Loss Prevention
For the College Bookstore
Presenter:






Chet A. Cohen
Corporate Loss Prevention Manager, Associated Students
UCLA
Fourteen (14) years at UCLA
Previously worked for Gap Inc. and Target Corp.
Member of ASIS (American Society of Industrial
Security)
Member of LAAORCA (Los Angeles Area Organized Retail
Crime Association)
Member of NACP (National Association of Chiefs of
Police)
Major Issues
An Overview








Shrink
Textbook Theft
Textbook Refund Fraud
Physical Security/EAS
Uniformed Security vs. Plainclothes Staff
ORC
Civil Demand
Safety
Shrink








Defined as inventory losses, either by theft (internal and
external), administrative errors and accounting errors
$37 billion in 2011
50% internal (employees)
40% external (customers and vendors)
10% other
Direct threat to store revenue and profitability
Combated by strong deterrent policies, organizational
standards and leadership
Zero tolerance
Textbook Theft




The #1 theft threat to college bookstores
Textbooks are equal to cash – fastest turnaround of any
commodity sold (or) stolen at a college bookstore
Preventing these types of theft is paramount
There are a number of ways this can be accomplished:
EAS (electronic article surveillance) systems, bag checks,
clerk services and aggressive customer service are all
ways to combat and deter textbook theft
Textbook Refund Fraud





Stolen textbooks are easily sold back for cash
Retailers that do not ID book buyback sellers are making
it easy for the criminals to get away with it
Requiring a valid (government issued ID) DL or Student
ID will deter instances of fraudulent returns
Limiting quantities of the same title and capping the
return eligible dollars are additional ways to combat
refund fraud
Advisories, working with your association partners
Physical Security/EAS








Visible CCTV (closed circuit television) cameras
Cable-locking high-end products
Reverse positioning of hangars on displays adjacent to
exits
Staffing appropriately through out the store and offering
customer service to all guests
Loss-control signage in fitting rooms
EAS (Electronic Article Surveillance) systems
EAS antennas can be floating at the exit doors or
attached to the door frames
All merchandise products can be tagged (soft or hard
tags)
Uniformed vs. Plainclothes Staff






Uniformed security officers patrolling the store
Being visible and able to offer customer service
Can respond to EAS alarm activations
Deters the folks “on the fence” about shoplifting
Plainclothes staff are able to quietly investigate theft and
make apprehensions
With the uniformed staff on general patrol in the store,
plainclothes personnel can focus investigations on highend products and/or internal issues
ORC







ORC (Organized Retail Crime)
Not your grandfathers “mob”
Well-organized, well-funded groups paid to steal
significant amounts of merchandise in a short time
Move from store to store in groups of bandits and lookouts
Sold on the black market, swap meets and even back to
primary sellers
Estimated $20 billion in ORC crime in 2011, will be even
higher in 2012
Not flash-mobs
Civil Demand






Legal term used by state legislatures that allow retailers
to assess a civil fine unto a person caught shoplifting
In California, Penal Code 490.5 allows retailers and
libraries to charge up to $500 per incident for acts of
theft
A conviction in court is not required
Its up to the retailer to set the fine amount
The amount does not have to be based on the value of
the item stolen
The fine is guided by the principle that allows the retailer
to recover some monies from losses and/or the cost of
employing a loss prevention department and maintaining
lp systems
Civil Demand



CONT’D
Nevada state law – Code 597.860 allows for retailers to
assess a civil fine from $100 up to $250 per incident plus
the value of the non-sellable goods.
Oregon state law – Statute 30.875 allows for civil
remedy again between $100-$250 plus the cost of the
non-sellable goods, not to exceed $500.
Washington state law – allows retailers to assess a civil
fine up to $200 after attempting (twice) to have the thief
pay for the stolen items.
Safety






This is a major component of any loss prevention or
asset protection function
Maintaining a safe work environment for employees and
customers will cut down on accidents and claims
This will reduce your workers’ compensation rates
Lost-time accidents can run into the hundreds of
thousands of dollars for an organization
All businesses must have an IIPP (injury and illness
prevention program)
Training, inspections and documentation
Wrap-Up



What questions do you have???
I’m free after to answer any questions
privately
Thank You!