduced payroll and benefits, are much more likely to steal from their employers. These thefts can range anywhere from simple time theft to multi-thousand dollar embezzlements. Loss Prevention MUST, not only expect this, but get out in front of this issue and be proactive in efforts to discourage disgruntled employees from causing a “bad to worse” scenario for retailers.

As always, comments are welcome

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The pressure is on retailers in this economic climate. The pressure is on to meet sales goals, and maintain profitability. This means that retailers will potentially take some drastic steps to get customers in their doors, and then to sell to them.  If this economy maintains its current state or worsens, retailers will be under huge pressure going into the holiday season.

Customers and employees are also under huge financial pressures right now. As the holidays approach, this will get worse. As the economy staggers, unemployment is rising, and people are not spending on unnecessary items. Inevitably, some will turn to theft. In fact, some already have. 

The news is full of stories of increased shoplifting rates. Police departments across the country are conducting blitz operations to catch shoplifters, teaching retailers how to protect themselves from theft, and working hard to serve the businesses who need them more than ever right now. 

Employee theft is also on the rise. Employees whose weekly schedules are being reduced due to the fact that retailers are being forced to tighten up on payroll may be tempted to make up the difference in their pay by taking merchandise or money from their companies. 

As retailers, under pressure to sell more, relax their security measures on high ticket (high risk) product, the pressure will be on loss prevention professionals to double, even triple, their efforts to protect this merchandise, and therefore the company’s profits. 

Yep, there’s a lot of pressure out there right now. Can you relate? Want to discuss it? Leave me a comment and we can.

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