Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

The Importance of Loss Prevention TrainingA r t i c l e c o n t r i b u t e d b y B i l l C a f f e r t y ,

R e t a i l L o s s P r e v e n t i o n C o n s u l t a n t

June 2012LP CornerA monthly publication brought to you by the Retail Loss Prevention department. Providing

Ace Hardware retailers with professional, cost-effective loss prevention services since 1994.

We all know that proper training can reap untold benefits – and, conversely, the lack of training

can result in everything from unsatisfactory customer service to needlessly putting an associate’s

life in danger.

And while it’s understood that training related to product knowledge and customer service is first

and foremost, basic loss prevention training cannot be ignored or short-changed. To do so subjects

the business – and very possibly the associate – to a greater risk of loss and/or injury.

Following are important safety and security training topics of an effective loss prevention

program. This is not a complete listing of all recommended training topics, but it does cover

the more significant areas of concern. We suggest you check to confirm that associates are

being provided the requisite training in these areas. We further recommend that all training be

documented; particularly that which is mandated by federal law. If there is an event or issue in

which an associate or customer is injured, or an associate reacts improperly to a situation and

puts your business in jeopardy of being sued, proof of training will be a very important part of

your defense.

SAFETY

• FORKLIFTOPERATIONS– It is a violation of federal law for anyone UNDER 18 years of

age to operate a forklift, or for anyone OVER 18 years of age who is not properly trained and

certified to do so. Training shall consist of a combination of formal instruction (e.g., lecture,

discussion, interactive computer learning, video tape, written material), practical training

(demonstrations performed by the trainer and practical exercises performed by the trainee),

and evaluation of the operator’s performance in the workplace. An evaluation of each powered

industrial truck operator’s performance shall be conducted at least once every three years. The

employer shall certify that each operator has been trained and evaluated. The certification

shall include the name of the operator, the date of the training, the date of the evaluation, and

the identity of the person(s) performing the training or evaluation. Complete, detailed training

requirements and information are available on the OSHA website at http://www.osha.gov/pls/

oshaweb/owadisp.show_document?p_table=STANDARDS&p_id=9828.

• PERSONAL PROTECTIVE EQUIPMENT (PPE) – Whether it be cutting keys, cutting

glass, using a powered hand or table saw, filling a propane tank, or performing a multitude of

other tasks where a risk of injury exists, there are federally mandated requirements to provide

associates with personal protective equipment to protect them against work-related injuries

and illnesses. This equipment consists of eye protection, ear protection, respiratory protection,

back protection, hard hats, face shields, foot guards, safety shoes, gloves, etc. If you don’t have

the required PPE for the tasks performed by your associates, you should procure it. If you

have the required PPE, ensure that all associates are trained in its use – and then enforce that

usage. An OSHA Fact Sheet that explains general PPE requirements and has references to

the various applicable general industry standards is available at http://www.osha.gov/OshDoc/

data_General_Facts/ppe-factsheet.pdf.

• HAZARDCOMMUNICATIONPROGRAM(HAZCOM) – All workplaces where employees

are exposed to hazardous chemicals must have a written plan that describes how the OSHA

standard will be implemented in that facility. Preparation of a plan is not just a paper exercise

– all of the elements must be implemented in the workplace in order to be in compliance

with the law. And as you know, a hardware store has its fair share of hazardous chemicals –

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MarkyourChicagoConvention

CalendarsforFREERetailLoss

PreventionTraining!

Shoplifting PreventionThursday, August 16 1 to 2:30 p.m. Gain the knowledge you need to teach your associates to work as a team to identify and prevent shoplifting.

Associate TheftPreventionThursday, August 16 3:30 to 5 p.m. Associate dishonesty is the leading cause of store shrinkage. Learn how to identify associate dishonesty, approach the situation, and complete the interview/restitution/termination/prosecution process.

Epicor POS SecurityFriday, August 17 2:30 to 4:30 p.m. The number one place that associates take advantage of a store is at the point of sale. This session will walk store owners through ways to protect against POS theft.

