|
Shoplifting of Tobacco:
What Retailers Can Do to Prevent It
The problemShoplifters account for at least 30 percent of inventory
shrinkage. Cigarettes and smokeless tobacco (chew) are primary targets for shoplifting
because they are easy to steal and can easily be re-sold. One drug store manager suggested
that half of the cigarette packs leaving his store were stolen. Police officers are
noticing a rise in tobacco shoplifting perhaps due to the decrease in availability of
tobacco to minors from sales. Difficulty in obtaining tobacco from vending machines and
increased retailer awareness of the risk of selling to underage customers may move some
youths to steal tobacco products.
Why should retailers, parents and community members be concerned?
Most adults who smoke or chew tobacco generally start before the age of 14 and soon
become addicted. Once addicted, they find it difficult to quit. The evidence that tobacco
use is a major health risk is indisputable. For these reasons, both retailers, parents and
community members should be alarmed by the problem of tobacco shoplifting by youth.
Not only is tobacco deadly, it is a "gateway" drug. Its use can lead to
illicit drug use. Documented patterns of abuse show movement from tobacco to marijuana,
and then on to hallucinogens and cocaine. Beyond the health aspects, there is the problem
of shoplifting itself. The regular shoplifter is a delinquent, and juvenile delinquents
often become adult offenders. Thus, shoplifting may lead to even more serious criminal
activities.
Is tobacco shoplifting a new problem?
Professional shoplifters have been taking retailers to the cleaners since excise taxes
were imposed on cigarettes. The shoplifters that we are most concerned with, however, are
minors. In general, youthful shoplifters use their loot for their own personal pleasure.
In other words, the youthful shoplifter uses his or her stolen tobacco. The typical young
tobacco shoplifter cannot be precisely defined, but it seems that there is a greater
tendency for boys to shoplift cigarettes than for girls to commit such offenses.
Traditional methods of shop security: do they work?
Stores that sell tobacco often attempt to foil shoplifters with convex mirrors and
magnetic security tags. The distortion created by convex mirrors renders them useless.
They just don't provide the clarity necessary to protect small goods from even the most
inexperienced of shoplifters. The popular supermarket magnetic tags, disguised as UPC
labels or sale stickers, are ineffective for cigarette packs, since some systems cannot be
used on foil packaging, and all types can be removed by simply stripping off the
cellophane outer wrapper on cigarette packages.
What is "slotting" and how does it contribute to the problem?
Slotting is the common corporate practice of paying retailers for prominent shelf space
for products. Tobacco companies vie for shelf space conducive to impulse buying. The racks
used are also invitations to shoplift. Tobacco companies strongly encourage the use of
unimposing self-service wire racks by paying monthly fees which appear to range upwards
from $40 per month per rack. In grocery stores and low profit-margin businesses, slotting
bonuses could be a substantial contribution to the profit picture. The fees can even
inspire a retailer to place a half dozen cigarette displays on the counter. The location
of cigarettes, due to slotting incentives, makes them easily accessible targets for
shoplifters. In fact, one retailer reported that a tobacco company paid him a total of
$10,000 for a cigarette display which he believes cost him more than $10,000 in
shoplifting losses.
What are some ways of combating tobacco shoplifting?
Self-service racks provide ample opportunities for shoplifters to make off with
cigarettes and smokeless tobacco. Open displays and self-service merchandising of these
tobacco products makes shoplifting much easier and therefore more accessible and enticing
to minors. If the clerk turns away for only a few seconds, several packs or cartons of
cigarettes or containers of smokeless tobacco can walk out the door without payment. The
only practical solutions are to either move the tobacco products behind the counter or, in
large stores, to put them in locked cases. The tobacco could be kept behind the clerk at
the check-out counter or, in large stores, behind a courtesy/customer service counter in
the front of the store. The tobacco products should be behind the clerk to keep them as
far away from shoplifters' hands as possible.
Overhead racks, especially in smaller outlets such as convenience stores, also are a
feasible method of shelving cigarettes. It is important, however, to be aware of how the
dispensing mechanism works. Many of these racks make it quite simple to reach up from the
wrong side of the counter and take packs. The overhead style of rack should have a guard
installed underneath the rack to combat this problem. A narrow board will be enough to
deter the amateur shoplifter.
The clerks behind the counter should be friendly, attentive, and properly attired.
Attentive and neat-looking clerks frighten off the casual shoplifter. Care should be
taken, however, not to hire intimidating clerks since this may drive off honest customers.
Flat wall mirrors, which cause little or no distortion, should be installed. They give a
full view of the shop and enable the viewer to see shoplifters pocketing small items.
Video cameras are useful for larger stores. Since real video surveillance cameras are
expensive, facsimiles may be used. The decoy cameras, however, must be identical in
appearance to real cameras in order to deter shoplifters.
Retailers who have eliminated self-service tobacco merchandising have received
considerable assistance from their wholesalers in devising cost-efficient solutions.
Wholesalers often have specialized expertise in space allocation and store design which
can be utilized by retailers in eliminating self-service racks and displays of tobacco
products and putting these products behind the counter or in locked cases.
In addition, care should be taken to avoid purchasing stolen tobacco. The professional
shoplifter sells cartons for lower than normal prices. Supposed sub-jobbers or middlemen
should be required to show their licenses before a purchase is transacted. A unique
indelible stamp that the retailer places can make certain that stolen cartons may be
easily identified as stolen and identify the origin of the theft. Retailers should be
aware that it is a crime to purchase stolen goods and that they risk losing their licenses
(permits in Texas). The elimination of a market for professionally stolen cigarettes means
that shoplifting rates may decrease.
The solution in summary
- Remove self-service open racks and displays of tobacco products
- Only sell tobacco from behind the checkout counter, from customer service/courtesy
counter, or from locked cases
- Use overhead racks, if possible, to shelve tobacco products
- Utilize the space allocation and store design expertise of your wholesaler
- Increase public awareness of tobacco shoplifting problem
For more information, contact:
STAMP
North Bay Health Resources Center
44 Maria Drive, Suite 837
Petuluma, CA 94954
|
