Canadian Retailer - Store 2017 - 63

The T-Log

In the past, the retailer's copy of a receipt resulting from a sale was the transaction log, or T-log, which was reconciled against the books. Point-of-sale technology was essentially a slightly glorified adding machine.
Thanks to the revolution in point-of-sale technology, the T-log now is an almost complete picture of the transaction, not simply a list of amounts. It now
contains product names and SKUs, sometimes right down to the serial number;
the date, time and method of payment; loyalty card information; which cashier was operating the till; discounts, coupons and
THE PROBLEM WITH SHRINKAGE
vouchers; and much, much more.
Applying analytics against this trove of data can
detect patterns that can indicate a number of possible theft-related behaviours. One retailer in the The average retailer's inventory shrink
U.S. says that thanks to analytics, it can detect a against sales.
Source: The 2016 National Retail Security Survey
high-risk cashier within two hours of his or her taking over the desk.
· Skimming: Possibly the oldest trick in the book,
The estimated cost of retail inventory shrink
it can be as simple as taking money out of the
in 2016, up from $45.2 billion in 2015.
till. In the past, it was a matter of keeping track
Source: The 2016 National Retail Security Survey
of transactions not rung in and pocketing the
corresponding cash. In a more sophisticated PoS
system, a pattern of voids, say every fourth or
The percentage of shrinkage losses
attributed to internal theft.
fifth transaction, is a red flag, along with other
Source: American National Retail Federation
data entry behaviour that opens the till unnecessarily. Cashiers can also skim loyalty points from
purchasers who don't participate in the program;
multiple appearances of the same loyalty number The percentage of shrinkage losses
attributed to shoplifting and organized
or numbers is an easy pattern to detect.
retail crime.
· Sweethearting: Collusion between cashiers and
Source: American National Retail Federation
customers is responsible for a significant amount
of shrinkage. Again, clues are in the T-log: Does a customer only shop with
a particular cashier? Make returns at a particular time of day? Complete online transactions with pickups when the same staffer is manning the desk?
· Above-average numbers of transaction types: Does a cashier handle
more-than-usual numbers of returns or refunds? Do an unusual number of
discounts, coupons, and vouchers go through a particular desk? Is a cashier
frequently entering bar codes or credit card numbers manually?

1.44%

$48.9 billion
30%

36.5%

All should be treated as flags for further investigation. Could the patterns
indicate that a new policy or program isn't completely understood, or that cashiers at a particular store or on a certain shift don't know their way around the
PoS technology as well as others due to lack of training? A loss prevention
analyst is in a unique position to decide whether to refer an issue to physical security-to deepen the investigation with surveillance or "secret shoppers"-or
to human resources for better training.
Outside actors

Our omnichannel universe also opens the door to new vectors for outsiders to
use different techniques to steal from and defraud retailers. While once you had
to physically enter a store to use a fraudulent credit card or to shoplift (which
organized retail crime (ORC) gangs still specialize in), much of the theft and
fraud by outsiders at least begins in the online world.

