Retail Store Operations

Functions of Store
Operations
 Customer Service
 Retail Selling Process
 Store Staffing and Scheduling
 Retail Floor and Shelf Management
 Store Administration & Facilities Management
 Warehousing & Supply Chain
 Loss (Shrinkage) Prevention
 Cashiering Process
 Visual Merchandising & display
 MAIN FUNCTIONS
SALES TEAM
• Sales target

• Sales promotion

• Inventory management

• Visual display
 MAIN FUNCTIONS (contd.)
• Cost reduction

• Staff management

• Walkout analysis

• Store administration & communication

 Who will perform these
functions?

Store Mgr ?
YOU
?

? ? CCA
Cashier ?
Supervisor
Roles & Responsibility
 Customer Care Executive
SALES
• Attending the customer &
making sales
• Proper display of merchandise
• Preparation of stock
requirements
• Ensures customers feel at
home so that they visit again &
again
• Daily stock replenishment
• Maintaining cleanliness in
display
• Achieving sales target
CUSTOMERS
• To ensure that the
customer are attended
without making them wait
for too long
• Greeting customers
• Writing down customer
orders, if required
• Escalate unresolved
queries to store manager
• Help and offer customers
with baskets & trolleys
 Supervisor
• To ensure the administration of floor and fulfillment of customer
requirements to make them satisfied & increase the sale of the store
• To ensure the cleaning of shelves, floor, door, windows, lighting and
surroundings
• Proper shelving of products
• Handle billing & cash in case of staff shortage
• Interaction with customer to guide them as per their requirements
• Taking customer feedback on the form and ask for suggestion if they
have any
• Physical check of the stock as per TO/bill/challan should be entered
in the system on the same day. Report damages or variances as per
LP procedure
• Managing staff on the floor.
 Store Manager
• Responsibility of overall management of the store and coordination
with the staff. Providing the required information and data to the
senior management, regularly
• Ensure management of operations towards achievement of targeted
revenues
• Ensure management of operations towards optimization of cost
• Ensure management of operations towards achievement of targeted
return on capital employed
• To ensure profitability of store through achievement by keeping the
cost expense low
• Independently control store operations of the outlet
• Prepare resource plan and annual budget
• Inventory and vendor management
• Responsible for merchandising & displays as per company SOPs
 OBJECTIVES

• To achieve & sustain customer delight

• To be cost effective
Team
Work
UNDERSTANDING
TEAM WORK
 TEAM
• Definition:
A formal group made up of independent
individuals who are responsible for the
attainment of a goal
 STAGES OF TEAM
DEVELOPMENT
• Forming
• Storming
• Norming
• Performing
• Adjourning
FORMING
The first stage of work team development, characterized by
uncertainly about the groups purpose, structure, and leadership

STORMING
The second stage of work team development, characterized by
intragroup conflict

NORMING
The third stage of work team development, in which close
relationships develop and members begin to demonstrate
cohesiveness

PERFORMING
The fourth stage of work team development, in which the structure is
fully functional and accepted by team members

ADJOURNING
The fifth and final stage of the development of temporary work
teams, in which the team prepares for its disbandment
WORK TEAM

A Group that engage in collective work that requires joint

effort and generates a positive synergy

WORK GROUP

A group that interacts primarily to share information and

to make decisions that will help each member perform
within his or her area of responsibility
 COMPARISION OF WORK TEAM AND
WORK GROUPS
Teams Groups
Goals collective performance Share information

