Retailers work to combat fraud
As holiday shopping steams ahead, earnings won't be the only thing retailers watch with an observant eye.
Retail theft and fraud persist at high rates as retailers continue to invest in new programs and technology to combat the crimes.
According to the National Retail Federation's National Retail Security Survey, four of every five retail executives said their company has been a victim of organized retail crime.
The National Retail Security Survey is an annual survey of loss prevention executives that benchmarks retail shrinkage and operational information about how retailers are combating losses. The study surveyed 139 retailers in the first half of 2007 and used data from 2006.
Though there wasn't much change regarding shrinkage as a percentage of sales, total retail losses increased last year to $41.6 billion because of higher retail sales in 2006 compared with 2005, according to the survey.
The survey also lists product categories that experienced the highest degrees of shrinkage as cards, gifts and novelties; specialty accessories; crafts and hobbies; and supermarket and grocery items.
In April, the National Retail Federation and the Retail Industry Leaders Association, in collaboration with the Federal Bureau of Investigation, launched the Law Enforcement Retail Partnership Network - a secure national database that allows retailers to share information online to combat organized retail crime, burglaries, robberies, counterfeiting and online auction fraud.
Stores also work on the local level to deter thefts and fraud. Best Buy in Shreveport, La., for example, has not yet seen an increase in shoplifting and other theft attempts, said store manager Rachel Fuller.
"We haven't seen a significant change so far this holiday season, so it lets us know that our customers value the relationship we have with them - the one-on-one hospitality that we give to our customers," she said.
Having a knowledgeable loss prevention staff and customer service representatives has been a great weapon in combating the crimes, Fuller said.
"We're aggressive in terms of customer contact," she said. "It's been the most efficient thing for us."
Wal-Mart stores work with local law enforcement agencies on a store-by-store basis to curb retail theft and fraud, according to Wal-Mart spokesman Dan Fogleman.
To deter crimes, the retailer increased its number of store cameras and parking lot lights and works with law enforcement agencies to increase security patrols, among other aggressive, pro-active measures, which pay off in the long-run, he said.
"The safety and security of our customers and our associates is a top priority for us," Fogleman said.
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