Rakann Ammari
Fin 431, Exam #1
February 17, 2010
Foot Locker Incorporated: Risk Prevention Methods
Foot Locker Incorporated (ticker symbol: FL) is a U.S. based company that operates worldwide. Their services include the sale of various athletic equipment, sports apparel and products. According to their company background, as of the beginning of 2009 Foot Locker operates roughly 3,600 retail stores in 21 countries worldwide (“About Us"). Although Foot Locker provides their goods through both local retail stores and an online based “direct-to- customers” program, my risk management tactics will primarily focus on local retailers and warehouses and their risks. The five risks I have chosen are employee theft within the local branches and
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The $1,120,000,000 in merchandise inventory available for possible theft is a savoring number to employees and even Foot Locker customers. Shoplifting is a prevalent crime within the United States that must be controlled by risk managers. During December of 2009, a Foot Locker in Atlanta, Georgia was robbed when “police arrested two adults and four juveniles in a smash and grab job.” (CBS Atlanta 1) Unlike employee theft, customer theft is limited to the $1,120,000,000 in merchandise inventory (“Balance Sheet”). Although the inventory and cash could potentially be recovered from the employee(s) or customer(s) through a lawsuit, as a risk manager I would need to take preventative action. I would create loss control by having surveillance cameras both watching customer and employee actions. This includes surveillance on all cash registers and credit card machines. Also, I would inform both the customer and employee they are being watched and remind them of the potential prison punishment for any crime committed by posting signs throughout the store. For employees I would conduct thorough background checks to prevent the hiring of former high profile convicts. I would also spread the finances among various managers; I would not allow a single manager to keep track of or control the finances of any single retail
Shoplifting today, is becoming a growing problem in the U.S. and in our community. It has become one of the overall most widespread crimes in the U.S. Shoplifters, while in the act, don’t always realize the effect it has on our economy and daily lives.
One more than one occasion I have been in the self checkout line at Walmart, and I am almost positive I have witnessed more than one person walk out without paying for one or more items. Shoplifting involves concealing an item and leaving the store without paying for it. Other forms of shoplifting include swapping price labels of different items, and eating a store's food without paying for it; which i have witmessed. Of course shoppliffing or steals an item is committing a crime.There is a loss to the retailer whuch result in the loss being passed on to the consumers, usualy increased prices of goods in general to compensate. Shoppers have to pay higher prices as well as others, because the losses are passed along to paying customers by the
The stores are tying to crack down on shoplifters by making the punishments as strict as possible. Shoplifting effects the community in a big way. The stores
They should provide discounts to retailers, which will provide better margins and more services in order to influence purchaser at the point of sale. One price for all retailers avoids channel conflict. Track retailer behavior to provide varying volumes of sales call. Adopt ways to improve relationship on one to one basis. Also, think of education on retail front. Sales people are the key figures for selling their products they should motivate them, by providing incentives, rebates commissions etc the sales people should make surprise visits, as a customer to see how their products are being displayed and to study the customer's behavior towards their products. They should provide the retailers with physical space for better inventory management, loss of sales were accounted, because there was no replenishment.
Shoplifting is a major problem in today’s world. I myself was recently caught shoplifting and now I have to face the consequences for the bad mistake I made. The temptation of not paying for something is very big factor in why people steal. The shoplifter thinks he is getting a product for free and doesn't know what he's really doing to himself and the community. Shoplifting affects yourself, your local neighborhood and the world population.
I believe that if I were in that situation, I would try not to steal unless it became a life or death situation for me, or anyone that depended on me. I would try to avoid looting because I know that it would be intentionally harming the company that I was looting for, and also the community, both the economy and the reputation. Nonetheless, I believe that human lives are worth more than the stolen merchandise. If I or someone who depended on me were on the brink of death, I would steal from local stores to protect
Footlocker is a popular store for all athletic needs. The commercials has four cast members two producers and two star basketball players. James harden is in the booth wearing the clothing strictly sold by foot locker. As Harden begins to lay a part of the song, Championship winner Stephen Curry enters and tells Harden that singing is a bad idea and isn't for him. Knowing that James Harden doesn't have the voice Stephen Curry suggest that the third person whom is a producers to play the song back. James Harden states that it is good he makes a song because he recently had the best season of his career and that he needs to keep things fresh. Stephen Curry tells Harden that footlocker is all he needs to keep it fresh. After playing back the
Retailers lobbied successfully to define a civil remedy against theft offenders that recognized the total cost of theft (beyond just the actual value of what was stolen).
Along with a community being hurt, his or her actions negatively affect those personally close to the shoplifter as well. Whether it is a mother, father, sibling, or child, there is always someone else being hurt when stealing takes place. It is very easy for the shoplifter to only worry about him or her and not think about the
According to Wiki Invest, in 2006, Foot Locker’s company-wide operating margin dropped; so the company decided to close numerous stores in order to improve profitability. The company developed a strategy to open new stores, relocate existing stores, and close down the weak stores. The strategy continued throughout 2007 and 2008. However, Foot Locker experienced another decrease in 2008, generating only $5.24 billion in total revenue, which was a 3.7% decrease from their 2007 sales. Struggles continued in 2009 as retail revenue dropped to $4.85 billion, however, its net income increased compared to the $-80 million the previous year. Finally, Foot Locker experienced a strong third quarter due to a combination of strong
Thanks to Security Focus less suspicious individuals enter my store and the number of attempted thefts has dropped significantly. Furthermore, the focus package has made me and my staff feel safer and more confident that we can protect ourselves against shoplifters.
Thank you for reinforcing the Bag check policies. It becomes an Asset Protection investigation when store operation confirmed the losses or they need help looking on other reports that they do not have access to them. On the other side, I can help you to research on this specific TM if you were not able to find any transactions which she stated that she bought those items in the store. I will look deep into this and I will let you know. Do you know approximately when those transactions occurred? Did she use the employee discounts?
This will create a leadership dynamic of these team leader’s and give employees someone they can feel comfortable in following. Its important for the team leaders to stress accountability to the employees, but also understanding that holding people accountable should not be looked as a threat. With this initiative, it requires individuals to be held responsible for inventory, as to avoid any unnecessary issues that have been hampering Target’s current inventory potential. This also requires that proper training be performed in order to avoid these human errors. The benefits of the On-Target initiative can only be realized if employees understand how to properly track their aisles and keep them stocked. So company-wide understanding of these policies is key in its
In an average retail store, the higher management, which includes the store manager and the assistant manager(s), need to,
Often retailers will overtly protect expensive, top-shelf products, but this may actually result in the increased theft of less secure, bottom-shelf goods. This incidence is referred to as redistributive crime. There is a loss prevention (LP) department in retail companies that is specifically tasked with minimizing product loss, commonly referred to as inventory shrink. LP is implemented to reduce the preventable loss of a company’s assets by utilizing technologies that mitigate theft and fraud. Retailers continuously adapt their technologies to handle threats, but there are still numerous underlying issues, such as employee theft, fraud, and shoplifting. The increase in technology that consumers have access to threatens LP divisions, because they have made it easier for consumers to steal products, such as ink, and this drives LP to make technological progress in order to prevent further inventory shrinkage. However, there are budget constraints, and efficiency problems that arise with newer, more difficult LP technology. This paper aims to evaluate the redistributive crime that occurs by using a case study within a department of goods and analyzing the security measures available to combat this problem. Not sure how to phrase it, but basically do the EAS systems implemented pay for themselves, does the marginal benefit exceed the marginal cost, each alpha box etc, service…