in LPRC Reports

Alternative Source Vendors: Retailers, Diverters and Stolen Goods

Alternative Source Vendors: Retailers, Diverters and Stolen Goods
Read Hayes, PhD, CPP
Loss Prevention Research Council and
University of Florida
Abstract
Many large retailers attempt to increase profit margins and competitiveness by buying goods from sources other than original manufacturers. This practice can also encourage and enable the movement of stolen, counterfeit and altered products. This paper focuses on the linkage between product diversion, stolen and counterfeit goods and legitimate retailers. Research and trade literature was reviewed for this study, while retailer buyers, retail and law enforcement investigators, and active “booster,” fraud, and fence offenders were interviewed in order to provide insight into the scope, impact and methods of secondary source buying. This paper also discusses individual and collaborative protective opportunities.