SYNERGY positive Neutral

ACCOUNTABILITY Individual and mutual Individual

SKILLS complementary Random and varied

 TYPE OF WORK TEAM
Teams can be classified on the basis their
objectives
• Functional Team
• Problem solving teams
• Self managed teams
• Cross functional teams
 CHARACTERISTIC OF HIGH
PERFORMANCE WORK TEAMS
• Good communication
• Mutual trust
• Effective leadership
• External support
• Internal support
• Negotiating skills
• Relevant skills
• Clear goals
• Unified commitment
 WHAT ROLES DO TEAM
MEMBERS PLAY
• Creator-innovator
• Explorer-promoter
• Assessor-Developer
• Thruster-organizer
• Concluder-producer
• Controller-inspector
• Upholder-maintainer
• Reporter-adviser
• Linker
Teamwork and Communication:
Exploring Mental Maps
We cannot communicate. When ever two
persons get in contact, they will exchange
information, consciously or unconsciously,
verbal or non-verbal. The tricky thing is, that
in a communication process there is a
transmitter and a receiver, and the meaning
of a communication is not the intend of the
transmitter, but the reaction it elicits at the
receiver.
Teamwork and Communication:
Exploring Mental Maps
At breakfast, a mother might ask to her
adolescent son: "Where have you been
yesterday night?", just having the
intention to take part in the life of her
grown-up. The son might understand a
different message, like: "As long as you
live in my house, I would like to have
control of your movement." And off he
goes to school, pulling a bitter-sour face.
You think, it’s his problem?
Teamwork and Communication:
Exploring Mental Maps
What's about the following? A director of an
organization calls for a meeting of the entire staff.
He tells them: "We have developed a vision of the
future. We want to be the first company in our
sector, the brightest star among all others. We
wish you to come on board and share this future
of light." Three quarters of the staff understand: "I
want you to work harder, and those who do not
comply with the new standards will be left
behind." Who is right, the boss or the staff? Or is
it a tricky question?
 Seven Essential Skills
for Teamwork
1. Listening
2. Questioning
3. Persuading
4. Respecting
5. Helping
6. Sharing
7. Participating
 Paradigm Shifts
Ordinary people can achieve extraordinary results
Allow people to fail
• People who are afraid to fail are also afraid to take
chances. Optimal solutions to difficult problems
almost always require taking chances.
Criticism equals loyalty
• People who care want the best.
Teamwork equals cheating
• This attitude is instilled in us throughout our
education, most of which is built on a competitive
framework.
 Paradigm Shifts - continued
Negotiating for Win-Win
• Win-Win works best when the only alternative is
"no deal." This way, no one ever loses.
Ego suppression
• Places the team's achievements ahead of personal
achievements.
"We bring people together because we know
they will disagree."
• Tie disagreements back to the team's reason for
existence, and to the individual's reasons for
committing to the team.
"A highly functioning team does not need either
carrots or sticks."
 Recommendations
• Effective teamwork requires a culture change.
• Time and resources must be devoted to teamwork.
• Teamwork roles and responsibilities must be
recognized as real and continuing job responsibilities,
and are equally important with technical- and business-
related job responsibilities.
• Teamwork is a skill that requires training, practice, and
evaluation.
• Recognition and awards to teams are essential in
achieving the culture change.
 How to Get Cooperation
• Be direct. If you want something done, ask. Co-
workers can resist hints and indirect response.
• Ban blaming. Finding fault can prevent both sides
from seeking another way to solve a problem. If
you’re blamed, let it slide and say "Let’s look at the
facts." Last resort: Get an outside party to help.
• Stay focused. Don’t generalize by saying "You
never finish on time." Note only the current offense.
Ask: "How can I help you finish on time next
time?"
How to Get Cooperation - continued
• Negotiate. Instead of demanding, ask "What do you
need to finish this by the deadline?" Then suggest ways
to help.
• Realign priorities. People who don’t cooperate have
different priorities. To make theirs the same as yours,
show how you both will benefit by completing the task.
Example: "Once we get this done, we’ll be able to move
on to that project you wanted to do."
• Say less. Some people resent following orders, so be
subtle. Example: Post an itemized goal list.
• Let it go. If you find yourself nagging others too much,
it may be time to evaluate your own duties. Are you
trying to compensate for your own lack of progress?
Recognize the time and effort colleagues put into the
process.
WELCOME

