Retail stores are facing a growing problem: theft prevention. According to the National Retail Federation’s 2022 study,1 retail crime is a 100 billion dollar problem. Whether it's internal theft, theft fraud, or preventable losses, retailers are losing money and assets every day.
One area of particular concern is retail product security particularly for high-value items such as phones, tablets, and other electronic devices. The National Retail Security Survey reports retail loss grew 26.5% in 2021 due to inventory shrinkage, including shoplifting, and organized retail crime (ORC).
What is Retail Loss Prevention?
Simply put, retail loss prevention is a set of strategies and merchandise protection solutions aimed at preventing theft, fraud, and other losses in retail stores. This can include everything from security devices and security systems to asset protection and inventory management. The goal is to protect your bottom line. Retailers achieve this through loss reduction and improving the customer experience.
This is especially difficult when it is hard to tell who a genuine customer is and who may have other motives. Identifying criminal activity is difficult. The growing problem of organized retail crime highlights the retailer's dilemma.
Organized Retail Crime (ORC) - The Biggest Threat
Organized retail crime (ORC) is a major concern for retailers. ORC is defined as theft committed by organized criminal groups that steal large amounts of goods and resell them for profit. ORC is a growing problem and requires a specific strategy to be combated.
Currently less than 40% of retailers have dedicated ORC response teams. These dedicated teams are created to combat the ORC issue. One major effect has been their ability to identify Organized Retail Crime much more frequently – double the rate of retailers without a team. So what can retailers do to fight this billion dollar problem?
Loss Prevention Strategies
There are many different strategies that retailers can use to prevent losses.
Common loss prevention strategies:
- Loss prevention training for staff
- Implementing strict return policies to prevent returns fraud
- Working with security consultants to identify vulnerabilities in your store and develop a plan to address them
- Developing an ORC team
Policies alone cannot solve the issue of loss prevention. Which is why there is a growing industry providing systems and solutions to fight shrink.
Security Devices and Systems
One of the most effective ways to prevent theft and loss in retail stores is by implementing security devices and systems. These can include security cameras, alarms, and other technology that can deter thieves and alert staff to any suspicious activity.
Another important aspect of retail loss prevention is protecting your assets. This can include everything from high-value items like electronics and jewelry to common but needed everyday consumer products. By implementing proper inventory management and security procedures, you can reduce the risk of loss and shrinkage.
Enhance the Customer Experience with ShopperAccess
One key strategy for retail loss prevention is to use custom retail display solutions, such as ShopperAccess from Darko Inc. These solutions can provide an added level of protection for in-store merchandise without impeding the customer shopping experience. For example, ShopperAccess allows retailers to discreetly and securely display an array of merchandise with a clean integrated custom solution. A shopper accessible door needs only a code sent to a shoppers phone from scanning a QR code. Sell more, lose less!
How ShopperAccess Fights Shrinkage
ShopperAccess retail solutions not only deter theft, but also encourage sales by providing merchandise access directly to the customers. No need to wait any longer for a retail associate. In addition, ShopperAccess solutions can be tailored to meet the specific needs of each retailer. These tailored solutions are effective and efficient for loss prevention. By incorporating custom retail display solutions into their loss prevention strategies, retailers can better protect their assets and improve their bottom line.
Let’s Talk about Your Next Retail Product Security Solution
Retail loss prevention is essential for any business that wants to protect its assets, improve its bottom line, and provide a positive customer shopping experience. If you’re concerned about theft, fraud, or other losses in your retail store, it’s time to take action. Get in touch with Darko for a consultation today and find out how we can help protect your business.
1. 2022 Retail Security Survey