Shrink, whether itâs 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, itâs 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 worldâs a different place today. Whatâs been your focus on loss prevention? Hrubeniuk: âThere are a lot of aspects to it. Basically itâs providing a safe shopping experience for our customers and associates, as well as protecting our brand and physical assets like buildings, inventory and equipment. âAs such, weâve 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 weâre focused on reducing operational shrink â much of which is in perishables. Weâre trying to address where breakdowns occur and provide training, goal setting and discipline. âWriting 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.â Eid: âIâve been in grocery for 43 years so Iâve seen a lot, but Iâve always had an eye for shoplifters. I canât even guess how many Iâve caught over the years.â
CG: That can be dangerous. Eid: âIâve 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 donât even run anymore. Theyâre bolder and brasher.â Bowers: âMost retailers are struggling with shoplifting because of Proposition 47 which CGA has been trying to combat. Unfortunately, weâre 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.â CG: Are you seeing more organized retail crime groups? Hrubeniuk: âWeâve 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 â items like energy drinks, body washes, shampoo, razor blades, batteries, liquor and even national brand laundry detergent.â
Eid: âWeâre just seeing basic shoplifters. Low-lifes or people without means. Most are just crimes of opportunity.â CG: Are we seeing more organized retail crime (ORC), or just crimes of opportunity? Bowers: âFrankly, 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 donât know. âProp. 47 encouraged a huge increase in professional shoplifting by raising the felony threshold to $950. Legislators on the Public Safety Committee say they donât want us putting people in jail because theyâre hungry.â CG: Is there a tendency to minimize the crime? Bowers: âYes, but you canât. If someone stole sandwiches from your refrigerator by breaking into your kitchen youâd want something done about it. And weâre seeing people coming back day after day â and in some cases hitting five stores. Every time they do itâs a misdemeanor and the police donât even want to bother. Theyâre dealing with murders. Continued on page 46 27 ⶠCAL I FO RNIA GRO CER | 25