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A NEW LOOK AT OLD PROBLEMS

Sticky Business

A guide to everything you need to know about shoplifting, from who's most at risk and how to successfully control it to knowing if you should chase down the perpetrator

By Erinn Morgan

Have you experienced external theft—shoplifting? According to the University of Florida's 2008 National Retail Security Survey Final Report, optical retailers experienced a higher shrinkage rate (2.4 percent) than any other retail market segment, including children's apparel (2.26 percent), discount stores (2.07 percent), craft/hobby (2.04 percent), and entertainment (games/videos/music—1.54 percent).

Some ECPs report they rarely fall prey to shoplifters. “We have had maybe two pieces stolen in the last five years,” reports Amy Block, co-owner and optician at Block & Zuckerman in West Orange, N.J. “We actually had one customer take something and then bring it back later.”

Still, most say it's a concern. “It's a problem common to all retailers, especially those affected by layoffs that are now understaffed,” says Chris McGoey, a security expert who specializes in shoplifting prevention.

ECPs have had to implement loss prevention controls. “We have had problems with shoplifting and break-ins in all our stores in the past,” says Lisa Clayton, frame buyer for Santa Fe Optical. The three locations in Austin, Texas, have surveillance cameras in place in each store and the opticians place about 50 percent of each dispensary's inventory in bolted-down safes every night.

Every year, more than $13 billion worth of goods are stolen from retailers each year, according to the National Association for Shoplifting Prevention. This boils down to more than $35 million stolen per day.

HIT LIST

What are the optical goods shoplifters covet the most? Sunglasses are high on the list of desirable items, along with designer frames, high-end styles, and specs that have excellent resale value. “The most common way I've seen people try to steal is they work as a team and get two to three people in the store and they start pulling things out and all wanting to look at different things,” says Scott Stein, owner of Grand Central Optical, which has two locations in New York City, including one in Grand Central Station. “Their goal is to confuse and distract the employees and when they turn away, the shoplifter grabs what they want.”

Today, retailers are putting loss prevention practices into play. “It's all about the policies and procedures you build around the problem,” says Patrick Murphy, president of LPT Security Consulting. “It can really impact your bottom line, so vigilance will take you a long way.“

COMBATING THE PROBLEM

While most major retail chains have loss prevention departments, optical retailers seek affordable measures to ward off shoplifters. .

Following are a few cost-effective loss prevention controls for ECPs.

● SERVICE WITH A SMILE: One of the greatest deterrents to a shoplifter is good customer service.

“If you have a store that is understaffed, then they might be trying to focus on one customer, but they can't see others who might be shoplifting,” says McGoey.

Employees who are trained to approach and greet each and every customer are a retailer's best front-line defense against theft.

“When someone comes in, we introduce ourselves, get to know his name,” says Julia Gogosha, owner of Gogosha Optique in Los Angeles. “For most people, it's not their intention, but if it is, we introduce ourselves and we initiate a conversation with them. The only time shoplifting has happened here was when we were really overwhelmed or busy and we missed somebody.”

● LOCKED & LOADED: Locked display cases are a means of loss prevention. “My family was in the jewelry business for many years, so I am real aware and everything is always locked away in a classy way,” says Grand Central Optical's Stein. “There is nothing out in the open and there are always three people working in the store.”

He encourages his opticians to limit the number of frames they have out at one time. “We put them in a tray to show the customer, so everything stays together and visible.”

● FULLY STOCKED: “We have frame racks that we keep full all the time, so we know if anything is missing,” says Eddy Mamelock, owner of 20/20 Optical, which has two locations in Old Greenwich and Greenwich, Conn. Adds McGoey, “This is the most obvious visual control for shoplifting since eyewear is easy to visually inventory. Retailers simply have to keep the racks full.”

● CANDID CAMERA: Surveillance cameras can both dissuade and control shoplifters. “We have cameras pointing toward our sunglasses,” notes Gogosha, who says her camera system cost under $1,000.

Santa Fe Optical also has cameras aimed at high-risk displays. “We have caught people stealing on tape and the cops have caught them,” says Clayton.

Murphy strongly advises against fake cameras as deterrents. “I've seen retailers with fake cameras get sued and lose because a customer in the store during a robbery said they thought the cameras were in the store as a protection,” he says.

He adds that a few color cameras will probably cost between $300 and $500 and the accompanying recorder is about $500.“Make sure one covers your entrance and one covers the cash register. Everything else is just merchandise. Protect yourself and your employees first.” EB