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Preventing Shoplifting

Article · June 2008

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 Preventing
Shoplifting
This guide is one in a series of crime prevention publications designed to equip current and potential Safe City partners
with low-cost tools to assess their crime problems and to develop strategies to address them. Other guides in this series
include vandalism, public disorder, car crimes, panhandling, and retail burglary.
 Safe City is a model community-based initiative that aims to reduce crime, build awareness, and Using this Guide
develop communities into safer places to live, work, and shop. Community partners in cities across the This guide is designed to help you and
U.S. modify the model to best suit their needs and resources. The goal is to leverage existing resources your partners understand and address
by building collaborative relationships between law enforcement, businesses, residents, government the shoplifting problem affecting your
leaders, property managers, and community organizations. This approach maximizes the tactical, business area and to help promote
financial, technological, and human resources available to address a community’s crime problems. dialogue among retailers, police, and
The Safe City model promotes partnerships and technical solutions as instrumental building blocks for community stakeholders about these
success. These partnerships are further strengthened by individual retailers taking ownership over the issues. Keep in mind that when
crime and disorder problems occurring in and around their businesses. implementing these strategies you
should tailor your solution to the unique
Safe City has partnered with the Urban Institute, a non-profit policy research firm, to develop a variety nature of your crime problem and
of crime prevention strategies for use in retail settings, many of which are inexpensive and easy to business environment.
implement. For more information about the Safe City program, please visit www.mysafecity.com.
Other guides in this series address
For more information about the Urban Institute’s justice policy research activities, please visit
vandalism, car crimes, public disorder,
www.urban.org/justice.
panhandling, and retail burglary.

Quick Tips
Here are a few guiding steps that
can help prevent shoplifting:
Understanding Shoplifting 1 Measure your shoplifting problem.
2 Identify business practices that may
It is difficult for any business to fully merchandise for shoplifters includes tobacco make you vulnerable to shoplifting.
understand its shoplifting problem. Losses products, CDs, video games, earrings, birth 3 Choose a practical strategy to reduce
from shoplifting, employee theft, and control products, decongestants, or brand- shoplifting and try it.
damaged goods are often labeled together as name clothing and footware. Products such
“shrinkage.” This section identifies common as cigarettes and single serving alcoholic 4 Measure your shoplifting problem
shoplifting patterns and explains why it is beverages are susceptible to shoplifting by again to assess the impact of
important for businesses to address this crime. minors because they are unable to purchase your strategy.
them legally. Birth control products, such as 5 Modify your strategy if necessary.
condoms or pregnancy tests, are vulnerable
Shoplifting Patterns because shoplifters are too embarrassed to
Shoplifting is usually a crime of opportunity purchase these items. CRAVED:
perpetrated by regular customers, particularly Description of “Hot” Items (Clarke 2002)
juvenile males, and is sometimes considered a
Addressing Shoplifting Concealable: Easily hidden in
gateway for juveniles into the criminal justice
pockets, bags, or under clothing
Shoplifting

system. Shoplifting is one of the most common but

least detected and reported crimes affecting Removable: Portable and easy
TIME. Shoplifting tends to occur after school retailers. Some store owners pay little to carry
hours, in the late morning, and during busy attention to theft and damage of goods as Available: Widely available or
retail days (Wednesday through Saturday). long as the cost of shrinkage does not rise easy to find
Peak seasons for shoplifting are around winter above a few percent of total net sales. In fact,
Valuable: Expensive and favorable
holidays and when school is out of session. there are even disincentives for paying close
resale value or status among peers
attention to this crime. For instance, detection
LOCATION. Businesses that open to the and reporting are time consuming for such Enjoyable: Enjoyable to own
street, rather than into a mall, may be at seemingly petty crimes. Nevertheless, there are or consume
greater risk, as are shops with physical many reasons to address this crime. First, while Disposable: Easy to resell
layouts that do not permit easy surveillance the actual cost of an individual shoplifting
across all aisles. Shoplifting tends to be more event may be low, the volume of these For citation purposes: La Vigne, Nancy G.,
problematic for businesses located near incidents can have a significant impact on a Michelle L. Scott, and Kevonne Small. 2007.
city centers, high-traffic areas, schools, and “Preventing Shoplifting.” Washington, DC:
store’s net profits. Second, from a community
The Urban Institute Justice Policy Center.
areas of concentrated low-income residents. safety perspective, serious profit losses could
Smaller retailers, especially those without any lead to store closings and further crime
organized security precautions, are also at and disorder.
greater risk of shoplifting.
Opinions expressed in this document are those of the
MERCHANDISE. Retailers specializing in authors and do not necessarily represent the official
“hot” merchandise are particularly vulnerable position or policies of the U.S. Department of Justice,
to theft. The acronym “CRAVED” highlights the Urban Institute, its trustees, or its funders.
Safe City

