With Target predicting to have lost $500 million more this year to shrinkage, retail security has been a pressing concern for every business owner. With the rapid advancement of technology, the landscape of retail security is evolving at an unprecedented pace. Traditional security measures are no longer enough to combat sophisticated threats. To stay ahead of the game, retailers need to embrace emerging technologies that promise enhanced security and protection. In this blog post, we will explore the future of retail security and highlight some loss prevention trends to look out for.

Artificial Intelligence (AI) and Machine Learning (ML):

AI and ML are some of the most popular technologies at the moment. There is no doubt that they offer a massive contribution to retail security and loss prevention in addition to countless other capacities. These technologies have the potential to analyze massive amounts of data in real-time, enabling retailers to detect and respond to security threats quickly. AI-powered video surveillance systems can automatically identify suspicious behavior, such as shoplifting or loitering, and alert security personnel. ML algorithms can also help identify patterns of fraudulent transactions, reducing the risk of financial losses. With this data, retailers can make informed choices in regards to staffing and arming their merchandise with the appropriate security tags and other loss prevention tools to reduce theft wherever it starts.

RFID:

RFID operates based on the principle of electromagnetic fields and radio frequency communication. When an RFID tag enters the range of a reader’s signal, it receives power wirelessly, allowing the tag to respond with the stored information. RFID technology is a game-changer in the retail industry, enabling seamless inventory management and supply chain optimization. With RFID tags embedded in products, retailers gain real-time visibility into stock levels, reduce human error, and enhance efficiency during stocktaking. Moreover, RFID-enabled checkout systems provide faster, contactless payment experiences, enhancing the overall customer journey.

INEO Solutions Inc. has combined security and advertising with RFID technology. Their “Welcoming System” is a dual purpose loss prevention pedestal and digital advertising screen that has integrated RFID technology within. When a shoplifter removes an item from a store, not only will the storeowners know something has been stolen, they can know exactly which item on the pedestal’s digital screen.

Internet of Things (IoT) and Sensors:

The IoT is connecting various devices and systems, and in retail, it can greatly enhance security measures. IoT-enabled sensors can monitor and track merchandise, providing real-time information about product location and movement. Additionally, smart shelves equipped with weight sensors can detect unusual activity, such as someone removing items without scanning them, and send alerts to store employees.

Robotic Security Systems:

Retailers are increasingly exploring the use of robotic security systems to monitor and patrol their premises. These robots can navigate autonomously, equipped with cameras and sensors to detect suspicious activities. They can provide real-time video feeds to human operators, reducing the need for constant physical presence. Robotic security systems are not only effective in preventing theft but also serve as a visible deterrent to potential criminals.

Conclusion:

The future of retail security is being shaped by emerging technologies that offer advanced capabilities to protect businesses and customers. Artificial intelligence, machine learning, RFID, IoT, and robotic security systems are just a few examples of the transformative technologies revolutionizing the retail industry. By embracing these innovations, retailers can create safer shopping environments, minimize losses due to theft or fraud, and build trust with their customers. As the retail landscape continues to evolve, staying informed and adopting these emerging technologies will be crucial to maintaining a robust and secure retail ecosystem.

Sources:

https://www.trendmicro.com/vinfo/fi/security/news/internet-of-things/security-for-the-next-generation-retail-supply-chain

https://www.newswire.ca/news-releases/ineo-to-debut-rfid-enabled-welcoming-system-at-nrf-2023-850369093.html

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Effective loss prevention in retail includes the use of security tags, which play a vital role in deterring shoplifting and preventing theft. These tags function by setting off an alarm when they encounter a magnetic field from an Electronic Article Surveillance (EAS) System, alerting store staff to the presence of an unpaid item.

Although it would be ideal for retailers to tag all of their merchandise, this approach is typically too time-consuming and expensive. Therefore, retailers need to prioritize the items that are most frequently stolen and targeted for tagging with security tags and labels.

For a comprehensive list of the most crucial items that retailers should tag in their stores, continue reading below.

