Best Practices for Loss Prevention in Retail Stores

• Understanding Loss Prevention
• Implementing Effective Security Measures
  • Security Guards
  • Employee Training and Awareness
  • Inventory Management Solutions
  • Customer Engagement Strategies
  • Know The Signs
• Utilizing Technology for Loss Prevention

In recent years, retail losses have reached approximately 100 billion dollars and organized crime and theft contributed much to that number. Loss prevention is a critical part of any retail business. It involves strategies to reduce fraud, theft and other forms of loss and various tactics to protect the company’s assets. 

Read on for the best loss prevention tips to deter shoplifters, employee theft and organized crime. 

Understanding Loss Prevention 

Loss prevention best practices improve company revenue, employee morale and customer satisfaction. Here are the common causes of loss: 

• Busy season: During the holidays, retail stores experience more foot traffic, which makes it harder for staff to notice individual actions. Shoplifters may take advantage of this and attempt to pocket valuable items. 
• Employee theft: Employees may steal small amounts of cash over a long time or abuse their staff discounts for friends and family members. 
• Untrained staff: Staff who aren’t trained on how to reduce theft in retail may cost a company money, as shoplifting can go unnoticed. 
• Retail displays: These product displays make it simple to shop and easier for shoplifters to steal, as they provide easy product accessibility. 
• Warehouse issues: Suppliers not providing quality items or warehouse theft without proper inventory tracking can cause companies to lose large amounts that are hard to track. 
• Retail theft prevention strategies: If a store doesn’t implement security services and other measures, criminals may overrun it. The company would then need to invest more funds into preventive measures like expensive cabinets with locks and hiring more floor staff.

Implementing Effective Security Measures 

When companies implement security measures, they take the most crucial step in preventing loss. The main losses they can work toward deterring are shoplifting and organized crime. The five most successful theft deterrent strategies include: 

1. Security Guards 

One of the most effective loss prevention techniques is hiring security guards trained to proactively prevent losses caused by theft, fraud and organized crime. Guards also perform customer-facing duties like greeting shoppers, offering directions and helping maintain the front desk during chaotic periods. Loss prevention security guards use various tools, from planned measures to technology like surveillance, to keep retail stores safe. 

Many different types of security guards play a role in loss prevention and maintaining a safer retail space. Here are the factors that highlight the importance of security guards in retail loss prevention: 

• Identifying risk factors: Security guards can help retail stores spot potential vulnerabilities that may encourage shoplifting and employee theft. 
• Monitoring suspicious behaviors: Security officers monitor various store areas, know how to identify suspicious behavior and respond to CCTV camera alerts to prevent shoplifters from escaping. 
• Supervising areas with restricted access: Security guards monitor areas in restricted areas, which helps support the integrity of your supply chain by preventing stock theft. They verify the identity of authorized individuals and stay alert for suspicious behavior from employees. 
• Helping customers feel safe and preventing thieves from entering: Studies show that the presence of a security officer provides customers with a sense of safety and can improve a business’s reputation. Thieves are also deterred from entering the store when they see a security guard. 
• Apprehending and detaining shoplifters: Guards streamline retail security solutions by addressing shoplifting incidents in line with the law. They are trained in de-escalation techniques to apprehend shoplifters without disrupting the workday or disturbing customers. 

2. Employee Training and Awareness

Employee training on theft prevention can help prevent loss and deter criminals from entering the store. However, workers themselves are likely to become victims of theft. Studies show that 64% of retail workers have experienced theft in the workplace. Educating staff on recognizing suspicious behavior can help deter shoplifters and help them work with security guards to eliminate stealing. 

Train employees on how to reduce shoplifting by strategically placing merchandise. Ensure that the most expensive items are stocked in plain sight and in areas where workers regularly frequent. The store should be neat and well-organized so workers and security guards can scan the shelves from a distance. Well-organized stock makes it difficult for shoplifters to hide their behaviors. 

Security guards are trained to identify suspicious behavior in both customers and workers. It’s essential to implement security measures for retail stores that target employees. Companies should create an environment of transparency and inform staff that their behaviors will also be reported. Here are the ways that workers can cause company loss: 

• Using discounts for friends and family
• Taking cash from the register 
• Signing off on inventory without double-checking the amount 
• Throwing away damaged items 
• Stealing damaged items that the company can return for credit
• Misusing store property and company benefits 
• Pocketing store supplies 

3. Inventory Management Solutions 

Inventory management is vital in reducing stock loss from theft and wastage. Retail stores should regularly check inventory for shrinkage, defects and returns to facilitate future processes. 

In one study, more than 20% of Americans admitted to stealing products from stores, so keeping track of stock is crucial. Inventory tracking is one of the best loss prevention tips for retailers. There are three main methods for inventory tracking, including: 

• Using a warehouse management system (WMS) system to monitor stock and prevent human error.
• Manual entry and paper inventory forms.
• Inputting inventory data into Excel or another software.

Train staff to regularly organize stock for effective risk management in retail environments. Without consistent and reliable inventory management, companies can gradually lose items due to theft and wastage. Here are the benefits of implementing inventory management solutions for retail businesses: 

• Improved inventory accuracy: Regular inventory management gives you a better idea of what stock you already have and what may need to be reordered. It can prevent loss through wastage and help identify any stock disappearing without purchase, which could indicate theft. 
• Better cost savings: Tracking your stock can prevent loss through wastage, excess handling and transportation fees. 
• Enhanced insight: Inventory management helps companies spot products in high demand and identify missing products, which could be due to theft. 
• Increased profits: Gaining a better understanding of demand and product availability helps companies improve inventory turnover, which increases profits. 

