Security Guards: Retail Theft Prevention
Security Guards Can Greatly Deter Retail Theft
Taken as a whole, the losses retailers incur due to theft are substantial. According to the National Association of Shopping Prevention (NASP) more than 13 billion dollars of merchandise is stolen from American retailers each year which equates to approximately 35 million dollars per day. What’s more, the NASP estimates that there are approximately 27 million shoplifters (1 in every 11 people) active today and that over 10 million individuals have been apprehended for shoplifting over the past five years.*
These losses due to theft are a major concern for most retailers. One of the best options retailers have for reducing theft and deterring shoplifters is by having a good security presence. Most retailers station their security guards at the front entrances to ensure that potential shoplifters can not exit the store without being monitored. Occasionally security guards may also patrol the store just to make their presence known, but they are almost always most effective monitoring store exits. While it is not uncommon for security guards to apprehend shoplifters, their real value is in deterring theft and not making actual arrests. According to NASP, less than 30 percent of shoplifters plan to steal in advance, so shoplifting is much more a crime of opportunity than pre-meditation. For this reason, the presence of a security guard can greatly reduce theft simply by deterring any potential shoplifters who may otherwise take advantage of a low risk opportunity.
Customers typically appreciate having security present and security guards can also provide a nice customer service touch. For this reason it is important that the officers are have very good PR skills, are professionally dressed, and are familiar with the store and its policies.
Most States legally require security guards to be trained and licensed (also referred to as a “security guard card”). States vary in terms of what they require and each State has its own governing body that regulates security guard licenses and training. California guard cards, for instance, are regulated and issued by the Bureau of Security and Investigative Services (BSIS) which is a division of The California Department Consumer Affairs.
The big decision any retailer has to make who is considering hiring security is whether to hire in-house security guards or to outsource through a guard vendor. The main benefits of outsourcing are that most security guard companies offer experience, general liability insurance, and workers compensation. They also do the hiring for you and are experienced at managing security guards. This can give the hiring retailer more time to focus on their core business instead of having to run a security team. The downside though is the loss of control and the added cost, although many security guard vendors might state so differently.
Either way, it's worthwhile to consider both options. There is no harm in meeting with a few guard firms to see what they can offer. Most are more than happy to have no-obligation meetings. Also, consider taking a look at how other retailers run their security programs. It can makes sense to borrow from what works, but keep in mind that every retail business is different, so there isn’t a universal solution that works for everyone.
Any retailer who plans to hire in-house security must make sure they are complying with of their State’s requirements. Failing to do so can otherwise often result in heavy fines. These laws are for the benefit of the hiring retailer as well because most states will require guard applicants to pass a basic training test and background check prior to the issuance of a security guard license. Any guard who is not properly trained in the Powers to Arrest can also be a huge potential liability by either overstepping their legal authority when making an arrest or even potentially injuring someone.
* “Information and statistics provided by the National Association for Shoplifting Prevention (NASP), a non-profit organization; www.shopliftingprevention.org.”