Luxury or Higher-Cost Items:

It’s important to tag any expensive or high-value merchandise to deter thieves. Designer handbags, jewelry, electronics, and high-end clothing are all items that should be tagged because they are more likely to be targeted due to their high resale value. Self-alarming tags like Screamer or Spider tags are ideal for these types of items because they not only alarm when passing through the security gate but also when tampered with by a shoplifter.

Screamer tags work best for items with secure loops like handbags, shoes, and coats, while Spider tags are perfect for boxed items like electronics, toolkits, and cosmetics. Shell Tags are also effective for high-end clothing items since they cannot be easily removed without the right tools. These tags may cost more, but their increased detectability and effectiveness make them worth the investment.

Delicate Items:

Fragile items like electronics and glassware are prone to damage during theft attempts. To prevent such damage, retailers can tag these items, making it difficult or unattractive for thieves to steal them. Some shop owners prefer to keep fragile items in locked cabinets, while others opt for security labels or tags to ensure their safety.

Spider Tags are particularly suitable for securing boxes containing delicate and expensive items, such as plates, bowls, fine china, candles, or other fragile items made of glass or porcelain. Retailers can also use security labels, which can be discretely inserted into the packaging and applied to any smooth and flat surface.

Small Products:

Small and valuable items like makeup, accessories, and small electronics, are frequently targeted by shoplifters due to their high demand and ease of concealment. To prevent theft of these items, retailers can use smaller security labels that can be easily attached to the packaging or product.

Plain white labels can provide a neat and clean look, and can also be personalized by adding pricing information or store branding. Barcode labels can also be used to increase legitimacy and prevent shoplifters from removing them.

In addition, it is important to display these items in a high-visibility area to discourage theft and make it easier for store personnel to monitor them.

Display Items:

Displayed items in a store, whether on mannequins or on shelves, are prone to shoplifting due to their easy accessibility and high desirability. The absence of these items may go unnoticed, making them a prime target for theft. To maintain the aesthetic appeal of the display, it is recommended to use subtle security tags like Mini Rectangular Tags, Shell Tags, and Mini Pencil Tags. In case it’s not possible to tag an item, discreetly attaching security labels on the display can be a useful alternative.

New Items:

Shoplifters are often drawn to new merchandise due to its popularity and perceived value. To prevent losses, it’s important to choose the appropriate security tag for each item based on its value, shape, and other individual features. It’s recommended to invest more in securing high-value items, as the potential losses from theft can be significant.

Seasonal Products:

Seasonal merchandise, such as clothing or decorations for holidays, are often popular targets for shoplifters due to their high demand and limited usage. Properly tagging these items with security tags or labels is important, especially during peak shopping seasons.

The type of security tag or label to use for seasonal merchandise varies depending on the specific item and holiday. For example, Spider Tags are ideal for securing boxes of Christmas trees and ornaments, Pencil Tags can be used for fabric items like stockings, Screamer Tags can protect woven Easter baskets, and clothing security tags such as Pencil Tags, Mini Rectangular Tags, and Ink Tags can be added to Halloween costumes.

Special Edition and Limited Edition Items:

Collectibles and exclusive merchandise that are available in limited quantities are in high demand among collectors and can be easy targets for shoplifters to resell. As these items are restocked less frequently, it is crucial to secure them with the most effective security measures possible.

Self-alarming tags are highly recommended for these types of items as they are difficult for shoplifters to remove without triggering the alarm. Additionally, if your store has a history of high theft, it may be necessary to keep limited edition items in a locked display case for added security.

Conclusion:

In order to effectively deter theft and protect profits, retailers must carefully consider what items to tag and what type of security tags or labels to use. While security tags can be highly effective in preventing theft, retailers must also implement other security measures such as surveillance cameras, security guards, and employee training programs to create a comprehensive loss prevention strategy. By analyzing sales data and security footage, retailers can identify which items are frequently stolen in their particular store or geographic area and take appropriate measures to protect them. Additionally, larger and more expensive tags are ideal for larger and more expensive items, while self-alarming tags like screamer tags or spider tags offer the best protection.

Overall, implementing a comprehensive loss prevention strategy that includes security tags and other measures is essential for retailers to reduce the risk of theft and protect their bottom line.

Sources:

https://dealaid.org/data/retail-crime/ 

The post Safeguarding Your Merchandise: The 7 Items That Require Security Tags for Maximum Protection first appeared on Security Tags.

