FSCT 8621 Project Final Format__KeishaPadalec A00872963

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A Review of Loss
Prevention Strategies in
the Work Place
Keisha Padalec A00872963
Committee Members
A Review of Loss
Prevention Strategies in
the Work Place
Signature
Subject Matter Expert Keisha Padalec
FSCT Member Keisha Padalec
Mentor Joe Ilsever
Other Patrick Neal
Course CRN Date
Submitted
To
FSCT 8611
FSCT 8621 80849 02/15/16 Joe Ilsever
FSCT 8631

Loss Prevention Strategies 1
“Rely not on the likelihood of the enemy not coming, but on our own
readiness to receive him; not on the chance of his not attacking, but rather on
the fact that we have made our position unassailable” – Sun Tzu, “The Art of
War”

Table of Contents
Abstract……………………………………………………………………………………………………………………………………3
Introduction……………………………………………………………………………………………………………………………..4
Company X Overview……………………………………………………………………………………………………………….5
Literature Review………………………………………………………………………………………………………………...6-13
Methodology……………………………………………………………………………………………………………………….…14
Results and Discussion……………………………………………………………………………………………………………15
Conclusion……………………………………………………………………………………………………………………………..15
Appendix A………………………………………………………………………………………………………………………….16-18
Appendix B………………………………………………………………………………………………………………………….19-21
Appendix C………………………………………………………………………………………………………………………………22
Appendix D………………………………………………………………………………………………………………………...23-24
Appendix E……………………………………………………………………………………………………………………….…25-26
Appendix F………………………………………………………………………………………………………………………….27-29
Appendix G……………………………………………………………………………………………………………………………..30
Appendix H…………………………………………………………………………………………………………………………31-32
Works Cited…………………………………………………………………………………………………………………….….33-35

Abstract
This project examined Loss Prevention strategies at Company X in an effort to determine
whether or not high risk assets are as secure as we believe they are. Low shrink rates at
Company X suggest that high risk assets are secure however, the ease in which some assets
can be removed suggests otherwise. Having adequate staff on the sales floor during peak
hours lowers the opportunity shoplifters have to steal an asset. Over a period of 7 months
primary data gathered through interviews with the General Manager at Company X, library
books, the purchase of used books as well as various websites found online. It was found
that effective customer service and properly functioning alarms on high risk assets are ideal
ways to keep assets secure. If staff is properly trained in Loss Prevention and assets are
secured effectively, shrink can be reduced. Customer can also enjoy a more pleasant
shopping experience.

Introduction
Loss Prevention is an important part of retail; it incorporates various policies and
procedures that coincide with the law and company policies. Loss Prevention takes a proactive
approach to reducing theft both internally and externally. Company X employs various Loss
Prevention strategies which involve protecting assets both physically and digitally. Protecting
the digital asset in loss prevention ensures customer and store data remains safe and
uncompromised. Every company that uses Loss Prevention has their own strategies along with
operational guidelines and policies and Company X is no exception. The purpose of this project
is to determine whether or not the asset is as secure as we think it is.
Company X is a large retail company with over 1,800 locations across North America
alone; each store is a different size and where it is located geographically varies. These
geographic locations impact the stores vulnerability; some stores are close to transit or within
walking distance from residential neighbourhoods while some are more easily accessible by
vehicle. Where a store is located will dictate whether or not they are a high shrink store and
also how secure their products are. In other words, geographic location also determines how
easily a thief can get away with stolen merchandise (Geographic Profiling Analysis, n.d.).
Company X employs various Loss Prevention strategies which involve protecting assets both
physically and electronically.

Company X
Company X: Who are they?
Company X is a large retail chain with approximately 1,800 locations across North
America. They carry thousands of items both in store and online; items such as electronics
including but not limited to iPads, laptops, desktop computers, various tablets, cell phone and
wireless accessories, coffee machines, furniture, cleaning and janitorial supplies, organization
and storage solutions and much more. To make shopping more convenient for customers,
Company X has expanded their services to include online shopping where customers can find
over 150,000 different items that are not available in store. Online shopping allows customers
to shop from home or work whenever it is convenient for them; it also allows the customer to
have items shipped directly to them or they can come into Company X and pick up their items
in store.
What Does Company X Stand For?
Company X is a diverse company that offers various opportunities for their employees to
learn and advance in their career; the opportunities that are offered allow each employee,
regardless of whether they are an hourly associate working full time or part time or a
supervisor or member of management, to reach their full potential. The employees who are
hired range from those who are seeking their first job to those who have since retired and are
looking for something part time to keep them busy. Regardless of how long an employee has
been with Company X, there is always an opportunity for advancement.
A retail environment with a wide diversity of employees is a reflection of the customer
base. Company X has a wide diversity in their staff employing people of all ethnicities,
backgrounds and experiences. Since all customers come from a wide range of religions, beliefs,
cultures and much more, employees are hired to reflect this. Hiring employees of various ages,
experiences and backgrounds as well as employees from different ethnicities and cultures helps
build a better relationship with the customer.