CONTACT US:Phone: (630) 972-2670 www.acelossprevention.com

Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS 2

everything from certain paints and glues to muriatic acid. Employees must be informed as to the hazardous materials present

in the workplace, the precautions required to protect themselves from exposure, and the actions to be taken if/when exposure

to a hazardous chemical occurs. Employees must also be trained on how to access Material Safety Data Sheets (MSDS) and

a Spill Pak must be available for use in cleaning up hazardous chemical spills. An informative fact sheet is available at

http://www.osha.gov/dsg/hazcom/whatishazcom.html, which contains many links to specific standards, guidelines and

frequently asked questions.

• USEOFPOWEREDSAWS,PIPECUTTERS,WELDING,CUTTING&BRAZINGEQUIPMENT – It is imperative

(and OSHA mandated) that any associate whose job requires the operation of powered or compressed gas equipment receive

adequate documented training. This includes demonstrating his/her capability of proper operation of that equipment, in the

presence of the trainer, prior to being allowed to independently perform such tasks. It is also imperative that the equipment

itself meet applicable safety standards (machine guarding, fire protection, lock-out tag out, etc.).

OSHA has an informative document that addresses safe operation of powered saws at http://www.osha.gov/doc/

outreachtraining/htmlfiles/tools.html. And OSHA requirements for training and other safety issues related to welding, cutting

and brazing operations can be found at http://www.osha.gov/SLTC/weldingcuttingbrazing/.

SECURITY

• SHOPLIFTINGPREVENTIONANDSHOPLIFTERDETENTION – Shoplifting is the bane of retail operations. You can

rest assured that if it is displayed, sooner or later someone will try to steal it. Depending on the level of shoplifting prevention

training your associates receive and practice, the shoplifter will (1) be successful, steal it, and your bottom line will suffer,

or (2) the shoplifter will conclude that it’s not worth the risk because of the great customer service your associates provide,

eliminating the opportunity to steal it without being observed.

The latter option is, of course, the preferred one, but it doesn’t happen automatically. It requires a formal (written) PLAN

containing detailed guidance on how to deter shoplifting and, if prevention doesn’t work out, how to deal with the shoplifter

after he/she is seen concealing the item.

And while the plan is very important, an even more important action is that all associates be TRAINED to properly and

effectively implement that plan. An associate who has your store’s best interests at heart, but who has not received adequate

training on how to deter shoplifting or deal with a shoplifter, may take an action that puts either or both his/her safety

and your store’s financial best interests at risk. While all states have statutes that allow a merchant to protect his property

and detain shoplifters, those authorizations are predicated on reasonable cause, which translates to your associates taking

detention action only when there is probable cause. See http://www.acelossprevention.com for articles entitled SHOPLIFTING

PREVENTION and WHEN SHOPLIFTING PREVENTION ESCALATES TO SHOPLIFTER DETENTION for detailed

information about setting up your plan and on what constitutes reasonableness and probable cause.

• POSOPERATIONS – There is no operation within your store where there is a greater risk of financial loss than at the point of

sale. It is vitally important that all associates whose duties include operating a POS terminal receive thorough and documented

training on the various types of transactions that they will be ringing. And while it is appropriate to have an experienced

cashier train and observe the new cashier’s activities for a period of time, training should not consist solely of an experienced

cashier’s verbal guidance. (If the experienced cashier happens to be doing something that is not quite in accordance with store

policy, then that deviation will most likely be passed on to the new cashier.) There should be written guidance on how to ring

a sale, a refund, and any other type of transaction the new cashier is authorized to ring. The new cashier should be required

to sign an acknowledgement of receiving training, a copy of your printed guidance, and a commitment to adhere to your POS

operating policies. This documentation could become important later, should it become necessary to take administrative action.