This article will give you ten steps you can take to reduce and prevent shoplifting in your store TODAY!

1. Know what to look for!

It is crucial to learn and understand the most common shoplifting tactics and methods. This will enable you and your employees to know what to look out for. Some of these include tag teaming, using strollers or umbrellas, layering clothing in fitting rooms, and of course large bags or backpacks. By knowing how people might steal, you can better identify suspicious behavior in your store. 

It is also a good idea to enforce that shoppers leave backpacks and umbrellas in a secured area at the front of your store. Ensure them that their bags will be untouched and safe from any theft as well.

2. Optimize your store’s layout. 

It is best to make shoppers feel as if they are in plain sight. An open layout with wider aisles, lower shelves and displays, and bright lighting makes your store look sleek and safe. If your checkout section is in the back of your store, it’s a good idea to rethink that placement and move it to the exit/entrance. Give your staff a fair chance to notice shoplifters before they leave the store. Eliminate any blindspots and maintain clear sightlines to further deter the thieves. Prevention is key!

3. Keep it clean! 

If your store is crowded and untidy, how will you even notice if something has gone missing? Unfortunately, having items left in the wrong sections, overstocking shelves, and failing to properly inventory merchandise make shoplifting easy. Make it a habit to be tidying and organizing on a regular basis.

4. Improve customer service.

Use high-quality customer service as prevention. Greet all customers as they enter your store, acknowledge that you are aware of their presence and alert them to yours. Make sure you are not understaffing your store. Staff your store adequately to avoid the tag team theft tactic, and frequently offer assistance to customers as they browse your shop.

5. Signage!

Adding signage to your store is super low-cost and effective at preventing shoplifting! Show that your store has taken measures to detect theft and that any shoplifters will be prosecuted. There is nothing quite like a “smile, you’re on camera” sign to deter shoplifting! If shoppers know there is a higher likelihood they will be caught they likely will not take that chance.

6. Invest in a security camera in your store. 

An obviously placed security camera will deter shoplifting, allow your staff to monitor shoppers, and compile evidence against shoplifters in the case of future legal action!

7. Erase blindspots with convex mirrors! 

Erase blind spots and increase visibility in those awkward spaces in your store. Domed mirrors are a low-tech alternative to cameras.

8. Identify the at-risk items.

At-risk items are typically small, swipeable items that are easy to hide. Put them in a highly visible and highly staffed area in your store. Some businesses have found success with putting them behind locked cabinets as well! Erase any and all blindspots around these high-ticket items.

9. Use security tags.

Tag your higher-ticket items with security tags, such as the ones we offer in our online store. Security tags act as a line of defense and a deterrent to shoplifters. Not only are they nearly impossible to remove without the right technology, if someone knows that removing an item from the store illegally would result in a loud alarm alerting the staff, they might double-think swiping that item.

10. Invest in an Electronic Article Surveillance (EAS) gate. 

The last and most effective way to prevent a shoplifter is to install high-quality EAS gates. These are positioned at the entrance/exit of the store and alarm whenever a tagged item passes through. This visually deters shoplifters and alerts, staff members, when there has been a theft. They can come in a variety of styles to suit your store. The gate we offer is called “Clarity by INEO” and it comes in a sleek, clear acrylic that gives every store a modern and sophisticated appearance. These systems essentially pay for themselves.

Conclusion:

Shoplifting is a problem that hurts every retailer, but it can be prevented and reduced. If you know what shoplifting behaviors to look for, have a clear and tidy store layout, have high-quality customer service, decorate your store with signs, cameras, and mirrors, protect high-ticket items, arm your merchandise with security tags, and have an EAS gate at the doors you will be one step ahead in the fight against shoplifting. Now you are ready to protect your store from shoplifters and stop preventable shrinkage before it starts. Problem solved!

For more information on security products such as tags and gates, visit our online store or call one of our Retail Security Advisors. 

