When it comes to retail theft protection, electronic article surveillance (EAS) systems are often the first thing that comes to mind. However, statistics show that significant shrink continues to occur despite such measures. According to the National Retail Security Survey 2023 by the National Retail Federation (NRF), shrink rates in retail rose from 1.4% in 2021 to 1.6% in 2022. This makes it clear that although electronic article surveillance systems are an important solution, they are not enough on their own.
Proactive security strategies to protect against internal theft
The NRF survey found that businesses lost an average of $2,180 per incident to internal theft in 2022. Since such cases often go unnoticed, additional security measures are needed. Typical methods of internal theft include:
- Removal of security tags from inventory
- Illegitimate refunds and embezzlement of cash
- Manipulation of price labels and retention of the difference
In addition to employee training, advanced security solutions such as RFID tags and intelligent surveillance systems can help detect theft and fraud.
Security around the clock: protection against organised crime
Organised retail crime (ORC) is a growing problem that is increasingly spreading through various channels. Protecting retail stores doesn’t end when they close; instead, it requires a well-thought-out security concept that takes into account both physical and digital threats. The increasing blurring of lines between online and in-store retailing makes cybersecurity an essential component of the protection concept.
Protecting assets beyond inventory
In addition to inventory, other company assets such as cash or IT infrastructure need to be protected. Protecting employees is also becoming increasingly important. According to the NRF, 82% of respondents said that incidents of violence in stores have increased significantly in the last five years. This highlights the need for a comprehensive security strategy that goes beyond traditional merchandise security devices.
Holistic retail security strategies
To minimise shrink and theft, it is recommended that employees be actively involved in security measures. Training in recognising theft, fraud and errors helps to create a secure sales environment. In addition, targeted measures such as greeting customers can deter potential thieves.
Promoting a corporate culture that fosters integrity and accountability also helps to reduce internal theft. Transparent security policies and well-communicated measures create an environment in which security breaches are less likely.
Video surveillance as a central pillar of the security strategy
The integration of modern video surveillance systems is a central component of the retail security strategy. In particular, IP cameras that are managed via cloud solutions enable real-time monitoring from any location. These systems not only provide a way to retrospectively analyse incidents, but can also be used preventively through data-based evaluation.
Using predictive technologies to prevent theft
Modern security systems can recognise patterns of behaviour that indicate an intention to steal. Particularly in areas with high-value inventory, the analysis of customer movements, dwell times and gestures can provide early identification of potential risks. This allows security measures to be targeted and strengthened.
Data-driven detection of internal theft
By linking merchandise management systems with video surveillance, irregularities can be identified and investigated in a targeted manner. Discrepancies between expected and actual stock levels indicate potential sources of problems.
Building a security culture through the use of technology
Retailers benefit from a combination of technological solutions and a strong security culture. Awareness of the protective measures in place has a deterrent effect while also promoting a responsible corporate culture. Modern security technologies are thus not only a means of loss prevention, but also support the development of a sustainable security concept.
