Shrink, whether it’s attributable to simple shoplifting, organized retail crime, internal or vendor theft, or preventable operational errors, is pretty much inevitable. But with losses across the entire retail spectrum exceeding $45 billion annually, or about 1.4 percent of sales, according to statistics from the National Retail Federation, the situation has reached critical mass. And with Proposition 47 frustrating retailers and law enforcement, it’s time to double down on loss prevention policies and techniques. These were some of the issues California Grocer discussed recently with Todd Eid, Store Director, Susanville IGA; Mike Bowers, Senior Director Asset Protection, Northgate Gonzalez Markets; and Al Hrubeniuk, Director, Loss Prevention Services, Smart & Final stores.
California Grocer: The world’s a different place today. What’s been your focus on loss prevention? Hrubeniuk: “There are a lot of aspects to it. Basically it’s providing a safe shopping experience for our customers and associates, as well as protecting our brand and physical assets like buildings, inventory and equipment. “As such, we’ve written policies and procedures to establish control and accountability. Loss protection audits provide actionable feedback to our partners about procedural compliance and best practices. We also provide training and guidance to trading partners. Right now we’re focused on reducing operational shrink – much of which is in perishables. We’re trying to address where breakdowns occur and provide training, goal setting and discipline. “Writing good orders, properly forecasting sales and disciplined product rotation practices are all important in controlling shrink and 70 percent of it falls into this category.” Eid: “I’ve been in grocery for 43 years so I’ve seen a lot, but I’ve always had an eye for shoplifters. I can’t even guess how many I’ve caught over the years.”
CG: That can be dangerous. Eid: “I’ve had people pull guns and knives on me. There were these two guys fresh out of prison who almost hung me by my tie back in the 70s. Frankly, with the new revolving door laws that have been passed, they don’t even run anymore. They’re bolder and brasher.” Bowers: “Most retailers are struggling with shoplifting because of Proposition 47 which CGA has been trying to combat. Unfortunately, we’re not getting a lot of traction right now from legislators due to the chairman of the Assembly Pubic Safety Committee. We need to put things in perspective for him and our governor and have retailers comment about the impact of shoplifting in the stores.” CG: Are you seeing more organized retail crime groups? Hrubeniuk: “We’ve seen a rise in professional shoplifting over the last 10 years. These rings steal specific products that are sold to fences, online auctions and flea markets – items like energy drinks, body washes, shampoo, razor blades, batteries, liquor and even national brand laundry detergent.”
Eid: “We’re just seeing basic shoplifters. Low-lifes or people without means. Most are just crimes of opportunity.” CG: Are we seeing more organized retail crime (ORC), or just crimes of opportunity? Bowers: “Frankly, the line between them has been obscured. In the past if you saw someone come in and fill up bags it would be ORC almost exclusively. Most amateur shoplifting was people stealing for what they want like a sandwich or a bottle of Tylenol. Now we just don’t know. “Prop. 47 encouraged a huge increase in professional shoplifting by raising the felony threshold to $950. Legislators on the Public Safety Committee say they don’t want us putting people in jail because they’re hungry.” CG: Is there a tendency to minimize the crime? Bowers: “Yes, but you can’t. If someone stole sandwiches from your refrigerator by breaking into your kitchen you’d want something done about it. And we’re seeing people coming back day after day – and in some cases hitting five stores. Every time they do it’s a misdemeanor and the police don’t even want to bother. They’re dealing with murders. Continued on page 46 27 ▶ CAL I FO RNIA GRO CER | 25