Whether you call it shrinking, theft, loss prevention or shoplifting, there’s no question that it impacts a retailer’s bottom line… and not in a good way. In fact, a 2024 report identified that 13% of small businesses believe they encounter theft in their store every single day while over 48% of retailers have reported internal theft from their own team as a concern. Keeping this in mind, how can businesses combat theft when there seems to be no end in sight for this frustrating and expensive retail challenge?
Whether a small business owner or corporate operator, there are various ways in which you can aim to combat theft. Preparing to handle theft before it happens is key. Using the five tips below, consider how the following loss prevention strategies can help your unique business.
Tip #1: Check Out “Check Outs”
Did you know that buying and stealing merchandise in the same visit is a trend among many shoplifters? The National Association for Shoplifting Prevention has found that shoplifters commonly steal during a store visit in which they also make a purchase.
This strategy is aimed to distract store employees from their theft so as a store operator, it’s essential to train your team on how to avoid this becoming an issue in your own stores.
Ways to help do this may seem obvious, but are they being practiced by your sales staff routinely? Make sure it’s a habit among all employees to open lids, bags or anything else that may close that they are purchasing, as well as in all items that may include shopping baskets, shopping carts or other objects used to collect inventory while in a store. Consider your store size and employee head count, as well, to identify best practices to help monitor these procedures and set procedures in place to ensure they are consistently met.
While you can’t open purses or insist customers to unzip their coats, you can still aim to be more attentive, more communicative and more vigilant in your check out standards. In combination with the additional best practices below, these practices can help reduce shoplifting in your store.
Tip #2: Create a Store Layout with Theft in Mind
Displays, point of sale exit areas, clearance sections and more are all among the areas store layouts are designed around. But imagine if theft was top of mind when creating these same layouts? To help create an anti-theft strategy for your store, begin by creating a design layout that caters to theft prevention.
Retail store layouts that do this are doing so to avoid theft and therefore, heighten theft protection. Among the considerations to factor into your layout to achieve this include placing the check-out area of your store between the merchandise and the exit with a clear view of the door entry / exit from this same location. This creates a barrier between your inventory, your staff and would-be thieves.
Combined with employees trained to communicate with all store visitors – customers and thieves alike – someone who is looking to steal will be less likely to do so because of this store layout.
Additionally, aim to create a space that has an openness about it that allows employees to view store visitors nearly – or mostly – all the time. If your store offers changing rooms, make these only accessible with employee engagement – ultimately decreasing the chance of someone using this space as a place to steal inventory.
The main takeaway here is to create a store footprint that enhances the customer and employee experience alike while distracting the attention of would-be-shoplifters.
Tip #3: Identify Your Store Theft Risks
As a store owner or manager, it’s likely that no one knows your store better than you… unless that someone wants to steal from you.
Put yourself in the shoes of a thief and walk around your store and identify what may be a risk zone for shoplifting. Consider your overall store layout, merchandising and inventory. Do you feel confident your store is risk free, or are there shoplifting risks in your store?
Like everyone else, the reality is you cannot 100% guarantee you won’t be the victim of theft – but you can consider your risks and aim to strengthen them. Among them include keeping your inventory organized and your team aware of merchandising standards that may include replacing items once they are sold on store shelves.
As the folks at Shopify recently suggested, “if your store is messy, disorganized, or a maze to get through, it can be harder to notice that you’ve been ‘gotten’ until it’s too late.” A final thought? Channel your inner Sherlock Holmes and challenge your employees, friends and even family to do the same to gain multiple perspectives on risk zones in your store.
Tip #4: Re-Merchandise Your Inventory Based on Risk Potential
Not all risks come with reward, so rather than let your risk zones become a problem consider how re-merchandising your store can help. Areas that are infrequently monitored by employees or have limited view from the check-out area are often the most vulnerable when it comes to theft.
Due to this, consider what products you place in these areas and how other products – such as larger items that may not be easily removed – may be more ideal in these places.
Other areas that may bring risk include corners, areas behind shelving, displays located directly by the exit door and changing rooms. Small products that are easy to pocket or stuff into bags or purses are typically the most vulnerable items when it comes to shoplifting, as well. Placing these vulnerable objects in high risk areas is a bad combination that may tempt potential shoplifters – so instead, consider how a shift in merchandising can help combat this.
Additionally, consider placing high priced inventory in glass casing or on shelves that demand employee engagement in order for customers to touch them. The ultimate goal here is to create a space that remains engaging to honest consumers while still creating barriers to less honest ones.
Tip #5: Pretend You Have More Security Than You Do
Every business has strengths and weaknesses and when you consider security, there is a good chance many stores don’t excel in this area. But as the saying goes… fake it till you make it, right?
Leveraging security cameras, tags, and even security guards are all great ways to distract shoplifters, but if you are like many merchants, you can’t afford all of these for your store. What you can do, however, is take advantage of some of these tactics without breaking the bank. One way to do this is to install a dummy security camera that can deter amateur shoplifters targeting small businesses. You can even buy recycled electronic security tags and install them on high-value products to help scare potential thieves away.
Of course, the real deal is always better. However if that is not in your budget, consider how you can still give the perception of heightened security to your customers.
Bonus Tip: Keep an Eye on Employees
The US Chamber of Commerce reports that 75% of employees will steal from their employees within their professional lifetime, which means that you are likely at risk for being among those employers who may be stolen from.
Keeping this in mind, be sure that you and your team are the first line of defense against shoplifters – including those who may work for you. Communicate your concerns to your employees about shoplifting in general, then make sure they are aware that you are aware of inventory, dollars and anything else that is at risk for being stolen. Teach them to keep their eyes open for suspicious characters and vulnerable items both from an internal and external perspective, then be sure they know the door is open –so to speak – for them to share any concerns they may have.
Communication is key here, which is the basis of any healthy relationship – including those between store operators, management and employees.
In Conclusion
When it comes to theft you need to be clear with potential thieves what you will do should they be caught. Having clear messages within your store space can help deliver this message, with some examples including:
- “Shoplifters will be prosecuted.”
- “Please ask an employee for access to the dressing room.”
- “Employees Only.”
- “Smile! You’re on camera.”
Each sign communicates that your store is positioned to prosecute shoplifters while also firmly stating that your store space is a secure environment for your customers, employees, and your items.
Creating a theft prevention plan can be daunting, but the extra efforts now are much less daunting than dealing with stolen inventory and thieves later. So with no time to waste, what are you doing today to help avoid theft in your store tomorrow? Using the above reasons, begin protecting your business the shoplifters we know are sadly roaming in and out of stores today.