Literature Review
Reasons This Study Should be done
Retail theft is a growing problem not just in Canada but on a global scale. Globally the
retail industry loses approximately $278 billion dollars annually as a result of shrink. As of 2012
in Canada, the retail industry has seen an increase in shrinks rates with some businesses
reporting rates as high as 2.19% and some reporting rates as low as 0.4%. This works out to a
loss of approximately $10.8 million per shopping day or $4 Billion dollars annually (Retail
Council of Canada, 2012).
With losses this high retailers are working to increase their security measures while
remaining cost effective. Retailers like Company X are opting to use more cost effective
methods such as Electronic Article Surveillance tags (EAS tags) on products to secure high risk
items in an effort to lower their shrink rates. Lower shrink rates will offer customers a better
shopping experience because prices can be kept low. As shrink increases so do prices. When
prices increase, employee hours get cut which means there are fewer associates on the floor to
help customers and reduce shrink.
Many companies are also starting to look towards Radio Frequency Identification (RFID)
chips as a way of tracking their high risk merchandise; companies are asking their vendors to
install these chips on pallets so the product can be tracked from the vendor to the store. This
allows retailers to know exactly where their merchandise is at all times while also lowering
shrink rates by ensuring that the product on the pallet matches the order request. Another way
retailers such as Company X are working to reduce their shrink levels is by adopting the Buy
Online-Pay In Store (BOPIS) method which allows the customer to go on line and choose their
item and then pick it up in store. When the customer does this, the store they are purchasing
from gets a notification and an employee puts the item aside so it is all ready to when the
customer comes in to pick it up. At the time of pick up, the customer shows the associate a
piece of ID to ensure that the right person is picking up the right item; in the stores computer
system, the item is checked off and charge to the customers’ credit card. This Loss Prevention
strategy helps reduce shrink by ensuring that merchandise does not leave the store without
payment.
Other ways retailers are working to reduce their shrink rates is by displaying “dummy
demos” as opposed to “live demos.” The “live demos” are often kept under lock and key in the
store lock up, these lock ups are not visible from the sales floor. The live demos are only taken
out during business hours and shown to customers when an associate is available to keep an
eye on the product. By keeping the live demos under lock and key, retailers have more control
over their assets. This acts as a deterrent for would be shoplifters which in turn reduces store
shrink levels. However, Loss Prevention is not just about securing the physical asset; it also
covers cyber assets such as customer and store data.
Data Breaches have also become an increasing problem in retail. Businesses all over
Canada and the United States have been negatively affected by cybercrimes which often result
in many people having their personal information compromised. With technology evolving at a
rapid pace, the retail industry has been compelled to find new ways to keep their customer and
business data secure against online threats. One of the methods used to keep customer

information safe is Cloud Computing. However this however also comes with risks and is not
immune to data breaches.
What is Loss Prevention?
Loss Prevention (LP) is the practice of applying company policies and procedures to
reduce both internal and external theft, as well as cyber, theft while keeping customers and
employees safe from potential harm. In retail, Loss Prevention practices can be carried out by
security guards, a Loss Prevention Office or by employees and managers or all of the above. The
goal of Loss Prevention is to reduce the amount of theft or shrink a store has. In order for shrink
to be reduced, both the management and Loss Prevention teams need to work together to
determine where the theft is coming from: internal, external, vendors or the cyber world.
Loss Prevention also utilizes several strategies to act as a general deterrent for theft.
These strategies may vary from business to business however the end goal is always the same:
to prevent theft, reduce the overall shrink rate and keep employees safe. Some of the
strategies used in retail include, but are not limited to, acknowledging customers when they
walk in, being aware of the customers who are in the store and noticing any customers who
appear to be carrying oversized bags or who may be dressed inappropriately for the time of
year. A customer wearing an oversized jacket in the middle of summer is one to take notice of.
When it comes to protecting cyber data, such as customer information, the retail
industry often uses Cloud Computing to keep customer information safe. Cloud Computing also
makes it easier for managers to look up customer information without having to search through
various data bases to find what they are looking for.
What Strategies Are Used by Today’s LP?
Loss Prevention Officers are responsible for educating staff members on what to look
for in customers and what to do to prevent theft from occurring. Taking a proactive approach
such as greeting customers when they walk into the store or asking if you can help them find
anything are easy ways to let the customer know that you are aware of their presence in the
store. A customer who enters the store with the intent to steal does not want to be noticed by
associates. These customers are less likely to steal something if an associate has already made
contact with them. It is up to the Loss Prevention Officer or Manager to ensure that their team
knows how to handle external theft and what their limitations are when potential shoplifters
enter the store. During an interview with the General Manager at Company X, the researcher
asked if associates could make a Citizen’s Arrest pursuant to S.494 of the Criminal Code. The
General Manager told the researcher that this is against company policy as it had the potential
to put not only associates in an unsafe situation but also other customers and the shoplifter as
well.
Protecting Company X’s high end assets by having them secure with locks and alarms
will act as a deterrent, but this alone is not enough. It is important that employees are alert and
aware of the customers in the store. Proper training from the Loss Prevention team will have
associates trained to be aware of items that are a high risk for theft. Items such as iPads and
laptops are high risk items and as such, it is important to make sure that all managers and

