solutions for fitting room theft · web viewa survey of 12 mcas has identified problem areas that...

Jessica DuttonOctober 31, 2011

DATE: 11 October 2011

TO: Angela Fleming, Sears Store Manager 5111 Rogers Ave.

Fort Smith, AR 72903

FROM: Jessica Dutton, MCA (Merchandise and Customer Assistance)

RE: Fitting Room Theft

Project SummaryA survey shows employee-related issues may be a cause of theft in the fitting rooms (Dutton Survey). In my proposal, I am providing a number of solutions that may aid in minimizing the cost related to theft.

Introduction

A survey of 12 MCAs has identified problem areas that cause security issues in the fitting rooms. Shoplifters steal on average $100.00 per visit (NASP). Per day a department store can lose up to $2000 (Division of State Police). Without security precautions, the amount of loss related to shoplifting can severely damage the company’s profit margin. The following three solutions will help to alleviate these issues

First Solution- Managerial Supervision

Better managerial supervision will assist in monitoring if MCAs are doing their job and cleaning out fitting rooms regularly. Without proper supervision fitting rooms can become congested with clothing which creates an atmosphere prime for theft.

Second Solution- Install Security Cameras

Installing visible cameras outside of the fitting rooms will cause some shoplifters to reconsider stealing merchandise. Even imitation cameras would be enough to deter many shoplifters. Most shoplifters do not wish to be caught. Therefore, security cameras will be a deterrent to many shoplifters.

Third Solution- Fitting Room Assistant

Hiring a fitting room attendant would ensure that customers are entering and leaving with the same number of items. To save money the company could reclassify an MCA as a fitting room assistant. A fitting room assistant would also help to keep the fitting rooms neater, which would satisfy many customers.

Conclusion

Any of these solutions, or a combination thereof, would be a good deterrence to theft. Cutting back on theft will increase the company’s net profit by 10% and provide better financial statements to provide to the company’s shareholders (2010 Annual Report). I will be happy to discuss this proposal with you at your convenience. I am also open to any other suggestions you may have.


Jessica Dutton, MCA

Sears Roebuck and Co.

10/29/2011

2011Solutions for Fitting Room Theft


Table of ContentsPages

Executive Summary....................................................................................................................1

Introduction.................................................................................................................................2

Recommendations....................................................................................................................2-5

Solution 1: Fitting Room Assistants...............................................................................2

Description............................................................................................................2

Pros........................................................................................................................2

Cons.......................................................................................................................3

Solution 2: Managerial Supervision...............................................................................3 Description.............................................................................................................3

Pros.........................................................................................................................3

Cons........................................................................................................................4

Solution 3: Install Security Cameras.............................................................................4

Description.............................................................................................................4

Pros.........................................................................................................................4

Cons........................................................................................................................5

Conclusion...................................................................................................................................5 List of Annotated References.............................................................................................……8

Appendix....................................................................................................................................10


Executive SummaryTheft is a problem that every store has to contend with. Each company must determine

the best way for their company to deal with theft and find solutions that work for them.

Companies must perform an analysis of their company to determine what actions they need to

take.

The majority of theft at Sears occurs in the fitting rooms. The following three solutions

can be used to prevent theft. This first solution deals with managerial supervision. It is the job of

MCAs to clean out the fitting rooms at least once an hour. However, due to the lack of

supervision, many of the MCAs check the fitting rooms rarely. Although managers are busy,

they should take the time to see if their employees are performing their jobs proficiently. Since

there is always a manager scheduled, there would be no additional cost.

Another solution is to install security cameras. Regardless of whether or not the cameras

work, they would be a great deterrent to many shoplifters. Working security cameras would be a

better preventative measure, but due to cost considerations, non-working cameras would also be

acceptable. The cost versus the profit of this solution will depend on the type of security cameras

used. It would also be possible to use a mixture of imitation and genuine cameras, with the

genuine cameras being used in the highest risk area.

The most promising solution, due to the increase profit versus the cost, involves using

assets already in possession. Reclassifying current employees as fitting room assistants, or hiring

new employees, will guarantee that someone is always watching the fitting rooms. They could be

responsible for counting the items each customer brings in and leaves with. Not only would this

ensure that customers maintain the same item count, but it would also help to keep the fitting

1


rooms neat. The costs associated with this option are fairly minimal. The solutions presented in

this paper will cut down loss due to theft and increase net profit.

