I was recently invited to listen to a compelling discussion about shoplifting issues in Britain here.

The parallels to the Australian retail landscape are striking, highlighting the global nature of these challenges. Let's explore the key points that I thought were particularly interesting and their relevance to our local context, focusing on effective strategies for retail loss prevention.

The Global Surge in Shoplifting

Although the discussion focused on Britain, I found it fascinating that many of the issues retailers face with shoplifters there are identical to what we're experiencing in Australia. This similarity isn't surprising, given our comparable societies and legal systems.

Just as I've reported here numerous times, Australian retailers have noted a sudden growth in shoplifting incidents since the onset of COVID-19. Interestingly, an identical pattern is in Britain.

One concerning observation is the apparent increase in social acceptance of shoplifting compared to a few years ago. This shift in public perception adds another layer of complexity to retailers' challenges.

The Crucial Role of Evidence in Loss Prevention

With the rise in shoplifting incidents, the importance of solid evidence has become even more critical. Several points from the discussion are particularly applicable here in Australia:

It's tough to secure a conviction for shoplifting without video or photographic evidence, so it would be best if you had it. Computer reports will only help a little as they're considered circumstantial evidence, making it very challenging to get a conviction based solely on such data.

Strategic Shop Analysis for Effective Security

A key strategy discussed was to analyse your shop layout from a potential shoplifter's perspective. Ask yourself: where would they likely strike? I've analysed how our POS Software can assist you in this process, which you can find here. I suggest that you draw such a map.

Leveraging POS Systems for Comprehensive Loss Prevention

Modern POS systems play a vital role in shoplifting prevention strategies:

• Real-time inventory tracking
• Customer behaviour analysis
• Identifying vulnerable areas in your store layout

These features provide a comprehensive approach to loss prevention, complementing physical security measures.

Advanced Security Technologies

The discussion highlighted AI-powered security cameras as a powerful tool in loss prevention. I was particularly impressed by their capabilities. These systems offer two key functionalities:

1. Real-time alerts for suspicious behaviour
2. Identification of known offenders upon entry

If you're considering upgrading your cameras, I recommend looking into these AI-enhanced systems. They're worth the investment for the added security they provide.

Effective Documentation Practices

Proper documentation is crucial when dealing with shoplifting incidents. While the British discussion recommended a special book, I think you should use email for documentation. Here's why:

• It automatically records the date and time
• It's easily searchable
• It creates a precise digital trail

Best Practice: When you provide information to law enforcement, please send it through official and email channels. This dual approach ensures you maintain a comprehensive record of communications. All too often in Australia, and apparently in Britain too, someone in the authorities might not act on the information you send or forget about it. With email records, you have proof of when you sent the information, protecting you from potential accusations of delay. It also makes it easy to keep a copy.

Conclusion

The rise in shoplifting requires a multifaceted approach to mitigate risks. While technology and best practices are crucial, we need some legal changes to address this growing issue more effectively.

Investing in a comprehensive security infrastructure is essential.

Have a listen to the discussion and let me know what you think, I welcome all comments.

Frequently Asked Questions (FAQ)

Q: How can I prevent shoplifting in my retail store?

A: I would start by looking at:

• Installing security cameras and electronic article surveillance systems
• Training staff on customer service and suspicious behaviour detection
• Optimizing store layout for better visibility
• Using security mirrors in blind spots
• Implementing a clear bag check policy
• Displaying anti-shoplifting signage

Q: What is the most effective deterrent to shoplifting?

A: The most effective deterrent combines visible security measures. This includes:

• Prominent security cameras
• Attentive staff
• Clear anti-theft signage

Q: What should I do when I catch someone shoplifting?

A: If you catch someone shoplifting:

• Stay calm and prioritise safety
• Use non-threatening language
• Document the incident thoroughly
• Contact the authorities if you have sufficient evidence

Q: Why do shoplifters use aluminium foil?

A: To make a "booster bag" or "magic bag" to beat security detectors; I have spoken about them here. If you use electronic article surveillance (EAS), I suggest you create a few booster bags to test your system. If you want you can buy them here.

Q: What happens when someone gets caught shoplifting?

A: Consequences can vary depending on local laws but may include:

• Being banned from the store. It isn't easy to do this without AI cameras.
• Fines or civil demands for damages
• Criminal charges and potential arrest

Q: What technology is used to prevent shoplifting?

A: Anti-shoplifting technology includes:

• AI-powered video analytics
• RFID inventory tracking
• Electronic Article Surveillance (EAS) systems
• Advanced POS systems with inventory management
• Facial recognition software (where legally permitted)

Q: How does AI stop shoplifting?

A: AI can help prevent shoplifting by:

• Analysing video feeds to detect suspicious behaviour
• Identifying known offenders through facial recognition

Q: What is the most common shoplifting method?

