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Loss Prevention

Loss Prevention. For the College Bookstore. Presenter : Chet A. Cohen. Corporate Loss Prevention Manager, Associated Students UCLA Fourteen (14) years at UCLA Previously worked for Gap Inc. and Target Corp. Member of ASIS (American Society of Industrial Security)

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Loss Prevention

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  1. Loss Prevention For the College Bookstore

  2. Presenter:Chet A. Cohen • Corporate Loss Prevention Manager, Associated Students UCLA • Fourteen (14) years at UCLA • Previously worked for Gap Inc. and Target Corp. • Member of ASIS (American Society of Industrial Security) • Member of LAAORCA (Los Angeles Area Organized Retail Crime Association) • Member of NACP (National Association of Chiefs of Police)

  3. Major IssuesAn Overview • Shrink • Textbook Theft • Textbook Refund Fraud • Physical Security/EAS • Uniformed Security vs. Plainclothes Staff • ORC • Civil Demand • Safety

  4. Shrink • Defined as inventory losses, either by theft (internal and external), administrative errors and accounting errors • $37 billion in 2011 • 50% internal (employees) • 40% external (customers and vendors) • 10% other • Direct threat to store revenue and profitability • Combated by strong deterrent policies, organizational standards and leadership • Zero tolerance

  5. Textbook Theft • The #1 theft threat to college bookstores • Textbooks are equal to cash – fastest turnaround of any commodity sold (or) stolen at a college bookstore • Preventing these types of theft is paramount • There are a number of ways this can be accomplished: EAS (electronic article surveillance) systems, bag checks, clerk services and aggressive customer service are all ways to combat and deter textbook theft

  6. Textbook Refund Fraud • Stolen textbooks are easily sold back for cash • Retailers that do not ID book buyback sellers are making it easy for the criminals to get away with it • Requiring a valid (government issued ID) DL or Student ID will deter instances of fraudulent returns • Limiting quantities of the same title and capping the return eligible dollars are additional ways to combat refund fraud • Advisories, working with your association partners

  7. Physical Security/EAS • Visible CCTV (closed circuit television) cameras • Cable-locking high-end products • Reverse positioning of hangars on displays adjacent to exits • Staffing appropriately through out the store and offering customer service to all guests • Loss-control signage in fitting rooms • EAS (Electronic Article Surveillance) systems • EAS antennas can be floating at the exit doors or attached to the door frames • All merchandise products can be tagged (soft or hard tags)

  8. Uniformed vs. Plainclothes Staff • Uniformed security officers patrolling the store • Being visible and able to offer customer service • Can respond to EAS alarm activations • Deters the folks “on the fence” about shoplifting • Plainclothes staff are able to quietly investigate theft and make apprehensions • With the uniformed staff on general patrol in the store, plainclothes personnel can focus investigations on high-end products and/or internal issues

  9. ORC • ORC (Organized Retail Crime) • Not your grandfathers “mob” • Well-organized, well-funded groups paid to steal significant amounts of merchandise in a short time • Move from store to store in groups of bandits and look-outs • Sold on the black market, swap meets and even back to primary sellers • Estimated $20 billion in ORC crime in 2011, will be even higher in 2012 • Not flash-mobs

  10. Civil Demand • Legal term used by state legislatures that allow retailers to assess a civil fine unto a person caught shoplifting • In California, Penal Code 490.5 allows retailers and libraries to charge up to $500 per incident for acts of theft • A conviction in court is not required • Its up to the retailer to set the fine amount • The amount does not have to be based on the value of the item stolen • The fine is guided by the principle that allows the retailer to recover some monies from losses and/or the cost of employing a loss prevention department and maintaining lp systems

  11. Civil Demand CONT’D • Nevada state law – Code 597.860 allows for retailers to assess a civil fine from $100 up to $250 per incident plus the value of the non-sellable goods. • Oregon state law – Statute 30.875 allows for civil remedy again between $100-$250 plus the cost of the non-sellable goods, not to exceed $500. • Washington state law – allows retailers to assess a civil fine up to $200 after attempting (twice) to have the thief pay for the stolen items.

  12. Safety • This is a major component of any loss prevention or asset protection function • Maintaining a safe work environment for employees and customers will cut down on accidents and claims • This will reduce your workers’ compensation rates • Lost-time accidents can run into the hundreds of thousands of dollars for an organization • All businesses must have an IIPP (injury and illness prevention program) • Training, inspections and documentation

  13. Wrap-Up • What questions do you have??? • I’m free after to answer any questions privately • Thank You!

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