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Shoplifting decreases while costs to servicemembers go up

  • Published
  • By Army & Air Force Exchange Service
DALLAS --  The state of shoplifting on military installations is becoming a good news/bad news proposition as sophisticated anti-shoplifting measures work to decrease incidents, while increasingly aggressive thieves increase costs for all exchange shoppers.

The good news is that upgraded camera systems capable of recording to DVR as well as a 2002 amendment allowing federal retailers to pursue losses and administrative costs related to shoplifting, produced a decrease of occurrences for Army & Air Force Exchange Service  BX/PXs of 12 percent, from 8,537 in 2005 to 7,542 in 2006.

The bad news is that while occurrences decreased, the average cost of products involved in detected cases increased AAFES-wide from $99 per incident in 2005 to $119 in 2006. This resulted in increased costs for the military community last year as the amount of merchandise went up from $848,293 in 2005 to $898,851.

With a dual mission to provide quality goods and services at competitively low prices and generate earnings to support Morale, Welfare and Recreation programs, AAFES, which contributed more than $533,000 to military quality of life programs at Osan in 2006, continues to focus efforts on reducing theft.

"These contributions are significantly affected by losses attributed to shoplifting, even items that cost $20.00 or less," said Mr. Steven Pena, Osan AAFES general manager. "The impact as a result of this shoplifting is higher prices to cover losses; possible employee cuts to reduce expenses; reduced sales which mean reduced earnings; and this has a direct affect on the dollars returned to the military community in the form of a dividend."

In an effort to protect the MWR dividend and reduce shoplifting incidents, AAFES Loss Prevention associates proactively identify store display areas that tend to have high theft rates. These areas include electronics, sporting goods and cosmetics which offer small, high value items. All AAFES exchanges have camera surveillance systems manned by detectives to monitor these areas, and with new DVR capability, review more than 100 hours of recording on all cameras. Most exchanges also have Electronic Article Surveillance systems that alarm when un-deactivated tags on unpaid merchandise attempt to leave the store. A highly successful partnership by major retailers has created a win-win by having most manufacturers tag merchandise at the source.

"No one likes catching shoplifters," said Col. Jorge Garza, AAFES' director of loss prevention.  "In fact, a major effort by Loss Prevention is to educate the public on our capability to monitor and record suspicious activity as a tool to deter shoplifting before it ever happens. It's our hope that individuals who might be considering theft will see the security measures and think twice."

If shoplifting is suspected, AAFES loss prevention associates turn the issue over to military police. In addition to possible disciplinary action and/or criminal prosecution, the Federal Claims Collection Act, which began March 1, 2002, allows AAFES to enact a flat, administrative cost (Civil Recovery) of $200. There may be further fees, in addition to the Civil Recovery Program, depending on the condition of the stolen merchandise. 

"The bottom line on shoplifting from AAFES is that it is a crime and that can ruin a person's military career," said Mr. Pena. "One other thing to consider is that each customer is in fact a share holder in AAFES, so when they steal from AAFES they are stealing from themselves as moneys generated by AAFES go to support MWR activities."