Shoplifting is the theft of goods from a retail establishment during business hours. The terms shoplifting and shoplifter are not usually defined in law, and generally fall under larceny. In the retail industry, the word shrinkage is used to refer to merchandise often lost by shoplifting. The term five-finger discount is an euphemism for shoplifting, humorously referencing stolen items taken "at no cost" with the five fingers.
Electronic article surveillance (EAS) is a type of system used to prevent shoplifting from retail stores, pilferage of books from libraries, or unwanted removal of properties from office buildings. EAS systems typically consist of two components: EAS antennas and EAS tags or labels. EAS tags are attached to merchandise; these tags can only be removed or deactivated by employees when the item is properly purchased or checked out. If merchandise bearing an active tag passes by an antenna installed at an entrance/exit, an alarm sounds alerting staff that merchandise is leaving the store unauthorized. Some stores also have antennas at entrances to restrooms to deter shoppers from taking unpaid-for merchandise into the restroom where they could remove the tags.
A store detective is a member of loss prevention whose main role is to prevent and detect theft and reduce shrink in retail outlets. They do this by patrolling the store in plain clothes looking to identify members of the public who are stealing from the store. More common terms today with major retailers are loss prevention agent, detective or investigator and asset protection officer. Special officer, once common, is now rarely used, as it is typically denotes some form of law enforcement authority, and some jurisdictions limit its use.
Civil recovery is the method in some legal systems employed to recover the proceeds of crime, instead of, or in addition to, criminal court proceedings.
Service Merchandise was a retail chain of catalog showrooms carrying jewelry, toys, sporting goods and electronics. The company, which first began in 1934 as a five-and-dime store, was in existence for 68 years before ceasing operations in 2002.
Scan-based trading (SBT) is the process by which suppliers maintain ownership of inventory within retailers' warehouses or stores until items are scanned at the point of sale. Suppliers, such as manufacturers or farmers, own the product until it is purchased by the customer, with the store or venue then buying the product from the supplier and reselling it to the customer. Analysts in the grocery sector estimate scan-based trading accounted for $21 billion dollars in consumer goods purchased in the grocery industry alone in 2020, or nearly 3% of overall sales.
Self-checkouts (SCOs), also known as assisted checkouts (ACOs) or self-service checkouts, are machines that provide a mechanism for customers to complete their own transaction from a retailer without needing a traditional staffed checkout. When using SCOs, customers scan item barcodes before paying for their total shop without needing one-to-one staff assistance. Self-checkouts are used mainly in supermarkets, although they are not uncommon in department or convenience stores. Most self-checkout areas are supervised by at least one staff member, often assisting customers process transactions, correcting prices, or otherwise providing service.
A catalog merchant is a form of retailing. The typical merchant sells a wide variety of household and personal products, with many emphasizing jewelry. Unlike a self-serve retail store, most of the items are not displayed; customers select the products from printed catalogs in the store and fill out an order form. The order is brought to the sales counter, where a clerk retrieves the items from the warehouse area to a payment and checkout station.
Refund theft, also known as refund fraud, refund scam or whitehouse scam, is a crime which involves returning goods ineligible for refund to a retailer in exchange for money or other goods. The goods returned may have been acquired illegally, or they may be discarded damaged goods. Other schemes involve sealing weights or other simulated merchandise in the original product packaging, or switching labels on items to purchase them at a lower price and then returning them for their original value.
In accounting, shrinkage or shrink occurs when a retailer has fewer items in stock than were expected by the inventory list. This can be caused by clerical error, or from goods being damaged, lost, or stolen between the point of manufacture and the point of sale. High shrinkage can adversely affect a retailer's profit.