Go to Retail Loss Prevention’s website at http://www.acelossprevention.com to download the article entitled POS CONTROLS

which contains general recommendations for controls at that very vulnerable position. Contact Retail Loss Prevention at

630-972-2670 or info@acelossprevention.com for our document entitled EPICOR SECURITY OPTIONS AND BITS, which

provides detailed guidance on loss prevention related controls, reports, viewers, alerts, etc., within the Epicor POS system.

It is also important that new cashiers receive training on how to deal with adverse situations that may arise at the POS,

to include customers attempting to refund suspected stolen merchandise, a customer’s presentation of a suspicious credit

card or check, an attempted “quick change” or “short change” or an armed robbery. See the article entitled ROBBERY

PREVENTION on the RLP website for best practices related to both robbery prevention and actions to be taken should a

robbery occur.

The Importance of Loss Prevention Training cont.

Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

The Importance of Loss Prevention Training cont.

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The above best practice is but one of those contained in Retail Loss Prevention Best Practices, a document that is yours just for the asking. Contact Retail Loss Prevention at 630-972-2670 or

at info@acelossprevention.com for a copy of the complete set, which contains recommendations

for all aspects of your loss prevention program.

• OPENINGANDCLOSINGPROCEDURES – There are no times of the business day that are more fraught with the potential

for loss of merchandise and armed robbery than during the store opening and closing timeframes. It is extremely important

that all associates who have the duty of either turning the key in the morning or locking the store up at night be aware of the

risks and follow a precise protocol during those times. Following are important loss prevention related best practices associated

with both procedures that should be stressed in the training of responsible personnel prior to being allowed to independently

perform either task.

o OPENING–

– The opening manager (key holder) should be accompanied by at least one associate during the opening process. Further,

if a suspicious vehicle or a person on foot is observed in the parking lot as you drive into the parking lot, the police should

be called before proceeding with the opening process.

– Perform a visual check of all areas of the store, to include the exterior sides of all perimeter doors, and look for any

evidence that the store has been forcibly entered during the night (or an attempt has been made) or that someone may

have hidden in the store at closing and later broken out. If any evidence is found that would suggest a burglary was

attempted or that a burglar may still be in the store, call the police immediately and remain at the front of the store.

– Know the alarm system’s duress code and be prepared to use it should you be accosted during the door opening process.

– The entry door should be relocked immediately after entering. All perimeter doors should remain locked until the store

is open for business.

– Associates should enter and leave through the main entrance. Assign a trustworthy associate to monitor the front

door, letting associates in one at a time and relocking the door after each entry. NOTE: Leaving a door unlocked (and

unmonitored) for the convenience of arriving associates is an invitation to be robbed, for a thief to enter the store and

steal merchandise, or for an associate to remove merchandise from the store.

o CLOSING–

– All perimeter doors (including the main entrance and exit doors) should be closed and locked at closing time.

– Customers who are in the store at closing should be let out one at a time and the exit door relocked after each customer

exits.

– All cash should be removed from the POS terminals and the drawers left open. Leaving drawers open reduces the risk

of a burglar damaging the POS terminal in an attempt to determine if there is cash in the till.

– Departing employees should be let out by a supervisor through the main exit door and door relocked after each exit.

– Hand-carried containers such as purses, bags, briefcases, etc., of departing employees should be inspected by a manager

to confirm that they do not contain unpaid merchandise. (NOTE: This management prerogative should be stated in your

employee handbook.)

– At least one associate should accompany the closing manager when locking the store for the night. If there is a suspicious

vehicle or a person on foot in the parking lot at that time, call the police and do not exit until the police arrive.

For a complete look at the training opportunities provided to Ace retailers, please visit the ACENET training page. Facilitator

led Retail Loss Prevention training is available by contacting Retail Loss Prevention.

The Retail Loss Prevention Department and its preferred vendor, Risk Management Services Loss Prevention, stand ready

to assist you with your loss prevention training needs. Please contact us at 630-972-2670 or info@acelossprevention.com.

Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

Session Time Length Title

Session Time Length Title

2012 Fall Convention/Chicago

Wednesday, August 15 (pre-show; full-day sessions)

Cost is $99 each, except for Hands-On Electrical & Plumbing Workshop, which is $199.