Session 3
Receiving Stock
 Packing Slip Versus Purchase
Order
• PO - it is the detailed list of items the store has
requested. It will specify the sizes, colors,
models etc. of the merchandise ordered as well
as the number of skus requested.
• PS - it is normally included with the delivery or
consignment when it is delivered to the store. It
is a list of quantity & type of merchandise that
vendor/ HO sends to the store.
PO is what the store sends to
the HO/ vendor whereas PS is
what HO or vendor sends to
the store.
Carplus Store HO- Warehouse
PO PS Shortage Excess
6-White seat 8-White seat cover
cover
6-Black seat 6-Black seat cover
cover
4- Sony music 2- Sony music
system system
4- Xplod speaker 8- Xplod speaker
6” 6”
6- Ambipur Car 10- Ambipur Car
perfume (rose) perfume (rose)
6- Ambipur Car 4- Ambipur Car
Spray (Lemon) Spray (Lemon)
From Store Room to the
Selling Floor

Everyone knows .. You can’t sell

the merchandise while its resting
in the store/ stock room
• Few stores have store room personnel
who are responsible to review
inventory & restock the shelves as
needed

• But in most stores, stocking the display

shelves is CCA’s responsibility
 Always Pay Attention To:

• Prices of new items

• Mark ups
• Mark downs

..So that Customers can be provided

with accurate information as they
won’t be asking stockroom personnel
as how much an item costs!!!
 Before placing incoming
merchandise on the sales floor,
take note of the prices to ensure
that the prices shown on the
scanner agrees with the sale,
advertised or listed price of an
item
 Make Sure The Price is
Right
If a product/ item goes on sale, make sure:

• The advertised sale price comes up when

the item is scanned

• The correct price is shown on the shelf

signage

• The price tags reflect the price change

 Situation Analysis
Vinod, a CCA at Carplus, an auto accessories store
offering various products, is very happy that a new
consignment of “Baby seat” has finally arrived. Vinod
can’t wait to unpack the items & get them ready for
sale. After completing the check in procedure required
by the store, he brings the “Baby seat” to the floor. After
opening the first box, he takes the “Baby seat” to the
cash register & scans the tag.
The scanned price on the new “Baby seat” is Rs 595,
while the current MRP is Rs 580. Just then, a woman
walks over & exclaims “oh they finally arrived- Thank
God!, there are no “Baby seats” left on the shelf &
that’s the one I want!!
 What should Vinod do now?
• Sell the “Baby seat” for Rs. 595 since that is the
ticketed price

• Sell the woman a “Baby Seat” at Rs 580 & fix the

problem immediately after the transaction is
completed

• Vinod should not sell the “Baby seat” until the

problem is resolved. He should apologize to the
customer for any inconvenience & then speak
with his manager before processing the sale
 Solution
• If there is a difference between the advertised price
& the ticketed or scanned price, customers are
often charged the lower prices. As it prevents hard
feelings & builds customer loyalty.
• Notify the supervisor immediately after the
completion of sales transaction so that problem
can be fixed asap.
• Unless the store policy states, it is usually best not
to keep the customer waiting, but to do what is
needed to complete the sale & keep the customer
happy, then report the problem
 Places To Look For Stock
That May Need New Pricing
• Sales Floor

• Stock Room/Floor

• Fitting Rooms/Floor

• Shelves & Racks

 New merchandise of existing stock
comes regularly to the store. But
before putting the incoming items on
the selling floor..Ask Yourself
• Are these items on sale?

• Have identical items now on the floor

have been marked up or down recently?
 If the answer is “yes” to either
question, Then special care must
be given to:
• Ensure that the price on the tickets for
incoming merchandise reflects the current
price

• Account for incoming merchandise using

the proper paperwork as required by the
company’s policy & procedures
Keeping the Shelves Full &
the Merchandise New
 When Restocking:
• Ensure all variations (color, size, model etc.) are
displayed

• Make sure that advertised merchandise is placed

so that it is easy for customers to locate & that it
has correct signs & price tags

• Rotate/remove any expiry items (such as car

shampoo, car perfumes etc.)
During special promotions, it may
be necessary to cut back on the
space for non sale items to make
room for large supplies of
featured merchandise
 Keep them New…

• If you are responsible for restocking near

to expiry or expired items, remember that
it is important to rotate them.