www.retailcouncil.org/cdnretailer

THE LOSS PREVENTION ISSUE

| CANADIAN RETAILER | 6 3


http://www.retailcouncil.org/cdnretailer

Table of Contents for the Digital Edition of Canadian Retailer - Store 2017

Publisher’s Desk
Retail Currents
Under the Banner
At Issue
Association News
A Family Affair
20 Pairs of Blue Jeans
Riding the Radio Wave
Canada’s Retail Conference Wows Attendees
ERA 2017: The Best of Canadian Retail
Honouring Canadian Retail Greatness
Grand Prix Tracks “Slow Food Fast” and Other Grocery Trends
Longo’s Tradition of Freshness Honoured
Supporting Tomorrow’s Retail Leaders
Restorative Justice: A Proving Ground for Loss Prevention
Preventing Loss Through Data Analytics
Advertisers’ Index
Canadian Retailer - Store 2017 - Intro
Canadian Retailer - Store 2017 - bellyband1
Canadian Retailer - Store 2017 - bellyband2
Canadian Retailer - Store 2017 - cover1
Canadian Retailer - Store 2017 - cover2
Canadian Retailer - Store 2017 - 3
Canadian Retailer - Store 2017 - Publisher’s Desk
Canadian Retailer - Store 2017 - 5
Canadian Retailer - Store 2017 - Retail Currents
Canadian Retailer - Store 2017 - 7
Canadian Retailer - Store 2017 - Under the Banner
Canadian Retailer - Store 2017 - 9
Canadian Retailer - Store 2017 - At Issue
Canadian Retailer - Store 2017 - 11
Canadian Retailer - Store 2017 - Association News
Canadian Retailer - Store 2017 - 13
Canadian Retailer - Store 2017 - 14
Canadian Retailer - Store 2017 - 15
Canadian Retailer - Store 2017 - A Family Affair
Canadian Retailer - Store 2017 - 17
Canadian Retailer - Store 2017 - 18
Canadian Retailer - Store 2017 - 19
Canadian Retailer - Store 2017 - 20
Canadian Retailer - Store 2017 - 21
Canadian Retailer - Store 2017 - 20 Pairs of Blue Jeans
Canadian Retailer - Store 2017 - 23
Canadian Retailer - Store 2017 - 24
Canadian Retailer - Store 2017 - 25
Canadian Retailer - Store 2017 - Riding the Radio Wave
Canadian Retailer - Store 2017 - 27
Canadian Retailer - Store 2017 - 28
Canadian Retailer - Store 2017 - 29
Canadian Retailer - Store 2017 - Canada’s Retail Conference Wows Attendees
Canadian Retailer - Store 2017 - 31
Canadian Retailer - Store 2017 - 32
Canadian Retailer - Store 2017 - 33
Canadian Retailer - Store 2017 - ERA 2017: The Best of Canadian Retail
Canadian Retailer - Store 2017 - 35
Canadian Retailer - Store 2017 - 36
Canadian Retailer - Store 2017 - 37
Canadian Retailer - Store 2017 - 38
Canadian Retailer - Store 2017 - 39
Canadian Retailer - Store 2017 - Honouring Canadian Retail Greatness
Canadian Retailer - Store 2017 - 41
Canadian Retailer - Store 2017 - 42
Canadian Retailer - Store 2017 - 43
Canadian Retailer - Store 2017 - 44
Canadian Retailer - Store 2017 - 45
Canadian Retailer - Store 2017 - 46
Canadian Retailer - Store 2017 - 47
Canadian Retailer - Store 2017 - Grand Prix Tracks “Slow Food Fast” and Other Grocery Trends
Canadian Retailer - Store 2017 - 49
Canadian Retailer - Store 2017 - 50
Canadian Retailer - Store 2017 - 51
Canadian Retailer - Store 2017 - Longo’s Tradition of Freshness Honoured
Canadian Retailer - Store 2017 - 53
Canadian Retailer - Store 2017 - 54
Canadian Retailer - Store 2017 - 55
Canadian Retailer - Store 2017 - Supporting Tomorrow’s Retail Leaders
Canadian Retailer - Store 2017 - 57
Canadian Retailer - Store 2017 - Restorative Justice: A Proving Ground for Loss Prevention
Canadian Retailer - Store 2017 - 59
Canadian Retailer - Store 2017 - 60
Canadian Retailer - Store 2017 - 61
Canadian Retailer - Store 2017 - Preventing Loss Through Data Analytics
Canadian Retailer - Store 2017 - 63
Canadian Retailer - Store 2017 - 64
Canadian Retailer - Store 2017 - 65
Canadian Retailer - Store 2017 - Advertisers’ Index
Canadian Retailer - Store 2017 - cover3
Canadian Retailer - Store 2017 - cover4
Canadian Retailer - Store 2017 - divider1
Canadian Retailer - Store 2017 - divider2
Canadian Retailer - Store 2017 - 69
Canadian Retailer - Store 2017 - 70
Canadian Retailer - Store 2017 - 71
https://www.nxtbook.com/naylor/RETS/RETS0617
https://www.nxtbook.com/naylor/RETS/RETS0517
https://www.nxtbook.com/naylor/RETS/RETS0417
https://www.nxtbook.com/naylor/RETS/RETS0317
https://www.nxtbook.com/naylor/RETS/RETS0217
https://www.nxtbook.com/naylor/RETS/RETS0117
https://www.nxtbook.com/naylor/RETS/RETS0616
https://www.nxtbook.com/naylor/RETS/RETS0516
https://www.nxtbook.com/naylor/RETS/RETS0416
https://www.nxtbook.com/naylor/RETS/RETS0316
https://www.nxtbook.com/naylor/RETS/RETS0216
https://www.nxtbook.com/naylor/RETS/RETS0116
https://www.nxtbook.com/naylor/RETS/RETS0615
https://www.nxtbook.com/naylor/RETS/RETS0515
https://www.nxtbook.com/naylor/RETS/RETS0415
https://www.nxtbook.com/naylor/RETS/RETS0315
https://www.nxtbook.com/naylor/RETS/RETS0215
https://www.nxtbook.com/naylor/RETS/RETS0115
https://www.nxtbook.com/naylor/RETS/RETS0614
https://www.nxtbook.com/naylor/RETS/RETS0514
https://www.nxtbook.com/naylor/RETS/RETS0414
https://www.nxtbook.com/naylor/RETS/RETS0314
https://www.nxtbook.com/naylor/RETS/RETS0214
https://www.nxtbook.com/naylor/RETS/RETS0114
https://www.nxtbook.com/naylor/RETS/RETS0613
https://www.nxtbook.com/naylor/RETS/RETS0513
https://www.nxtbook.com/naylor/RETS/RETS0413
https://www.nxtbook.com/naylor/RETS/RETS0313
https://www.nxtbook.com/naylor/RETS/GrandPrix2012
https://www.nxtbook.com/naylor/RETS/RETS0213
https://www.nxtbook.com/naylor/RETS/RETS0113
https://www.nxtbook.com/nxtbooks/naylor/RETS0612
https://www.nxtbook.com/nxtbooks/naylor/RETS0512
https://www.nxtbook.com/nxtbooks/naylor/RETS0412
https://www.nxtbook.com/nxtbooks/naylor/RETS0312
https://www.nxtbook.com/nxtbooks/naylor/RETS0212
https://www.nxtbook.com/nxtbooks/naylor/RETS0112
https://www.nxtbook.com/nxtbooks/naylor/RETS0611
https://www.nxtbook.com/nxtbooks/naylor/RETS0511
https://www.nxtbook.com/nxtbooks/naylor/RETS0411
https://www.nxtbook.com/nxtbooks/naylor/RETS0311
https://www.nxtbook.com/nxtbooks/naylor/RETS0211
https://www.nxtbook.com/nxtbooks/naylor/RETS0111
https://www.nxtbook.com/nxtbooks/naylor/RETS0610
https://www.nxtbook.com/nxtbooks/naylor/RETS0510
https://www.nxtbook.com/nxtbooks/naylor/RETS0410
https://www.nxtbook.com/nxtbooks/naylor/RETS0310
https://www.nxtbook.com/nxtbooks/naylor/RETS0210
https://www.nxtbook.com/nxtbooks/naylor/RETS0110
https://www.nxtbook.com/nxtbooks/naylor/RETS0309
https://www.nxtbook.com/nxtbooks/naylor/RETS0209
https://www.nxtbookmedia.com