Sources:

Shoplifting Statistics (2022)

https://www.forbes.com/sites/jiawertz/2022/11/20/shoplifting-has-become-a-100-billion-problem-for-retailers/?sh=36ce8d842d62

https://cdn.nrf.com/sites/default/files/2022-09/National%20Retail%20Security%20Survey%20Organized%20Retail%20Crime%202022.pdf

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 This helps retail employees to focus on the task at hand rather than being distracted by looking for shoplifters on the shop floor. 

There are, however, a few pointers to guarantee that alarms only sound when they should and that your employees understand what each alert implies. 

 So here are four things you should be aware of when it comes to security tag alarms… 

The significance of excellent practices in EAS 

As a retail loss prevention tool, EAS is highly popular and effective. When security tags and/or security labels are applied on items, the system detects them and, when they approach a zone near the shop exit, an alarm sounds to inform employees that a theft may be taking place. 

The system, however, is only as good as the regulations, processes, and education that it is surrounded by. 

That means your workers should be instructed on how EAS works and how to respond appropriately to a warning and its implications. 

Tag Pollution 

When another store fails to properly deactivate or remove a tag, tag pollution arises. Your EAS system may trigger when a consumer carrying that item enters your retail area. 

Most EAS antennas now incorporate a lighting system that shows if an alert is being triggered by an incoming or outgoing tag. 

The meaning of the illumination on the EAS antenna should be explained to the staff. 

When it’s likely that a tag from another business has triggered your alarm, they should be taught measures to follow, such as verifying the shopper’s bag. 

Alarm Fatigue  

It implies something when an EAS antenna raises an alarm. However, some establishments fail to follow EAS best practices, and the alert rings so frequently that employees become oblivious to its possible implications. 

This is generally due to one of four factors: 

Pollution should be labelled. 

Tags in the forbidden zone 

Failure to detach tags or deactivate labels appropriately. 

Inadequate EAS system maintenance and incorrect inspections. 

So, what exactly do each of these terms imply? 

The No Tag Zone 

A no-tag zone is defined as the area between and surrounding the EAS antenna. This is an area where branded or labelled items, as well as decorations with a high foil content, should be avoided. 

If there are any marked or labelled things in this vicinity, the EAS antenna will most likely sound. 

The EAS system is usually within six feet of the “No Tag” zone. 

As a quick check, extend your arms out like you’re performing a star leap and look around each pedestal for any security tags within reach or just out of reach. 

Alarms are produced by a tag in the area of the antenna in over 90% of documented occurrences of false alerting. 

Failure To Properly Detach Tags 

Security tags must be removed at the point of sale, while labels must be disabled, to prevent the EAS system from raising an alert when an item left the store. 

Staff should be thoroughly instructed on how to perform this efficiently, as well as provided with the necessary equipment. 

Deactivators can be included within the scanning area of the checkout so that the label is deactivated at the same time as the barcode is scanned during a sales transaction, whereas detachers are normally tethered to the POS. 

Daily Checks  

Your EAS system should be examined regularly and repaired as needed because it is a valuable piece of equipment that is meant to safeguard a merchant from loss. 

Your manufacturer’s recommendations are likely to specify exactly what checks and services are required, but at the very least, the system should be examined each morning before the store opens to verify it is powered up and operational. 

Staff should also make sure the label deactivator is turned on at the same time. 

Additional resources:  

https://www.securitytags.com/the-different-types-of-security-tags/ 

https://www.ineoproducts.com/blogs/industry-banter/tags-vs-labels-which-one-should-you-use 

https://www.ineoproducts.com/blogs/industry-banter/everything-you-need-to-know-about-security-labels 

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 Expanding your offering 

One thing a lot of retail spaces did was expand the product line that they offered. Stores like Target, which already had a large selection of items, to begin with, reached even further by supplying essential goods in multiple ways, which is something we will touch on later in this post. 

Get Online 

Prior to COVID-19, people started to see the power of giving the customer the option to buy products online. Companies looked up to for things like this would be Amazon, Walmart, and Target, which played a role in growth in what we touched on a little bit ago. With people spending more time indoors and not wanting to go out and shop, why not bring the store right to their fingertips. Online shopping will only get more and more popular as time goes on and technology grows around it. The convenience factor will always be there and it gives people the time that would have been spent shopping, to pursue other things on the weekly to-do list. 