• This is done by keeping the newer

products at the back of the shelf &
moving the older ones toward the front so
that they will be purchased first.
• Items that are past the expiration date
should be removed from the shelves

• Good record keeping is must

The clues that stock needs to be
restocked or freshened?
• Product shows a different price than what you know the
current price to be
• Customer cannot find an item normally carried by the
store
• New merchandise arrives with different packaging than
the same merchandise on the shelf
• Product “Use by” date is expired or close to it
• Customer requests a discount because package is
damaged
• Customer asks to purchase an item being used for
display because there are none on the shelves
• Product is out of season
• An item starts selling briskly due to advertising or
 Handling Returned
Merchandise
All merchandise for

• Return
• Exchange
• Store Credit

Must be properly accounted for in the

store’s inventory records
 Enter all returned merchandise
into the store’s records system
even if you have simply swapped
items to give a customer a
different size or color
 Next step is to examine the
merchandise
• If the item is in good condition, prepare it
for resale with correct price tags &
packaging

• If the item is not in good condition, ask

your store manager whether the item
should be repaired, discounted or
removed from the inventory
 Case of Damaged Return
If a customer returns a damaged item, it
becomes shop worn( stained or slightly
damaged from handled by customers)
You need to decide on whether the item
should be:
• Placed on clearance
• Repaired
• Returned to the HO or Vendor
• Written off
 Answer will depend on:

• Store’s Policy

• Type of merchandise

• Price of the merchandise

• Example: Music System, Windshield etc

 Use good judgement - don’t
expect a customer to pay
more for repairing an item
than the item cost originally!!!
What is an INVENTORY?

Inventory is a list for goods and

materials, or those goods and materials
themselves, held available in stock by
a business.
 SPECIAL TERMINOLOGIES
• STOCK KEEPING UNIT (SKU)

It is a unique combination of all the components

that are assembled into the purchasable item.
Therefore any change in the packaging or product
is a new SKU. This level of detailed specification
assists in managing inventory.
 SPECIAL TERMINOLOGIES
• STOCK OUT

It means running out of the inventory of an SKU.

 TYPOLOGY
BUFFER/SAFETY STOCK

CYCLE STOCK
(Used in batch processes, it is the available inventory excluding buffer stock)

DE-COUPLING
(Buffer stock that is held by both the supplier and the retailer)

ANTICIPATION STOCK
(building up extra stock for periods of increased demand – e.g. ice-creams for summer)

PIPELINE STOCK
(goods still in transit or in the process of distribution - have left the factory but not
arrived at the store yet)
THE TRIANGLE OF
COOPERATION

Purchasing / Replenishment

Sales Warehouse
 SALES PEOPLE
• Determine what products should be stocked in
each branch or store.

• Help develop the forecast of future sales of each

product.

• Help keep inventory records accurate.

PURCHASING OR REPLENISHMENT
PEOPLE
• Make sure that inventory is available to meet the
sales or usage forecast.
• Decide the best source of supply for each product
in each stocking location.
• Determine the economic order quantity for each
product.
 WAREHOUSE PERSONNEL
• Organize stock in the warehouse to minimize the
cost of filling orders.

• Keep inventory records accurate.

• Ensure that all material movement (both receipts

and disbursements) are properly recorded.
• Protect inventory from breakage, spoilage,
misplacement, and theft.
 Achieving effective inventory management is
probably one of the most effective undertakings
to increase company's profitability.

But it cannot be accomplished by just one

person or department. It takes cooperation and
commitment from everyone in sales, purchasing,
and the warehouse.

So, implement and maintain the "triangle of

cooperation and responsibility."
 Taking Stock
Physical Inventory
Is the basic process to physically
counting every piece of merchandise
in the store creating a record of the
store’s inventory at a specific point in
time.
 Helpful Inventory Taking
Techniques
• Prior to conducting the inventory, be sure to organize
& straighten (“face”) all the merchandise. This will
make counting much easier!!
• When counting the inventory, keep a running total
with hatch marks. If you are interrupted by a
customer, you won’t have to start all over again
• Be sure to move shelved merchandise aside- there
may be overstocked stores on the back portion of the
shelves
• If you don’t finish counting all the merchandise in
your area, be sure to let your manager or the CCA
on the next shift know exactly which racks, shelves
or displays still need to be tracked
 Inventory Checklist: Seat
Covers
Item Item# Price Price Recorde Actua Diff
Verify d Stock l (+/-)
Stock
REASONS FOR CONDUCTING PHYSICAL INVENTORY

• To verify or ascertain the physical count, condition and location

of an inventory item and to ensure that it is properly
documented.

