Be A Spy - Scam Warning Page

Be A Spy - Scam Warning Page

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Hayes International Releases 21st Annual Retail Theft Survey

The retail industry's leading Theft Survey, conducted by Hayes International has released it's 21st annual results!! This report is full of great information including statistics on retail theft gathered by Hayes International on 22 large retail companies with 19,151 stores, and over $570 Billion in sales. In addition, Hayes International expert insight into causes and effects is extremely helpful to the Operations, Loss Prevention, and Finance executives reading this report.

Some key points I found interesting include:

• 72,120 dishonest employees were apprehended in 2008, up 3.01% from 2007
• One in every 30 employees was apprehended for theft from their employer in 2008. (Based on over 2.1 million employees).
• On a per case average, dishonest employees steal a little over 7 times the amount stolen by shoplifters ($969.14 vs $135.81)
• For every $1.00 recovered by surveyed companies, $27.64 was lost to retail theft. Therefore, only 3.62% of total retail theft losses resulted in a recovery. Much room for improvement here.
  
• Survey participants apprehended 832,106 shoplifters in 2008. That is an increase of 7.65% from the prior year.

Survey participants contributed the following to increased employee theft:

1. Enhancements in POS Exception Based Reporting
2. Less management supervision over employees
3. More employees are stealing in the poor economy
4. More focus placed on internal theft cases

Hayes International believes the following contributes to the employee theft problem:

• Ineffective Pre-Employment Screening.
  
• Less Employee Supervision creating more opportunities to commit theft.
• Decline in Honesty.

Attended Jiffy Lube International Franchisee Conference

We had a great time speaking to Franchisees at the Jiffy Lube International Franchise show at the Gaylord National Resort & Convention Center last week in Washington DC. We spoke to franchise owners about the benefits of Mystery Shopping, as well as Loss Prevention solutions we provide to franchisees worldwide.

It amazes me that in 2009, there are still organizations with over 50 retail stores (often times, over 100 units) who still do not focus on the risk of cash and inventory loss, or even recognize these as serious issues. I actually had someone say to me that these issues are the least of their problems, and that they can't even get their staff to ring the sale through the register properly! "Case in point".

We had many positive discussions with other franchise executives who were motivated after our discussion, and looked forward to getting back to their business to implement some of the concepts we discussed. As another Franchisee commented, he views those that don't take the risk seriously, simply as "acquisition targets". That is a very entrepreneurial way for one franchisee to look at others who choose to ignore business risks.

Entertainment | Businesses using music to deter crime and loitering | Seattle Times Newspaper

Entertainment | Businesses using music to deter crime and loitering | Seattle Times Newspaper

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Regional Loss Prevention & Safety Manager

As the Regional Loss Prevention & Safety Manager you will be responsible for providing the leadership required for executing and overseeing the Loss Prevention & Safety programs, policies and procedures, and ensuring adherence to state and federal regulations to insure continuous improvement. This will include establishing a strong partnership with the General Manager and leadership team at each facility to ensure the safety of all associates as well as security of the building and product in addition to supporting physical security controls, and managing guard services at each facility,. You will also be responsible for creating programs that will reduce expose to shrink as well as workplace injuries and the cost of injuries.

http://www.resumeware.net/petsmart_rw/petsmart_web/jobs.cfm?page=jobdetail&recnum=1&totalrecs=8&start=1&pagestart=1&reqnum=FN-09-711&job_type=External

Execs with financial experience take CEO reins at restaurant chains

Great article in Nations Restaurant News on just how important financial background is to retail and restaurant Chief Executives. Some of the best come out of the CFO ranks.

"Final Straw" Moments Driving Traditional Crimes by Non-Traditional Offenders

Incredible. This story (click link below) is the second of these incidents I've heard about in two days. I watched a video on the news last night where a man in his late 40's, and who appeared to me to be an upper middle class businessman, walk into a convenience store, and steal the "Jimmy Fund" donation can from the counter!

