This manual is similar in content to our Loss Prevention Workshop that we conduct on site, outlined in the Workshops section. Retailers can obtain the manual and use it as a facilitator's guide to conduct their own training workshop without the expense of one of our facilitators.

Recommended for: Small retailers who aspire to curtail retail losses, especially those with multiple locations 

OBJECTIVES:

• To Introduce a comprehensive Loss Prevention Program to the smaller retail organization 
• To review and discuss contemporary Loss Prevention practices for store managers, focusing on External Theft, Cash Desk Fraud and Internal Theft 
• To enable store managers to train existing staff and orient new staff in the best practices of a sound Loss Prevention Program  in harmony with effective Customer Service strategies 
• To discuss and clarify questions and concerns voiced by store managers on sensitive issues of Loss Prevention

1. LOSS PREVENTION DEFINITIONS AND BASICS
    
• Physical Inventory 
• Perpetual Inventory 
• Merchandise Shrinkage 
• Internal Shrink 
• Administrative Shrink 
• Supply Chain Losses 
• Protection of Proprietary Information and Brand Equity

2. THE IMPORTANCE OF LOSS PREVENTION IN PROGRESSIVE ORGANIZATIONS
    
• Maximizes profits
• Increases Sales 
• Makes Stores Safer for Staff and Customers 
• Helps Ensure long term growth and stability 
• Enhances the public profile of the company 
• Makes the company more competitive

3. HOW PROGRESSIVE LOSS PREVENTION BENEFITS EMPLOYEES
    
• Partners company and employees with an important joint objective 
• Creates a better work environment 
• Helps makes hiring easier based on public profile 
• Career Growth 
• Long Term Job Stability 
• Expansion of the chain – new opportunities 
• Better morale

4. SINGLE VARIABLE POPULATION BEHAVIOR – THE 20/80 LAW
    
• Populations can be fitted to the classic 20/80 Bell Curve 
• How retailers can control Single Variable Population Behavior 
• Understanding the psychology behind shoplifting

5. LOSS PREVENTION AND CUSTOMER SERVICE

·Fundamental approaches to reducing external losses

·Stores must emphasize prevention of theft as opposed to catching a theft in progress

F.  HOW EMPLOYEES MUST DEAL WITH AN ACTUAL THEFT EVENT 
 

·Managing an Apprehension Situation when things go awry

G.  STRATEGIES ON THE FLOOR TO REDUCE EXTERNAL LOSSES

H.  Electronic Article Surveillance (E.A.S. systems) 

I.   DETECTING UNUSUAL CUSTOMER BEHAVIOR 

J.  CASH DESK FRAUD

·Cash Desk Losses: - technology helps and hurts
 

·Ways to spot counterfeit money at the cash desk

·What To Do When You Suspect You Have A Counterfeit Bill

GROUP EXERCISE:  What are some types of behavior that staff should look for at the cash desk that may indicate an intent to commit fraud?

K.  INTERNAL THEFT PREVENTION TACTICS FOR MANAGERS

• The Behavior and attitude of store managers greatly affects the risks of internal theft by store employees 
• Managers that appear loyal and pro-company can deter most internal theft if they demonstrate vigilance with employee activities 
• Indifferent managers with a negative attitude actually promote theft by employees 
• Store managers who ask questions in regards to employee purchases and investigate activities in their absence will create substantial deterrence to internal theft 
• Store managers who are aware of common tactics of internal theft can reduce losses by deterrence and apprehension 
• Companies must prosecute all employees who are caught stealing through criminal and civil venues

Common Internal Theft Tactics

·Walking out with goods at end of shift or breaks

·Purchasing goods, then refunding the transaction, still take goods

·Fabricating refunds, keeping cash

·Short changing customers, keeping differences

·Contra deals with other retailers

·Partnering with walk in who takes goods and “refunds” the item

·Fabricating markdowns for friends

·Purchasing goods on employee discount program for wide circle of friends

·Cash transactions that do not go through register

GROUP EXERCISE:  WHAT ARE THE PRACTICES THAT A MANAGER CAN IMPLEMENT TO CONTROL THESE INTERNAL RISKS?

L.  ADMINISTRATIVE LOSSES

• Protecting Proprietary Information
• Protecting Brand Equity

M.   GROUP EXERCISES

N.   QUESTION AND ANSWER DISCUSSION