Be Informative 

This can be done in a number of ways. Using clothing retailers as the primary example, have ways to show off your product in more ways than just on a single model. Implementing things like size guides, models in all shapes and sizes, and even ways to mix and match multiple products. Lululemon is the best example here to give as not only did online shopping become easier for their shoppers, but with this also came an all-time high in sales and a huge increase in company stock.

Communication is key 

As seen time and time again during the height of the pandemic, being open and communicating with your customers makes things easier for everyone. Use the platforms all around you in things like social media and email flyers to get the word out. People want to know what’s going on, so coming out with plans for your retail space and products gives people the insight they have been looking for.  

Reach out 

Hitting on the point above, using things like social media platforms to start a dialogue with your customers. Be engaging, open, and informative when talking to customers, doing so will not only lead to more returning shoppers but by word of mouth, a great lump sum of newer customers. Ensuring you have a loyal customer base is one of the greatest building blocks used to example your retail space. 

 What about the In-Store Experience 

 Let’s not forget, even with all the rambling on about all the advancements made through online shopping, what about the people, especially as time goes on and things get closer to what we would call “normal”, that still want to go to an actual store? Let’s hit on a few points that have been updated over the last couple of years. Since consumers have the “get in and out quickly” mentality, retailers have reconfigured their stores to facilitate faster, more streamlined shopping trips. COVID-19 has also accelerated the need for retailers to shift to more experiential showrooms instead of traditional stores. A store that hits on both these points very well would be IKEA.

https://business.fiu.edu/graduate/insights/why-retailers-will-bounce-back-to-a-new-reality-after-the-pandemic.cfm 

https://www.thinkmax.com/en/insights/why-enhancing-the-post-covid-in-store-experience-should-be-top-of-mind-for-every-retailer/ 

https://www.retaildive.com/news/5-retailers-winning-despite-the-pandemic/586602/ 

Google shows faith in physical retail

https://www.cnbc.com/2020/12/15/lululemon-ceo-expects-digital-growth-momentum-to-continue-post-pandemic.html 

https://www.forbes.com/sites/rohitarora/2020/06/30/which-companies-did-well-during-the-coronavirus-pandemic/?sh=669a34287409 

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As US retail gears up and gets back to business, theft prevention is set to again become a major priority.

Although statistics indicate theft events were down throughout 2020 due to store closures, of the events that did occur, the value of the amount stolen was higher, and stores deemed essential actually experienced a shoplifting increase.

Which begs the question, where is your retail theft occurring?

Because once you know where your risk is, you can devise the best strategies to mitigate loss.

The four major types of retail theft

When it comes to analysing retail theft, there are four major areas to look at shoplifting, employee theft, fraud, and organized retail crime (ORC).

Each has an impact on retail’s bottom line, with the current statistics available here.

However, to put it plainly, theft is part of a wider retail loss problem that cost the industry $61.7 billion in 2019 or 1.62 per cent of retail’s annual bottom line.

Shoplifting

Shoplifting is often the theft issue that gets the most attention, and there’s good reason this is the case.

Shoplifting continues to be the number one cause of retail loss, with both amateurs and professional thieves contributing to the problem.

On the flipside, shoplifting is also one of the easiest problems to address, but it is imperative to have a multi-pronged approach that protects the store overall and items at a product-based level.

The top shoplifting prevention strategies include:

• Good store layout and lighting.

• Staff education and training.

• Electronic article surveillance involving security tags, security labels and pedestal antenna.

• CCTV.

• Loss prevention staff

Employee theft

Employee theft is a bit of a hidden epidemic, but the reality is each incident of employee theft costs a retailer more than general shoplifting.

That’s because employee theft often takes longer to identify and can take the form of false returns, gift card fraud, skimming or false reconciliation of inventory.

In fact, the 33rd Annual Retail Theft Survey by Jack L Hayes International found each incident involving a dishonest employee averaged $1219.61, which was up 3.8 per cent in 2020.

The top employee theft prevention strategies include:

• Screening of all prospective employees.

• Staff training.

• A good work environment with fair remuneration.

• Staff monitoring through CCTV and POS analytics.

Fraud

Fraud is becoming an increasing problem in retail theft, with perpetrators becoming more elaborate in their scams.

