Retail Loss prevention terms explained

General terms

Loss prevention (LP)

Loss prevention is simply any initiative devised to minimize the loss of stock within a retail environment. It encompasses everything from preventing shoplifting right through to techniques used to count stock.

Retail shrink

Retail shrink or shrinkage is the loss of stock. It can be attributed to a host of factors including shoplifting, employee theft, employee fraud, administrative error, vendor fraud, or damage to stock in transit.

Shoplifter

A person who deliberately takes a product from a retail outlet without paying. Shoplifters generally have one of seven motives for stealing. These range from opportune theft to habitual stealing, stealing to fund addiction or stealing as an act of revenge.

Organized Retail Crime (ORC)

ORC is professional shoplifting, supply chain theft and other organized crime in retail environments perpetrated by crime rings. This type of theft is usually undertaken in groups and strategically targets items that can be easily sold at a high value.

Employee fraud

In retail, employee fraud usually involves cash register transactions, fraudulent refunds, gift certificates, false vendors and vendor collusion.

Analytics

Analytics is the electronic analysis of data collected about a retail environment. It includes information gathered at the Point of Sale such as sales data and returns, but also extends to traffic counting, inventory, sales transactions by staff members and more. Retail analytics are used by store owners and managers to monitor their stock and make more informed decisions within a retail environment.

Loss prevention strategy terms

EAS

In loss prevention, EAS is one of the most common terms encountered. It stands for Electronic Article Surveillance and describes how tags and labels are affixed to products and then monitored electronically by an in-store antenna system.

EAS has been around since the 1960s. The premise behind it is simple; when a product exists the doors of a shop without the tag being removed or the label being deactivated, an alarm sounds and alerts staff on the floor.

Lockable displays

Whether it’s a locked draw, a secure glass cabinet or a freestanding display that retailers secure items to, lockable displays allow retailers to showcase items, but prevent thieves from taking them.

CCTV

Closed circuit television (CCTV) or video surveillance remains a common strategy to monitor the entire retail environment. If it’s monitored in real time, CCTV can help identify a theft occurring. If the surveillance is recorded, it can assist police investigating shoplifting and other retail crime.

LP Officer (security guard)

These are the loss prevention professionals tasked with preventing theft and catching perpetrators. Their role is partly as a deterrent and also as a real-time responder to theft.

Benefit denial

Benefit denial is a method used to negatively impact a product that someone attempts to steal. The most common example is ink dye tags. When a thief attempts to remove them without the correct detacher, ink releases and renders the item unusable.

Stop lock

A lock that is placed on the end of a wire hook, meaning consumers can only access the product with the assistance of a staff member.

Smart locks

A lock used on retail cabinets or drawers that is opened via an electronic key. The key can be coded for use by different staff members or for use in specific areas.