attributes of “hot items” (see sidebar). “Hot”

2
Defining Your Problem

Before implementing a strategy to prevent shoplifting, it is important to define the specific nature of the shoplifting problem
affecting your business. Although there are many methods you may use to address shoplifting on your own, a community-wide response that incorporates
other area businesses, agencies, and public services is beneficial to address any underlying community problems which may be related to shoplifting.
Community partners should consider the questions that appear below. Answers to the questions below will help you better understand your shoplifting
problem so that you can select an appropriate response strategy.

Questions to Ask: Example Responses:

My store revenue totaled $120,000, but I expected sales to

What is the difference between your store’s sales and
total $125,000 based on inventory records. This means I have
inventory value for the previous quarter?
experienced a loss of $5,000.

Can you distinguish whether your loss is due to I cannot be entirely sure if losses are due to shoplifting or
shoplifting or from internal/employee theft? employee theft, although I believe both do occur.

How many documented shoplifting incidents has your

I documented 56 shoplifting incidents in the last quarter.
business experienced over the past quarter?

Most known shoplifting occurred between 2pm and 6pm

What time of day and day of week did documented
during the week. I have also documented losses on the
shoplifting or losses occur?
weekends.

Shoplifting
What items are most often stolen from your store or
Most theft is of clothing.
area businesses?

Is theft affecting particular stores in addition to yours? Yes, the other clothing retailers in this shopping area are also
If so, what do you have in common with them? experiencing shoplifting problems.

Are you and other area businesses having similar Yes, the other clothing retailers and I are experiencing theft of
items stolen? high-end, designer clothes.

Do the documented shoplifters share any particular Yes, most of those shoplifters caught stealing clothes are
demographic or other characteristics? females between the ages of 13 and 16 years old.
Safe City
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 Developing Response Strategies

After you’ve worked with your partners to define the throughout the community. Your measurement may also provide
shoplifting problem for your area, you are ready to develop a response evidence that the strategy is not reducing shoplifting as you expected,
strategy to prevent it. The following are strategies that can be used for suggesting an adjustment to the response is in order. While you may note
common shoplifting scenarios. Do not forget that situations vary and improvements immediately, it is advisable to wait at least a few months
that yours may require a tailored response. In addition, be prepared after implementing a response to see whether it has had an impact. The
for potential implementation challenges, such as unanticipated costs following table outlines ways that you can measure the state of your
and delays in both the implementation and impact of your crime shoplifting problem, outcomes that will indicate whether the shoplifting
prevention strategy. problem has improved, and possible data sources.

It is important to measure the extent of your business’ shoplifting When measuring outcomes it is important to note that a temporary
problem both before and after initiating a response. Doing so will tell increase in reporting of incidents to police may represent a positive
you whether the response you selected is effective. Proof of effectively outcome, indicating that community members are paying greater
reducing shoplifting (or any other crime) can be useful in persuading attention to shoplifting. However, reported incidents should decline over
other area businesses to join collaborative efforts to reduce crime time as the number of shoplifting incidents decrease.

