- Understanding Seasonal Retail Theft Trends
- Common Types of Seasonal Theft
- Peak Times for Retail Theft
- Enhancing Security for Seasonal Shoplifting Spikes
As the holidays and back-to-school business fast approach, it becomes increasingly essential for store owners and managers to be aware of seasonal trends in retail theft.
Widespread retail theft is a very real concern. According to a report compiled by the America First Policy Institute, 70% of retail managers say they or their staff witnessed an increase in retail theft. Additionally, research analysis by Capital One shows that losses due to retail theft could reach $140 billion by 2025.
Retail crimes like shoplifting and vandalism tend to spike at certain times of the year, including holiday seasons and during clearance sales. These spikes in crime affect a wide range of retail stores, but there are protective measures store owners can implement to combat these seasonal trends.
Understanding Seasonal Retail Theft Trends
Seasonal retail crime spikes occur due to several key factors:
- Increased traffic: Holidays, back-to-school times and clearance sales draw in significantly more customers. The busyness of large crowds can make it far easier for shoplifters to be opportunistic while also making it more difficult to closely monitor crowds of people and potential incidents.
- Greater demand on staff: Demands and stresses on retail staff also increase during busy seasonal times. They have more customers to assist and are often required to work more shifts and longer hours. With these expectations and the chaos of increased customers, staff are likely more distracted, making it easier for shoplifters to take advantage.
- Consumer pressure: Though certainly not a justification for crime, consumer pressure also rises during busy seasonal times. Many consumers feel the pressure of getting gifts for the holidays or getting the best new items for children returning to school. Some face financial strain in addition to these perceived societal expectations. All this may cause consumers to act out of desperation and attempt to shoplift.
- Seasonal clothing: Surprisingly, another factor that causes retail crime to spike over the holidays is bulky winter clothing. Wearing big, layered clothing makes it easier for shoplifters to conceal stolen goods.
Common Types of Seasonal Theft
Retail crime trends include various types of thefts — from incidents of shoplifting to grand-scale organized heists. They can also include other types of crimes, like vandalism.
Shoplifting
To those outside the retail industry, shoplifting may seem like a small incident that doesn’t lead to significant losses. The reality is in stark contrast to this perception, though. In 2022, states lost approximately $4.345 billion in tax dollars due to retail theft. Both small businesses and mega corporations are affected by shoplifting, but the impact on small business owners is far more significant, as they often struggle to recover as quickly.
Organized Retail Crime
Organized retail crime can occur both externally and internally. It happens on a large scale and is often backed by criminal enterprises, typically following a particular structure or chain of operations. There are individuals who steal merchandise from stores, called “boosters,” people who buy and resell the stolen goods, called “fences,” and the organizers who coordinate these illegal operations.
The statistics on organized retail crime are telling:
- 45% of incidents happen en route from distribution centers to stores.
- 38% of incidents are cases of theft in stores.
- 40% of incidents related to organized retail crime occur at distribution centers.
It’s clear that organized retail crime is a major issue facing the retail industry. Beyond causing stores significant losses, it can also threaten retail worker and customer safety if the incident turns violent.
Return Fraud and Credit Card Fraud
During busy shopping seasons, cases of retail fraud also tend to spike. Credit card fraud and return fraud cases affect both brick and mortar and e-commerce stores.
A report from the National Retail Federation indicates that return scams resulted in over $100 billion in losses in 2023 alone. A recent news report showed that major retailers have started revising their return policies to reduce fraud cases. These measures include banning a percentage of frequent returners — who show a pattern of abusing policies — from being able to return or exchange items.
Peak Times for Retail Theft
While retail theft is a year-round threat, there are seasonal trends and times when theft spikes:
1. Holiday Season
The holidays are the busiest times for shoplifters, with 81% of shoplifting cases occurring during the holiday shopping season. A combination of high foot traffic and the increased availability of valuable merchandise on display can cause shoplifting cases to skyrocket. Holiday season theft patterns and data on shoplifting show that shoplifters swipe various products, from clothing and electronics to home items, baby formula, and alcohol and grocery products.
2. Back-to-School Season
In a survey conducted by Bankrate, nearly a third of respondents reported that back-to-school shopping would put them into debt. These concerning statistics likely contribute to back-to-school shoplifting trends. Some of the most stolen items during the back-to-school shopping season include school supplies like stationery, electronics and school clothing.
3. Summer Sales
Clearance sales can often attract opportunistic thieves. Much like during the holiday season, clearances and flash sales mean stock is readily on display and accessible. Sales can also draw in large crowds, which once again means shoplifters can take advantage of heavy foot traffic and busy staff.
Enhancing Security for Seasonal Shoplifting Spikes
The impact of seasonal trends on retail security measures is far-reaching. Implementing security measures to combat seasonal trends in retail theft is crucial for protecting staff and customers, as well as inventory. You can implement various security measures, such as hiring security teams, installing CCTV cameras and alarm systems, and prioritizing staff training and store layouts.
The Role of Security Guards in Retail Theft Prevention
One of the best things you can do for your store’s safety is to hire professional security guards. An expert security guard team can provide the following benefits:
- Shoplifting prevention and reduction: Stationing security guards at critical points throughout your store is an effective way to deter shoplifters. Potential shoplifters are less likely to attempt to steal when they know security guards are watching and may search them at exit points. Security guards are also trained to notice suspicious behavior and recognize potential incidents.
