Shrinkage through theft has been well documented as being an area of major
concern for all retailers, with estimated losses industry wide close to £2
billion in the UK over the past 12 months. One of the UK’s leading supermarket
chains Sainsbury’s, with an estate of 558 stores and 240 petrol filling stations
(PFS), admits to suffering losses in line with average figures for the retail
industry.
Sainsbury’s Technical Security Specialist Ray Waddington has been responsible
for technical aspects related to the security of the Sainsbury’s estate for the
past nine years. Ray explains that known and unknown losses need to be clearly
defined. Shrinkage is a combination of both kinds and is estimated at millions
of pounds, Ray elucidates: “If you don’t know where the problem is you can’t
tackle it. You need to know the greatest problematic areas and tackle them
first. Most shrinkage occurs when the store is trading.”
Ray identifies three of the main areas for known losses as: shoplifting,
burglary and robbery. Traditionally shop lifters steal high value consumables
such as spirits, champagne salmon, meat, or portable items such as razor blades,
cosmetics etc. Burglars typically target cash, cigarettes and spirits, whilst
robbers make attacks on the ATMs or cash rooms. Ray quips: “We plug one hole to
stop losses, which has the same effect as putting a finger in the dyke,
eventually another hole will appear somewhere else. It’s an ongoing situation.”
As part of the risk prevention measures, criminal analysis reports are
compiled noting incidents throughout the stores. Specific problem areas are
highlighted enabling Ray and colleagues to refine their security measures
according to the findings. Ray explains: “The analysis from the early days up to
now shows that the same goods are being targeted, so naturally we protect
them.” Most stores and PFS have a constant risk of burglary, where cash,
cigarettes and spirits are the main targets. This is typical for most
supermarkets. Burglars attack dressed in black and wearing balaclavas, which
makes them extremely difficult to identify. Even so, CCTV systems can provide
valuable evidence that may be used in court. Ray adds: “Most of the crime is
drug fuelled. We stock expensive wines that are never taken, and I am amazed
how often burglars will steal branded scotch, rather than malt!”
Prior to Ray’s arrival, Sainsbury’s used as many as eight contractors working
independently, installing different equipment to varying standards. The alarm
systems had become complicated to the extent that only a handful of installers
were qualified or experienced enough to install or maintain them. In 1998, realising it was time for a change; Ray researched the market for an alternative
alarm system and selected the Galaxy control panel from Honeywell Security (then
known as Ademco Microtech). National Accounts Manager Douglas Gray introduced
the Galaxy alarm system to Sainsbury’s and quickly arranged training sessions
for the operators and store managers. Galaxy was already established as the
industry standard. Its range of features and functions were simple to operate,
which was an important requirement, and with Ray’s emphasis on keeping things
simple, Galaxy has become the preferred choice of alarm panel to be installed
throughout the supermarket chain. Ray adds: “The security alarm system is
operated by store managers and staff so it needs to be user friendly and
consistent across all stores. It is a valuable tool that store managers can use
at any time of the day.” Ray uses the term security alarm system rather than
‘intruder alarm’, because, he explains: “If the fire doors open – we want to
know about it. If the cash office, which could hold anything up to half a
million pounds, is under attack – we need to know about it as soon as the
incident occurs.”
During trading hours, each store’s management team takes the necessary action
whenever an alarm is activated. Intelligent speakers provide a specific
message, to inform staff that there is a security alert without raising any
concern to the customers. Most stores will have three keypads, located on the
sales floor and in the general office. Ray adds: “The beauty of Galaxy is that
if the manager is in the office, the keypad will tell him where the alert is so
he can go directly there.” With the Honeywell alarm, a manager can part set
the system to protect a particular area, such as the main entrance - outside of
trading hours, when the shelves are being re stacked and the store cleaned.
Response management for all alarms, including the fire doors, panic alarms,
cash office and ATM’s are managed by SSS Management Services at their
Communications Centre. Ray comments: “Rarely do we need response, but when we
do, we need to manage the response quickly and check for false alarms.” As
specialists in the retail sector, SSS’s main roles are to filter out false
alarms from genuine alarm activations and to provide management information on
all alarm activations. SSS filters 98% of false alarms at Sainsbury’s, which is
really valuable. As part of the management information SSS provides detailed
reports regarding conditions that cause the false alarms to occur, which could
be due to movement, changes in temperature, human error at setting or un-setting
the keypad, or a fault with the alarm detector. Their ethos is to help prevent
the situation from recurring in the future. As SSS Sales and Marketing Director
Philip George comments: “If we can give our clients just one piece of
information that will help them to be more effective in their loss prevention
role and have better use of their time, we feel we have provided an important
service.” If there is a fault, SSS will send an engineer to investigate and
repair the system. When confirmed alarm activations occur, SSS notifies the
police or the key holder who will then attend.