IntroductionIn Sears stores combined, shoplifting losses amount to $10 million. Our Sears store has

about $720,000 losses per year (2010 Annual Report). Therefore, it is imperative that actions be

taken to reduce the stores losses. The following recommendations will help to relieve a

significant amount of losses. Many shoplifters steal because they know they can get away with it

(NASP). Currently, it is fairly easy for them to do so considering the lack of preventive measures

in place. The following recommendations will provide options to reduce shoplifting losses.

RecommandationsSolution 1 – Managerial Supervision

Description:

MCAs’ job responsibilities include cleaning out the fitting rooms at regular intervals.

However, many times the fitting rooms are only checked once or twice per shift. When fitting

rooms are full of articles of clothing, it is easier for shoplifters to steal without loss prevention

being able to identify what they have stolen. Therefore, if managerial supervision were

increased, the MCAs could be made to check the fitting rooms every hour.

Pros:If managers can keep MCAs doing their jobs timely and correctly, then it will be easier to

catch shoplifters in the act. Customer satisfaction will also improve due to cleaner fitting rooms.

As a result of there always being a manager scheduled, there would be no cost increase. Fitting

2


room schedules could be posted in each fitting room requiring initials for each hour. They could

be collected at the end of the week to check which MCAs did not assist in cleaning out the fitting

rooms.

Cons:Managers often have tasks to complete that keep them from consistently supervising

employees. If the manager is busy elsewhere and cannot come to the floor, then the employees

will slack off unless there is a consequence related to their actions. An MCA can also check the

fitting rooms after multiple hours and just fill in the previous hours as if they had checked it. So,

although there are no cost increases, this solution depends on the manager’s ability to supervise

regularly.

Solution 2 – Install Security

Cameras

Description:

Currently shoplifters feel safe stealing items from the dressing rooms because there is

little chance of them being caught. Depending on the day of the week, Sears can lose on average

$2,000 (Division of State Police) per day from shoplifters. Installing visible security cameras

will make most shoplifters reconsider whether or not they want to steal from Sears. Flyers can

also be posted in the fitting rooms to alert customers that the store is protected by security

cameras.

Pros:Installing visible cameras will inform possible shoplifters that they may be being

watched. Sometimes that is enough to change their mind. Security cameras are a great way to

keep watch on the fitting rooms. As Sears already employs loss prevention staff, there would be

3


no need to hire new employees to observe the cameras. However, imitation cameras can be

installed with close to the same results. Many department stores already use imitation security

cameras. Customers believe they are being watched and are less likely to commit a crime. Since

running multiple surveillance cameras can get costly, imitation cameras can be used along with

genuine cameras to keep customers from shoplifting.

Cons:Installing security cameras is the most expensive recommendation. Not only will the store have

to purchase the equipment, but there is also the additional cost of wiring the security camera to

the loss prevention room. Also, seeing as its illegal to use cameras inside of the fitting rooms, the

store will have to rely on the loss prevention staff recognizing signs of thievery.

Solution 3 - Fitting Room Assistants

Description:

Many department stores hire fitting room attendants to assist customers with their fitting

room needs. These employees are responsible for counting the number of items each customer

has and ensuring that they leave with the same number of articles.

Pros:This solution will cut down on theft in the fitting rooms by a large percentage (2010

Annual Report). Requiring customers to account for the items brought into the fitting rooms will

also help leave the fitting rooms clean for the next customer. The fitting room assistant does not

need to be hired on as a new employee; current MCAs can take turns filling in as the fitting room

Imitation Security Camera“Hughes Security”Cost: $14.95

Real Security Camera“Super Circuits”Cost: $249.99

4

http://www.supercircuits.com/Security-Cameras/Network-IP-Security-Cameras/BLK-IPD101


assistant. Since Sears pays its employees minimum wage, it would not matter if a current

employee or a newly hired employee is used. Paying $7.25 per hour is very efficient considering

the amount the store is currently losing due to theft. A side benefit to fitting room assistants

involves honest customers. Customers have a positive reaction to having an employee close for

any of their needs. Their satisfaction will increase causing sales to also increase. Unlike

installing security cameras, fitting room assistants would be inside the fitting room area.

Therefore, they will be able to listen for suspicious sounds such as: the tearing of tags, the

rustling of bags, and spending an exceptionally long time in the fitting room.

Cons: This Sears has 6 fitting rooms in different areas of the store. Even though employees are

only paid minimum wage, the cost involved with having an employee at each fitting room is

steep. Providing an assistant in the largest and most used fitting room will cause shoplifters to

use the other less used fitting rooms. However, if assistants are used during the busiest time,

shoplifting should be reduced.