A: Common shoplifting methods include:

• Concealing items in bags, clothing, or strollers
• Swapping price tags or barcodes
• "Grab and run" tactics
• Using foil-lined bags to bypass EAS systems
• Leaving through emergency exits with unpaid merchandise

Q: What is loss prevention training?

A: Loss prevention training educates employees on:

• Identifying and preventing theft (both internal and external)
• Proper cash handling procedures
• Inventory management best practices
• Customer service techniques that deter shoplifting
• Emergency response protocols

Q: How can store layout prevent shoplifting?

A: Effective store layouts can prevent shoplifting by:

• Ensuring clear sightlines throughout the store
• Positioning high-value items in visible, monitored areas
• Placing checkout counters near exits
• Using appropriate shelving heights to maintain visibility
• Implementing an organised and clutter-free environment

Q: What are loss prevention policies?

A: They typically cover:

• Shoplifting prevention strategies
• Employee theft deterrence
• Inventory management procedures
• Cash handling protocols
• Emergency response plans

Have you ever wondered what would happen if your system suddenly stopped? During the recent CrowdStrike outage, millions of retailers experienced this. They entered their shop, only to find their computers frozen and no-one of taking in eftpos. It's enough to make any business owner break out in a cold sweat as he looks at all the staff just sitting around.

The CrowdStrike Outage: A Global Crisis

Last week, the retail world was rocked by what experts call the most significant computer outage. It had a global impact, affecting businesses everywhere.

The Scope of the Problem

• Duration: For many, this outage lasted a few days. The day after, I took a picture of a supermarket checkout at my local supermarket.

• Geographical Reach: Businesses from Australia to Europe and North America reported issues.

This unprecedented event highlighted the critical need for robust POS system backups and comprehensive business continuity planning.

The Impact on Retailers

A Digital Domino Effect

The CrowdStrike outage wasn't just a minor inconvenience. For many retailers, it was like someone had pulled the plug on their entire operation. Here's what we saw:

• Computer Chaos: Many retailers' computers stopped working, and suddenly, people were manual.
• Manual Mode Activated: Shops had to dust off their old-school methods and operate manually, highlighting the importance of maintaining manual operational skills.
• Payment Pandemonium: Electronic payment disruption was widespread. For many stores, it was cash or nothing, underscoring the ongoing importance of cash transactions in our increasingly digital world.

  

Brick-and-Mortar Business Resilience Tested

This crisis put the spotlight on brick-and-mortar business resilience. Stores that had prepared for such scenarios fared better, while others struggled to maintain even basic operations. It became clear that in the face of retail technology failure, having a solid backup plan is not just advisable - it's essential.

Our Experience

Interestingly, none of our clients seemed affected by this widespread issue. We were ready, armed with fixes and procedures, but no one called. It was a bit like preparing for a party, getting dressed up and not going—frustrating, to say the least!

We even initiated a ring at a few sites we thought might be in trouble, but they were all fine.

Lessons Learned

The Golden Rule of Updates

I was gobsmacked to learn that many affected sites had broken the cardinal rule of IT: Never do an update on a Friday. It's like tempting fate just before the weekend! This incident is a stark reminder of the importance of timing in system maintenance and updates.

Insurance Implications

Those impacted should definitely touch base with their insurance providers. Your policy might just cover such tech-related interruptions.

Cash is Still King (Sometimes)

Meanwhile, this shows that we cannot yet get rid of cash. We are not yet equipped for a cashless society. Never undervalue the role of cash today!

Preparing for Future Outages

Create a Backup Plan

1. Develop offline procedures for critical operations
2. Train staff on manual processes
3. Keep physical copies of important information
4. Regularly test and update your retail tech disaster recovery plan

Build Resilience

• Diversify payment options: Don't put all your eggs in one digital basket
• Maintain offline capabilities: Keep those old-school skills sharp
• Stay informed: Keep an eye on tech news and potential threats
• Invest in reliable POS systems: Choose solutions with robust backup features and offline capabilities

Conclusion

This massive outage exposed our vulnerability to tech failures. As retailers need to stay alert and flexible. Learning and developing comprehensive backup strategies will help your stores weather future tech storms.
Smart retail isn't just about the shiniest new systems – it's about being prepared for system failures. Heed the warnings from this worldwide tech meltdown and shield your business from upcoming digital challenges.

I put together this article and intend to submit it. Please let me know if you have any comments before I submit it.

Did you know that retail crime, such as shoplifting, robbery, and vandalism, costs Australian businesses up to $9 billion each year? There are about 150,000 shops in Australia, so on average, these crimes cost $60,000 a shop.

