The Big Picture

Nov 1, 2005 12:00 PM, By Andrew Wren

There is a bulletproof method for eliminating shoplifting in the retail environment: Assign a personal escort for each and every customer entering the store. Never let him leave the escort's sight, shadow him throughout the entire store visit and walk him to the exit.

While no one doubts the effectiveness of such an effort for preventing shoplifting, it is an obviously ridiculous proposition. Quite simply, it is diametrically opposed to the overall requirements and objectives of operating a successful retail business.

The challenge for retail security and loss prevention professionals in retail is not only controlling losses and protecting people and property, but accomplishing these objectives within the larger context of the company's strategy and culture. Retailers should strive to build security into their corporate core values, so that everyone within the organization, from top to bottom, throughout all functional departments, understands the important strategic role security should have within the company.

There are several common ideological pitfalls associated with ineffective retail security programs. The single most common is that security implementation is an afterthought. But there are several examples that demonstrate proven best practices for building effective programs to put retailers on the road to successful security planning.

The fundamental pitfall

Too often, retail security programs are planned and implemented as an afterthought to other programs already put in place. After the store is designed and built, security professionals are called in to protect the premises. After the product has been ordered, loss prevention managers are asked to implement measures to prevent shoplifting. Addressing the store's security needs after other initiatives are completed is the wrong approach. The goal should be to integrate security measures at the highest corporate levels before key decisions are made.

Consider the following example. A retail manager selects the right shelf space, the right signage and places a popular, new product on display. He steps back to admire his work and asks himself, “How can I make this display less likely to incur loss?”

Unfortunately, the real opportunity to control loss has passed. For maximum effectiveness, loss prevention measures should have been considered during the purchasing and merchandising phase. Special packaging could have been ordered to ensure the product was protected from damage and theft. Shelf space could have been selected in a high-traffic area to make shoplifting more difficult, and the product barcodes could have been checked and rechecked to ensure proper pricing. The problem is, in the vast majority of retail environments, programs are developed before security is brought in to protect goods and people. This approach not only limits the security professional's options, but also the effectiveness of the security measures taken.

Where they conflict

Implementing security programs as initiatives separate from other strategic decisions and activities in retail can result in a conflict of interest, putting two or more objectives at odds. A few common examples will bring these concerns to light.

Customer service is a major priority for retailers. Satisfied, loyal customers are essential to the long-term success of any retail business, and that means creating a satisfying customer experience in the store. Security objectives developed outside of overall customer service initiatives can easily conflict. If security is asked to protect a product against theft, it is easy to take measures to reduce the risk of shoplifting. However, if the measures are too extreme, it becomes less likely the product will be purchased. For example, it is possible to lock up a product so that an associate has to remove it in order to show it to customers. However, this may negatively impact customers' experience, leaving them uncomfortable or simply causing them to lose interest due to the extra time and effort required. If security initiatives were considered at the highest levels, retailers would recognize the importance of maintaining the customer experience by making security measures invisible to the honest customer, while still protecting the merchandise.

• Cost control: While effective security measures do not necessarily equate to high-dollar investments, a small investment may be required to save money down the road. To control costs and maintain already razor-thin margins, retailers often strive to procure products at the very lowest price. However, procurement managers may need to spend a few extra pennies on some products in order to protect them from loss and theft. While it may cost slightly more up-front, special packaging can protect the product from damage and theft, thus decreasing the potential for future loss.

• Growth strategy: Aggressive growth is a fundamental goal of most mid-sized and large retailers. One key challenge executives face is site selection and deployment of new retail stores. If security risk factors are considered after the site has been selected and designed, that particular store will rarely have the security benefits of other locations that were planned with the advice of security professionals. Helpful information might include the area and crime rates, which demonstrate that the store would likely experience high shrink. By being involved in the store design process, security professionals could also ensure the building is well-protected and designed for maximum security and minimal loss.

Developing a security-focused organization

How can a retailer develop into a security-focused organization? It is not enough to make security a priority. It must be a core value. A value is an orientation or an idea that an individual considers correct and important. Values are consistently and unilaterally applied. Priorities, on the other hand, are basically important to-do items that can always be re-prioritized. A good example of a value is the manager who treats people well — it is not a priority, but rather a constant, a part of who the manager is. Similarly, security is either a part of the culture or it's not. By making security a value, it becomes essential to every aspect of a business.

As long as security is an afterthought, retailers will never realize the full benefits of security and loss prevention programs. Rather, loss prevention should be a cornerstone of the strategic and tactical planning process. Understanding that this is easier said than done, the following recommendations can illustrate ways to incorporate security-minded strategies into the life of an organization.

‘Rifle’ rather than ‘shotgun’ approach

Security measures should take a clear, focused approach and be designed with specific objectives in mind. While the “shotgun” approach may have a broad impact, it seldom hits the right target, and the impact is often not deep enough to penetrate to the heart of the problem. On the other hand, the “rifle” approach focuses on a specific business issue and allows for a precise hit that directly addresses the problem.

Consider a shotgun security approach that is common among retailers — deterrent programs for retail associates. Organizations go to great lengths to explain the risks of stealing and the rewards for reporting. They use slogans like “Think shrink,” but simply implementing a program to build awareness and enroll associates will not lead to the desired results. These shotgun-style programs seldom provide functional information that allows employees to perform duties more effectively. If associates do not understand their specific role in controlling loss, they will be even less motivated to “Think shrink!”

A much more effective program teaches each employee about the greatest potential loss-causing risks relevant to his position. Or the employer can offer training on processes and technologies designed to eliminate loss due to errors. This type of program allows each employee to proactively minimize the individual impact on losses by helping him or her to understand the root of the problem and by providing tools that address specific challenges common to that functional area.

Work with all areas of the business

Security is relevant to all areas of the business. Therefore, security professionals must gain a broad understanding of the business and be willing and able to work with professionals in all functional areas. Security values must be integrated into all areas of the company. Security professionals who learn the specific needs of various functional areas can formulate relationships and demonstrate how strategic security measures impact each area positively.

Selecting the right tools

Today, the technology available to support security and loss prevention efforts is virtually unlimited. However, it is critical to select and implement technologies carefully that meet the specific security needs of the particular organization.

Randomly implemented technology will have minimal impact. Retailers should consider their unique security problems. Careful consideration should be given to who will use the technology and how they will use it.

Ideally, security is built into corporate values and is embraced within all levels of an organization. Successfully transforming retail security from a priority to a value may require fundamental changes in the culture of the organization. However, the payoff can be dramatic — as losses are decreased, and people and property are kept safe.

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ABOUT THE AUTHOR

Andrew Wren is president of Wren Associates, Jefferson City, Mo., a manufacturer of video surveillance equipment and solutions for nearly 25 years. He serves on the Security Industry Association's Advisory Council.

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© 2008 Penton Media Inc.

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