• To identify, document and add items to its inventory list that are
on-hand and meet qualifying criteria, but are not currently
shown as part of the inventory.

• To ensure that legitimately transferred or disposed of items are

no longer carried on the inventory listing.

• To identify any missing or damaged items that need to be

located, repaired or replaced.
 TIPS FOR RIGHT INVENTORY LEVEL

• Maintaining a wide assortment of stock but not spreading

rapidly moving goods too thin.

• Increasing inventory turnover but not sacrificing service

level.

• Keeping stocks low but not sacrificing service efficiency.

• Obtaining lower prices by making volume purchases but

not ending up with slow-moving inventory.

• Having an adequate inventory on hand but not getting

caught with obsolete items.
WELCOME

Session 4
HOUSEKEEPING
The Importance of Cleanliness

You may have fabulous merchandise to

sell, but if you give the customer even one
reason to assume that store cleanliness is
not a priority, they will take their wallets
elsewhere
1. First Impressions Count
Is the parking area clean of litter and
brightly lit? Is the entrance clean and
inviting with a trash receptacle available?

2. Front Door Assumption

Is the glass clean and free of fingerprints?
Customers will make the assumption if the
front door is dirty the rest of the store may
be the same.
3. Make it Glitter!
If it's glass or metal it must be clean. Make
it a priority to dust and use glass cleaner
every morning after vacuuming.

4. Shoulders to Knees
Customers notice the majority of
"merchandising" between their shoulders
and knees. Make those areas a priority of
cleanliness.
5. Fitting Room/Area
If the customer comes to see his/her vehicle in
the fitting room/area, keep it spotless. It
influences the customer's buying decision. If you
have a back stock area, keep it closed to the
customer's eyes!

6. Necessary Rooms
Customers should be able to use your
restrooms. Not only should it say "squeaky
clean" to your customers but it also should say
something about how you value your employees
and their comfort level.
7. Clutter Free
Shipping boxes, pallets, rolling racks, shipping
materials....anything needed for the operation of
the store should be out of site or neatly stored
away from the traffic flow in the store.

8. Ease of Shopping
Overstocking of merchandise can be
overwhelming to the customer and they can
"assume" your store is messy merely because of
the volume of merchandise. How easy is it to get
around your store? Can you get a stroller or
wheelchair easily around the store?
9. Aroma
Does your store "smell clean"? Customers can
make an assumption of whether a store is clean
based on what they smell? If you have become
to immune to any smell your store may have,
ask friends or new employees to give you their
opinion.

10. Register Area

The most important area of the store, no matter
what kind, is the place you exchange your hard
earned money for something you value, your
purchase. Make it spotless!
Loss Prevention
 Loss Prevention

Retail Loss prevention (in some retailers

known as Asset Protection) is a form of
private investigation into larceny or theft. The
focus of such investigations generally includes
shoplifting, package pilferage, embezzlement,
credit fraud, and check fraud. "Loss prevention"
or "LP" is used to describe a number of methods
used to reduce the amount of all losses and
shrinkage often related to retail trade.
 Sources of Theft
• 46.8% from employee theft,
• 31.6% of shrinkage comes from shoplifting
• 14.4% from administrative error
• 3.75% from vendor error
• 2.86% from unknown error.
Source: National Retail Security Survey,2006

Although most retailers experience a shrink

percentage of less than 2%, some smaller
retailers often experience monthly and annual
average shrinkage percentages as high as 20%.
 Types of Retail Loss
• SHOPLIFTING

• EMBEZZLEMENT

• CREDIT CARD FRAUD

• CHEQUE FRAUD

• MARGIN LOSS & SWEET HEARTING

 Shoplifting

Shoplifting (also known as retail theft, or

shrinkage within the retail industry) is
theft of goods from a retail establishment
by an ostensible patron.

