Canadian Retailer - May/June 2009 - (Page 21)

A P U B L I C AT I O N O F S P O N S O R E D BY N E W S L E T T E R | M AY/J U N E 2 0 0 9 FROM THE DIRECTOR'S DESK LP EVENTS LP TRENDS LP COMMITTEE NEWS Memo to fraudsters: We’ve got your number PA G E 2 2 LP calendar of events PA G E 2 2 Anarchists and artists in aisle 6 PA G E 2 4 RCC announces new LP certification program PA G E 2 6 When times are tough As the economy gets worse, more people steal — at least, that’s how some retailers view store security during a recession. But the true LP picture during a recession may not be that black and white. By Mitchell Brown mid headlines of rising unemployment and a crisis of confidence in the global financial system, Canadian retailers can’t be faulted for feeling a little uneasy about how the economic climate is affecting their bottom line. Those who want to stay in the game have reacted to the recession in numerous ways: a stronger focus on customer service, rooting out inefficiencies in the supply chain, and a greater emphasis on monitoring sales performance are just some of the tactics that retailers are adopting. But should a retailer’s recession survival checklist include allocating more money and resources for loss prevention staff and equipment? A snap assessment of the LP landscape might lead to the assumption that the biggest challenge your LP team will face is that people are more likely to steal goods as their circumstances become more desperate. But is that truly the case in Canada, and should retailers here simply expect to contend with an onslaught of shoplifters if times get worse? Randy Nelson doesn’t necessarily think so.The president of Pro Active Measures, a retail LP consulting firm in Mississauga, Ont., notes that demand for his type of services will never go out of style. But his own experiences in retail LP, as well as conversations he’s had with those still in the field, lead him to believe it’s unlikely that theft rates here will skyrocket in the coming months — at least, not in the way that some people may believe. A © I S TO C K P H OTO.C O M “I don’t think there are any statistics to support it one way or the other,” he said. “Everybody is on guard, anticipating there could be an increase, but at this point I haven’t heard anything from my colleagues suggesting that’s the case. Of course, it’s still early yet.” The idea that retail theft is about to skyrocket in Canada is fueled, he suggests, by media reports in the U.S. and Britain about dramatic increases in shoplifting activity in those countries, particularly in U.S. cities hit hard by the mortgage industry crisis. Industry numbers also appear to back up the notion that U.S. theft rates are on the rise: in April 2008, in the early days of the recession, a survey of retail executives by the U.S. National Retail Federation found 74 per cent agreed they had seen an increase in shoplifting and 79 per cent said they saw a rise in employee theft. Meanwhile, over in Great Britain, the Centre for Retail Research in Nottingham estimates a five to nine per cent increase in retail crime occurred over the 2008 holiday season, with grocers and apparel retailers taking the biggest hits. “We have just finished some research for a client about retailers in the credit crunch and found that 40 per cent of retailers in the U.K., France, Italy and Germany felt that shoplifting had risen since the credit crunch started,” says Joshua Bamfield, the centre’s director and lead researcher for the Global Retail Theft Barometer. continued on 23 | M AY/J U N E 2 0 0 9 | C A N A D I A N R E TA I L E R | 2 1

Table of Contents for the Digital Edition of Canadian Retailer - May/June 2009

Canadian Retailer - May/June 2009
Publisher's Desk
Shop Talk
Come Together
Where Green Never Goes Out of Style
Practising What They Preach
When Times are Tough
How the West was Wowed
In Pursuit of a Well-Dressed West
Sporting a Bold New Look
Bigger and Better
Back to the Future
Revved for Success
The Questions Retailers Ask
Signs of the Times
Advertisers' Index
You Asked Us

Canadian Retailer - May/June 2009