employees working in the relevant departments are properly and fully trained. It is important
to know how to properly secure these high end items and make sure the assets security alarms
are working properly. This is essential to reducing shrink. However, these strategies alone are
not enough to prevent theft as they are merely a way to buy time for associates and managers
to assess the situation and determine the reason the alarm has been set off.
It is also important to take note of any customers that appear to be lingering in the
store, especially those who are near high end assets. Having an associate engage a customer
who has been hovering around high end items can reduce the chance of theft and increase the
likelihood of a sale. It is equally important for the management and sales team to communicate
effectively with each other when they see suspicious customers enter their store. The more
everyone works together as a team the more likely it is that potential shoplifters will be
deterred from stealing.
One such example of effective Loss Prevention practices at Company X occurred in early
February. A group of four or five individuals walked into the store, immediately split up and
went in different directions. Most of the individuals stayed near the high end items in the store
while one of them moved towards low risk assets. Associates and management alike saw these
individuals at the same time and were able to use effective customer service as well as the
paging system and prevented a potential theft from occurring. The individuals left the store a
short time after they arrived. One of these individuals made a legitimate purchase however the
important thing to note is that a potential theft was thwarted because of alert associates and
management.
Geography: Where is Company X Located in Proximity to Transit?
Company X is located along a busy highway with easy access to a network commuter. A
10 minute walk uphill heading east will have an individual at one sky train station. From there
an individual can be in a major metropolitan community, whereas a 10 minute walk heading
west will have the individual in another major metropolitan community with waterfront access
to a river, harbor and inlet. Because Company X is conveniently located between two busy sky
train stations, it is easy for someone to leave and end up in a different jurisdiction all together.
This makes it harder for individuals to be caught because they are multi-jurisdictional and will
have fast access to other businesses where more shoplifting can occur. In the example
mentioned above, the potential shoplifters arrived and left on foot. Had they been able to get
away with a high risk asset, they could have been in a new jurisdiction within a matter of
minutes. This potential theft would have increased Company X’s shrink dollars which would
then result in a higher shrink percentage.
Inventory, Shrink and Theft
At Company X inventory is done on a daily basis first thing in the morning before the
store opens. This is done to determine what products are not on the shelves or walls for
customers to purchase. Morning inventory is done with a small hand held scanner that tells
associates what product is currently out of stock, on order or how many Company X currently
has on hand. If there is stock on hand, then it is up to the associate conducting the inventory

count to find the product and have it ready for customers to purchase when the store opens. If
the product cannot be found, it may be considered shrink. Regular inventory is an ideal way to
determine whether or not there is shrinkage in the store. Shrink occurs when the on hand
count differs from the number of items the store system indicates there should be. For
example, an associate in Company X might have to inventory HP printer toners as part of their
opening duties. If the on hand, or physical, count of this item is different then what the store
system says, it is considered shrink. These discrepancies can be attributed to employees,
customers, accounting or administrative errors as well as vendor errors.
Once a year, Company X has an annual store wide inventory. On this day an external
company is brought in to do the inventory with store associates participating in a secondary
count. The General Manager at Company X has stated that this inventory is not 100% accurate
as the external company does not know the store the same way the associates do. Some items
in the store may appear to be the exact same product just a different colour however the
different colour might mean there is a different SKU for each item. This would mean that the
associates and external inventory team have to count each item as if they were completely
different. For example all red Lexar 64gb USB’s would be counted together and all green Lexar
64gb USB’s would be counted together because the SKU’s are different. However, a bad
physical inventory of the store is better than not doing any inventory at all.
Once the inventory has been completed, the store manager can get an idea as to where
their store shrink is currently at. In 2015 Company X had a shrink percentage of 0.4% which falls
within the standards set out by the Retail Council of Canada. However this does not mean
anything by itself. Company X had $8,000,000 in sales last year which sounds like a good year
however the shrink percentage still needs to be factored in. This allows the General Manager to
determine how much the store lost in shrink dollars. To convert the shrink percentage to a
dollar value it gets cross multiplied and divided by the store sales as shown below:
0.4 x 100
N $8,000,000
$320,000 = 100N
100 100
= $32,000
Although $32,000 doesn’t seem like a big number when compared to $8,000,000 it does show
how much money Company X lost due to their 0.4% shrinkage. When broken down even
further, $32,000 works out to an average of:
$2,666.66/Month
$615.38/Week
$87.67/Day
This is the rough equivalent to one full time hourly associate working on the sales floor for one
year. With this dollar value, it would be more effective to have another associate working on