Sainsbury’s takes a responsible approach towards the DD243 standard and
police response to alarms. Ray explains: “The police want the security industry
to police itself. I support the principle of DD243, because it seeks to
guarantee that when the police are called out there is a genuine alarm and
reason for the call. At Sainsbury’s we aim to satisfy our own needs through our
security arrangements, and hopefully not to waste police time. That said DD243
isn’t a panacea; if a store loses its police response we will consider
installing a DD243 compliant system. However, if there is continued user error,
that store can unfortunately lose police response again!”
Duncan Freeman is the senior project manager at SSS Management Services Ltd
and makes up part of the team responsible for the Sainsbury’s account. His
career originally started in house at Sainsbury’s in 1991 as a part time
student. He then progressed to manage various departments within the store
environment until 1995, at which time he moved across to the Retail Security
Team, where he started working with Ray. Duncan and Ray have a unique
relationship that makes this particular Consultant - End User association so
successful. SSS deals with over six and a half thousand sites across the UK,
involved in retail, DIY, car maintenance and warehouses. With so many sites and
with open book accounting the company has a strong negotiating arm with
suppliers, on behalf of its clients. Duncan comments: “Even though we have
introduced digital recording mediums in to Sainsbury’s, we recently managed to
shave £5000 of the cost of a CCTV installation. Considering we are doing a
hundred or more of these a year with Sainsbury’s alone, there is a real cost
advantage for the customer and a huge business opportunity for the supplier.” Sainsbury’s can concentrate on what it does best and let SSS look after the
security systems. Ray agrees: “We are unequivocally getting a better deal using SSS; they have expertise in the market.” Essentially this means Sainsbury’s
does not require a large team to manage the security functions. They have
invested in SSS as specialists, and who are, at the end of the day, fully
accountable.
As a systems service provider SSS is keen on integration, however Sainsbury’s
have few sites with integrated systems as Ray reports there has not been a
growing need for it, nor a business case to recommend it. In some stores the
alarm systems are integrated with CCTV, so that for example, if a fire door is
opened the alarm activates and the CCTV camera automatically pans around to that
area to record the scene.
Until recently one escape route for shoplifters would have been through one
of the fire doors. Ray says: “recent initiatives have put a stop to this. As
well as being alarmed, the fire doors are now fitted with maglocks, keeping the
doors locked at all times except when there is a genuine fire alarm condition.” Safety for customers always remains a priority and the doors will open in an
emergency situation. Crime prevention initiatives like these are shared with
other retailers.
To reduce losses in the petrol filling stations (PFS), Sainsbury’s have
installed smoke devices, from Protect, amongst others. These machines are
triggered upon alarm activation and in less than a minute they fill the petrol
station with a thick smoke, making it impossible for the burglars to see what
they are doing. This is a positive step towards reduction of losses as well as
damage. Ray announces: “To date, we’ve have never had a repeat attack where
smoke has activated during a PFS burglary.” He explains: “Once the smoke
activates the burglars are off and what’s great is that the smoke doesn’t damage
the goods.”
Panic alarms at the tills and in the PFS are linked to
the main alarm system as well as the Communications Centre at SSS. The store
manager is notified immediately, via one of the control panels, when this alarm
is triggered. Police are also notified of panic alarm activations from the PFS’s
and Cash Offices. In store the cigarette kiosks have also been given a
makeover and now are more like a garrison, ready to withstand attack. There is a
concealed detector, and staff can configure local alarms to fully set or part
set the system as required. ATM’s are an attractive target too and various
initiatives are employed to reduce the risks, ranging from alarms, ram raid
bollards and CCTV. Warehouses are under similar threat from burglars. All goods
at risk from theft are protected by the alarm system, as Ray puts it: “It is a
managed risk.” The roof space is a vulnerable area and so immense that it is not
the easiest place to alarm. However, additional systems are employed in specific
and back up areas. Civil recovery comes under the remit of Sainsbury’s
Operations Manager Phil Wilson. In most areas Sainsbury’s has a civil recovery
fund, to put the money back in to the business. However, by the time the money
is paid, the damaged area has most likely been repaired and the stolen goods
long since replaced. Colleague theft is another area of major concern, usually in the form
of cash loss. Ray and his colleagues are constantly reviewing and introducing new
initiatives such as covert track cameras to monitor cash handling at the tills,
striving to minimise all problem areas. |
