Loss Prevention: Boost Store Security, Lower Costs
Featuring Blue Montez, regional loss prevention manager, Sport Chalet

Sport Chalet saved $22,000 and improved security within the first year of changing its store locking system.

Shortly following an employee termination, your IT staff and human resources department may do a good job of disabling the former employee's computer login name and password and turning off the employee's phone extension. While this may be adequate for the IT side of security, physical security is a whole other matter. For example, how can you be sure that a disgruntled former employee didn't make a copy of the store key before turning in their original key? Retailers like Sport Chalet take this question very seriously. Sport Chalet is a sporting goods retailer that has 47 stores and more than 3,000 employees. During its latest fiscal year, which ended April 1, 2007, the retailer reported $388 million in sales.

Rather than using generic store keys (i.e. keys that look similar to house keys and can be easily duplicated at any hardware store), Sport Chalet purchased high-end locks with removable cores. "The problem was that we paid a lot more money for our store locks, and it was difficult to budget for the costs," says Blue Montez, regional loss prevention manager at Sport Chalet. "Besides the initial cost of the locks, we had to pay a locksmith about $125 per hour plus parts to replace the cores, which occurred when a manager resigned or was terminated, or if a core malfunctioned or a key broke in the lock." The cost of replacing each core and buying new keys ranges from $200 to $300, according to Montez, and locksmith service calls occur an average of two times per month.