"3
Innovative Changes Retail Loss Prevention
Needs To Make Right Now To Cement It’s Relevancy:
The Online Shopping Industry Is Changing Everything”
Eric S. Jarmons
Loss Prevention/Asset Protection Professional
Retired Law Enforcement Officer (Michigan, Georgia)
Someone said, “Change is good, but it’s greater when it’s
ahead of its time.” If my finite brain serves me well, I
would like to think that the writer of this quote meant-if
you could get out ahead of the impending change, do so.
Let me be very clear about my position here, I am still a
young lad in the world of Loss Prevention and/or Asset
Protection and I’m not smart enough to be a statistics guy
in my writings. So in this opinion, that my eyes have
allowed me to comprehend, might offend some of you due to my
lack of experience and confirmed data. But I will leave it
up to you to tell me how far out of the ballpark I am...
The world is changing as we know it, and so is everything we
are attached to. I’m not a parent, but I assumed parenting
is completely different than just a year ago due to so much
accessible parenting information via social networking,
twenty-four hour cycled content and digital integration-not
to mention the new “cloud” sharing program. Everything we
know is forced to keep up with technology or be left behind
with such extinct innovations like the walk-man, beepers,
and dial-up internet. Loss Prevention and Asset Protection
is not exempt from this change by any means.
As our senior security leaders attempt to find more ways to
cut cost, manage budgets, hire efficient people at a
competitive salary, and squeeze every dollar out of the
outdated equipment, it makes you wonder have we just reach
the point of starting all over. HUH? You can’t just start a
well-established industry all over Eric, are you crazy? From
what my eyes can see and what my brain can comprehend...WE
BETTER!
Before I lay out the three changes, I want to first say that
there are some companies who are making these changes, some
who have made these changes a long time ago, and some who
are in the thinking phase of it. I know it is hard to wrap
our minds around such a global industry being faced with
completely reinventing itself right in the middle of its
highest functioning peak. But may I suggest one direct
example of a entity that is doing this that we all should be
familiar with: the 4-wall brick and mortar store vs online E
commerce! The stores are doing it, they get it.
I’m 36 years old and from Detroit Michigan where Christmas
shopping was the best, I know I didn’t, but did anyone ever
think the day would come where online shopping would almost
replace going out in the snow during the Christmas season
into the department stores to shop? It was what people lived
for! Not any more, online, online, and more online. Just go
walk into your sales department and ask to see the numbers.
Loss Prevention and Asset Protection must open their eyes to
new innovative ways to cut expenses, streamline training,
and reinvest scarce dollars in more long-term returns. Those
long-term returns I speak of are in: quality hires,
self-application equipment, and strategic internal and
online-shopping investigations.
To be truly honest, we all should be excited, because this
will force all of us in this profession to reinvent
ourselves, our departments, our people we managed, and our
responsibilities as well. Also, it would present a charge to
companies to bring out the strong, the educated, and the
creative thinkers, to create a synergy to supplant our
industry for decades to come. However, this won’t happen if
we miss the opportunity by becoming comfortable in our
salaries and our “ten-word” titles. Retailer CEO’s are
making this E-Commerce transition and it’s either going to
be with us or without us. And let’s not kid ourselves this
change is too profitable to the company to carry slow
progressing entities with them.
So, after attempting to read everything I can get my hands
on that spells out the predicting future of Retail Loss
Prevention and Asset Protection and also paying attention in
my own short Loss Prevention career...Here’s the 3 things I
think Retail Loss Prevention and Asset Protection needs to
change right now to be relevant enough to be seriously
considered in companies’ future fiscal goals:
1) GET OUT OF THE EXTERNAL SHOPLIFTING BUSINESS- I
have two questions for us: One, how many deaths have happen
at the point of apprehension this year alone? And, secondly,
if confirmed numbers say majority of our theft,
shortage, shrink, comes from internal employees, why aren’t
we focusing majority of our attention on that? Let me first
deal with the first question. As a former Law Enforcement
officer I always thought that loss prevention was crazy and
a death wish. My colleagues and I talked about it all the
time. My thought process was that the worst face-to-face
criminal element to come up against was a person who knew
you knew that they just committed a crime. We do this daily,
hourly in some stores and nothing stands between you and
them, but a fragrance display and/or Sensormatic pedestal.
