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Submitted
by Randy Guarneri
District Asset Protection Manager
All companies have Shrink Budgets, and we all know the
factors that go into those budgets: shrink history, item movement,
square footage, sales volume for the last 2 to 3 years,
new competition openings, competition closings, etc.
Loss Prevention Departments are measured in some form or
fashion by the percentages reflected by the shrink
budgets. Here is my proposal: Look at data developed by
criminologists Robert Figlio and Steven Aurand, and
incorporate this data into our yearly Shrink Budgets.
Now you might be asking yourself these questions: "Who
are Figlio and Aurand, and what exactly did they develop
that could benefit our company?"
These individuals developed none other than the CAP
Index (Crimes Against Persons/Property). This Index is
composed of demographic variables such as housing data,
population, economic data, educational information, etc.
Do these factors sound familiar? They should.
This is the same sort of information which is used when
interviewing a suspected dishonest associate and when
looking at his/her personnel file to develop our
rationalizations when dealing with these issues.
Furthermore, we may even seek answers from store
managers such as these: "What part of town do they live
in?" "How much do they make?" "Are they in school? "
"Are they a single parent?" and "How many children do
they have?"
Let me give you a perfect example of why CAP Indexes
would be useful in Shrink Budgets. Why would a posh
store in Ponte Vedra, Florida, with a CAP Index of a
minuscule 16 have the same exact Shrink Budget as a
store in Atlanta, Georgia, doing the same sales volume
with a CAP Index of 584? Would it surprise you that
there was a 2.89% difference in shrink between the two
stores? You can guess which one had the higher shrink!
In this sputtering economy, theft has increased for both
the occasional and professional criminal. If companies
were to use criminologists Figlio and Aurand's data
model and incorporate it into existing known data that
is currently used to make shrink budgets, it could help
predict new losses that are on the horizon and help
develop realistic budgets. I would also argue that this
process could assist in hiring a better quality of
employee, help decrease the number of Worker's
Compensation Claims, help determine which locations need
security guards and/or police officers, and truly
compare stores realistically with regards to shrinkage.
It could be a total win-win sweep for Loss Prevention
and Operations!
Randy Guarneri has over
fourteen years experience in loss prevention management.
Guarneri has held various positions in loss prevention
and asset protection, including store, district, and
regional positions. Guarneri has a Bachelor of Science
Degree in Sociology with a Minor in Criminal Justice
from College of Charleston. He is a member of the
Alabama Retail Association, Southeast Loss Prevention
Network, Food Marketing Institute (FMI) for Asset
Protection and a member of the Local Chapter of Loss
Prevention/Law Enforcement Division of Birmingham.
Guarneri can be reached at
randyguarneri@hotmail.com or (843) 224-4961. |