1. Module 1 Introduction to LPforMANAGERS Introduction to LPforMANAGERS

2. Understand how shrink and accident costs impact a retailer Describe assets of a retailer Understand the manager’s role in reducing loses for a retailer Understand key terminology for shrink and safety Module 1: Introduction to Loss Prevention After completing this module, you will be able to:

3. Introduction to Shortage and Safety Programs Welcome to LPforMANAGERS on line training course. This course will outline all the programs you need to know in your position as a manager to control shrink and safety within a store. These programs apply to any type of retail, whether it be grocery, big box or specialty. One of your primary goals as a manager will be the controlling of merchandise shortage (shrink). Every store will have some level of shrink, it is your goal to maintain it within an acceptable number. Next to payroll costs, shrink is one of the primary controllable costs you can impact. Other costs like rent, costs of merchandise etc. can not be controlled at the store level but, shrink can be. In addition to shrink, safety is another area you should be very concerned about and understand how to control it. The costs for accidents can quickly add up and impact your P and L statement in a negative way. Providing a safe shopping environment for your customers and employees should be one of your top priorities as a manager. In addition to managing your costs, it is good for the “brand” of the business to provide a safe shopping environment.

4. Module 1: Introduction to Loss Prevention Loss Prevention is a term used to describe the protection of all assets of a retailer. It is part of your responsibility as a manager to safeguard these assets. Other terms used are Assets Protection and in some cases Security. Assets for a retailer may include: Merchandise Cash Employees Customers Property Retailer’s Brand

5. Module 1: Introduction to Loss Prevention Protection of a retailer’s brand has been added to the responsibilities of everyone involved in a retail store due to the potential impact to the business when the brand is tarnished through negative publicity. Any actions or conduct in a retail store can be quickly recorded and posted on the internet within minutes. The standard is very simple to remember, would you be comfortable with what is going on in your store being posted on the internet for viewers to judge. If so, you are good to go. Cash and other losses at the front end can be very costly. It is common for employees to take small amounts of cash for various reasons hoping to be undetected. In addition, employees try and “enhance” the till so it is over thus allowing them to take larger amounts of cash without being detected. These areas may involve void manipulation and refund fraud. We will explore these areas in depth in other modules.

6. What this training program is not… Our goal is to help you understand all the details of programs to control shrink and safety. Is not designed to be an all inclusive installation guide. As an example, we will be discussing the benefits of using CCTV however, we will not be covering how to design and layout a system which can be very complex. Module 1: Introduction to Loss Prevention As a final comment, understanding how to control shrink and safety costs are complex and often there is no “silver bullet” to accomplish it. It is the managing of details everyday that will give you best in class results. This “block and tackle” approach will be covered in the operational excellence module.

7. This training course is designed to take your training pass the introductory level and cover topics that will make you very effective as a manager whether you are in loss prevention or store operations. There are 15 modules, each separated into key areas with review questions at the end of each. A few examples of these modules are understanding and how to develop a return on investment for program development, opening and closing issues to be aware of, operational controls and how to build a loss prevention culture so everyone is contributing to controlling these costs. After you feel you have a good working knowledge of the material, you will take an 50 question test online to validate your training. When you pass, a Certificate of Completion can be printed immediately and your results emailed to anyone. Before we get into the next module, let’s establish some terminology that will assist you in learning the training material. Module 1: Introduction to Loss Prevention

8. Glossary of Terms Before we get started with the next module, let’s review some common terms used in the industry to help you follow the training better. Accomplice - One who aids another in stealing merchandise. Booster - Shoplifter who steals large quantities of merchandise. Burglary - Entering the building with the intent to steal. Evidenced by cutting tools, booster tools etc. Cart Restraint System - Shopping cart program that requires the cart to go thru a checkout or it “locks up” at the door. Prevents walk outs with unpaid merchandise in a cart. CCTV - Closed Circuit Television-Cameras system that record activity within the store. Counterfeit Bills-Illegally copying or creating currency. Deactivate - Removal of tags or tuning them off to prevent an alarm from sounding. Detex - Alarms on fire exit doors. Can identify when a shoplifter takes merchandise and exits an emergency door. DVR - Digital Video Recorder-Records activity from cameras. This technology replaced VCRs. EAS - Electronic Article Surveillance-Tags placed on merchandise that sound an alarm if the item is removed from the store without being deactivated. Evidence - Merchandise that was stolen, verbal admissions of the theft and tools used to steal. Fence – Individual that buys product from a shoplifter and then sells it. Gift Card Fraud - Term used when a customer buys a gift card with stolen credit cards/checks or when a cashier uses a gift card to place money on it due to her register manipulation. Grab and Run - When a shoplifter quickly grabs merchandise and runs out of the store. Usually no concealment of merchandise. Ink Tags - Tags placed on merchandise that if removed without deactivation will spray ink on the product. Internal theft - Theft from a retailer by an employee. Inventory Preparation-Defines a specific process to prepare the store for the counting of the merchandise. Loss Prevention Culture-Describes when all employees are trained and support the controls for shortage control. Can be referred to as store engagement. Logistics-Department that controls the flow of merchandise from the distribution center to the store. Operational excellence-Term used to describe when all operational controls are in place. Can also be known as “Best in Class” ORC - Organized Retail Crime-Group of shoplifters that steal for more than personal means. Passing - When a cashier “passes” merchandise for someone without ringing it up. Prevention Methods-Tools like CCTV systems, EAS, cabling, spider wraps etc. Robbery - Taking of merchandise by means of force. Return on Investment-Process to determine what return a company can expect from spending money on programs. Shoplifter - Person who takes merchandise from a retailer without paying, Theft - Taking of merchandise from a retailer with the intent to deprive. Ticket switching - When a shoplifter puts a lower priced ticket on an item and then pays for it. Trespass - Unauthorized entering onto someone’s property. Underringing - When a cashier rings up an item for someone that is less than the retail price. Void Manipulation - When a cashier rings and then voids items so they are not rung up. Can be to “set up” the register to steal money or give merchandise to a friend.

9. Key points to remember: 1.Loss Prevention and Assets Protection are terms used to describe the protection of all assets for a retailer. 2.Assets may include merchandise, cash, employees, customers, property and the retailer’s brand. 3.The primary responsibility of the Loss Prevention Detective is the detection and apprehension of shoplifters. Module 1: Introduction to Loss Prevention