Week 15 notes
Week 15 notes Retail 265
Popular in Principles of Retailing (265)
Popular in Retail
This 3 page Class Notes was uploaded by Kara Lyles on Friday April 22, 2016. The Class Notes belongs to Retail 265 at University of South Carolina taught by Karen Edwards in Spring 2016. Since its upload, it has received 57 views. For similar materials see Principles of Retailing (265) in Retail at University of South Carolina.
Reviews for Week 15 notes
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 04/22/16
ROY G BIV: Visual merchandising tool that makes merchandise look more organized. Loss Prevention Loss Prevention- Steps put in place by the retail company to reduce loss and protect profitability. Purpose: To enhance profitability Part of every retail manager’s job Directly affects profitability Interesting Facts 12 Billion worth of stuff is stolen each year from retailers Employees steal more from US retailers than shoplifters U.S chamber of commerce estimate that 75% of employees steal at least once LP Risks Employee Thefts On- site accidents Shoplifting & ORC Natural Disaster Fraud Data Breaches Supply chain loss Violence Terms Shrinkage- Reduction in inventory due to shoplifting, employee theft, paperwork errors, or fraud Countermeasures- steps retailers put in place to decrease the likelihood or impact of loss Internal theft- Loss to due to employees External theft- Loss due to individuals outside of the retailer. (Fraud, vendor/cargo theft) The theft triangle Motive to steal Opportunity to steal Low Risk of Detection 10-80-10 Rule 10% would never steal 10% would always intend to steal 80% (where the opportunity is greatest) Why??? Low work wages (especially entry level employees) Long hours High Turnover (seasonality ) Generally younger workforce Sense of entitlement ( feel like they are deserving of more) Shoplifting indicators? Physical Eye movement: Are they looking at you instead of the merchandise Body movement: pick up random items, short unnatural steps Apparel: unseasonal jackets, bulky clothes Large tote-bags: “theft book” Behaviors: behaving weird Probable Cause is… “Good faith belief that a person committed a crime on grounds that would make a reasonable person think the same.” 1. You see the suspect conceal the goods 2. You DID NOT lose sight of suspect 3. Suspect does not pay for goods 4. Suspect must demonstrate the intent to leave Bad stop – if the retailer has made a mistake framing an customer for stealing material when in reality they didn’t. Organized Retail Crime (ORC) Professional shoplifters aka “boosters”: Stealing product with the intent to make money from it by reselling Fence (who boosters sell merchandise to): Pawn shops, Flea Markets, street corners, etc. (30% of retail value) Fraudulent Refunds: Return merchandise to retail stores (100%+ tax of retail value) EFencing: sell online through auction sites and other web pages (70% of retail value) Most common types of ORC: (72% fencing, 69%physical fence, 805 cargo, 75% gift card) Return Fraud Retailers loose about $10 billion each year in return fraud 1. Stolen merchandise that’s returned for “ refund” 2. Returning goods “purchased” with stolen credit & gift cards 3. Counterfeit receipts 4. Ticket switching (high return) 5. Wardrobing 6. False name on refund (SC 16-13-440) Data Management Retailers are perfect targets for data breaches Costly for customer trust Huge area of concern for loss prevention Premise Liability Negligence (tort action) 1. Duty of care: Depends “who” 2. Breach of duty: Dangerous or defective condition 3. Injury: Mental and physical 4. Cause: But-for (but for if you had …..I would not have been hurt)