'Shrinkage' rap

It's the most wonderful time of year -- for thieves, as well as holiday revelers.

With the economy down and jobs scarce, shoplifting is on the rise.

Last year, losses from shoplifters accounted for $12.9 billion, a rise of nearly $1 billion from 2007, according to Joseph LaRocca, senior adviser for asset protection for the National Retail Federation.

In North Charleston, the state's No. 1 retail sales destination, shoplifting arrests for Jan. 1-Nov. 30 were up about 5.4 percent to 1,128 bookings, said Spencer Pryor, public information officer for the city's police department.

And this time of year, thieves are even more on the prowl.

"Anytime you have more shoppers in the store, you have more shoplifters," LaRocca said. "Shoplifting is a major issue for the retail industry. A number of people shoplift during the holidays for their personal use, and we also see professional organized rings steal merchandise to resell back to consumers through pawn shops, online auction sites or street-corner sales."

Shoplifters are savvy. They use wire cutters to remove control tags from clothes. They stuff items in bags from other stores. Sometimes they work together, distracting store employees or intentionally setting off exit-door alarms while their accomplices walk off with the ill-gotten goods.

"Unfortunately, there are a number of ways to remove merchandise without the alarms going off," LaRocca said.

Of course, not all losses come from outside.

The National Retail Federation reported earlier this year that nearly half of merchandisers' losses come from inside the store through employee theft.

"Employee theft is as much as a problem in the retail sector as any other industry," LaRocca said. "We have a small number of employees who see an opportunity and make a bad decision. When identified, we investigate and treat those people as criminals. They are prosecuted and fired from their jobs."

Other losses for retailers, altogether called shrinkage in retail circles, come from administrative errors, such as cashiers not ringing up merchandise correctly, or from vendor fraud.

Loss leader

All told, retail losses from shrinkage in 2008 totaled $36.3 billion, up nearly $2 billion from 2007. Half of the increase is from shoplifting. Statistics won't be available for 2009 until next year, but LaRocca said retailers are reporting shoplifting activity consistent with 2008. "Those numbers are not going to come down," he said.

"Unfortunately, only a small percentage of (stolen) products are recovered each year," he added. "Most shoplifting cases aren't detected until long after the fact, when retailers do inventory and report shrinkage."

In some cases, especially among smaller merchants, store owners are reluctant to prosecute because the time they have to spend on those cases ends up costing them more than the value of the pilfered merchandise.

Merchandise theft not only costs retailers, who often aren't insured for the losses, it also costs consumers, who end up paying 1.5 cents more on every dollar they spend to offset the cost of theft.

"Criminals end up getting free merchandise and not paying into the general tax fund," he said.

LeRocca urges retailers to be even more vigilant during bad economic times.

The No. 1 defense for shopkeepers is to have well-staffed stores, he said. It might prevent a theft and produce a sale as well.

"Either way, the retailer wins," LaRocca said.

Besides interacting with customers in the store, retailers can prevent shoplifting by not putting targeted items in the back of the store, where they are not easily visible to shopkeepers.

"If you set up an environment that sets up opportunity, they are more likely to steal," he said.

Shoplifters also fit no particular profile.

"You are looking for behavior," LaRocca said.

Inappropriate attire such as no jacket in cold weather or a huge overcoat in balmy conditions should send warning signals. Someone gathering merchandise and going to the back of the store and coming back empty-handed also should set off alarms. Someone taking note of all the security equipment or trying to avoid any assistance are other instances when more customer interaction or surveillance is necessary.

Preventive measures

The pilfering is not restricted to malls or big-box merchants such as Walmart, according to Master Patrol Officer Brian West, North Charleston's crime-prevention officer.

"It's every single store in the entire city," West said. "When times are tight, people are going to do what they have to do to get by. I don't want to blame everything on the economy, but if I don't have the money in my pocket to buy something for somebody, my next thing is to take it."

Shoplifters come in three basic categories, West said.

Professional thieves usually are in and out before retailers know something is gone. Thrill-seekers, or kleptomaniacs, steal just for the joy of doing it. And then there are the juveniles, who do it just for kicks.

Like LaRocca, West said a focus on customer service is the No. 1 shoplifting deterrent.

"If a shoplifter sees store employees all over the customers, they will go somewhere else," West said.

To further prevent theft, he suggests merchants lower their racks and unclutter their windows or put up signs warning that they will prosecute shoplifters.

"It's all about the people inside the store being aware of what is going on inside the store," West said.

Most major retailers shy away from talking about their security measures, but it's a fair bet someone somewhere is monitoring the aisles.

"We have systems in place to handle the increased volume during the holidays," said Citadel and Northwoods malls marketing director Leigh Burnett. "We work closely with the police departments, but we can't talk specifically about our efforts so that we won't compromise them."

Locally owned merchants such as Wonder Works, a toy shop with locations in Mount Pleasant and West Ashley, are more open about their crime-prevention efforts.

Owner Christine Osborne installed four cameras in her St. Andrews Shopping Center store with a bank of monitors to match.

"Every shopping center I've ever been in has rings of shoplifters that come through the store," she said. "The cameras deter theft. If you see a camera taking your picture when you walk in, you probably aren't going to steal anything."

Security details

Holiday tips for merchants

--Ensure floor workers interact with customers.

--Light up interior and exterior at night.

--Remove fliers or posters from windows and doors.

--Keep minimum amounts of cash in registers during business hours. Leave registers open and empty after closing.

--Be leery of someone dressed unseasonably.

--Watch for anyone checking out surveillance equipment.

--Don't display high-demand items in the back of the store.

--Be on the lookout for suspicious behavior.

--Lower display racks.

--Install surveillance cameras and burglar alarms.

And for shoppers

--Shop during daylight hours, or go with someone at night.

--Dress casually; don't flaunt wealth, such as expensive jewelry.

--Avoid carrying a purse or wallet, if possible. They are prime targets of criminals in crowded shopping areas and on public transportation.

--Carry an ID card.

--Be alert to your surroundings.

--Use a check, debit card or credit card instead of cash.

--Keep cash in your front pocket.

--Notify issuers immediately if your credit or debit card is lost, stolen or misused.

--Keep a record of all card numbers in a safe place at home.

--Avoid overloading yourself with packages.

--Beware of strangers approaching you for any reason. Con artists may try various methods of distraction in an effort to take your money or belongings. The elderly are prime targets.

--Lock your vehicle and put packages and valuables in the trunk.

--Let someone know where you are and what time you are expected to return.

Reach Warren Wise at 937-5524 or wwise@postandcourier.com.