Running a retail shop is a dream for many, but keeping profits healthy can be a challenge. One enemy is "shrinkage," which is the loss of inventory and, often more importantly, cash due to theft. While concerns about cyber hacking are primarily in the news and are certainly a concern, for most retail shops, the more significant threat comes from closer to home – employees and customers! The good news? Your POS (point of sale) software can be your best friend in the fight against shrinkage.

The Usual Suspects: Employees and Customers

Employee theft might seem surprising, but it's a common issue. Maybe it's a cashier taking a little extra from the register daily, like "voiding" a few sales to pocket the cash. Customers can also be creative – think of the sneaky barcode swaps where less expensive barcodes are taken off items and put on dearer items (the banana trick). Another popular idea is to give you only some of the items to scan. These actions might seem small but can add to a significant financial headache over time.

How POS Software Fights Back

Here's how your POS software can be your secret weapon against employee and customer shrinkage:

• Catch Ringing Up the Wrong Register: Assign specific roles and permissions to each employee. This way, a cashier can't process returns without a manager, or a manager can't open the cash drawer freely, reducing the opportunity for mischief.

• One Register per person: One computer can drive many cash registers. There is no reason why each staff member cannot be audited.

• Goodbye, Phony Voids: Your POS System tracks every transaction, including voids. Check voids regularly. This makes it harder for someone to void and then "disappear" the sale.

• Eagle Eye on Inventory: Use your POS to track inventory levels closely. Sudden unexplained drops could indicate missing items, and you can investigate before the problem gets bigger. Most large shops today run on cyclic stocktakes and we strongly suggest that your shop does it too. Once a year for a stocktake is not enough.

• Barcode Blues? No More: When ringing up transactions, ensure the item's description matches the item. Some sneaky customers might try to swap barcodes for a cheaper price.

• Surprise Audits! : Use your POS system's built-in reporting tools (x-Offs) to run random audits. This keeps everyone honest, knowing they might be the next one checked.

Real-Life Example

We had a client who discovered he was losing a surprising amount of inventory at his music store. He couldn't figure it out after implementing our POS system with stricter access controls and real-time inventory tracking. Guess what? The "disappearances" stopped! 

The Final Note

Protecting your business's initial dream means you need the right tools to protect it. If well-configured, your POS System can act as a security guard, making it much harder for anyone to steal from your shop. By combining intelligent software with good business practices (like clear policies and employee training), you can keep your shrinkage under control and your profits healthy. 

If you want to learn more on how to configure your POS system to fight shrinkage now, you can contact our support team.

I put together this article and intend to submit it. Please let me know if you have any comments before I submit it.

Did you know that retail crime, such as shoplifting, robbery, and vandalism, costs Australian businesses up to $9 billion each year? There are about 150,000 shops in Australia, so on average, these crimes cost $60,000 a shop.

Running a retail shop is a dream for many, but keeping profits healthy can be a challenge. One enemy is "shrinkage," which is the loss of inventory and, often more importantly, cash due to theft. While concerns about cyber hacking are primarily in the news and are certainly a concern, for most retail shops, the more significant threat comes from closer to home – employees and customers! The good news? Your POS (point of sale) software can be your best friend in the fight against shrinkage.

The Usual Suspects: Employees and Customers

Employee theft might seem surprising, but it's a common issue. Maybe it's a cashier taking a little extra from the register daily, like "voiding" a few sales to pocket the cash. Customers can also be creative – think of the sneaky barcode swaps where less expensive barcodes are taken off items and put on dearer items (the banana trick). Another popular idea is to give you only some of the items to scan. These actions might seem small but can add to a significant financial headache over time.

How POS Software Fights Back

Here's how your POS software can be your secret weapon against employee and customer shrinkage:

• Catch Ringing Up the Wrong Register: Assign specific roles and permissions to each employee. This way, a cashier can't process returns without a manager, or a manager can't open the cash drawer freely, reducing the opportunity for mischief.

• One Register per person: One computer can drive many cash registers. There is no reason why each staff member cannot be audited.

• Goodbye, Phony Voids: Your POS System tracks every transaction, including voids. Check voids regularly. This makes it harder for someone to void and then "disappear" the sale.

• Eagle Eye on Inventory: Use your POS to track inventory levels closely. Sudden unexplained drops could indicate missing items, and you can investigate before the problem gets bigger. Most large shops today run on cyclic stocktakes and we strongly suggest that your shop does it too. Once a year for a stocktake is not enough.

• Barcode Blues? No More: When ringing up transactions, ensure the item's description matches the item. Some sneaky customers might try to swap barcodes for a cheaper price.

• Surprise Audits! : Use your POS system's built-in reporting tools (x-Offs) to run random audits. This keeps everyone honest, knowing they might be the next one checked.