Measurement Data Source Strategic Response Outcome

General shop theft
• Number of repeat offenders • Local police • Reduce number of exits from store • Fewer repeat
• Total sales and profits ($) • Business records • Position cashiers near store exits offenders
• Number of reported incidents • Redesign store layout for easier viewing of all areas • Increased sales and
• Location of incidents • Train staff on detecting and preventing shoplifting profits
• Install CCTV and/or convex mirrors • Fewer incidents
• Post “no shoplifting” signs detailing the fines and prosecution if • Incidents less
caught shoplifting concentrated

Employee or internal theft

• Percent or value of shrinkage • Local police • Enact policy for employee bag check at end of each shift • Decreased shrinkage
• Day/time of incidents • Business records • Tighten inventory control protocols • Fewer incidents
• Unaccounted losses by • Track inventory losses by unique employee ID number associated with
employee • Establish no tolerance policy towards employees caught stealing specific employee
Shoplifting

• Install video cameras to monitor employee activities

Theft of electronics or other items

• Number of unaccounted items • Local police • Install merchandise tags on items to sound alarm when not removed • Fewer unaccounted
• Type of unaccounted items • Business records or disengaged by employees items
• Number of reported incidents • Use oversized packaging to make items more difficult to hide in • Fewer types
customers’ bags or clothing of targeted
• Keep expensive or popular items in locked showcases, behind counter, unaccounted items
or on wired cables that only employees can unlock • Fewer incidents

Truant youth stealing CDs and DVDs

• Number of reported incidents • Local police • Work with local schools on anti-truancy program • Fewer incidents
• Day/time of incidents • Business records • Collaborate with local schools and police to identify and monitor • Fewer school-hour
• Number of truants reported to truant youth incidents
school and/or police • Enact store policy prohibiting youth during school hours • Fewer juvenile
• Demographics of suspects • Package CDs/DVDs in oversized packaging or use cardboard place offenders
• Types of music/movies stolen holders and require merchandise pick up at checkout counter • Fewer types of
• Keep popular and/or new release music/videos behind counter targeted music/
movies stolen

Juveniles stealing clothing

• Number of reported incidents • Local police • Work with local schools to launch an anti-shoplifting campaign • Fewer incidents
• Day/time of incidents • Business records • Install ink merchandise tags that stain if not removed by employee • Fewer after school
• Demographics of suspects • Increase visible security guard presence during after-school hours incidents
Safe City

• Fewer juvenile
offenders
4
Measuring Your Problem: An Example

The owners of several shops in Valley Shopping Plaza the sales they expected based on their inventory records. The difference
wanted to determine the nature of their shoplifting problem so that they in sales and expected sales is considered “unaccounted” in the second
could develop and implement the most appropriate response strategy. The graph. Again, the owners noticed a distinct pattern with unaccounted
owners worked with Valley Police Department to get a list of shoplifting sales increasing during the summer months. The owners cannot be sure if
incidents, along with dates and times, occurring at the Plaza for 2004 the unaccounted sales are internal or external theft, but they do know a
and 2005. response strategy must focus on both customers and employees.

The time of each incident was reviewed and plotted as shown in the first To address their concerns with potential employee theft, the business
graph. The owners noticed a distinct increase in shoplifting incidents in owners instituted an employee bag check before the end of each shift.
the late afternoon hours. They also posted prominent signs in their stores to educate individuals
about the risks of shoplifting. Several shop owners are also exploring
The shop owners wanted further clarification about the most prevalent the use of ink-tag or electronic tag system to make theft from the stores
shoplifting months, so they graphed the total sales of their stores with more difficult.

Time of Shoplifting Incidents Monthly Shoplifting Incidents

at Valley Shopping Plaza at Valley Shopping Plaza
(As reported to Valley Police Department) (As reported to Valley Police Department)

20 120
No. of Shoplifting Incidents Reported

18 Total Sales Unaccounted

100
16
14
80
Dollars ($)

12
10 60
8
40
6
4
20
2
0 0

Shoplifting
10 am 12 pm 2 pm 4 pm 6 pm Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan

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 How Other Communities Prevent Shoplifting

Here are examples of how other retail establishments addressed shoplifting in their communities.

