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Q&A

How IT Helped Catch the Jewelry Thief

The Zale Corp. jewelry store chain is having much better luck catching burglars in real time, thanks to a little help from the IT side of the house. Loss Prevention Manager Dennis Thomas explains how the company built its high-tech command center from scratch

By Bill Brenner, Senior Editor

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CSO: Who are you using as a vendor to operate the command center?
Thomas: We own and operate our own command center.

CSO: So you built the whole thing in house.
Thomas: Exactly. We worked with a local vendor to develop the technology and devised everything right down to the terminology that the operators use to communicate with the stores.

CSO: Did your command center develop gradually and organically, or was it based off of one big plan from the outset?
Thomas: It was a gradual process that took years. There were three phases: developing the technology, implementing the technology and further enhancing the system once it was operational, working out the kinks. We had our challenges as we basically ventured into uncharted territory but the technology was proven and successfully implemented the vision into the business. We are probably one of the more forward-thinking companies in the jewelry industry from a technological standpoint.

CSO: How much has this cut down on the time it takes on average to either catch the thief or at least solve a crime?
Thomas: I'll give you two statistics: First: The corporation has achieved record shrink lows for the last seven consecutive years. Second: a significant reduction in shrink [lost merchandise/revenue] as a result of burglaries. You can directly attribute that to the technology we've put in place. During the days of the old analog systems there was always that window where the thief could break in, steal merchandise and be gone long before the break-in would be discovered. There has been a significant increase in the number of criminals apprehended because we can get three to five cruisers out there immediately, because the police know if Zales calls, we are seeing a burglary unfolding before our eyes. We are able to verify to them immediately that it's not a false alarm.

CSO: If you are a retailer just coming to the realization that you need to adopt a system like Zale's, what are the first items you should be thinking about?
Thomas: The first thing you need to do is determine where your risk is. Is it the employee? Does the general public have access to your merchandise? Where is your shrink occurring and where will those precious dollars get the most benefit? The second thing you should do is go out and look at what your competitors are doing technologically to ensure security. Then you are able to build your system to meet the specific needs of your organization.