Some of the most common ways that fraud is committed to involve return fraud, credit card fraud, and gift card fraud.

Meanwhile, fraud is also an issue behind the scenes in terms of supplier fraud.

The best ways to mitigate the risk of fraud include:

• Returns and gift card policies and procedures.

• Staff training.

• POS analytics.

• Payment’s security.

• Inventory reconciliation upon receipt of goods.

Organized retail crime

One of the biggest scourges of the modern retail landscape is organized retail crime, which sees a group of thieves deliberately target a retailer to steal items in volume.

Organized retail crime is incredibly costly to retailers. The National Retail Federation notes Organized Retail Crime cost retailers an average of $719,548 per $1 billion in sales in 2020.

Perhaps more concerning is that organized retail crime is often accompanied by violence, with the NRF’s Organized Retail Crime Survey 2020 finding the majority of retailers reported thefts involved more violence in 2020 than they did in 2019.

Combatting organized retail crime involves:

• Training staff to identify the suspicious behaviour that can indicate an organized retail crime event is about to take place.

• Storewide security such as CCTV and loss prevention personnel.

• Electronic Article Surveillance.

• Secure cabinets and lockable drawers.

• Good store layout that prevents easy smash and grab events

The final word

In the coming months, retailers will be looking to make up for the lost ground of 2020, and that means the focus should return to theft prevention.

After all, increased foot traffic equals an increased risk of shoplifting, employee theft, fraud and organized retail crime.

You can find more resources for protecting your store against each here.

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With retail on the rebound after the challenge of 2020, the concept of retail theft might be the furthest thing from store owners’ minds.

But, as retailers seek to embrace the return of foot traffic in-store, preventing loss should remain a major priority.

With that in mind, here are 10 retail theft statistics to keep you focussed on the battle at hand…

Retail theft at an all-time high

According to the 2020 National Retail Security Survey, theft reached an all-time high of $61.7 billion in 2019, up from $50.6 billion the year prior.

Granted, this data is from before the Coronavirus pandemic, but further research from Jack L Hayes International indicates the issue did not disappear, despite widespread shutdowns.

In fact, their data indicates theft from stores deemed ‘essential’ actually increased in 2020.

A significant portion of retail’s bottom line

The all-time high figure from 2019 equates to 1.62 per cent of retail’s annual bottom line, compared to 1.38 per cent in 2018.

Shrink rate rising

This industry’s high shrink value in 2019 was driven by an increase in the average shrink rate, with more and more retailers recording a shrink rate above 3 per cent.

The report found in 2019, 18.2 per cent of retailers reported a shrink rate of 3 per cent or higher (compared to just 10.9 per cent in 2018).

Covid saw shoplifting incidents down, but value up

With Covid lockdowns seeing much of the retail sector closed temporarily during 2020, there were fewer reported thefts, according to the 33rd Annual Retail Theft Survey by Jack L Hayes International.

Last year, shoplifting apprehensions were down 43.8 per cent and recovery dollars decreased 36.5 per cent.

However, the value of each incident increased. In 2020, shoplifting averaged $310.11, which was an increase of 13 per cent the year prior.

Dishonest employees remain a major issue

Like shoplifting, events involving dishonest employees decreased during the shutdowns of 2020.

In total, 26,463 dishonest employees were apprehended, according to the 33rd Annual Retail Theft Survey, but the value of each event was higher.

Last year each employee theft averaged $1219.61 (up 3.8 per cent in 2020).

Essential retail experiences a theft increase

While shutdowns reduced the opportunity for dishonest employee theft and shoplifting, the essential retailers that were open throughout 2020 experienced an increase in theft.

In essential retail, shoplifting rose 7.9 per cent while employee theft also rose 2.7 per cent.

Theft recovery costs money

For every $1 recovered by companies surveyed by Jack L Hayes International, $33.15 was lost to retail theft.

Therefore, only 2.9 per cent of total retail theft losses resulted in recovery.

Increased theft concern

The most recent National Retail Security Survey also found retailers were increasingly concerned about a number of loss trends emerging in-store.

The report noted in the past five years:

• 29 per cent of retailers viewed e-commerce crime as much more of a priority.