ConclusionBased on the cost versus profit of the three solutions, creating fitting room assistants is

the best alternative. The cost is negligible and the profit is very high. With fitting room

attendants, shoplifters will not be able to steal easily within the fitting rooms. Security cameras

are the next best solution. Although shoplifters enjoy the thrill of stealing, they do not wish to be

caught. They will avoid stores that have preventive measures in place. Increased managerial

supervision will be successful by ensuring that shoplifters cannot hide evidence of their theft

under messy fitting rooms. Using one of these solutions will be effective; however, using a

mixture of these solutions would be the best possible choice.

5


Installing Security Cameras

Pros ConsGood deterrent to most shoplifters High Cost of implementationCan install imitation cameras at drastically lower amount then real ones

It’s illegal to use security cameras inside fitting rooms

No additional staff need to be hired

0

2

4

6

Cost Profit Compairson for So-lutions

CostProfit

By: Jes-sica

Dutton

Managerial Supervision

Pros ConsNo Additional Cost Managers aren’t always available

Customer satisfaction increases due to cleanerfitting rooms

Employees can go put down their initials without cleaning the fitting rooms

Easy to check who is doing their job via Fitting Room Schedules

Fitting Room Attendants

6

7


Pros ConsLow Cost Cost go up if all fitting rooms have attendants

Internal Supervision

No additional hiring necessary

Higher Customer Satisfaction

List of Annotated References

8


Dutton, Jessica. “Workplace Issues.” Survey. 7 Oct. 2011.

This survey demonstrates the issues related to theft from the fitting rooms. It highlights

when the employee is working, and how often they run into problems with shoplifters.

This survey was used to demonstrate that there is a problem with the shoplifters.

National Learning & Resource Center (NASP). “Shoplifting Statistics.” n.d. 20 Oct.

2011.

This website list statistics related to shoplifting. The article is beneficial for anybody who

is trying to get statistics about various shoplifting facts. It not only show facts related to

the money lost, but also shows who is most likely to shoplift. I used this article to

determine how much a business may lose daily due to shoplifting.

Division of State Police. “Crime Prevention: Shoplifting.” n.d. 20 Oct. 2011

In this website article, the state police have showed preventive measures for shoplifting.

It gives some statistics on who shoplifts and how much. This is a good article because it

is from a legitimate source that has experience with shoplifters. I used this article to gain

extra facts to reinforce my recommendations.

Sears Holding Corporation. “2010 Annual Report.” n.d. 23 Oct. 2011.

The financial statements list all of their financials for the year. The financials allowed me

to calculate the amount of losses Sears has due to shoplifting. This is a good source

because of the restrictions the Financial Accounting Standard Board puts on financials to

ensure that they are reliable.

Hughes Security Solutions. “Fake Security Cameras.” n.d. 20 Oct. 2011

9


I used this source to demonstrate the price difference between a real security camera and

a fake security camera. This source is a good source because they actually sell the

cameras.

Super Circuits. “Security Cameras.” n.d. 20 Oct. 2011

This source was used in comparison to the Hughes Security Solution fake security

camera. This purpose was to show how much more an actual security camera cost versus

a fake one.

Appendix

10


Survey

Workplace Issues

1) What time of day do you typically work?

a) Morning b) Afternoon c) Night

2) How often do you check the fitting rooms?

a) Less than 1 hr. b) 1 hr. c) 2-4 hours d) Longer than 4 hours

3) How often do you see a manager on the floor?

a) Once per hour b) Once every 4 hoursc) Once per shift d) Other: ______________________________

4) How often do you find evidence of stolen merchandise in the fitting rooms?

a) At least once per shiftb) Twice per weekc) Three times per weekd) Other: ____________________________

5) What do you think is the biggest problem?

a) Fitting Room Theftb) Lack of manager supervisionc) Employees not completing their own workd) None of the above

Proposal 10/10 points Everything is clearly explained.


Cover page 2/2 points For whom? Like the colors.

Table of Contents 2/2 points

Executive Summary 10/10 points Well-written

Report 19/20 points Everything was great! I liked the little photos. Just work on taking out contractions because they lower the professional tone.

Annotated Sources 5/5 points Wow!

Appendix 1/1 point You could also put the tables you made into this section.

_______________________________________________________________________________________________________

Total 49/50 points = 98% = A+ Highest grade! Of course, you get a prize…

This whole report looks amazing, Jessica—very professional and love the shades of green. Can I use this for a future

sample proposal project? You have really raised the bar!

solutions for fitting room theft · web viewa survey of 12 mcas has identified problem areas that...

Documents