Ok, so what is going on? Well, most say it's greed, but I'm not buying, although historically most frauds are attributed to it. Over the past 6 months or more, bank robberies are on the news every night. Prior to January, how many times did you see bank robberies on the news? 2-3 times a year? It is a weekly occurrence across the country now. And take a good look at the defendants during the arraignment TV coverage. These are not just the same drug addicted or criminal recidivists . In many cases these are our co-workers, family members or neighbors, who, out of desperation, felt this was the only option they had.

Shoplifting, and cash theft (stolen deposits, cash register fraud, etc.) by employees and the consumer is at a level those of us in the loss prevention and law enforcement industries have not seen in 15-20 years. Oh... and yes, ask anyone in our business and they will tell you the people committing these crimes are not the same people they were catching two years ago. Many have been recently downsized, due to "economic reasons", or business failures, as a result of poor economic conditions. They are fathers, mothers, business people wearing dockers, and golf shirts, carrying "real" D&G and Coach bags.

I have always said (to anyone willing to listen) that crime is not just reserved for "down and out" folks, people who just can't help themselves, or for those who are just plain greedy, although this is the case for many offenders. In my career, I've interviewed hundreds of thieves, and others suspected of other crimes, and through these interviews, I've learned that even the the most trusted employees (you know... the ones the District Manager or business owners say would never steal from"me") have what I refer to as a "Final Straw" moment. When their personal integrity comes up against extreme need. Let me throw out a few "Final Straw" examples: Don't have the mortgage/rent payment, and will lose home if you can't pay in a week. College payment due or your child is being sent home. Personal medical emergency requiring immediate payment, because your insurance was just canceled. I could go on, and those of you who are still reading this can add about fifty additional examples. The sadder part is that most "Final Straw" moments, are much less dramatic than those I've listed. I had a case, where a 40 year old employee was voiding sales from the register and taking the money to pay for her daughters dance lessons after her husband lost his job.

When your back is up against the wall, and you've never had to worry about money before, and find yourself staring at your "Final Straw" moment, many, and I mean most will do whatever they have to do to not allow those things to happen. This takes those of us in the LP business to a new level of offender we need to be prepared to deal with.

So, my guidance includes the following:

1. Be vigilant on protecting yourself or your business from becoming a victim. This not only means protect your personal property, but also where you invest your life savings (Ponzi Schemes). Prepare your business to protect it's assets (cameras, burglar systems, loss prevention strategies, etc.) by doing things you didn't feel you needed a year ago.
2. Be aware... of friends, family, employees, etc. who have recently been downsized or otherwise lost their job, and be supportive and sensitive to their situation. Hopefully, by talking with people, this could prevent a friend from reaching a "Final Straw" moment.
3. For reasons I've mentioned above, be careful not to stereotype who you should protect yourself around, and who you don't need to be careful around.
   
4. Lastly, if you are someone who has had the misfortune of losing your job, and are out of work, and feel you are facing your "Final Straw" moment... Talk to someone about it. A friend, family member, religious leader, etc. I believe talking about it releases some of the pressure folks in this situation are under. It may not cure the issue, but it may keep someone from doing something they can't repair.
   

Crimes against businesses, and people are on the rise, and will become more brash and violent as people become more desperate. We are at much higher risk today, than anything we have experienced in the recent past. Don't let your guard down, and end up a target. Please pass this advice on to family members, peers, and fellow business associates, as you see fit, and please share your feedback, comments, or experiences.

Nashuatelegraph.com: Man wanted over theft of donation box

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The Mershimer Group to provide royalty assurance Services to Johnny Rockets Group, Inc.

We are very excited to announce that The Mershimer Group has been selected to provide Royalty Assurance services to the Johnny Rockets corporation. Initially we will be conducting audits, and will ultimately grow to a broader program for helping both the franchisor and the individual franchisees improve profitability through improved royalty reporting, and reduction in the errors that cause profit loss.

Corporations need to make examples out of corrupt executives and not just lower level employees.

While I'm on a rant of corruption by business executives and others in positions of great trust, or who have been trusted with high security positions.... it amazes me that public companies would hire a such an executive without doing proper due diligence.

