Reviewed October 1993
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Shoplifting negatively affects your financial future as a retailer. Estimates show it to be the primary cause of one-third of all small-business bankruptcies. Nationwide, shoplifting costs between $22 billion and $31 billion annually in merchandise taken, costs to apprehend and litigation.
It is estimated that only one in 35 shoplifters is apprehended. To compensate for losses through shoplifting, retailers need to add a surcharge amounting to about 3 percent to the retail price of their goods. This costs a family of four about $300 each year.
Who are the shoplifters?
Professional shoplifters are smooth, well-trained and the most difficult shoplifters to detect and apprehend. They steal expensive merchandise that can be sold quickly.
Most shoplifters, however, are amateurs. Drunks and vagrants are probably the most clumsy shoplifters and the easiest to detect. They usually grab and run, and they steal food, clothing, tobacco and alcohol. About 10 percent of shoplifters are poor; they shoplift in order to survive.
About 50 percent of all shoplifters are juveniles. They may come into the store in groups and may shoplift in response to a dare. They shoplift for excitement, attention, acceptance or revenge against society. Young people generally look for jewelry, cosmetics, toys, music and clothing.
Female homemakers who are apprehended shoplifting are likely to be first-time offenders stealing everyday items such as food, vitamins and cosmetics. Similarly, adults who want acceptance within a peer group, but cannot afford to keep up, may resort to shoplifting.
Habitual shoplifters are the ones who will put you out of business. These offenders steal something every time they have a chance even though they may purchase something at the same time. In one Missouri town, in a class to rehabilitate first-time, convicted offenders, 16 persons accounted for 3,300 thefts.
Drug users and alcoholics could be dangerous because they steal to support their habit. Be careful if you suspect this type of shoplifter. Kleptomaniacs are people who steal for psychological reasons. Most people have an exaggerated idea of the number of shoplifters who are kleptomaniacs, but in fact, they do not account for a great proportion of the shoplifting population.
About 90 percent of all shoplifters can pay for what they steal. Forty-five percent have middle incomes, 40 percent are high school graduates, and 21 percent are college graduates. Women aged 21 to 30 are the worst offenders. Fewer female homemakers and teenagers shoplift, while more white collar females and retirees shoplift.
How do shoplifters operate?
Shoplifters use many techniques, some of which do not require much advance preparation.
More boosting techniques include carrying a large shopping bag with a smaller bag inside so that items can be hidden between the bags; taking the merchandise out of its packaging and discarding the packaging; using a false pregnancy device or a dummy cast and/or sling on an arm and filling the space with merchandise; concealing goods between legs; concealing small items inside paper towel or toilet paper rolls or hollowed-out books; and using a booster box, a package that appears to be wrapped and tied but actually opens at the side or bottom through spring action.
What should you look for?There is no way to look at someone and know if he or she is a shoplifter, but there are tell-tale behaviors. Customers tend to act in predictable ways: they examine the merchandise, look for sales help, ask questions and then make a buying decision. Once you and your staff recognize normal customer behavior in your store, you can look for customers who behave differently.
Be suspicious of a customer who appears to be drunk or looks too poor to buy the merchandise, especially in a store that sells necessities (food, clothing, etc.) Shoplifters often:
Shoplifters tend to steal luxury items such as cigarettes and alcohol. The most common items taken by shoplifters are:
Ideal conditions for shoplifters are:
The key to preventing shoplifting is the sales staff. They should be trained to be assertive, confident and aware. Sales staff should serve all customers as quickly as possible. Even when the store is busy, customers should be acknowledged as soon as they come into the store. This alerts potential shoplifters that you know they are there.
Sales staff should check back regularly with customers who wish to browse. Legitimate customers will appreciate the opportunity to ask questions, while shoplifters will feel watched and may leave. The sales person should never turn his or her back on a customer or leave the sales area unattended.
Develop a warning or alert system so that sales personnel can tell each other that a shoplifter is suspected.
Prepare in advance. Train your employees to handle cash so that they cannot be talked into giving change for a larger bill than was actually offered, giving change twice, or exchanging money with a con artist. Arrange an alert system with other merchants in your area so that everyone will know when a suspected shoplifter is working your area.
Store layout and the way merchandise is displayed can help prevent shoplifting. The focal point of the store should be the cash register or check-out point, which should be located near the main entrance and exit. Shoplifting can be more easily monitored if there is only one main exit and entrance. If ordinances require more than one exit for safety reasons, it may be possible to have other exits locked and opened only for emergencies.
When display areas all face one direction, an employee can walk across the aisles and observe what customers are doing on each corridor. Some stores have shelves facing the back or sides of the store, creating blind spots, which are more difficult to check often.