- Quick response times: Other forms of security, like alarm systems, are excellent for warning and deterring, but no other security measure can respond to an incident as effectively and quickly as security guards. Security guards are trained to handle complex situations when it matters most — helping de-escalate potentially dangerous situations.
- More orderly store environment: Security guards can also assist with crowd control during peak seasons. Their presence in stores may reduce conflicts between customers or disputes between customers and staff. They can help ensure shoppers are more mindful of others when in long queues or when vying over items. A security guard’s presence can also reduce the threat of aggressive actions like vandalism.
- Enhanced customer service: Stores can enhance customer service by stationing security guards at critical points. Customers can shop with greater peace of mind knowing the store is secured, and they can reach out for help if needed.
Security Guard Responsibilities in Retail Stores
Security guards make it easier to practice greater risk management in retail environments. You can have guards patrolling your premises, monitoring CCTV systems and reporting information back to you or a manager. A security guard’s responsibilities are comprehensive, which gives great insight into how security guards can deter seasonal theft:
- Guarding access points: Your store’s entrance and exit points must be secured to prevent seasonal spikes in theft. Stationing security guards at these access points is an effective way to prevent shoplifters from leaving the store if they have stolen goods. Security guards can also prevent any unauthorized access as they monitor customers entering the store.
- Patrolling the store floor: Security guards can patrol your store’s floor to maintain order and discourage shoplifting. When security guards are on patrol throughout the store, they monitor customer behavior and flag any suspicious actions. They can also manage busier areas in the store and maintain crowd control.
- Monitoring CCTV cameras: Monitoring CCTV cameras is an important part of a retail security guard’s role. CCTV cameras are essential for boosting your store’s security but are far more effective when they’re monitored. Security guards can monitor activities remotely and then alert the guard on the floor about shoplifting or other incidents.
- Responding to alarms and incidents: One of a security guard’s most important roles is actively responding to incidents in your store. Security guards are trained to respond quickly, de-escalate unsafe situations, manage the crowd’s response and report any criminal matters to the authorities.
- Reporting: Another vital aspect of a security guard’s job is regularly reporting. Security guards will complete daily activity reports that note their duties, observations and concerns regarding safety hazards or suspicious behavior and any significant interactions with staff or customers. In the event of an incident, the security guard will also note the details of the occurrence and their interactions with law enforcement.
Enhanced Surveillance and Technology Solutions for Loss Prevention
Implementing surveillance systems for peak shopping seasons and using other security technologies is a vital part of securing your store. By implementing retail surveillance systems, you can enhance your shoppers’ sense of safety and prevent and reduce the risk of shoplifting and vandalism.
Surveillance systems also make a significant difference should an incident occur. They enable you to provide evidence that may help you legally, with insurance claims and for assisting the authorities.
Having an expert security team install your surveillance system is essential, as professionals have the best understanding of integrated security solutions for stores. A security team can assess your store’s layout to identify weak spots and place CCTV cameras accordingly.
Other ways you may use technology to boost your security measures include:
- Access control solutions: Implementing access control measures helps restrict access to stockrooms and other sensitive areas. These measures can include keypads, card systems and biometrics.
- Radio Frequency Identification (RFID) tags: RFID tags track inventory in real time. They can be an excellent crime-fighting tool that helps make your stock more secure. RFID technology can also help reduce stockouts and overstocking.
- Mobile security apps: Mobile security apps for staff can make a significant difference in peak seasons. Professional apps can help control access to stockrooms using one-time codes and can help with real time incident reporting and communication.
Employee Training on Seasonal Theft Awareness
Retail staff face increased pressure during peak seasons like back-to-school and the holidays — which is why it’s crucial to train employees in basic safety protocol year-round. By preparing for shoplifting spikes and prioritizing best practices for employee training on shoplifting prevention, you can better equip staff to protect themselves and customers if there’s a security breach.
During awareness workshops, a security professional can teach the basics of incident response planning for retail theft, loss prevention strategies for retailers, recognizing suspicious behavior, managing customer conflicts, basic crowd control, incident reporting, and inventory management.
Security awareness should also cover emergency preparedness training for staff. These training times can include safety drills, first-aid basics, fire safety training, crowd control during emergencies and evacuation. Having refresher courses before peak seasons is an excellent way to boost staff’s confidence and go into holidays and sales with safety as a priority.
Community Engagement in Retail Security
Customer engagement in loss prevention should never be overlooked in your retail security plan. Community awareness programs that involve customers can help increase their knowledge, awareness and safety and help with loss prevention. It’s also vital to build relationships with local law enforcement so you can stay up to date with theft trends and establish a clear channel of communication in the event of an emergency.
Increase Retail Security and Combat Seasonal Theft With The Guard Alliance
The statistics on seasonal trends in retail theft can be alarming, but understanding holiday season retail theft patterns is vital. Data on crime trends helps create awareness of what staff and customers may face during holidays, back-to-school shopping and clearance sales. Equipped with this knowledge, you can make your store far more secure and keep your staff, customers and property safer.
The Guard Alliance is a minority-owned security company with a professional team of trained armed security guards, unarmed guards and fire watch guards. We offer expert security guard services for retail and effective strategies for preparing for seasonal shoplifting spikes. Our services are tailored to your needs — our knowledgeable team will conduct a risk assessment for your store and present you with the most effective and reliable security guard solutions.
Explore our range of security guard services, or reach out to us today to discuss theft deterrent strategies during peak seasons and request a quote.