the floor helping customers in an effort to reduce store shrink even more. Having more
associate working during peak hours allows for better customer service and a lower yearly
shrink percentage.
There are several ways in which shrink can be affected it all has to do with how well
trained and alert associates and managers are when dealing with shop theft, or shoplifting, and
internal theft. The most common type of theft in retail is internal theft however it is not limited
to the physical asset. Internal theft also encompasses cyber theft. This can be carried out by
associates, vendors, accounting or administrative errors and even by cleaning staff. Internal
theft is responsible for the greatest increases in retail shrink. Employees who steal do so for a
variety of reasons; some steal because they are disgruntled or because they are presented with
an opportunity to do so. The Disgruntled employee is going to steal because they are likely mad
at their employer and their logic is that stealing will be a good way to get revenge. The
employee who steals when the opportunity presents itself is doing so because there is no one
watching them and they seize the chance to take an asset.
Some employees will be more creative in their methods and will hide items in garbage
bags that are being taken out at the end of the night. To prevent this from happening, Company
X uses clear garbage bags so associates cannot hide store assets in the bag. Another strategy
that can be used to deter or prevent internal theft at night is to have employees show their
manager the contents of the bag before it gets thrown out. This will give the manager a chance
to determine whether or not there is anything hidden in the garbage. Managers can also ask
employees to open the bags and dump the garbage into the garbage bins so they can see
everything being thrown out.
Vendor fraud and accounting errors can also contribute to shrink levels. The vendor can
send an entire pallet of high risk merchandise to the store and alter the packing slips so the
receiver thinks they are receiving more than they actually are. A receiver who is diligent and
good at his or her job will cross reference the packing slips with the merchandise they receive
and any discrepancies will be reported to both management and the vendor immediately.
Accounting errors can easily occur as well, the accounting team could over charge the store for
items they have received or charge them for items they did not receive at all. Fake paycheques
can also be made up for nonexistent employees of the company; this would be considered
cyber theft.
Cyber Loss Prevention can easily occur in retail so it is important to ensure that the
digital asset is well protected from both internal and external theft. Company X keeps
everything on the Cloud at Home Office in an effort to keep customer and store data safe.
However, associates working in the Accounting department can easily make changes to store
information. Issuing fake pay cheques as mentioned above, for personal gain can easily happen
and can go one for an extended period before someone notices missing money from the store
budget.
Employees who have access to company information at the store level can easily
download and steal company data using a USB. In order to reduce the risk of this happening at
the store level, Company X keeps every computer password protected in in sight of security
cameras. Should there be an internal data breach, having the computers in sight of the cameras
will allow the management team to review the footage to determine who may have been using
the computer when the breach occurred. Data breaches can also occur externally.

External Theft is the next reason shrink levels are often high in the retail environment.
External theft is not limited to shoplifting however, it can be easy to prevent if you are aware,
alert and diligent and know what to look for. When cyber theft takes place external to the
company, it is because someone has hacked into the Cloud Computing system. The Information
Technology (IT) and Legal teams are responsible for ensuring that company firewalls, malware,
antivirus software are maintained and kept up to date. During an interview with the General
Manager at Company X, the researcher inquired as to the types of the aforementioned
software and was unable to get an answer. This information is not readily available at the store
level and would need to be obtained via meetings with the IT and Legal teams. Unfortunately,
this was not able to take place due to time constraints. However it is much easier for associates
and management to prevent theft of a physical asset then it is a cyber asset.
It is important to note that not all shoplifters are the same. There are three types of
shoplifters to be aware of: Opportunist or Amateur shoplifter, the Shopping shoplifter and lastly
the Professional shoplifter. The Opportunistic shoplifter is the most common and the one Loss
Prevention Officers and security guards are most likely to detect. This individual is likely a
regular customer at the store and if they have a family, they are probably the primary shopper.
These shoplifters will take the first opportunity they have to steal an asset, regardless of the
dollar value, if it means they can get away with it and not get caught. These opportunities will
arise while the individual is actually doing legitimate shopping. The Shopping shoplifter will
work in groups usually comprised of teenagers. These thefts are often carried out as a result of
peer pressure. These shoplifters will go shopping for a specific item to steal, once found, they
will conceal the item in their jacket or a foil lined bag in an effort to avoid detection. Although
this shoplifter sounds similar to the Opportunist, they are different. The Opportunist is
presented with an opportunity to steal and consequently takes advantage of it whereas the
Shopping shoplifter is on a mission for a specific asset.
Lastly, the Professional shoplifter is the one that contributes the most to external shrink.
These individuals usually work alone however they have been known to work in pairs and use a
divide and conquer strategy. One individual will distract a store employee with questions about
an item they are pretending to be interested in while the other steals the target asset. The
Professional is usually stealing for one of two reasons: 1) this is their only source of income and
2) they are feeding a drug habit. Regardless of what their reasons are, the Professional
increases the store’s shrink percentage more than the Opportunist and the Shopping shoplifters
combined. The Professional specifically targets high value assets such as iPads and laptops as
they are the most valuable.
However, despite these different categories of shoplifters, an individual in retail cannot
tell who is and is not going to steal something based solely on appearance. Some customers can
walk into a store and send up red flags to both managers and associates. Consequently this will
result in staff closely watching an individual based on the way they are dressed. And yet, this
customer might actually make a legitimate purchase and may have had absolutely no intentions
of stealing anything. A customer who is well dressed and does not raise any suspicions, might in
fact be the one that needs to be watched more closely. It is with the customers that do not
raise our suspicions that we let our guard down. It is also important to ensure that all high risk
assets are properly secured to reduce the chance of theft.