Ink tags are a form of retail loss prevention that is commonly used in clothing stores. These tags contain glass vials filled with permanent ink and have a thick plastic cover. The tags are attached to the items they protect with a magnetic lock which requires a special tool to remove. When forcibly removed from the item the vials of ink will shatter, releasing the ink and irreparably damaging the fabric. The tags typically have warning labels to discourage tampering. Ink tags fall into the loss prevention category called benefit denial. As the name suggests, an ink tag discourages theft by denying the shoplifter any benefit for their efforts. Ink tags are most effective if used together with another anti-shoplifting system.
Organized retail crime (ORC) refers to professional criminal enterprises ranging from regional gangs to international crime rings and other organized crime focussing on retail environments. Operations include truckjacking, shoplifting, smash and grab, cargo theft, and cargo diversion. One person acting alone is not considered an example of organized retail crime. Working in teams, some create distractions while others steal items judiciously, indiscriminately or violently. Often, they are stocking up on specified items at the request of the organized crime or gang leader. It is not uncommon for the criminals to have accomplices working in the retail store or corporation.
Checkpoint Systems is an American company that specializes in loss prevention and merchandise visibility for retail companies. It makes products that allow retailers to check inventory, quicken the replenishment cycle, prevent out-of-stocks and reduce theft. Checkpoint offers Electronic Article Surveillance (EAS) radio frequency solutions for retail, high-theft and loss-prevention solutions, RFID hardware, software, and labeling capabilities.
For a variety of reasons, convenience stores are often popular targets for a variety of crimes, most notably shoplifting and robbery. In some cities, convenience store crime has become such a problem that special task forces have been created or some stores have been completely closed down. American convenience stores are often direct targets of armed robbery. In some areas of the United States, it is not unusual for clerks to be working behind bulletproof glass windows, even during daylight hours. Some convenience stores may even limit access inside at night, requiring customers to approach a walk-up window specifically for such situations to make purchases. The main dangers are that almost all convenience stores only have one person working night shift, most of the transactions are in cash, and easily resold merchandise, such as liquor, lottery tickets, and cigarettes are on site.
Return fraud is the act of defrauding a retail store by means of the return process. There are various ways in which this crime is committed. For example, the offender may return stolen merchandise to secure cash, steal receipts or receipt tape to enable a falsified return, or use somebody else's receipt to try to return an item picked up from a store shelf.
In retail, a product return is the process of a customer taking previously purchased merchandise back to the retailer, and in turn receiving a refund in the original form of payment, exchange.
Retail leakage occurs when local people spend a larger amount of money on goods than local businesses report in sales, usually due to people traveling to a neighboring town to buy goods. Retail sales leakage occurs when there is unsatisfied demand within the trading area and that the locality should provide extra stores spaces for such type of businesses. After all, retail leakage does not necessarily translate into opportunity. For instance, there could be tough competition in a nearby locality that leads the market for same type of product. Many small - to medium-sized communities experience leakage of retail expenditures as local citizens drive to neighboring towns to shop at national retail chains or eat at national restaurant chains. Attracting such national retail chain stores and restaurants to a community can prevent this type of expenditure leakage and create local jobs.
In the retail industry, sweethearting is a form of theft by employees at the cash register, where they give away merchandise to a "sweetheart" customer. Cashiers are able to do this in numerous ways, including:
A chief visibility officer (CVO) or director of visibility is an individual appointed to oversee all aspects of performance across retail stores, corporations or organizations as part of the C-Suite of executives. The role of the CVO emerged to manage the integration of ideas, disciplines, technologies and people focused on elevating retail enterprise visibility. The title is commonly associated with Retail Loss Prevention (LP) leaders and professionals who maintain the highest position in security management and maintain the security operations in the store to achieve a high level of visibility.
Proposition 47, also known by its ballot title Criminal Sentences. Misdemeanor Penalties. Initiative Statute, was a referendum passed by voters in the state of California on November 4, 2014. The measure was also referred to by its supporters as the Safe Neighborhoods and Schools Act. It recategorized some nonviolent offenses as misdemeanors, rather than felonies, as they had previously been categorized.
