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Taking the Emotion Out of Loss Prevention

Reacting to what’s in front of you at the moment will not get the job done. It has led us to where we are now. This may seem like a blunt way to start my letter, but hear me out.

When I started working in LP as a store detective in 1992, organized retail crime existed. In speaking with folks who pre-dated my entry into the field, ORC was around long before that. There have always been groups who have exploited retail. Whether it was refund scams, gift card fraud, grab-and-runs, boosters, check fraud, or counterfeit cash, there were groups who engaged in systematic and organized efforts to rip retailers off. These groups worked nationwide and were mailing goods internationally as well. They may not have used an online marketplace as a fence, but they sure did have plenty of other places to sell their stolen stuff.

So, these ugly seeds of ORC have been growing and growing. Retailers made efforts but failed to keep up with the changing methods and ploys, especially as the ORC groups figured out how lucrative their avocation was. Then, the age of Facebook and Craigslist hit, and things went into hyperdrive. This is not to say retailers have done anything wrong; they did their best with the available resources. They have been left standing like the little boy holding his finger against the hole in the dam.

- Digital Partner -

We reacted to what was in front of us. We caught them when we could, we filed police reports, and we even formed loose alliances with other retailers. It felt good—like we were doing something. But we weren’t really turning the tide. We were responding with emotion to a complicated problem.

We have learned a thing or two over the years, and it’s a relief to see we are now using the analytical portion of our LP brains to solve this ORC problem and other retail problems as well. It feels like the dam may be holding up, possibly even strengthening.

I’m heartened to see that so much is changing so rapidly and moving in the right direction. The research happening at the LPRC, with the full support of retailers, is mind-blowing. They are using cold, hard facts instead of relying on gut instincts like we did in the past. Just because something feels right doesn’t mean it is right. Research and benchmarking are moving our industry forward. Instead of looking at other retailers like a bevy of competitors, we’re looking at each other like collaborators. In addition to the LPRC, associations such as the NRF, RILA, FMI, ISCPO, and NACS have robust and growing working groups where LP professionals can talk off the record about what’s working and what’s not. There are ORCAs serving almost every state in the union.

Concerted efforts to pass legislation are paying off. Partnerships with law enforcement are getting more robust, and communication lines, once mediocre, are some of the best examples of striving toward the same goal you’ll find.

Our solution partners are getting in on the act as well, with ecosystems never heard of in the past. They are engaged in conversations with retailers that will pay dividends in the future as technology and services continue to evolve. This is not due to instincts, but to A-B testing and truly examining the numbers and results. Solution partners want to make smart investments, too.

LP Solutions

Even though it took us a while to realize we needed to stop, analyze, and change our game plan, we are finally getting there. Sometimes, the wheels of progress move slowly—we just needed a little less muscle and a little more strategic grease on the gears.

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