Security
Although there is no specific standard for physical security in retail, there are several
things retailers can do to hinder theft. Company X utilizes several security features to ensure
the safety of their associates and customers and to reduce their annual shrink. Company X has
several security cameras visible throughout the store laid out in a strategic manner to ensure
that the most vulnerable areas are covered. Vulnerable areas of the store include high risk
assets such as ink and toner, the Apple table, lap tops and tablets as well as the accessory wall
which includes a wide array of items for portable devices.
There is also a security camera by the staff room and public bathrooms. This camera will
see everyone coming and going from these areas including those who are going into the
Manager’s office and the Human Resources offices. It is important to note that the camera
cannot see into the bathrooms or the staff room. This camera can also see part of the sales
floor where high risk assets are located. Unfortunately Company X does have some “dummy”
cameras in the store to act as a general deterrent. These dummy cameras make it harder to
determine a shoplifter’s movements in the store as there will inevitably be blind spots. When
asked which cameras were fake the General Manger was unable to release this information.
Company X also takes advantage of a store wide alarm system which is monitored by
Protectron, a local company. Company X has the alarm on various doors throughout the
building especially the main doors and the shipping and receiving doors. At this particular
location, there are two ways in and out of the store the first is the automatic sliding front doors
and the second is an elevator between the front doors and Technology Service counter. The
front doors leads out to a side walk and lower parking lot with a view of a busy highway.
Neighbouring businesses across the highway are also visible. The elevator offers access to
rooftop parking which anyone can use. During the day the main door and the elevator are open
and unlocked so customers and associates can come and go. When the store is closed, sliding
gates are pulled across the windows, doors and the elevator and locked in place. These gates
and doors stay locked until the store reopens the following morning when the opening
manager arrives. There are also crash guards in front of the main doors to prevent someone
from attempting to drive through the doors.
There are also two receiving doors at Company X, one is a large bay door that is raised
several feet from the ground and can only be opened from the inside and the other is a small
deliveries door. The bay door is raised to prevent someone from attempting to drive through it.
From the inside, this door has two locks at the bottom that are always in place unless there is a
large delivery. At night, a forklift is also parked directly in front of the bay door to act as extra
security should someone attempt to break in. The small deliveries door can only be opened
when a manager or supervisor deactivates an alarm and unlocks the door with a key. Like the
bay door, the small deliveries door can only be opened from the inside.
Every night before the closing manager leaves the store the alarm is set. When the
opening manager arrives in the morning, the alarm is disarmed. During the week, Company X
has a night crew comprised of two associates come in to restock the sales floor. Although the
alarm is set every night, this does not affect the night crew. The alarm has a “safe mode” or a
“stay” feature which enables the staff to move throughout the store without setting off the
alarm. There are certain doors, such as the main door and receiving doors that are always
armed however these doors are never opened at night. For safety reasons, there always needs

