Hard Facts About Employee Theft and Why You Need Video Surveillance

In retail, preventing inventory shrinkage and limiting loss is just as important as having great products and stellar customer service. Unfortunately, the most significant contributor to the problem is employee theft. That means that having the right systems and process in place to prevent inventory shrinkage in place is critical.
Here are some important statistics you need to know about employee theft.

  • Employee theft is common. 75% of employees steal from the workplace.
  • 64% of businesses have been victims of employee theft.
  • 84% of businesses do not report employee theft to investigators.
  • Employee theft accounts for nearly 41% of all inventory shrinkage.

What Do Employees Steal?

Employee theft costs US companies $20 to $40 billion each year, and it is not all in ball point pens. Here’s what gets stolen.

  • Money is most frequently stolen, with thefts ranging from $5 to $2 million accounting for 40% of incidents of employee theft.
  • Product materials account for 18% of employee theft.
  • Office supplies and equipment results in 6% of employee theft.

Proactive Ways to Deter and Prevent Employee Theft

No business can afford to ignore the issue of employee theft, but at the same time no business wants their employees to feel like they are mistrusted or to make the business feel like a prison facility. The solution is to develop a culture of prevention by implementing the right systems and processes, and let those things do the work for you. Here are some important steps you can take to help improve your security and reduce incidents of theft.

  • Always use pre-employment background checks.
  • Establish, clearly communicate and enforce conduct guidelines.
  • Conduct weekly audits of inventory.
  • Use access control systems to ensure the right people are in the right places at the right times. It can also keep unauthorized individuals out of critical spaces.
  • Use video surveillance to help serve as a deterrent to employee theft. With video cameras and CCTV in place employees are less likely to steal in the first place and enforce a culture of integrity. Video surveillance can also help build a better overall retail operation by helping ensure great customer service, and optimal productivity.

Employee theft is an unfortunate fact that every retail operation must address. S-TRON specializes in retail loss prevention and commercial retail security systems. We stay current on the news, trends, and challenges so we can address your individual and highly specialized needs with the most appropriate solutions.

Retail Security: Why You are Susceptible to Theft and How to Fix It Now

Retail establishments exist in a fast-paced and ever evolving environment with the goal of profitability. Successful businesses realize that one of the most effective ways to increase profit margins is to reduce loss.  Without your diligence, the retail field can quickly become a battlefield.

Here are some critical ways you are susceptible to theft, fraud and loss and how to dramatically reduce losses.

Employee Theft

Unfortunately, one of the most frequent ways retail establishments experience theft is by employee theft. One of the best ways to discourage this type of loss is by having CCTV cameras in places not frequented by the general public, such as supply rooms.

Successful businesses realize that one of the most effective ways to increase profit margins is to reduce loss.

Returns Theft

More sales naturally generate more returns. Those returns are frequently stored in accessible areas and do not garner the same level of security as new goods on the floor. Thieves notice this and take advantage of the lack of security. You can fix this problem by tighter controls over returns and go-backs and visible security cameras in the area.

Tool Theft

Not only are retail products targets for theft, so are the tools of the retail trade. Most businesses use an abundance of specialized equipment, much of it smaller and easily concealed. These tools are targets because of their uniqueness and ability to be sold online swiftly and easily. Train employees on best practices to maintain the security of the equipment, and make sure the floor is covered by security cameras.

Fraudulent Claims

Every business large or small, is vulnerable to fraudulent claims. Those wishing to defraud the business, whether they are customers or employees, may stage an accident or injury that can cost a substantial amount to litigate. Having CCTV cameras throughout the business not only discourages such practices but also provides footage that can allow you to successfully dispute claims.

Productivity Loss

Perhaps not surprisingly, businesses today face a substantial amount of loss due to lost productivity. This can take the form of low or slow accomplishment of tasks, extended breaks, using company time for personal business or entertainment as well as many other time robbers. While common to every business, the problem can be successfully combatted with well-placed CCTV cameras.

Shoplifting

Of course, one of the most obvious ways a business is susceptible to theft is through shoplifting.  There are many ways to combat shoplifting such as implementing theft reduction practices, such as having more employees on the floor, involved customer service, and visible security cameras.