Area Retailers Electronic & Appliance Retail Chain

Colorado Springs, Colorado United Kingdom
To address a problem of repeat shoplifters, a group of retailers in In response to shoplifting problems, an electronic and appliance retail
Colorado Springs established a retail security association to improve chain experimented with each of three different shoplifting prevention
communication with local police. A sworn officer, loss prevention officers, methods – electronic tagging, relocation of commonly stolen items (store
and managers of retail stores met every other month to exchange redesign), and uniform guards patrolling stores during business hours.
information about shoplifting incidents and suspects. After one year, the Electronic tagging was most effective at preventing theft over time, with
police dismantled a professional shoplifting ring and calls for service a 20 percent decrease in shoplifting after six weeks of implementation
decreased by one-third. After reanalysis, the group reorganized to meet (Farrington et al. 1993).
more frequently, and they developed an Internet tool to exchange
information online, which allowed instant communication between
police and loss prevention personnel. Over four years, shoplifting calls for Central Business District
service declined 25 percent citywide (Colorado Pikes Peak Retail Security Mesa, Arizona
Association 2003). A large retailer experiencing a large number of shoplifting incidents
partnered with police to address the problem. Business loss prevention
staff and law enforcement made efforts to improve communication
Retail Chain
between each another. In addition, loss prevention officers were
United States empowered to issue court appearance summons to shoplifters for
Save Mart, a retail chain, used a variety of measures to prevent incidents under $100 in value without requiring a police report.
shoplifting, including installing lower display racks to limit the number Shoplifting incidents decreased by 21 percent and calls for service
of items a person could remove at once. The store also put stickers on dropped more than 50 percent during the three-month pilot (Arizona
items indicating that the product was from their store in order to reduce Theft Reduction Action Program 2000).
resale options. Attractive targets, such as CDs, were kept in secured glass
cabinets or displayed in empty packaging. Convex mirrors and wider
aisles improved surveillance. The crime prevention efforts undertaken
by Save Mart decreased theft by 21 percent within one year (Nelson and
Perrone 2000).
Shoplifting
Safe City
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Additional Resources

• Your Local Police Department

• Your Local Safe City Partnership

• Center for Problem-Oriented Policing: www.popcenter.org

• National Association for Shoplifting Prevention: www.shopliftingprevention.org

• Rutgers University Crime Prevention Service for Business: http://crimeprevention.rutgers.edu

• National Crime Prevention Council: http://www.ncpc.org

• Small Business Administration: www.sba.gov

• National Retail Federation: http://www.nrf.com

• National Restaurant Association: www.restaurant.org

• National Association of Convenience Stores: http://www.nacsonline.com/NACS/default.htm

Sources consulted for this guide include:

Arizona Theft Reduction Action Program. 2000. Mesa Police Department (AZ): www.popcenter.org/library/goldstein/2000/00-16.pdf

Clarke, Ronald V. 2002. Shoplifting. Problem-Oriented Guides for Police Series, No. 11. Washington, DC: U.S. Department of Justice, Office of Community Oriented Policing Services.
Available: www.popcenter.org/Problems/problem-shoplifting.

Clarke, Ronald V. and John Eck. 2005. Crime Analysis for Problem Solvers in 60 Small Steps. Washington, DC: U.S. Department of Justice, Office of Community Oriented Policing Services.
Available: www.popcenter.org/learning/60steps.

Colorado Pikes Peak Retail Security Association. 2003. Colorado Springs Police Department (CO): www.popcenter.org/library/goldstein/2003/03-09.pdf

Farrington, David P., Sean Bowen, Abigail Buckle, Tony Burns-Howell, John Burrows, and Martin Speed. 1993. “An Experiment on the Prevention of Shoplifting.” In Crime
Prevention Studies, Vol. 1, edited by Ronald V. Clarke. Monsey, NY: Criminal Justice Press.

Shoplifting
Felson, Marcus and Ronald V. Clarke. 1997. Business and Crime Prevention. Monsey, NY: Criminal Justice Press.

Nelson, Diana and Santino Perrone. 2000. “Understanding and Controlling Retail Theft.” Canberra, Australia: Australian Institute of Criminology. Trends and issues in crime
and criminal justice No.152. www.aic.gov.au/publications/tandi/ti152.pdf (accessed December 8, 2006).

www.MySafeCity.com
Safe City
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 www.MySafeCity.com

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