to be two associates in the store at one time. The alarm company is also aware that there is a
night crew in the store so if the alarm does go off, Protectron will call the store and ask for the
password or pass code so the alarm can be disabled and reset. If an incorrect password is given,
the alarm will not be disabled and the police and General Manager will be called to the store to
ensure there has not been a break in.
The alarm monitored by Protectron is not the only alarm system in the store. All high
risk electronic assets are also secured with an alarm system. Should one of these assets be
forcibly removed, an alarm will go off. The only way to disable the alarm is by the key holder.
The key holder can be any associate or manager and often rotates in an arbitrary order
throughout the day. This is used to deter shoplifters from knowing exactly which associate or
manager will have the keys at any given time. Company X has two lock ups that are used to
keep high end items secured, both lock ups are behind locked steel doors. The side lock up is
under lock and key and the front lock up in the store is under a 4-digit code as well as lock and
key. In order to get into either of these lock ups, the key holder at the time needs to open
them. Only store associates have access to these lock ups and customers are never allowed
inside.
This particular location has an Apple table near the front of the store set up according to
Apple’s security standards. However Apple’s security standard does not offer adequate
protection of their devices. The cords that secure the iPads can be easily cut with a pair of
safety scissors and a second cord with an adhesive sensor attached to the device can be easily
taken off the back of the iPad which makes it easy for these high end items to be stolen. The
alarm system that is connected to the cords and wires keeping the iPads in place has a 3-4
second lag between the time the cords are cut and removed and the time it starts going off.
This lag allows a shoplifter to get approximately half way to the main exit before any associates
can react in an effective manner. This lag was discovered on November when a shoplifter was
able to cut the cables with a pair of scissors and run out the door with an iPad. By the time the
associates and management team were able to determine the cause of the alarm going off the
shoplifter was already out the doors.

Methodology
Company X has several retail locations across Canada however for the purposes of this
project the focus was on one location in Burnaby. This location was chosen for is easy access to
transit, its proximity to a busy highway and the two parking lots attached to the building. This
location was also chosen because of the researcher’s prior knowledge of the building and store
layout
This project was carried out using primary data. Research was conducted and interviews
were held with the General Manager of Company X, a retail company, over a period of 7
months. Research was also gathered via Company X’s main website as well as from the
company training website and by utilizing search engines such as Google. Library books were
also used to gather more information on Loss Prevention and security. Used books were also
purchased online to aid in finding Loss Prevention strategies and to further educate the
researcher on the different categories of shoplifters.

Results and Discussion
Effective customer service is the best deterrent for potential shoplifters. A shoplifter
does not want to be bothered while they are attempting to remove an asset and they definitely
do not want to be acknowledged by store associates. Addressing every customer and being
attentive of those who are lingering will help lower shrink rates and keep high risk assets
secure. Ensuring that all high risk assets are properly secured and alarm systems are functioning
properly is essential to product security. Keeping shrink rates as low as possible allows
businesses like Company X to have more staff on the sales floor at one time to provide better
customer service. This will in turn allow associates and managers alike to keep high risk assets
more secure. Having adequate staff on the sales floor during peak hours is one of the best
security methods a company can have.
Company X is a high risk location for shrink and overall, the shrink percentage is very
low at only 0.4%. This percentage has the potential to be much higher, however with effective
customer service and properly functioning security systems in place, we are as secure as we
think we are. Since this project began in September 2015, both the General Manager at
Company X and the researcher have been unable to get in touch with the Loss Prevention
Manager. This has been a hindrance to this project as it has limited the number of questions
the researcher has been able to get answers to. The researcher was also unable to contact the
IT and Legal departments to gain knowledge on how the Cloud is kept secure in terms of
antivirus, malware and firewalls. This also meant that questions in regards to procedure
following a data breach went unanswered.
Conclusion
In retail, effective customer service is the best way to deter individuals from shoplifting.
Keeping shrink rates as low as possible will offer customers a more enjoyable shopping
experience. The more staff available on the floor to help customers, the harder it is for a
shoplifter to effectively steal an asset. If more staff had been available when the iPad was
stolen back in November, the theft could have potentially been thwarted. Being alert and
aware of all customers in the store is a powerful way to keep assets secure and customers safe.
Lower shrink rates can happen if proper security is in place to deter theft and staff is properly
trained in Loss Prevention.

Appendix A: Security Checklist for Company X
This is the security checklist used by Company X on a routine basis as a proactive approach to preventing
theft inside the store

Appendix A: Security Checklist for Company X Continued

Appendix B: Work Safe BC Security Checklist
The following checklist is used with permission from Work Safe BC from the
publication Preventing Violence, Robbery, and Theft: A Guide for Retail Owners, Managers, and Workers

Appendix B: Work Safe BC Security Checklist Continued

Appendix B: Work Safe Security Checklist Continued
The security checklist used by Work Safe BC not only covers the interior of the building
but also the exterior. Part of ensuring a retail location is secure is making sure there are no
potential advantages for a shoplifter. This security checklist is designed to make the asset
unassailable by the shoplifter. Adequate lighting, neatly trimmed vegetation and a clean
parking lot make it harder for someone to hide. Depending on the retail location, not
everything in the checklist from Work Safe BC will be applicable. For example, the option of an
escort to ones vehicle at night is not an option at Company X.
When it is time to start closing duties, it is important that the manager on duty does not
start removing tills from the cash registers until the store is clear of customers and the doors
are locked. This will reduce the opportunity to steal money. It is also important to make sure
the tills are counted away from the sales floor. Tills should be counted in a locked room ideally
with a second associate present to ensure that the money is being counted correctly. Video
surveillance should also be visibly installed to ensure the honesty of both managers and
associates. This checklist also takes employee safety into account which is important when
employees may be working alone during opening or closing shifts.