S-Tron Specializes in retail loss prevention and commercial retail security systems. We strive to be at the forefront of our industry so you can be at the forefront of yours. If you have any questions about retail security, please call S-Tron today.

8 Ways To Use Data Analytics to Improve Product Placement

Traditionally, the role of video surveillance in retail was primarily, and nearly exclusively in security. Since the rapid maturation of IP, video, and analytic technologies– that has changed dramatically. The increase in functionality and accessibility has proven to be a real boon to the retail industry and retailers are finding a multitude of beneficial uses for video surveillance analytics, one of the most powerful is in product placement and planning.

Use Video Surveillance Analytics and THRIVE

Retail business owners know the importance of proper product placement. In fact, product placement can make or break a business, retain or lose customers, and solidify relationships with product brands who want to see partners move merchandise. Until recently, businesses relied on current trends, historical sales trends, seasonal shopping patterns, and good old instinct to determine inventory levels and product placement. This, of course, could result in anything from a big win to a devastating fail. Today, video surveillance analytics provides retailers with a wealth of information that changes everything.

Small Changes Can Yield Reward

You’ve seen it. Small, seemingly negligible changes in product placement can reap huge gains. A shoe department of a large chain store saw as much when it was performing poorly. Data analytics revealed that the benches were too close to the wall for shoppers to try on shoes. Simply moving the benches allowed the department to perform far better. Without data analytics,  the store could have missed the problem altogether.

8 Ways To Use Data Analytics to Improve Product Placement

Using heat maps and dwell times can provide an enormous amount of information for improving product placement. Here are some examples.

  • Use popular products to shoppers toward lesser popular products.
  • Uncover flow and ease of movement. It is easy to unintentionally funnel traffic in a specific direction.
  • Measure the effectiveness of special promotions and displays.
  • Use flow of traffic and buyer habits to place products more efficiently.
  • Use heat mapping to direct shoppers to promotions.
  • Gather information to improve flow of traffic and make navigation intuitive.
  • Run A/B displays to discover what truly appeals to customers.
  • Analyze customer behavior to increase their  Units Per Transaction (UPT) rates

Once you know what works, it is easy to develop a repeatable plan for success. The ability to see real-time retail analytics also provides the opportunity to make changes immediately if something isn’t working which can save a campaign. Overall, video analytics give retailers the ability to analyze store traffic and product and merchandising success and use that information to make decisions that better fit the customer, and the business.

About S-TRON

Headquartered in Melville, New York, S-Tron is a national security systems integrator with local, professional service and installation. We serve the restaurant, hospitality, grocery, convenience store, and retail industries.

3 Critical Tips For Better Grocery Store Security

Grocery store owners want to run a business that is profitable, as well as one that it safe for both customers and employees. By nature, however, the retail grocery environment comes with its own set of unique risks. Grocery and convenience stores generate billions in revenue, employ millions of employees, sees an endless stream of customers and houses billions in products. All of these traits make it a vulnerable environment. Here are some critical tips for better grocery store security.

Understand Your Risks

Security is a huge challenge for most grocery stores. It is fast-moving, public, and filled with visual barriers. Crimes such as robbery, burglary, vandalism, and violence are growing increasingly common. Unfortunately, no store no matter the size or location is vulnerable. Understand your risks. Have a security evaluation of your facility,  and talk to local law enforcement about crimes common in the area. Talk to other businesses and find out what they face as security challenges and gather as much data as possible.

Develop a Security Management Plan

Don’t just call the security company and have them put up security cameras and access control systems and stop there. Have a systematic plan for your security that meets the needs you have discovered by investigating your risks further. Think about various scenarios and develop a security management plan for at least the most common or serious problems such as theft and violence. Once you have the plan and tools in place, make sure each employee knows the plan and can respond in an emergency.

Install the Right Electronic Security Solutions

A proper video surveillance and CCTV system is the most effective weapon in the grocery store owner’s arsenal but how well it serves them depends on getting the right system, and the right components in the right places. It is a complex science with endless variables, and something is best done by a professional. Here are some points to keep in mind as you consider grocery store security technologies.