Tuesday, August 14 (pre-show; full-day sessions)

Cost is $99 each, except for Hands-On Electrical & Plumbing Workshop, which is $199.

A 9 a.m. to 5 p.m. Full Day Hands-On Electrical & Plumbing Workshop

B 9 a.m. to 5 p.m. Full Day Amaze Every Customer Every Time by Developing a

S.A.L.E.S. Team

C 9 a.m. to 5 p.m. Full Day Maximize Your Business Customer Sales

D 9 a.m. to 5 p.m. Full Day Nuts and Bolts of Financial Planning

E 9 a.m. to 5 p.m. Full Day Don’t Train ’Em, Don’t Blame ’Em!

F 9 a.m. to 5 p.m. Full Day Hands-On Electrical & Plumbing Workshop

G 9 a.m. to 5 p.m. Full Day Amaze Every Customer Every Time by Developing a

S.A.L.E.S. Team

H 9 a.m. to 5 p.m. Full Day Maximize Your Business Customer Sales

I 9 a.m. to 5 p.m. Full Day Ace Rental Place Training

J 9 a.m. to 5 p.m. Full Day Save Time by Utilizing Epicor E4W Applications

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Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

2012 Fall Convention/Chicago

Session Time Length Title

Thursday, August 16

These sessions are FREE!

K 1 to 3 p.m. 120 Minutes Financial Management 201 – Using the Enhanced AceBudget Tool to Manage Profitability

L 10 to 11:30 a.m. 90 Minutes How Pallet Alley Can Increase Your Average Ticket

M 1 to 2:30 p.m. 90 Minutes Discovery Acceptance Rate: How to Drive Sales and GP$ byHaving the Correct Assortment

N 1 to 2:30 p.m. 90 Minutes Shoplifting Prevention

O 1 to 2:30 p.m. 90 Minutes The Future of the Light Bulb Category

P 1 to 2:30 p.m. 90 Minutes Five-Star Key Performance Indicators (KPIs) – A Facilitated Discussion

Q 3:30 to 5 p.m. 90 Minutes Associate Theft Prevention

R 3:30 to 5 p.m. 90 Minutes How Pallet Alley Can Increase Your Average Ticket

S 3:30 to 5 p.m. 90 Minutes How to Maximize Each Transaction throughProject-Based Selling

T 3:30 to 5 p.m. 90 Minutes Customer Returns: Policies and Procedures

U 3:30 to 5 p.m. 9 0 Minutes How to Set Up Your Garden Center in Less Than a Day

V 10 to 11 a.m. 60 Minutes Increasing Sales of Green Goods and Hard Goods at Ace – Getting New Consumers

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Remember ... SALES + LOSS PREVENTION = GOOD BUSINESS

2012 Fall Convention/Chicago

Session Time Length Title

Friday, August 17

These sessions are FREE!

W 2:30 to 4:30 p.m. 120 Minutes Epicor POS Security

X 2:30 to 4:30 p.m. 120 Minutes Financial Management 203: Understanding How Cash FlowImpacts Profitability

Y 9 to 10:30 a.m. 90 Minutes Increase Sales Using Dynamic Promotions

Z 9 to 10:30 a.m. 90 Minutes Strategic Clutter: Making the Most of Your Impulse Space

AA 9 to 10:30 a.m. 90 Minutes Learn To Earn Business Customer Sales

BB 9 to 10:30 a.m. 90 Minutes Ace in the Digital Space

CC 9 to 10:30 a.m. 90 Minutes Amazing Customers through Engaged Employees: How toAction Your Survey Results

DD 2:30 to 4 p.m. 90 Minutes Five-Star Key Performance Indicators (KPIs) –A Facilitated Discussion

EE 2:30 to 4 p.m. 90 Minutes How to Lower Occupancy Costs: Understanding Lease Termsand Strategies

FF 2:30 to 4 p.m. 90 Minutes Introduction to Margin Master – Making More Moneythrough Variable Pricing

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