4. Customer Engagement Strategies

Customer engagement plays a crucial role in retail security. Engaging with shoppers can deter them from stealing by letting them know that a staff member has noticed them. It’s one of the easiest ways to prevent petty theft and it also has many other perks in the retail environment, like increasing sales and boosting customer satisfaction. 

Here are the best practices for engaging customers to deter theft: 

• Greet all customers as soon as they walk in and offer to help. 
• Offer to help shoppers find the products they need in the aisle. 
• Create small talk with customers. 
• Offer sincere compliments to shoppers to create a connection. 
• Provide knowledgeable assistance to shoppers in aisles. 

In busier stores, managers can dedicate customer service to specific employees. These staff members should receive training to identify suspicious behavior and intervene when something seems off. Staff who know the signs to look out for will be more equipped to alert security and stop shoplifters in their tracks. They should also practice active listening to help customers find what they need and spot any discrepancies that could lead to company loss. 

Improving customer service also boosts community engagement in retail security. Companies will garner more eyewitnesses to suspicious behavior by creating a connection with regular customers. Loyal customers will feel comfortable reporting a theft to employees. Knowing that a store focuses on client connections will deter shoplifters because they won’t be able to go unnoticed. 

5. Know the Signs 

One of the most critical factors in developing integrated security solutions for stores is ensuring employees know the signs that someone is likely to steal from the store. They should be aware of their legal rights and obligations, as well as those of the suspected shoplifter. Staff should also be regularly reminded of the store policies regarding theft. 

It’s easy to spot the obvious signs of shoplifting, such as wearing excessive baggy clothing and multiple bags in an attempt to steal items without being noticed. Employees should look out for these individuals but be careful not to make them feel uncomfortable or watched because not everyone who matches this identification may be a shoplifter. They should be trained to approach all customers with a friendly tone and avoid confronting suspected thieves, which could escalate into a violent, harmful situation that ruins the business’s reputation. 

Here are the unsuspecting signs of shoplifting to look out for: 

• Frequent visits: Shoplifters tend to study the store layout to make it easier to pocket high-value items. Suppose employees often notice an individual who regularly visits the store but makes little to no purchases. In that case, they should alert security of this person’s identity and monitor them. 
• Avoidance behaviors: Shoppers who appear nervous, avoid eye contact with staff and try to avoid interactions are potentially trying to disclose their identity. Employees should pay close attention to these individuals by assisting them and remaining in close vicinity to them. 
• Distractions: Shoplifters may attempt to distract employees by moving them away from them or a specific area. These suspects may ask the staff member to check for an item at the back of the store. They may also come in pairs, where one person will ask for help and move the employee away so the other person can steal. 
• Quick exit: Shoplifters will likely hurry out of the store to avoid detection. They may avoid eye contact with employees and walk quicker when approaching the exit. This scenario is why it’s crucial to have a security guard at the exit who can identify this behavior and stop the suspect before they leave. 
• Sneaky attire: While baggy clothes and multiple bags are typical, hats and hoodies are another piece of clothing that often goes unnoticed. Shoplifters may either enter the store wearing these or put them on as they exist to conceal their identity. 
• Large groups that split: Be on the lookout for large groups that may come in with concealed identities and split up. This group could be a sign of organized crime and employees should immediately alert security if they suspect anything of this nature. 

Utilizing Technology for Loss Prevention

Companies need to understand how technology can enhance retail loss prevention efforts. It makes it easier for employees to identify suspicious behaviors and effectively captures criminals’ identities so the police can locate them and arrest them if they escape. 

The presence of surveillance systems alone helps retailers create a safe space that deters criminals from entering the premises. Installing surveillance cameras at all entry points, parking lots and around high-value assets can prevent suspects from stealing and also help protect your company from break-ins. 

Since surveillance cameras can clearly identify shoplifters, security guards can be informed of these individuals and prevent their access to the store. 

Radio-frequency identification (RFID) tags are another technology solution companies can use to prevent loss from theft. Attaching these tags to products or shipments makes them easy to track and can deter employees from pocketing goods. 

Key card systems and biometric controls are also effective strategies for implementing loss prevention and ensuring best practices among employees. They ensure that only staff gain access to restricted areas and surveillance cameras at the entrance and exit points of stock rooms can deter staff from stealing. 

Mobile apps are another efficient way to prevent and deal with loss prevention. They enable staff to report incidents, send out critical alerts and keep each other informed on previous shoplifters and suspicious behaviour. 

Secure Your Store With The Guard Alliance 

The most effective way to deter thieves, prevent shoplifting and gain customer, staff and product protection in the event of organized crime is to hire security guards. At The Guard Alliance, we offer safety professionals who are retired military personnel, law enforcement agents and highly trained security guards. The Guard Alliance is trusted by more than 200 organizations across the nation.

Companies in most larger metro areas in the United States can reach out to our team and have guards at their stores in as little as three hours. We carry a $5 million liability insurance for all our jobs, and we are bonded and insured five times the minimum industry requirements, so you can trust we’ll take your peace of mind seriously. 

Call The Guard Alliance at 415-237-0178 or request a quote and let us keep your property and your people safe.