Research shows that external and internal theft significantly contributes to retail losses, leading to financial damage and affecting operations, such as inventory control and stockouts. Therefore, the ability to identify vulnerabilities and prevent theft becomes a key factor in preserving a business's profitability.
With this goal in mind, I have outlined 9 tips to prevent theft in stores, covering everything from basic layout and process concepts to advanced technologies for maintaining a more profitable shopping environment for retailers and a safer experience for everyone.
1 - Include Loss Prevention in the Store Design
Collaborating with Loss Prevention specialists in the store’s design is essential to foresee potential vulnerabilities and evaluate solutions. In addition to ensuring a layout designed to prevent theft, an infrastructure that accommodates future installations of equipment such as CCTV cameras and EAS (Electronic Article Surveillance) antennas helps implement these systems more efficiently and cost-effectively.
2 - Eliminate Store Blind Spots
It's important for the store layout to allow full visibility of the environment, making it easier to monitor customers. To prevent theft, there should be no blind spots, meaning no areas where customers are left unobserved. These blind spots can be avoided in the design or eliminated by installing devices like mirrors or cameras.
Note: Installing overhead banners, posters, or displays that block cameras or convex mirrors compromises the effectiveness of these devices.
3 - Plan Product Displays to Promote Sales and Prevent Theft
Product display strategies aim to boost sales, which is great! However, certain precautions can also help prevent theft. High-risk items, often referred to as high-risk products (H.R.P.), should be strategically placed in high-traffic areas, near the endcaps or at the checkout.
Avoid the trap of product confinement
Sometimes, HRP items are confined in cabinets and display cases to prevent theft. While this reduces theft, it also significantly decreases sales. The recommendation is to protect HRP items with EAS anti-theft systems.
4 - Keep the Store Organized
Disorganization, products not being returned to shelves, and misplaced boxes are invitations for thieves. A well-organized store makes it easier to identify missing products, which naturally helps prevent losses.
5 - Offer Proactive Customer Service
Adopt the practice of strategically approaching customers in the sales area. Customers will recognize the company’s service policy and feel supported during their shopping experience. When potential thieves realize they are being observed, they may be discouraged from attempting theft.
6 - Prevent Internal Theft as Well
Studies show that internal theft has a similar impact as external theft and requires specific strategies for prevention. Technology is an ally in preventing internal theft with solutions like access control to restricted areas (stockrooms, cash office, etc.), video monitoring systems, and operational audits. Additionally, management practices such as strict hiring processes, clear conduct policies, reporting channels, and behavior and performance monitoring can help create a safer internal environment.
7 - Conduct Frequent Inventory Audits
Regular inventory audits are essential for identifying stock discrepancies and spotting products with unexplained losses, which can then be closely monitored. Based on this information, theft prevention measures such as repositioning products, applying security tags, and installing cameras in specific areas can be implemented.
8 - Communicate with Other Stores
Share information about theft and prevention strategies with other stores in the same chain to identify common patterns and approaches.
Facial recognition technology can support this strategy: the system compares images of people entering the store with those stored in a database (which can include inputs from other systems, like intelligent EAS antennas). When an offender is identified upon entering the store, the system automatically alerts management. This enables the creation of a centralized database for the chain or associated retailers, meaning if a person steals from one store and attempts to do the same at another location, they will be identified.
9 - Cultivate a Loss Prevention Culture
Train employees to identify suspicious behaviors and theft prevention techniques. Including Loss Prevention in daily meetings, with clear communication about theft attempts, sharing best practices, and providing guidance on internal processes is key to building a vigilant and committed team to reduce losses and prevent theft.
Bonus Tip: Invest in Technology
To illustrate the impact of losses, imagine the cost of replacing a stolen item: with a 20% profit margin, for each stolen item, you need to sell five items to recover the value of the loss. This highlights that investing in loss prevention technologies like EAS anti-theft systems, CCTV, and other solutions offers an excellent return on investment and quickly pays for itself.
Avoid theft and protect your profits!