• 5 per cent saw organized retail crime as much more of a priority.

• 5 per cent viewed data breaches as much more of a priority.

• 3 per cent had been increasingly focussed on internal theft.

• 3 per cent viewed return fraud as much more of a priority.

Organized Retail Crime on the up

According to the Organized Retail Crime Survey 2020 by the National Retail Federation, Organized Retail Crime cost retailers an average of $719,548 per $1 billion in sales, which was up from $703,320 in 2019.

Greater aggression during thefts

The Organized Retail Crime Survey 2020 also noted the majority of retailers reported thefts involved more violence in 2020 than they did in 2019.

Almost a third of respondents (31 per cent) said perpetrators were much more aggressive, 26 per cent said they were somewhat more aggressive, 41 per cent reported the aggression was the same as the year prior and just two per cent said perpetrators were less aggressive.

You can read about strategies to combat shoplifting and retail loss here. Or, view our security tags and security labels.

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The data is in and while reported incidents of shoplifting and employee theft declined in 2020, the value of each incident increased.

According to the 33^rd Annual Retail Theft Survey by Jack L Hayes International, over 184,000 shoplifters and dishonest employee were apprehended in 2020 by just 22 large retailers. In total over $81 million was recovered.

Here’s a breakdown of what the survey showed…

Fewer shoplifting incidents

With Covid lockdowns seeing much of the retail sector closed temporarily during 2020, there were fewer reported thefts.

Last year, shoplifting apprehensions were down 43.8 per cent and recovery dollars decreased 36.5 per cent.

In total, 158,158 shoplifters were apprehended by the 22 major retail chains surveyed.

Meanwhile, dishonest employee apprehensions decreased by 20.3 per cent while recovery dollars were down 17.2 per cent, and in total, 26,463 dishonest employees were apprehended.

That said, shoplifting in the retail sectors deemed ‘essential’ experienced an increase of 7.9 per cent while employee theft also rose 2.7 per cent.

Incident value increased

While the number of shoplifting and theft incidents was down, the value of each event increased significantly.

In terms of total thefts, each event averaged $440.48, which was up 19.2 per cent on the year prior.

Meanwhile, shoplifting averaged $310.11, which was an increase of 13 per cent and each employee theft averaged $1,219.61 (up 3.8 per cent in 2020).

The true cost of theft

The survey also took the time to dive a little deeper into how much was lost compared to how much was recovered.

“For every $1 recovered by our surveyed companies, $33.15 was lost to retail theft. Therefore, only 2.9% of total retail theft losses resulted in recovery,” they noted.

This figure is based on the assumption that annual retail sales of the participating companies were $508 billion and the average shrink rate was 1.62 per cent of sales according to the 2020 National Retail Security Survey.

The reasons behind shoplifting increases and decreases

Those stores which experienced a shoplifting increase cited the following reasons:

• ORC (Organized Retail Crime) continues to be a primary factor.
• fewer stores to choose/steal from.
• Saw significant increase in “theft for need”.
• Legislation increasing felony thresholds embolden thieves.
• More ‘hit n run’/fleeing shoplifters.

Meanwhile, those that noted a decrease in incidents attributed it to the following:

• Store closures resulted in fewer shoppers.
• Transition to deterrence/recovery during the pandemic.
• Closing of fitting rooms for extended periods of time.
• Focused on better customer service.
• Less LP/AP staff due to restructuring or transition.

The reasons behind employee theft increases or decreases

In terms of employee theft, retailers which experienced an increase attributed it to the following:

• More focus/attention towards associate theft.
• Improved technology/analytic tools resulted in more DE cases.
• Fewer associates in-store created more opportunities for dishonest employees.
• Increase in loyalty card fraud.
• Increase in discount abuse cases.

Those who enjoyed a decrease cited the reasons listed below:

• Store closures and furloughed associates.
• Less focus on apprehensions and more focus on pandemic issues.
• Better prevention with additional technology at POS.
• Reduced travel by LP/AP staff.
• Decrease in LP/AP staff due to restructuring or transition

You can find the full Annual Retail Theft Survey here, or see our top tips on loss prevention.

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