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Retail theft is a serious issue, but it can be difficult to catch shoplifters in the act, and even harder to prove guilt in a court of law. Additionally, store managers may be concerned about the safety of their employees, and may be reluctant to confront someone they suspect of shoplifting.
Interesting question because this was one of the biggest shortfalls in my retail work: I just didn't feel comfortable confronting people that I thought were stealing. Occasionally even if I knew they were stealing, I just didn't have the guts to confront them.
There are stories in the news of shoplifters fighting back and punching out employees. In our company, workers are allowed to confront them and to ask them to open their coat or their handbag or show what's in their pockets, but if they refuse, nothing that we can do. Don't touch, don't impede, don't chase, let them have the damn stuff.
In my experience, calling the police department for shoplifters is completely useless. Either they won't come or if management insists, they show up hours later. The only time we could get a fast police response was for a robbery in progress
When I was working retail, our comapny policy was to try and prevent the shoplifting as they entered the store. We made sure to greet each customer personally and strike up a conversation if possible. The more invested and personable you get with a customer, the less likely they will shoplift. And if they still did, there's not much you can really do at that point because if they have a weapon, you are potentially putting yourself in danger.
This is so common yet the authorities are not doing anything or even the management. It is frustrating. They will not learn and eventually do the same thing over and over again.
Maybe your manager doesn't want to confront people. She knows it might cost her her job.