How can a person who was walked out of their office with one of the largest multi-brand organizations in the country for alleged corrupt business practices be hired (whether as a consultant or employee) by a trade association this person initially helped build. Then within a year, lands another senior level executive position in the same industry!!! Meanwhile, there are minimally 100 other executive level individuals with high integrity and huge success stories behind them in this same specialized industry, who have been downsized due to economic conditions beyond their control. Who did this company call for a reference on his last position??

Shame on the company that walked this person out of their corporate offices who basically swept the issue under the table to avoid bad press.

Happens on a regular basis, and it's time to start holding executives accountable in a big way.

Investors lose millions with SF accountant & Ice Cream Franchisee

Roberto Heckscher, the subject in this story is or was a Baskin-Robbins Franchisee, and while I was at Allied Domecq QSR (Dunkin' Donuts & Baskin-Robbins), Roberto headed the Franchise Advisory Council for the Baskin brand. There would be little argument that he was viewed as the most widely respected voice for the Baskin Franchisees. Roberto was one of the strongest voices of support for my Loss Prevention program when I was at Allied Domecq QSR.

It just never ceases to amaze me how people in responsible positions, or in positions of great trust abuse their positions, or get themselves in these situations. Most times it is greed, and as it seems with Roberto (if the news reports are correct, and he is ultimately found culpable for the losses), he just kept digging himself into a deeper hole, instead of putting down the shovel and coming forward.

http://abclocal.go.com/kgo/video?id=6875224

http://abclocal.go.com/kgo/video?id=6880750

NBC 10 has the inside scoop on a part-time job that can be a ticket to lots of freebies.

Although our Mystery Shopping programs are used largely to measure the guest experience for our clients, more and more Loss Prevention departments are using integrity shopping as a less expensive tool to identify under-ringing and other loss issues at restaurants and retail stores. This piece was done by Channel 10 in Providence, RI to promote Mystery Shopping and recruit shoppers and evaluators to the industry.

http://www.turnto10.com/jar/news/local/article/-JAR_2008_02_19_0020/2355/#fragment-1

AVP, Zone Manager of Asset Protection-BJ's Wholesale

Open LP position Mid Atlantic region:

http://www.smartbrief.com/jobs/nrf/job_detail.jsp?id=5691&sid=e392cc47-b7ee-4562-92e8-603baad04042

Woman gets 3 years in jail for stealing from employer

Chain restaurants or stores are at significant risk when they allow direct billing to occur with suppliers or other stores. We have seen this type of fraud occur repeatedly over the years. In this case, the manager was issued a corporate card to use to buy supplies. Centralized purchasing and billing should be the policy to avoid these types of employee dishonesty.

http://www.news-gazette.com/news/local/2009/06/23/woman_gets__years_in_jail_for_stealing

Retail downsizing driving Mershimer Group staff growth.

Over the past two weeks, The Mershimer Group has added over a dozen new Field Consultants with varied backgrounds. We have added Loss Prevention Auditors, Franchise consultants, and several Loss Prevention Consultants who will be conducting audits, training, and investigations for our retail, restaurant and franchise clients throughout the US, and overseas.

Most of these folks will be landing full time, permanent positions with retailers in the future, but are happy to be able to supplement their income with contract projects for us. We are continuing to build our network, and appreciate all the calls and messages from those of you who are out of work and looking for project work. Please continue to forward folks you know who have multi unit retail and restaurant loss prevention and audit backgrounds to us at mike@mershimer.com

If you are a current Mershimer Group contractor, we would love to receive your feedback on this concept.

Reacting to Franchisee Refusal of Audit Request

So many times, franchisors I've worked with take a passive stance when a Franchisee refuses to cooporate with an audit request. This is a very slippery slope, and I strongly encourage our clients to not be shy when it comes to enforcing the right to audit clause in the franchise agreement. When you fail to default, arbitrate or otherwise deal with this refusal, you open the door for all others to not cooporate with an audit.

Remember, that, in any franchise system, word of the companies failure to enforce this agreement will travel quickly, and others will follow suit.

West Coast Trip

Looking forward to being in California, Portland, and Seattle next week. Visiting with old friends at the LP Conference in LA on Monday and Tuesday.

Welcome Message

My first blog... Hope to get some good exchanges going on retail, restaurant and franchise loss prevention topics.

Welcome!!