Presentation by Louise Camilleri of Lodge Service, provider of security and compliance services to charity retail for 25 years, A CRA member for 10 years. Services include:- Test Purchasing Manned Guarding Penetration Testing Mystery Shopping Screening & Vetting Reference checks Industry recruitment Alarm Monitoring Access Control 24 hour Intelligence Hub Vehicle tracking Compliance audits

1. Security and Compliance in
Charity Retail

2. About Lodge Service
Established in 1919 as a Test
Purchasing company by Roy Lodge.
Europe Expansion 1961
Stuart Lodge CEO since 1995
Supporting the Charity Retail
Association for over 10 years

3. Divisions of Lodge Service
• Test Purchasing
• Manned Guarding
• Penetration Testing
• Mystery Shopping
• Screening & Vetting
• Reference checks
• Industry recruitment
• Alarm Monitoring
• Access Control
• 24 hour Intelligence Hub
• Vehicle tracking
• Compliance audits

4. Supporting
The Charity Retail sector
•Worked with the sector for 25 years, CRA member for 10 years
•Professional support through specialist divisions
•Off the shelf economy solutions
•Individually tailored programs and services
•Produced original “Profit from Security” book
•Manned guarding e.g: Red Cross Beckham’s event, Kensington

5. Commonly used
by the Charity Sector
Integrity testing/ Test purchasing
Mystery shopping
Call centres
Street fundraising checks
Door to door fundraising checks
Stock audits
Cash audits
Covert and Overt vehicle tracking (and analysis)
Staff bag searches
“Mystery” volunteers

6. Statistics
Retail crime cost UK retailers £603 Million during 2013 – 14
56% customer theft
37% fraud
Average cost per incident of employee theft £1031
Customer theft average value increased by 36% to £241 per incident.
Lodge Service findings from MS (over 12 mths):
Gift Aid was NOT offered in 51.19% of the visits completed
In 6.5% of cases there was a point of sale till discrepancy
Source: British Retail Consortium retail crime survey 2014

7. Mystery shopping?
Who are the shoppers?
What do they do?
•Improve customer service standards
•Achieve consistent service in all sites
•Judge all staff using the same criteria
•Motivate staff eg staff incentives, healthy competition between sites
•Identify training needs
•Increase sales e.g Gift Aid, upsell
•Compliance

8. Securing your shops
Solutions V Costs
•The solution must be measured against the risk. ROI
•Don’t over use technology – The most expensive does not always
deliver the best result for you
•Alarms Monitored/bells only
•Locks Quality/ Alarm linked / Key control
•Notices Clearly displayed deterrent
•CCTV Signage as deterrent and recorded
Locally monitored / Remotely monitored

9. Discouraging theft
Protecting staff from violence
CCTV (and signage to indicate such)
Forced entry and deterrents – alarms, CCTV, security tags
Limited staff with greater responsibilities eg cash handling, banking
Random bag searches
Clear procedures for volunteers, and suitable support
Fitting room checks

10. Vulnerable areas
Note high risk areas in store
Stock room doors closed
Secure access behind till/counter area
Outside – skylights, fences, derelict areas, loading area
Limit number of staff who handle cash – banking, cashing up
Limit sets of key available for the store

11. Case studies

12. Case Studies
Gift aid fraud
A Shop Manager was found to be re-claiming large amounts of Gift Aid
from stock donations, as were her friends and family.
It was found that most of the stock had been donated by other people.
The Shop Manager had simply used her own Donor Number and
claimed the cash from other peoples donations

13. Case Studies
Lodge Service were asked to complete a series of compliance audits in
a charity’s 8 retail stores.
After a series of checks which included;
Till and safe checks
Gift aid compliance
Health & Safety checks
Key control
HMRC Gift aid legislation compliance
Several areas were identified that needed improvement or where
additional training was required for the team. The charity received a full
report which allowed the Area Manager to have a more focussed
approach.

14. Case Studies
The case of the missing donations
A store manager was concerned about the quality of goods brought
back by a van collection driver.
Lodge Service carried out a covert operation which confirmed the
driver was taking the bags home and sorting the best bits for himself.
This was just 1 of 46 similar incidents this year alone

15. Case Studies
The case of the missing money
A small charity were concerned that a member of staff was under-
ringing items and keeping the difference. The Area Manager
interviewed him but could not prove the theft.
Lodge Service carried out a series of Test Purchases and discovered
the person concerned was pocketing the cash on a regular basis. He
admitted the theft during interview - the charity decided to dismiss him
but not to prosecute

16. Other success stories
The shoe box till
The ‘no sales before 10 am’
The ‘turned away stock donations’
The missing Store Manager
A Driver’s long breaks
Pushy street fundraiser

17. Case Studies
Sales increase due to Mystery Shopping
A mystery shopping programme was developed for a major London
tourist attraction. In response to customer enquiries, staff were
encouraged to suggest purchase of a detailed information guide.
Prompted by poor mystery shopper results, additional emphasis was
placed on this aspect of their task and, as a direct result, sales of the
guide increased from 28% to 70%.
The additional profits generated from sales of the guide more than
covered the cost of the annual mystery shopping programme.

18. Case Studies
Mystery shopping used for Compliance
A family run bakers with 4 sites were struggling with compliance of
their staff. The owner was not able to be in all the stores consistently
at any one time to oversee.
He was supported with a quarterly mystery shopping programme,
focussing on key approach and upsell areas.
The frequent visits allowed him to use the results and focus on
improvement points.
The staff responded well, and this allowed the owner to focus on
business expansion onto 2 new sites.

19. Case study - distribution
• Tracks the vehicle from the DC Carries out time checks every 30 minutes Alerts when
vehicle is 5 minutes away from the designated store Receives live images of the loading
bay (Safe Harbour) Monitors the safe arrival of the vehicle and driver (Lone Worker) Carries
out a driver ID check with the ARC controller Controls access to the store allowing the
driver to enter and complete the delivery Monitors and controls the driver's exit from the
site (Lone Worker) Closes down the BMS, (lighting) and resets alarm systems
This solution has reduced the cost of the initial DCD process
and provided a dramatic return on initial investment.
Through its Category 2 ARC, Lodge has introduced a procedure for driver controlled
deliveries (DCD) that has reduced the number of staff and introduced remote
monitoring services to address lone worker requirements and control access/egress.

20. Questions
& Answers

21. YOU
THANK
www.lodgeservice.com