Small, expensive items should not be accessible to customers without assistance from a clerk. Items such as jewelry and small parts for tools or machines are usually placed behind a counter or in a glass display case behind a counter. The display cases should be in sight of the checkout counter to prevent bold shoplifters from merely walking behind the counter and helping themselves. Unless someone who knows all the store employees sees this maneuver, no one will stop the shoplifter.
The way merchandise is displayed can make shoplifting more difficult. Do not stack merchandise so high that it blocks your view. When merchandise comes in pairs, such as shoes, gloves, or earrings, display only one of the pair.
Keep counters and displays neat and orderly. Whenever possible, attach merchandise to displays so that it is not easily removed.
Because security systems can be expensive, you should calculate your possible losses from shoplifting and then compare that amount to the prices of various security systems.
Another consideration is the effect that obvious security devices might have on your honest customers. Many of your customers realize that shoplifting costs them money and they will be happy to see that you are taking steps to protect yourself. Some customers may feel that you do not trust them and they may go someplace else. Look at the security systems used in similar businesses in your area to determine what is considered reasonable.
The labels are permanently attached to the merchandise and operate like a bar code. When the merchandise is purchased, the code is changed so that it no longer triggers the alarm. The tags are removed with special equipment at the sales desk.
Crime prevention personnel recommend that video cameras be loaded with film and actually record events in the store. Should a shoplifter be caught, the video record of his activities will help with prosecution.
As a rule, the larger the item, the less likely it is to be shoplifted. However, a store that sells large items must have an unobtrusive way to tell whether an item has been purchased before the customer walks out with it. If a bicycle that is paid for is just wheeled out the door, a bicycle that is not paid for can be wheeled out just as easily.
Because security systems can be expensive, you should calculate your possible losses from shoplifting and then compare that amount to the prices of various security systems. Naturally, if your losses are less than security costs, you may be financially ahead not to invest in a security system.
Another consideration is the effect that obvious security devices might have on your honest customers. Many of your customers realize that shoplifting costs them money, and they will be happy to see that you are taking steps to protect yourself. Some customers may feel that you do not trust them and they may go someplace else. Look at the security systems used in similar businesses in your area to determine what is considered reasonable.
The end-of-the-year holiday season is the best time for shoplifters and the most difficult for retailers. About 45 percent of shoplifting occurs in October, November and December. Sales personnel are busy and many stores hire extra personnel to help handle the holiday rush. The store is full of people, many of whom honestly do not know what they are looking for.
The best defense against shoplifting season is to hire extra help early. Give your new employees time to learn the routines so that they do not have to concentrate so hard on working the cash register properly and finding the requested merchandise. Train all personnel to be on the lookout for shoplifters and practice apprehension techniques. Remind employees regularly that they stand between the store and the shoplifter.
It is sometimes said that retailers lose more money from employee theft than from shoplifting, robbery and burglary combined. Many workers think nothing of walking off with pencils, tape and other office supplies. Others walk off with regular store merchandise without paying for it or after paying a reduced amount. Many pass on their access to store goods to friends and family giving them discounts or free merchandise. Some sales clerks steal from the cash register or pocket the money from a sale rather than ring it up.
Some steps you can take to avoid these problems include:
Fitting room security is a special problem area for clothing stores. An inexpensive and effective way to control this area is to limit the number of items allowed in the fitting room to three or four and use a check-in system where an employee gives the customer a tag with a number of items he/she takes into the fitting room.
In addition, many stores lock fitting room doors so that customers must be admitted by sales personnel.
What do you need to apprehend and prosecute a shoplifter?
The procedure for prosecuting a shoplifter varies from state to state and depends on whether the crime is being prosecuted in a municipal, county or state court. Consult the prosecuting attorney, the local chamber of commerce and/or an attorney to get the applicable guidelines for your area.
The law being violated is "shoplifting." The law states that a shoplifter appropriates your property if he hides it. He may hide it on himself or somewhere in the store for retrieval later by himself or an accomplice
The suspect is accused of the crime of "stealing." A person commits the crime of stealing if he appropriates the property or service of another with the purpose of depriving that person of the property without the other's consent, or by means of deceit, or by means of coercion
A retailer may also order a suspected shoplifter out of his store. If that person returns to the store, he commits the crime of "trespass." A person commits the crime of trespass in the first degree if he knowingly enters unlawfully or knowingly remains unlawfully in a building or inhabitable structure, or upon real property, if
To be guilty of first degree trespass, the suspect must know that he is entering or remaining unlawfully.
An excellent explanation of the appropriate laws is available in The Missouri Criminal Code: A Handbook for Law Enforcement Officers, prepared by the Law Enforcement Training Institute, MU Extension.
The shoplifting law states that a merchant may detain a person "in a reasonable manner and for a reasonable length of time." In the courts, "reasonable" is defined as something that any ordinary person would consider reasonable under the circumstances.
