Safeguarding your DIY and Hardware Business from the Rising Threat of Theft

DIY and hardware stores have been particularly hit hard by the increase in retail theft and these small businesses, selling higher value items such as power tools and garden products, will continue to experience losses without reviewing their theft proofing measures.

Retail theft is fuelled by poverty and as the cost of living takes hold and shoplifting from the high street increases, theft proofing your independent business has never been more important. There’s no way to keep your business 100% theft-free, but there are plenty of measures you can take now to reduce your risk as much as possible. Pre-emptive crime prevention is key.

Know your stock

Stock is a sizeable investment for a small business with limited revenue to cover the cost of theft and inventory shrinkage and losing stock without payment is painful.

· Regular stock control not only keeps track of inventory, including deliveries, but will make it easy for you to detect missing stock (shrinkage) and identify where increased security measures should be allocated, protecting higher theft risk items.

· If you sell high-value power tools or garden equipment products, attaching items to display shelves, with merchandising security such as power tool recoilers, chains and cords, is a great way to allow consumers to pick up and test your products while keeping them tethered. A recoiler can be used to protect almost any product against theft, such as power drills, grinders and sanders.

· Display locks keep items secure, preventing people from taking products displayed on peg hooks.

·  Smaller and expensive items should be stored in locked glass cases.

· Employees can be the first line of defence and by keeping them informed of the most theft attractive items they are more likely to recognise the act of stealing as it happens and help prevent it happening.

It’s important to train staff, should they see a customer potentially stealing an item they should alert a manager, never putting themselves in danger by trying to apprehend the thief, its best to leave that to the professionals. (It’s wise to keep documented evidence of this training in the event of an Employers Liability claim)

· Keeping your shop tidy, positioning items towards the front of shelving makes it more conspicuous if thieves are trying to steal. When replenishing stock ensure it is situated away from entrance doors, reducing the risk of “grab and run.”

· Implement a strict and consistent returns policy, retail theft isn’t always people walking out with items they have not paid for, return fraud is widespread as well. The best way to prove a legitimate sale versus theft is receipts.

Eyes in store/store layout

· Don’t skimp with staffing levels, a well-staffed high street business, with employees visible, is less likely to have issues with theft. With more eyes on the stock, there will be fewer ‘dead zones’ where theft can take place.

· Encourage employees to walk around the store, down aisles, and round corners, remembering not to leave the cash till unattended or unlocked.

· Greeting and engaging with all customers, is not only important for customer service but also sends a strong vigilant message to criminals who are put off when their anonymity is blown. Simply having a member of your team asking, “can I help you?” can deter a potential shoplifter without sounding rude or accusatory.

· Install and maintain adequate lighting to provide visibility, throughout your DIY or Hardware business.

· The interior layout of your independent business can affect how easy it is to shoplift, consider displaying your more expensive items in a specific area, making sure it is monitored by security cameras, mirrors and allocate specific staff to monitor the area

· Locating the attended till point near the entrance of your shop requires customers to pass a member of staff before exiting, increasing the likelihood of being spotted with unpaid for items. Never leave a till unattended, snatching money from the till is an easy way for a thief to steal without taking physical stock. If possible, impose a limit to the amount of cash held in your till and ensure excess cash is securely stored, ideally in a safe. End of day cashing up should be completed out of sight of prying eyes & limiting temptation. A back room with a lockable door is perfect, preferably where the safe is located, making sure safe keys are removed from the premises overnight. A complete record of money should be kept in a secure place, not the safe or strong room.

· With money in transit, you must ensure it is accompanied by more than one able bodied adult if the value of the money exceeds the amount detailed in your policy documents. If the value of the money exceeds a certain amount (detailed by your insurer) you must entrust your money in transit to a professional security company.

· Use signage to deter thieves, let them know they know they are being watched and what the consequences of theft will be. Effective deterrents, with the purpose to scare thieves, not intimidate genuine customers.

Thieves act and look different from welcomed shoppers and there are some common habits and traits you can look out for.

Nervous behaviour /acting suspicious(looking around, fast walking)

Returning to your shop several times throughout the day

Hanging around in areas that have lower visibility or not covered by mirrors/CCTV

Aimlessly walking around

Avoiding eye contact

Looks at the staff instead of the products

Wearing a coat on a warm day ready to conceal items or pushing an empty pram/buggy

Carrying multiple or large shopping bags to easily slip items into

People entering your premises in pairs, one distracts while the other steals.

