Top 5 Retail Loss Prevention Techniques for 2023

Resolver
November 14, 2023 · READ

There are constantly moving parts when it comes to retail, from maintaining inventory levels to ensuring your prices are competitive and everything in between. Keeping up with the demands of your customers means ensuring return business. With the rising popularity of online orders, in-store pickup, curbside pickup, and self-checkout registers, comes an increase in retail loss prevention measures.

While increased shopping opportunities offer consumers more choice, there is also an increased opportunity for retail loss. This insecure environment creates repercussions that don’t just affect your bottom line but can also directly threaten customer relationships and satisfaction if not addressed.

Active retail loss prevention plays a key role in maintaining retailers’ profit margins, protecting consumer relationships, and minimizing risk — no matter the stability of the retail marketplace or the type of products you sell. These five retail loss prevention methods can work together to minimize retail shrink and help you form a strategy to mitigate incidents.

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1. Organize your storefront to minimize theft

Though brick-and-mortar storefronts only account for one shopping avenue, their high level of in-person inventory makes them easy targets for retail loss. Thankfully, product positioning, display layouts, and even store floorplans can be strategically designed to deter theft. Keep displays uncluttered and below eye level, making it easy for your staff to notice if items go missing. Some additional measures that can be implemented to help with retail loss prevention includes:

  • Strategic product placement: Arrange high-value and easily pilferable items closer to the checkout area or within the line of sight of store staff to deter potential shoplifters, as they are less likely to attempt theft in highly visible areas.
  • Optimized store lighting: Ensure that the store is well-lit, leaving no dark corners where theft could occur unnoticed, creating a more secure atmosphere that discourages criminal activity.
  • Clear line of sight: Design the store layout to provide unobstructed visibility for staff from key vantage points. This minimizes blind spots and makes it more challenging for shoplifters to operate undetected.
  • Use of mirrors: Strategically install mirrors to eliminate hidden corners and blind spots. Mirrors can be particularly effective in areas where direct visibility is challenging.
  • Aisles and display layout: Keep aisles and displays organized to facilitate easy monitoring. Avoid overcrowded shelves, as they can provide cover for potential thieves.
  • Controlled access areas: Restrict access to stockrooms and other sensitive areas. Use secure locks and access control systems to ensure that only authorized personnel can enter these spaces.
  • Effective signage: Display clear and visible signs indicating the presence of security measures, such as surveillance cameras and anti-shoplifting devices. These can act as deterrents and make potential shoplifters think twice.
  • Customer service desks near exits: Position customer service desks or staffed areas near exits to greet customers as they leave. This not only enhances the shopping experience but also acts as a deterrent to potential shoplifters.
  • Emergency procedures: Establish clear protocols for handling security incidents or emergencies. Train staff on how to respond to theft or suspicious behavior while maintaining customer service.

2. Ensure you have secure checkouts

With the increasing popularity of online shopping, it should come as no surprise that e-commerce sales are expected to rise to $285 million by 2025 in the United States alone. Retailers shifting to an online-friendly model should prioritize comprehensive security measures, including encryption protocols and secure payment gateways. Investing in advanced fraud prevention systems using machine learning and multi-factor authentication enhances overall retail loss prevention measures.

Collaboration with industry watchdogs, regular software updates, and geofencing technology further fortify defenses against emerging threats. Establishing transparent return and refund policies discourages fraudulent activities. By implementing these comprehensive techniques, online retailers can navigate the e-commerce landscape securely and foster trust in the digital marketplace.

3. Conduct regular audits

Audits are integral to retail loss prevention, serving as a systematic approach to identify vulnerabilities both in-store and online. Regular inventory audits maintain accuracy, revealing discrepancies that may indicate theft or errors. Shrinkage assessments help quantify losses, allowing targeted strategies for high-risk areas. Compliance checks ensure security measures are in place, and online transaction audits detect fraudulent activities in the digital space.

Audits also promote employee accountability, evaluate process efficiency, and extend to vendor relationships for supply chain integrity. Data security audits in the online realm focus on cybersecurity measures, preventing losses due to data breaches. The insights gained from audits contribute to continuous improvement in loss prevention strategies, guiding refinements and staying ahead of evolving threats. When conducted regularly, they offer opportunities for employee training, reinforcing anti-theft measures and addressing specific issues identified during the process. 

Threat protection/audit dashboard for retail loss prevention

Resolver’s Threat Protection/Audit Dashboard

4. Continuous education for employees

Employee training and education are fundamental components of a comprehensive retail loss prevention strategy. By equipping staff with the knowledge and skills necessary to identify, prevent, and respond to potential risks, retailers can significantly reduce losses. Through proper training, staff can identify suspicious behavior, understand common theft tactics, and utilize security measures such as surveillance cameras and alarms effectively.

Customer service becomes a natural deterrent when employees are engaged, attentive, and knowledgeable about theft prevention. Training also addresses internal theft risks by instilling a culture of honesty and integrity. Employees should be well-versed in emergency response protocols and receive regular updates on evolving loss prevention strategies. Collaboration and communication among staff members contribute to a vigilant and proactive team, while customer engagement techniques enhance the overall shopping experience and deter potential thieves. By investing in ongoing education, retailers empower their workforce to play an active role in the success of comprehensive retail loss prevention efforts.

5. Use technology to your advantage

Two of the largest contributors to retail inventory shrink are theft — both internal and external — and clerical errors, otherwise known as “paper shrink”. Automated inventory controls, security tags, and POC and IoT-enabled theft prevention systems allow your team to focus on helping customers. These tools also provide valuable, tangible data that identifies how and where loss is occurring so retail loss prevention techniques can be more effectively mitigated.

Implementing these tools can do more than manage inventory levels. As retailers face issues due to fragmented and inconsistent profit protection processes, data inconsistencies make it challenging to understand the context of losses, diverting resources away from problem-solving. Having a centralized data source prevents further complicates matters such as:

  • A lack of standardization and visibility in profit protection processes.
  • Difficulty assessing the context of losses.
  • No centralized, single source of truth for data visualization and reporting.

Investing in a system that integrates all aspects of profit protection, streamlining processes and ensuring a standardized approach. This includes protocols for uniform data collection and integrate information from various sources to provide a holistic view. By establishing a centralized data repository for real-time insights, you can leverage cloud-based solutions for scalability and flexibility, as well as utilize advanced analytics and reporting tools to extract actionable insights, employing machine learning for proactive threat detection.

Implement effective retail loss prevention strategies with Resolver

While loss prevention is key in protecting profits and maintaining positive consumer relationships, it’s not enough on its own to guarantee that retailers’ time and efforts are profitable. Utilizing retail loss prevention solutions can improve your processes and ensure all resources are not just efficiently used but also optimized so your team can focus on their customers.

Resolver’s Incident Management Software is designed to help your growing enterprise reach new heights. Take control of your retail security and streamline your loss prevention efforts, enhance response times, and fortify your business against potential risks. Elevate your retail security today with Resolver.

Sign up for a no-commitment Incident Management showcase today and see how our solutions can work for you.

This content was originally published on November 15, 2021
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