Some retailers even install fake cameras that they hope will fool potential pilferers into thinking they’re being caught on tape.
Keeping an eye on workers is important, too, as the U.S. Justice Department estimates that employee theft is growing at 15 percent a year. Several studies place the cost of employee theft and fraud between $60 billion and $120 billion a year. And that doesn’t include the cost of theft-prevention products.
Surveillance also helps identify potential bad actors. “I am suspicious of those who don’t like working under surveillance cameras,” says Lori Marcoux, co-founder of Extraordinary Learning, an organizational development consultancy in Seattle. “What do they want to hide? What things might they want to do that likely ought not be done in the workplace or in front of the cameras?”
Hathaway says his employees don’t mind the cameras. “Our employees are enrolled in a profit-sharing program,” he explains, “so they are pleased with the purchase of the cameras to deter theft.”
Some employees, however, see cameras as a sign that management doesn’t trust them, which may cause morale problems. Dealers can address employee concerns through education. “Starting in the interview, I educate potential employees about the purpose of the cameras,” Marcoux says. “I emphasize that even though there are cameras, it is necessary that every employee look out for one another and support the growth of the business, for everyone’s long-term financial and personal security. If someone is willing to break the law shoplifting, in how many other ways are these people willing to break the law? Employers need to ask employees to help keep the company running profitably and with high moral character.”
Playing Tag Another solid deterrent is electronic article surveillance (EAS). EAS uses special tags for merchandise or equipment along with podiums at exits. If a tag is activated, passing through the podiums will trip an alarm, alerting employees of the theft.
Clothing retailers have been using these systems successfully for years, and now other merchants are getting into the game.
“These systems alert store personnel when a tagged item has left the store,” explains Lee Pernice, a national accounts marketing manager for ADT. “Tags are deactivated at the point of sale, so an alarm usually means that an item leaving the store has not been purchased.”
ADT’s EAS system, called Ultra-Max, incorporates acousto-magnetic technology, which is popular with lumber and building material dealers because it is not affected by metals such as shelves and carts and has a high detection rate with a very low number of false alarms.
The system also allows dealers to collect data on shoplifted items, giving them an idea of problem areas or frequently shoplifted products. “This gives the retailer the opportunity to address the problem by moving items or placing more frequently stolen items in plain view,” Pernice explains.