Appendix C: Routine Activity Theory
As discussed above, there are several reasons as to why people shoplift however,
Routine Activity Theory gives us a better understanding behind the various motivations
shoplifters have.
The triangle shows us three key elements needed to commit an offence:
1) Absence of a Capable Guardian
2) Suitable Target
3) Motivated Offender
A Motivated Offender will find themselves in the same place as their target with a lack of
supervision. For the purposes of this project, supervision is in the form of managers,
supervisors, associates and loss prevention personnel. Each of these things plays a significant
role in the amount of theft and consequently shrinkage a retail location will have.

Appendix D: Tricks of the Trade
As mentioned in the section on “Internal Theft and Shoplifting” the Professional
Shoplifter is responsible for the most shrink dollars in retail.
These shoplifters use various tricks of the trade to hide their target items. These tricks
include the following:
1) Clothing
- Booster Jackets are jackets that have hooks and extra pockets sewn inside them
to enable the shoplifter to hide merchandise without being detected
- Knee-high boots are an excellent place to hide stolen assets. Shoplifters can
easily hide small items in their boots and walk out of the store undetected. Pretending to adjust
ones boots or jeans allows the shoplifter to discretely hide the asset without being caught.
- Socks are another excellent place to hide small assets; rings, earrings and
necklaces are small enough to fit inside socks without being noticed. As with the boots, the
shoplifter just has to pretend to be retying their shoe laces or pulling up their socks and they
can easily conceal their stolen asset.
- Wearing inappropriate clothing for the season will almost immediately raise red
flags with associates. Oversized jackets in summer are going to be suspicious and will draw
unwanted attention to the potential shoplifter.
2) Bags
- Shoplifters will line their reusable shopping bags, purses, gym bags, backpacks
and more with tin foil so they can hide high risk assets in them. The foil will prevent their bags
from beeping as they walk out the door without paying for the stolen asset
- Carrying oversized purses or gym bags and leaving them open is another
method commonly used by shoplifters. An open bag allows the shoplifter to “accidentally”
conceal the asset
3) Tools
- Tools such as box cutters, pliers and scissors are often used to cut cables and
cords intended to secure high risk items.
- Items such as iPads and tablets are often secured with cords that are hooked
up to an alarm system which is supposed to go off if the asset is tampered with in some way.
These cords are often very small and very easy to cut. They can be cut with a pair of safety
scissors. Pliers and box cutters are just as effective at cutting these cords.
3) Earth Keys
- Many high risk assets such as USB’s and Memory cards are kept in locked boxes
known as Alpha Boxes
- These boxes can only be opened with an Earth Magnet which can easily be
found online and tutorials showing shoplifters how to open these boxes are readily available on
YouTube

Appendix D: Tricks of the Trade Continued
- In retail, these magnets should always be kept behind the counters and out of
sight and reach of all customers
4) Visible Cash
- Carrying cash visibly in one’s hand is a distraction method shoplifters like to use
when talking to a store associate. The visible cash is meant to distract the associate just enough
to allow the shoplifter to sneak a small item into their bag.
5) Divide and Conquer/Tag Team
- This is commonly used by the Shopping Shoplifter
- One member of the group will distract a store associate near a high risk asset
while the other attempts to disengage the asset without drawing unwanted attention.

Appendix E: Company X Trespass Notice
*Parts of the Trespass Notice have been redacted in an effort to keep Company X anonymous

Appendix E: Company X Trespass Notice Continued
The Trespass Notice is given to customers to are caught shoplifting in Company X. Every
time a shoplifter has been identified, the incident is reported to the local RCMP and a Trespass
Notice is filled out. One copy will be given to the shoplifter, another to the RCMP so it can be
logged with a case number and one is kept in store with a copy of the RCMP case number.
Should this notice be violated, it is up to the management team to notify the RCMP.
According to the General Manager at Company X, a different team of Constables arrive
at the store each time the RCMP is called for a shoplifting incident. The Manager on Duty at the
time of the incident is also responsible for sending out an email to all of the stores in the district
and neighbouring districts as well as to the District Manager and the Loss Prevention Manager.
This email will contain a detailed description of the shoplifter; pictures from security cameras
will be included if possible, as well as a description of the incident that took place. Pictures of
the shoplifter, as well as the email sent out, are printed off and attached to the Loss Prevention
board located in the staff room at Company X. This allows every associate in the store to
become educated on the incident.

