Collectively it is estimated that American stores lose approximately 10 billion dollars every year from shoplifting alone – but Costco is on the low end of that spectrum.
They only lose and an estimated .12% definitely warrants a question.
Will Costco file charges for shoplifting? Yes, Costco file will charge you for shoplifting. Costco has a ZERO tolerance policy when it comes to shoplifting, so even if you simply forget to pay for an item on the way out, the odds are very high that the police will be involved. This keeps prices low for everyone and minimizes revenue loss, so Costco is very aggressive about this policy.
Let’s talk about Costco’s zero-tolerance policy, the security that helps to enforce it and keep losses so low, and what happens if someone gets caught shoplifting there.
We’ll give you a hint – it’s not pretty!
Costco’s ZERO tolerance policy
Whether you are an employee or a customer, Costco has a zero-tolerance policy in regards to theft and shoplifting and they ALWAYS enforce this.
Employees caught stealing will be terminated immediately and customers caught shoplifting will be banned worldwide from EVERY Costco store and they will also press charges.
For customers of this popular chain, this is very effective at keeping costs low, and for the stores, it helps to ensure that they are on the low-end of statistics when it comes to loss.
To give you a better idea of how serious they are about their security, we’ll paint you a little picture of some of the methods that Costco stores around the world employ.
Understanding Costco Security
Most of us are familiar with the average store security. We’ve all seen double mirrors, cameras, and elevated alcoves where someone might be watching you, but Costco has really gotten it down to an art and we’ll tell you why in the sections below.
Smart Architecture
Costco uses smart architectural choices that a lot of other stores should really consider implementing. For one thing, they only have one main entrance so customers are always coming in and going out of the same doors, where a guard is stationed to check receipts and a security scanner can check for RFID or other security tags.
Aside from this main entrance, there’s one opening in the back for a loading dock, and according to an article by ‘Seeking Alpha’, inside the store the shelves have enough space between them so that they are easily surveilled.
With a more cramped store, it’s easier for someone trying to shoplift to hide what they are doing with the cramped shelving and low visibility, but Costco’s shelving arrangement is designed to minimize this risk.
Finally, as it’s a membership-only store, you can’t get in without a card unless you are a friend of a member.
Members can bring in up to 2 guests, although if anyone involved is caught shoplifting the membership will be revoked and the zero-tolerance policy will come into play.
‘No touch’ Supply strategy
When new supplies come into a large store, sometimes the inventory can arrive a bit haphazardly. You might have a bunch of boxes with an inventory count on the side at some stores, for instance, but not at Costco.
Costco certainly has informative labeling, but they have a ‘No touch’ shipping policy that means goods that are coming into the store are safely wrapped up in plastic on a pallet.
This helps to ensure that nothing goes missing while it’s being transported, as the plastic wrap will show signs of being tampered with, so the first source of potential loss has been mitigated and shipments arrive whole and untouched directly to the store.
Security tagging
Once inventory has arrived intact, Costco employees can easily add security tags to items and these may also be added at the point of sale, so the tags aren’t simply coming from one specific source.
Since employees and customers won’t always know where the tags are or what has been tagged, this makes for an effective deterrent.
Anyone walking out with an activated security tag will definitely set off the alarm and be subjected to the zero-tolerance policy as they are stopped and the police are contacted.
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Strategic packaging
Small items can easily disappear with a little sleight of hand, just like a stage magician does. To combat this, things like memory cards are often placed in oversized packages, making them much harder to simply hide and walk out with.
Security tags may also be in place – you never know – further strengthening the overall security.
Security cameras
Security cameras are also in place and while we’re not aware of Costco using facial recognition, a camera is still a pretty effective way of ensuring that no one is pocketing or otherwise concealing goods and not paying for them.
Footage may also be used if someone is caught, adding to the efficacy of this security standard.
Guards throughout the store
Costco has a number of guards stationed throughout the store to help ensure security inside. While some stores just have a guard at the door, Costco has found over the years that it’s much more effective to have extra guards at random places in the store, and if the statistics are correct, this policy has served them well.
Leaving the store
Finally, when you go to leave Costco with all of your goodies, someone is going to check your receipt and you’ll have to pass through a security arch.
At this time, any security tags that haven’t been deactivated will set off the scanner and you’ll hear an alarm.
The guard at the door will also check your bag against the receipt to make sure that everything in the bag is accounted for on paper.
If it’s not, then we’re back to the zero tolerance policy and you’ll be in a lot of trouble unless surveillance can help to prove that it was just an honest mistake.
What actually happens if I am caught shoplifting at Costco?
This will depend on whether you are an employee or a customer. For employees caught stealing, they are immediately terminated and will lose severance pay, as well as any active benefits, and the police will be contacted.
For customers, the police are contacted immediately, and depending on what was stolen, you may be charged with a ‘theft by deception’, which is a misdemeanor, or you could be charged with a felony.
At this time, your membership will also be revoked, either temporarily or possibly even permanently, and for all locations worldwide.
Costco doesn’t play at ALL when it comes to shoplifting. The police will always be contacted and it won’t be a pretty situation.
It’s one of the ways that they reduce yearly loss and keep their prices so low for valued customers and it’s effective enough that many stores are beginning to copy strategies such as the ones used at Costco and at other discount giants like Walmart.
Some closing words
Today we’ve answered the question ‘Will Costco file charges for shoplifting’ and the answer is ‘Yes they will, every single time’. Costco keeps their prices low with a zero tolerance policy, as well as aggressive security strategies.
The architecture of the store is purposely widened for better surveillance and goods coming in are wrapped in plastic so that no one can ‘sample’ them along the way. Guards are in and around the store, as well, and not just at the door.
Finally, security cams, electronic tagging, oversized packaging, and a security arch and guard to check goods on the way out provide the final layers of security that help to keep prices low and shoplifters away.
It’s not a very forgiving policy but as the savings are passed along to both the store and the customers, it’s a pretty sweet deal for everyone –except those shoplifters, of course!
Reference Sources
https://seekingalpha.com/article/4563832-shoplifting-issue-target-but-not-costco-stock