It is one of the most common crimes for

police and courts
 Embezzlement
Employee embezzlement is the theft or
taking of property or funds entrusted to an
employee by an employer. The most
common type of retail embezzlement is
cash theft. Other types include ringing up
fake gift cards, passing merchandise,
discount fraud, and, of course, theft of
merchandise.
 Credit Card Theft
Stolen credit cards find their way into retail
stores as much as or more than online
retail websites. This is usually for several
reasons. Retailers have generally relaxed
their procedures for checking credit cards,
to shorten customers' time spent at the
cash register.
 Cheque Fraud
Check fraud is generally accomplished in one of
two ways. The first is by writing a check that is
manufactured to look like a real document,
which in fact has no real value or no real bank
account to back it up. Typically this is done by
suspects who are experienced in forgery. The
second method is check kiting, in which the
suspect writes a check for a high dollar
purchase, then withdraws the funds from the
account before the check clears. Check kiting is
usually done when suspects establish a
fraudulent bank account under a false name.
Margin Loss & Sweet Hearting
• Retail Loss Prevention departments are
becoming increasingly more involved in
investigating losses which affect the margin of
products and services.
• Typical areas of investigation include the
overriding of PLU prices, price matching from
competitors, and reduction of service fees such
as delivery or protection agreements.
• While unintentional margin loss is reduced by
educating employees and managers, the term
for intentional margin loss is "sweethearting.“
• Sweethearting generally occurs when an
employee promises a deal to a customer in
order to close a sale, or otherwise reduces the
 Steps taken to prevent Loss
• Camera Systems
• Electronic Article Surveillance (EAS)
• Two way radio set
• Point of Sale
• Audits & Reporting
• Ceiling Mirrors
• Bottom of Basket
• Consent Searches
• Viewing Towers
 Camera Systems (CCTV)
CCTV is an abbreviation for Closed Circuit
Television. CCTV camera systems are common
to almost all loss prevention departments. The
obvious benefits of CCTV camera is that the
investigator can gain a better view of a suspect,
record incidents, and not reveal themselves to
shoplifting suspects. Some retailers use two-
man teams in which one person uses the CCTV
camera system to detect shoplifters and a floor
man follows the suspect and apprehends them.
 Electronic Article Surveillance
(EAS)
• Electronic article surveillance (EAS) is a
deterrence system used by retailers to deter
shoplifting.
• EAS involves the use of electronic security
towers and electronic security tags.
• Hard tags or Sticker tags are placed on items
throughout the store and are disabled at cashier
by either removing the hard tag using a detacher
or by scanning label tags over a magnetized
strip or label deactivator.
• If the tag is not disabled it will activate the alarm
tower, which is generally located at the exit to a
retail store.
 Two-way Radio Set
• Almost all loss prevention departments
have some form of two-way radio
communication.
• This technology is used by investigators to
help two-man teams follow a shoplifting
suspect in conjunction with the CCTV
camera system or to summon assistance
when apprehending a shoplifter.
 Point of Sale
• Point of sale is a form of electronic journal
that allows the loss prevention investigator
to see a transaction as it is occurring live.
• This system is either displayed on a
computer screen or on a monitor linked to
the CCTV camera system.
• This system has assisted investigators in
closing employee embezzlement cases
pertaining to merchandise passing,
merchandise voiding, and discount fraud
 Audits and Reporting
• EXCEPTION REPORTS
They include information on cash audit over and shorts, no-sales,
flagged returns, employees ringing themselves up, fake employee
numbers used to avoid commission docking, excessive markdowns
and/or discounts, and merchandise voids.
• ELECTRONIC JOURNALS
Almost every large retail institution has some form of electronic journal
which records all its transactions. Information such as credit card
numbers, gift card numbers, refunds, and merchandise voids is
gathered at the point-of-sale.
• CASH OFFICE AUDITS
A cash office audit is usually conducted by a common retail employee
who counts up the cash from transactions at the retailer's registers.
 Ceiling Mirrors
• Ceiling mirrors were once a staple of the
loss prevention industry. Now, for the most
part, they have been relegated to
convenience stores.
• Mirrors allow loss prevention investigators
to watch activity in a high-theft area
without being seen.
• Some loss prevention departments have
been known to use mirrors to increase the
range of their camera systems.
 Bottom of Basket