Real-Life Example

We had a client who discovered he was losing a surprising amount of inventory at his music store. He couldn't figure it out after implementing our POS system with stricter access controls and real-time inventory tracking. Guess what? The "disappearances" stopped! 

The Final Note

Protecting your business's initial dream means you need the right tools to protect it. If well-configured, your POS System can act as a security guard, making it much harder for anyone to steal from your shop. By combining intelligent software with good business practices (like clear policies and employee training), you can keep your shrinkage under control and your profits healthy. 

If you want to learn more on how to configure your POS system to fight shrinkage now, you can contact our support team.

Shoplifting isn't just about the cost of stolen goods. It's a threat to your business. If word gets around that you are an easy mark, you're in big trouble. One of the best methods of dealing with it is having cameras right at the checkout. It's simple but surprisingly powerful and can make everyone think twice. I have spoken about this many times. Plus I can quote from personal experience doing this for years, that this will work.

Why It Works: You're Not Catching Thieves

You might be surprised, but those cameras aren't mainly about catching bad guys after the fact. The trick is psychology! When people know they're on camera, even the most honest of us feel more careful. 

Time Is Money: Proof for when you need it

Of course, sometimes you do need to play detective. Matching up your till records with that camera footage is way easier when you've got timestamps on your videos. This is solid evidence to take to the authorities if something serious goes down. Its actually one of the few pieces of evidence that the authorities do accept.

Let's Be Honest: Nobody Loves It

We all get it; staff and customers might feel a bit iffy about being on camera. But with shoplifting on the rise, protecting your business is the top priority. That's the message to communicate clearly to your team.

Tips for Success

• Clear Signage: Let everyone know cameras are rolling with visible signs. This is often a legal requirement.
• Show a video of the filming: The idea is to let people know you are recording them.
• The Right Tech: If you want, we can supply cameras that sync into your POS system.
• Staff: Unfortunately, staff theft can be a factor alongside customer shoplifting, so let them know. That's why cameras protect everyone's jobs.

To make the most of your till cameras, ensure they are focused on these key elements:

• The Staff Member: Clearly capture who is conducting each transaction.
• The Transaction: Record the exchange of money and goods between the customer and staff member.
• The Till: Video of the opening of the till drawer and the process of cash or card payments being processed. 
• Timestamps: This is crucial for quickly matching camera footage to specific transactions in your POS system, providing clear evidence if needed.

Real-Life Aussie Business Example

"Since adding till cameras, that sneaky feeling of items 'walking away' has gone down loads. My stress levels have gone down too! It was definitely the right move." - Sarah an Owner of a newsagency,  in Adelaide

Small Retailers, Big Protection

Such systems are relatively cheap today. They're an affordable smart move for businesses of all sizes. Think of it less like sneaky surveillance and more like adding an extra layer of honesty to your checkout.

Need help getting set up? We are available to help you find the right camera solution!

Running a retail business comes with many challenges. One key area that requires focus is staff security. While most employees are trustworthy, it only takes one bad apple to cause significant losses. It is a growing problem, have a read here.

The Importance of Deterring Theft

Implementing proper security procedures is necessary to protect your business and bottom line. In my experience, the mere presence of correct security procedures often deters such theft. If staff members see cameras and proper controls in the point of sale (POS) system, they are less likely to steal. So, it is essential to take retail loss prevention seriously.

Over the years, I have become cynical about this issue. Too many retailers have told me stories that start with "He was in school with me... his family and my family....he was very good, my best employee..." and something they start telling me how "He had been skimming my cash register for years." and how they only found out years later that a previous employee had problems with that person.

Some will take advantage if an employee sees you won't care about minor cash discrepancies. If they know a POS system is monitoring transactions, it makes them think twice. One client recovered almost $13,000 a year in extra revenue simply by having separate tills for each staff member and counting each cash drawer after every shift.

Configuring Staff Security in POS Software

It's straightforward to set up security features in our POS system. 

Please go to

Main menu> staff > staff maintenance

Then click the Security Level tab on the top

Now, you will see the user levels with our suggested functions for each level. Change them at will to suit your own particular needs.

Now click Staff Maintenance.

This screen appears

Now, set your staff with a suitable security level that they need to do their position. Make sure that you give them the functions and information they will need without compromising sensitive and dangerous functions and information.

The default settings are designed to work for 90% of shops. However, every business is different so that you can customise it for your needs. There are many options to choose from.

We can set these up, and then you can enforce them. Installing cameras facing the tills is also recommended.

Take Retail Security Seriously

Security in retail is often trivialised, but it doesn't have to be. With proper controls through your POS system and staff procedures, you can deter theft and protect your hard-earned profits. Don't become another cautionary tale - be proactive about retail security immediately. Your business will be better for it.