If you physically detain a suspect, he or she may sue you for assault, battery or false imprisonment. If the suspect is not convicted of shoplifting, it is even more likely that he or she will decide to sue you. You will have to appear in court to defend yourself.
You cannot prevent someone from suing you. However, the language of the shoplifting law, which defines "reasonable" should protect you from being found at fault.
"Reasonable" is determined by the courts on a case-by-case basis. If your manner of detaining the suspect is reasonable, you should not be liable for damages, but you will have lost time and attorney's fees.
The paragraphs below are quoted from the Missouri Shoplifting Law. Laws and interpretations may vary in other states. All shop owners are advised to consult an attorney before adopting a shoplifting policy.
"2. Any merchant, his agent or employee, who has reasonable grounds or probable cause to believe that a person has committed or is committing a wrongful taking of merchandise or money from a mercantile establishment, may detain such person in a reasonable manner and for a reasonable length of time for the purpose of investigating whether there has been a wrongful taking of such merchandise or money. Any such reasonable detention shall not constitute an unlawful arrest or detention, nor shall it render the merchant, his agent or employees criminally or civilly liable to the person so detained." (Emphasis added.)
"3. Any person willfully concealing unpurchased merchandise of any mercantile establishment, either on the premises or outside the premises of such establishment, shall be presumed to have concealed such merchandise with the intention of committing a wrongful taking of such merchandise and the finding of such unpurchased merchandise concealed upon the person or among the belongings of such person shall be evidence of reasonable grounds and probable cause for the detention in a reasonable manner and for a reasonable length of time of such person by a merchant, his agent or employee, in order that the recovery of such merchandise may be effected, and any such reasonable detention shall not be deemed to be unlawful, nor render such merchant, his agent or employee criminally or civilly liable."
"Willful concealment" is the shoplifting. It is at that point that the crime is occurring. Your store policy will dictate where you make the stop, whether it is past the register or at the point of concealing the item. To make the best case for proving the intent to steal, observe the suspect until he/she is about to exit. This gives the suspect the opportunity to pay for the item before he/she is stopped.
Every store should have a policy that states who is to stop the suspect, where he/she is to be stopped, and how the suspect and merchandise are to be handled. The policy should always include calling the police.
Employees should be trained so they will know what is expected of them. Role playing may help employees develop a sense of confidence and help to make the problem more real.
Post store policies and procedures for apprehending shoplifter suspects where employees can see them. A sample store policy is included at the end of this document. The local police department or chamber of commerce may have other sample policies that you can modify or adopt.
You have just seen a customer take an item from your shelf and put it into his/her pocket. What do you do?
Speak to the suspect politely and calmly. Most shoplifters will be meek and cooperative. If the suspect asserts innocence, have the person who saw the suspicious act say, "I saw you place that razor in your left jacket pocket. Did you pay for it before you passed the register?" Avoid using the words steal or stole, especially in the first few moments.
All employees are responsible for preventing shoplifting and observing and apprehending shoplifters.
It is our policy to detain persons suspected of shoplifting at the front door. If in doubt, do not stop or question them.
Employees must immediately report shoplifting suspects to a supervisor or to another employee for assistance.
A person who has been observed concealing merchandise must be continually watched until he or she is confronted. The employee must know where the suspect has concealed the merchandise and be prepared to testify to the exact location in court.
The store manager and the employee observing the shoplifting should attempt to apprehend the shoplifter. Exercise caution in order to avoid charges of intimidation or use of force. Never make a direct accusation you cannot prove in court. Call the police immediately.
Take the person into an office and out of public view. When a female suspect is apprehended, a female employee must be called to assist. Do not interview or question a female suspect without a female employee being present at all times. Have all recovered items initialed by the employee and give them to the police officer.
If you're still wondering whether you should call the police, remember that your store develops its own reputation. If you release a shoplifter, he/she will be back -- with a friend.
If your shoplifter is an impulsive homemaker or a teenager taking a dare, you may be inclined to give a lecture and let him/her go. If you do, you are encouraging your shoplifter to do it again, and your reputation as an easy touch will travel quickly through your neighborhood.
Videotapes
Tapes are available from the Excellence in Training Corporation, 8364 Hickman Road, Des Moines, IA 50322. Write for brochure and mention Marketing and Merchandising at Oklahoma State University (Center for Apparel Marketing and Merchandising, Department of Clothing, Textiles, and Merchandising, Home Economics West 306, Oklahoma State University, Stillwater, OK 74078-0337). Videos dealing with retail theft include:
The authors wish to express their appreciation to the many people who contributed their time and expertise to the development of this publication. Among them are:
MP658, reviewed October 1993