Not all theft is non-payment of items, the ‘ tag switch’ comes into play when planning to purchase an item at a lower price than original marked

Alarms, mirrors and/or CCTV

· Alarms and CCTV and mirrors not only provide valuable protection to your business but also evidence when following up on a crime.

· If staff’s instore visibility is reduced or totally obscured, place mirrors and/or surveillance cameras to provide more visibility, mirrors can help make it harder for dark corners to turn invisible.

·  It’s easy to miss a potential shoplifter if you are busy with a customer or in the middle of a stock check. A chime from a doorbell will provide the bit of extra help in bringing your attention, you’ll be the first to know every time a customer enters and exits your shop. While the chimes won’t alert you of stock slipped into their bag, the awareness is often enough to deter a shoplifter from striking.

· If customers, deliveries and staff come and go from more than one door, installing doorbells at each entry point will alertand keep track of every door, reducing the opportunity of the wrong person getting in the back of your small business.

Don’t forget the outside

· Ensure all waste bins and boxes are stored away from the building and windows, removing the opportunity for thieves to access your premises via windows, sky lights and doors and taking away good hiding places!

· During the times when your premises are unmanned, visible security systems, such as alarms and CCTV, located on the outside of you shop will act as a visual deterrent.

Fox in the hen house

Not all retail theft happens from customers visiting your high street business, at times it is an inside job, by employees.

Independent businesses tend to have very good employees who are invested in the company and have a high level of integrity, but every now and again a bad egg is hired. By having a robust hiring process, you can minimise this risk.

· Thorough pre-employment checks from previous employers or lecturers and maintaining up to date records will minimise the risk of hiring a “fox in the henhouse.”

· A condition for many insurers is that references are obtained and retained to ensure you are covered under  'Theft by Employee’.

· Recommendations from friends or other business owners are a great way of hiring trustworthy staff.

· Regular staff appraisals and in store training on security help build employee loyalty and retention.

Strength in numbers

By talking with neighbouring high street business owners, you can share ideas on preventing crime or flag a particular group or a specific individual targeting the high street community. This sharing of intel will ensure local businesses are prepared and vigilant, independent businesses working together are stronger together.

What to do if you are the victim of theft?

Being a victim of theft and having to make a claim is never a nice experience and we at Expression are here when you need us, by following the below tips we hope that if unthinkable happens it can be processed quickly getting you back on your feet and back to business.

Safely do what’s possible to prevent more loss/damage to goods or property.

Notify the police as soon as possible if the property has been damaged or items stolen, not doing so may result in a claim being rejected. A crime number will be provided by the police for you to pass onto your insurance provider.

Providing documents showing evidence of goods purchased, (receipts) and accurate administration, including regular stock taking, is an important part of the claim process. Having these documents at your fingertips will save you time, electronic copies for yourself and a trusted party will ensure these are available quickly and if required accessible in your absence.

Taking photos of a claim will provide clear details, saving valuable time coupled with accurate recall of the event even if you need to refer to it at a later date. Mobile phone or camera, whatever works best for you.

Make notes of time, dates and witnesses, provide as much detail as possible.

Review your policy details, including excesses and exclusions, have this to hand and refer to while speaking with your claims team.

Keep damaged items until you have been notified you can dispose of them safely; your insurer may wish to examine and if required repair.

Contact your insurer as soon as possible to start the claims process either online or using the claims telephone number listed on your policy documents. They will require your personal details, policy number any details relating to the claim, crime number and supporting evidence (photos or damage reports).

Important note – Safety always comes first, do not enter the premises if criminals might still be on the scene, be careful of broken glass etc. Documenting evidence is helpful but not if it’s putting anyone at risk

It’s at this point the Expression Insurance claims team will take the strain, working with you to get your business back to normal as soon as possible, after all that’s what you are paying for!

A final word

It is never nice thinking about bad things that “could” happen to your business but by theft proofing your DIY or Hardware shop will create a safer high street business, which is less vulnerable to theft, giving you back control, saving time and money after all as the saying goes prevention is better than cure.

If you want to find out more about how Expression supports independent business owners who love their business visit www.expressioninsurance.co.uk