Bottom of Basket loss (BOB), occurs when

an item is placed on the lower tray of a
shopping cart and the cashier forgets to
check the lower tray for items, resulting in
the item not being paid for.
What makes this form of shrink unique is
that it may happen intentionally or
unintentionally.
 Consent Searches

Consent searches are widely used in law

enforcement and are still present in loss
prevention today. By asking a customer to
consent to a search of their belongings,
such as shopping bags and receipts, any
illegal search or seizure requirements can
be circumvented
 Viewing Towers
Although the necessity of viewing towers
has been largely eliminated by CCTV
camera systems, they still exist today. A
tower is usually a centrally located
observation platform raised above the
sales floor. An investigator can spend time
in the tower while searching for shoplifters
or investigating employees, much in the
same manner as with CCTV. Most towers
are now obsolete and being eliminated in
many retailers.
Store Security
 SECURITY MEASURES

 Expensive items can be chained to fixtures

 Convex mirrors placed at key locations so that employees can

observe a wide area of the store.

 Closed circuit TV cameras can be monitored from a central

location

 Electronic Article Surveillance ( EAS) Systems- special tags are

placed on merchandise. When the merchandise is purchased,
the tags are de activated by the POS scanner.If a shoplifter
tries to steal the merchandise, the active tags are sensed when
the shoplifter passes a detection device at the store exit and
the alarm is triggered off.
 SECURITY MEASURES

 Establishing Security Policies and Control Systems to control

employee theft –
 Randomly search containers such as trash bins where stolen
merchandise can be stored.
 Store employees should enter & leave the store at designated
entrances.
 Assign salespeople to specific POS terminals and require all
transactions to be handled through those terminals
 Restrict employee purchases to working hours
 Have all refunds, returns, and discounts cosigned by a department or
store manager.
 Change locks periodically and issue keys to authorized personnel only.
 Have a locker room where all employee handbags, purses, packages,
and coats must be checked.
 STORE DESIGN
• Security issues need to be considered when placing
merchandise near entrances, delivery areas, and dressing
rooms
• Reducing the height of fixtures and having open sight lines
to entrances and exits, store employees can see
customers in the store and watch for shoplifters while
providing better service.
• Dressing room entrances should be visible to store
employees so they can easily observe customers entering
and exiting with merchandise.
• Cash wraps ( places where customer can buy purchase
and have it wrapped )- should always be placed near
areas where theft is likely to occur.
 ALERT EMPLOYEES
 Store employees must be aware, visible, and alert to potential
shoplifting situations.
 Don’t Assume that all shoplifters are poorly dressed – To avoid
detection, professional shoplifters dress in the same manner as
customers patronizing the store. Over 90 percent of all amateur
shoplifters arrested have either the cash, cheques, or credit to
purchase the merchandise they stole.

 Spot Loiterers – Amateur shoplifters frequently loiter in areas as they

build up the nerve to steal something. Professionals also spend time
waiting for the right opportunity, but less conspicuously than
amateurs
 Look for Groups – Teenagers planning to shoplift often travel in
groups. Some members of the group divert employees attention while
others take the merchandise
 ALERT EMPLOYEES

 Look for people with Loose clothing – Shoplifters

frequently hide stolen merchandise under loose- fitting
clothing or in large shopping bags. People wearing a
winter coat in the summer or a raincoat on a sunny day
may be potential shoplifters.

 Watch the eyes, hands, and body. Professional

shoplifters avoid looking at merchandise and concentrate
on searching for store employees who might observe their
activities. Shoplifters movements might be unusual as they
try to conceal merchandise.