Appendix F: Security Devices Used in Retail
Alpha Box:
Alpha Boxes are used to secure memory cards, USB’s
and other high risk items. Company X will occasionally
photo copy high risk assets and put the photocopied image
of the asset in the box as a method of reducing shrink.
These boxes can only be opened with an Earth Magnet or an Alpha Key.
When these boxes are placed on or near the demagnetizing
strip at the cash register, it will begin beeping and will
continue to do so until the asset has been properly removed.
Locking Peg:
Like Alpha Boxes, these locking pegs can only be
opened using an Earth Magnet or Alpha Key. Once the peg has been
hooked onto the wall, it will be secured in place
with a built in magnet. Assets can only be put on or removed
from the peg with an Earth Magnet or an Alpha Key.

Appendix F: Security Devices used in Retail Continued
Spider Wrap:
As with the Alpha Box and Locking Peg,
the spider wrap can only be unlocked with an
Earth Magnet or an Alpha Key. When this alarm is placed on
or near the demagnetizing strip at the cash register, it
will begin to beep and will continue to do so until
the wrap has been properly removed from the asset.
Electronic Article Security (EAS) Tags:
These are two different examples of EAS Tags. The one
on the left has an adhesive backing and can easily be hidden inside
an asset. The one on the right will be more visible and is
most commonly found attached to an article of clothing. When
placed on or near a demagnetizing sensor at a cash register, the item
will beep once to signal that it has been demagnetized. These can
be re-magnetized using an Earth Magnet.

Appendix F: Security Devices used in Retail Continued
Alpha Keys:
Alpha Keys are used to open Alpha Boxes, Spider Wraps
and Locking Pegs. These should be kept out of sight and
reach of all customers to avoid shrinkage.

Appendix G: The Art of War
The Art of War by Sun Tzu is a 2500 year old book on military strategy however it can be
interpreted many different ways and applied to almost any situation or industry including retail.
“Rely not on the likelihood of the enemy not coming, but on our own readiness to receive
him; not on the chance of his not attacking, but rather on the fact that we have made our
position unassailable”
This quote can be interpreted several different ways however when applied to retail, the
“enemy” is the shoplifter. The shoplifter will always show up in a store so it is up to the
managers, supervisors and associates to be fully prepared for all three types of shoplifters
previously discussed. It is inevitable that the shoplifter will zero in on their target asset. It is vital
that retail team ensure their high risk assets are as difficult to get to as possible. Having an
associate located near high risk assets and making sure every associate on the floor is
acknowledging all customers as they enter the store is essential in ensuring the assets are safe
and secure.

Appendix H: Definitions
1) Loss Prevention: Loss Prevention is a proactive “concept of establishing policies and
procedures” as well as business practices to “focus on preventing incidents before they
happen” within a retail environment. (www.lpinnovations.com,
www.losspreventionfoundation.org)
2) Theft: As defined by the Criminal Code of Canada 2016:
S.322(1) “Everyone who commits theft fraudulently and without colour of right
takes, or fraudulently and without colour of right converts to his use or to the
use of another person, anything, whether animate or inanimate, with intent
(a) to deprive, temporarily or absolutely, the owner of it, or a person who has a
special property or interest in it, of the thing or of his property or interest in
it”
3) Internal Theft: Anyone who works for a company including, associates, supervisors,
managers on duty as well as Home Office employees, who unlawfully and without prior
permission, remove Company assets such as merchandise, company property and
money.
4) External Theft: Theft that occurs from sources outside the company including robbery,
break-ins and shoplifting.
5) Shrink: Inventory that is lost or stolen as a result of internal or external factors such as
theft and shoplifting, vendor fraud or being misplaced within the retail environment.
(www.smallbusiness.chron.com/retail-shrinkage)
6) Cloud: The cloud is a “network of servers” each of which serves a “different function”
(http://mashable.com/2013/08/26/what-is-the-cloud/#OOkd7xbqbkqF)
7) Cloud Computing: The ability to keep and access your “data and programs” on a remote
server rather than on your computer’s internal hard drive. (www.pcm.mag.com)
8) Cloud Storage: This is a way of using “a hard drive” to store your data over the internet
using Google Drive, Dropbox and other mediums such as these. In other words, Cloud
Storage will store your data. (http://www.gadgetreview.com/cloud-storage-vs-cloud-
computing-which-are-you-using)
9) Data Breach: An incident involving the prohibited and “unauthorized viewing, access or
retrieval of data.” (www.techopedia.com/definiton/13601/data-breach)

Appendix H: Definitions Contiued
10) Cyber Crime: “criminal activity that involves the Internet, a computer system, or
computer technology” (http://dictionary.reference.com/browse/cybercrime)
11) Citizen’s Arrest: As Defined by the Criminal Code of Canada 2016:
S.494(1) Any person may arrest without a warrant
(a) a person whom he finds committing an indictable ofence or;
(b) a person who, on reasonable grounds, he believes
(i) has committed a criminal offence and
(ii) is escaping from and freshly pursued by persons who have lawful
authority to arrest that person

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