  • Install wide viewing cameras on the ceiling and in corners to get a sweeping view of the area.
  • Opt into night vision security cameras for parking lots, loading areas, and around the outside of the building.
  • Cover POS and other sensitive areas with video surveillance.
  • Install at least one pan-tilt-zoom camera to have the best possible view and control.
  • Choose a smart security system that provides remote viewing and control.

Owning or operating a grocery or convenience store is challenging but the right security system can address many of those challenges. S-Tron helps retail businesses across the nation with a proven, time-tested for delivery, installation, and support.

ABOUT S-TRON

S-TRON offers an innovative suite of video surveillance products and professional installation for regional and national chains.  S-TRON is an electronic security integrator for national and regional retail and hospitality companies.

Established in 1995 and headquartered in Melville, NY, we have served thousands of retail locations across the country with best in class equipment installations and ongoing service, maintenance, and support. Our brand promise: “Service Excellence”.

S-TRON is now a Verified Veteran Owned Small Business (VOSB)

July 21, 2017

Melville, NY

FOR IMMEDIATE RELEASE:

We are thrilled to announce that S-TRON has been verified by the U.S. Department of Veterans Affairs (VA) and the Center for Verification and Evaluation (CVE) as a Veteran Owned Small Business (VOSB).  We have always been proud of our connection to the US Military.  We hire Veterans whenever possible and over 25% of our staff is former US Military including Owner, Steven P. Dunn and President, Peter Mattschull.

“It was an honor to have served our nation in the US Navy and now it is a privilege to serve some of the top businesses in America.  We look forward to growing our client base to include government entities.”  

Steve P. Dunn

Owner, CEO

US Navy Veteran

 

 

 

 

 

 

 

 

(Pictured Left to Right – Will Volk -US Airforce, Nelson Reyes – US Army, Peter Mattschull – US Navy, Scott Roybal – US Airforce)

For more about S-TRON visit our profile on US Dept of Veteran Affairs Website Here.

For more information on the Veteran-Owned Small Business Program, click Here.

S-TRON is a National Provider of Electronic Security Equipment, Service, Design and Installations.  We are Licensed by the NYS Dept of State License No. 12000079391.

Protecting Your Business from Retail Shrink

Inventory shrink is the loss of products from employee or customer theft, inventory and accounting errors, and loss due to things such as spoilage or damage. Maintaining a low shrink rate is one of the most important aspects of maintaining profitability.
Retail shrink, however, is multidimensional and addressing the problem effectively requires an all-encompassing approach to security as a way to improve all operations rather than seeing security as just a tool to catch criminals.

Improve Operations

Improving storewide operational execution by using video surveillance technologies helps to maintain high levels of execution. When great processes are in place anything out of sync stands out and can be corrected quickly. This can help reduce loss due to accounting, lost or forgotten inventory, and spoilage. Maintaining high levels of execution also helps employees spot shoplifting easily, and helps them to refrain from the temptation themselves.

Reduce Accounting Errors

Security technologies can provide a wide view of the store and its operations but it can also help zero in on POS to help identify and correct errors or acts of fraud.

Product Protection

Another important aspect of preventing shrink is how well you protect your assets. Using tools such as access control is essential in controlling product storage areas.

Video Surveillance is a Crime Deterrence

The two most effective ways to deter theft are to make it too difficult and too risky. Video surveillance technologies are highly effective because they make it difficult to commit shoplifting without getting caught. This is a very important factor as preventing theft is much more cost-effective than catching it.

Video Analytics are Golden

Video analytics are great for telling you what products are performing well and why, but they can also provide insight as to why certain products or particular areas of the building see much more loss. It can also help you manage on-shelf availability and avoid over or under inventory. It also provides information that allows you to better evaluate store operation in relation to patterns of theft and allow you to make adjustments to store layout, product location, and employee engagement.

S-Tron has over 20 years of uncompromising industry experience and is dedicated to helping retail operations reach their security goals. From video surveillance and access control to intrusion detection and business analytics, S-Tron beats the competition coast to coast.