Of course this is going to end ugly at times and I am
surprise there hasn’t been more terrible tragedies. Economic
times have changed, therefore people have changed and become
more drastic and desperate. This is perpetuating a more
“take a chance, take a risk” type of mentality. Not to
mention, the liability cost of hurting them (the shoplifter)
at the point of apprehension on our part. IT’S TOO MUCH
RISK! Time to get out of the catching shoplifters business.
The second question I asked is a simple one to reason. Turn
all your detectives into internal investigative machines. We
are losing millions of dollars by the same people we are
asking to call us if they see suspicious behavior. My former
staff would always laugh at one of my favorite sayings that
I’ll interject here: “What are we doing” (I use it
when it seems the purpose is undefined or has gotten blurred
or keeps changing)? So my question to us, what are we doing?
We need to get our money and merchandise back that’s
“walking out of our doors right up under our noses” as
my former District Manager of Investigations would say. Is
there stillsomewhat a place for external shoplifting
investigations and definitely prosecutions, yes; but we need
to be realistic, it’s the internal piece that’s highly
impacting our shortage and shrink numbers at the end of the
year. And I think none of us can stand to hear of another
LP/AP detective or associate dying from apprehending someone
for a pair of ten-dollar underwear. Just too sad.
2) CREATE A (or increase your) ORC AND ONLINE-SHOPPING
INVESTIGATIVE DIVISION- Whenever you have a fiscally
colossal selling culture like online shopping it will always
bring out the fiscally colossal illegal culture as well. The
grab & runs, theft mobs, and increased major-dollar
shoplifting cases we’ve seen are not about passing out
clothing or merchandise to the needy in the neighborhood.
This is ALL about online shopping, personal online stores
and the black market. Also, the black markets in the other
continents where noted investigations have follow our
American stores’ merchandise and learned that it’s almost
bigger there than here. We also have a very growing black
market industry of “quick credit card” duplicates and “gift
card/store only” card frauds that are buying these goods as
well. If your company does not have an ORC department or
Online-Shopping Investigative Division, then your company is
just a participant this frustrating trend. You want to be
apart of the solvability side of it. This is where Loss
Prevention and Asset Protection are going. Take it or leave
it. If you leave it, you probably should shift to “Risk and
Safety” management and just prevent slip-n-falls. Maybe
that’s a little aggressive, but I think you get the gist of
what I’m implying here. And I’ll admit my bias here, as it
pertains to ORC; this is where hiring former law enforcement
will come in handy for us as a prevention and protection
industry. As for online shopping investigations I think this
opens up an entire new hiring market for technology and
forensic college grads and professionals. Yes, this
obviously will perk up the salaries for LP and AP, but I’m
going to talk about how to cover that in the next point...
3) RESTRUCTURE, REALLOCATE, and REINVEST IN A “NEW” LOSS
PREVENTION AND ASSET PROTECTION- I’m troubled about
suggesting this one, because this last and final change
requires our most dedicated people to possibly lose their
jobs: our loss prevention associates/detectives. The
restructuring phase is a difficult one to explain, so I will
try to make it simple and straight. The ever-frustrating
reality of “turnover” kills the progress of a loss
prevention department. Median pay and shorten hours (due to
budget constraints) limits continuity and consistency
amongst LP and AP staff. Restructuring with a new primary
focus such as internal investigations and by getting out of
the dangerous external shoplifting business provides leeway
to innovative changes to staff structuring in LP and AP
departments. If we are going to change how we do business
then we must identify what positions do we really need.
Let’s face it, we all have dead weight in all areas of our
departments that can stand to be trimmed for good or replace
with creative and fluid individuals. It also allows for
reallocation of salary dollars to create or enhance your ORC
and Online-Shopping Investigations departments. Now maybe
the math doesn’t add up and I am an idiot, but it’s the
realistic forward thinking that I’m suggesting here.
Restructuring our staff towards a new purpose, reallocating
resources in a new loss prevention and asset protection, and
reinvesting our dollars in smarter equipment, innovative
people, and streamlined training speaks volumes to the
retail industry that we are prepared to stay around and be
relevant for years to come...And that you will need us!
Any questions or comments email me at:
EricJ.iPhone@gmail.com
|