Retail businesses are a critical component of the economy – they provide easy access to a wide range of consumer goods. However, they’re uniquely vulnerable to theft, which translates into profit loss: a Retail Industry Leaders Association report found that retail crime accounted for over $125 billion in lost economic activity in just one year. This has resulted in a demand for retail loss prevention software that can help identify and prevent both external and internal theft.
What Is Retail Loss Prevention?
Simply put, retail loss prevention is any measure a business puts in place to protect its profits. A loss prevention policy should include steps to prevent waste, fraud, and internal and external theft. These might include:
- Employee training and oversight
- Technology management and monitoring
- Cash handling procedures
- Physical security systems
- Record keeping and inventory tracking
Every business should implement loss prevention strategies, especially in retail. According to National Retail Federation, over 98% of all retail companies employ fewer than 50 people. These small businesses don’t have the resources of major corporations – so any type of theft can significantly affect their bottom line.
Types of Retail Theft
When it comes to retail theft, shoplifting may be the first problem that comes to mind. There are several different types of theft that convenience stores and other retail businesses may encounter, including:
- Fraud: Fraudulent customer behavior can occur when someone shoplifts an item and then attempts to return it for cash. An individual may also commit fraud when paying in cash by disputing the amount of change they were given, sometimes known as a “quick change” scam.
- Shoplifting: When committing theft, an individual may conceal merchandise in a bag or pocket and walk out of the store with the item. Self-checkout kiosks have made it easier for would-be thieves to shoplift by scanning low-cost items but bagging expensive items without scanning them.
- Internal theft: Unfortunately, theft isn’t always committed by strangers. Employee theft can occur when workers give unwarranted discounts to friends or family, take inventory without paying for it, or steal cash from a register.
What Makes Retail Stores Vulnerable?
Theft can occur in any type of business. Retail stores – and especially convenience stores – are particularly vulnerable, especially with self-checkout lanes becoming more common. One reason for this is the interior store environment – retail stores tend to have a small footprint relative to the amount of merchandise. The placement of racks, shelves, and displays can mean that an employee at the cash register does not have an unobstructed view of the store.
- Self-checkout makes it easy to steal and get away with it, or at least to not get arrested if you get caught. That has made self-checkout retail theft something that's too tempting for many American shoppers to pass up.
- "15% of consumers admit to using self-checkout to steal; 44% of them plan to re-offend," according to the Capital One report.
- "While 95.9% of consumers have used self-checkout machines, statistics show theft increases by up to 65% at self-checkout compared to a traditional checker," according to statistics shared by Capital One
Operation hours put convenience stores at higher risk: while other types of businesses are open from 9:00 a.m. to 5:00 p.m., convenience stores are more likely to be open until late in the evening. They may even operate 24 hours a day. When it is dark out, and there are very few bystanders around, a retail store is more vulnerable to theft or robbery.
The exterior environment can also be a factor in a store’s risk profile. For example, a convenience store at a large rest stop or gas station is typically physically isolated from the surrounding commercial and residential areas. With little activity in the immediate vicinity, thieves are more likely to get away without being caught.
A store’s receiving area and loading docks can present theft vulnerabilities. If surveillance cameras aren’t positioned correctly or if the software is out of date, theft will be hard to identify. For example, a vendor could say 50 pallets were delivered, but there were only 49. Having video surveillance to be able to track this delivery will help identify scenarios like this.
Benefits of Retail Loss Prevention Software
Retail stores need strategies to prevent both internal and external theft. Using retail loss prevention software, a store owner can monitor their business remotely from a phone, tablet, or computer. Intelligent video cameras installed throughout the store can identify potential theft and immediately alert the owner.
Smart camera systems aren’t just for stopping bad actors. Using analytics, intelligent video can provide insights into employee and customer behavior. This can help catch employee mistakes, identify training needs, and help owners understand ways to improve the customer experience.
Retail loss prevention equipment is a powerful tool for improving staff performance and reducing opportunities for theft. Plus, visible onsite cameras help dissuade theft simply because individuals know they’re being watched.
Choose DTiQ for Retail Loss Prevention Systems
Make sure you protect your bottom line with a comprehensive retail loss prevention strategy. DTiQ provides customized solutions for retail and convenience stores. With intelligent video systems, advanced analytics, and artificial intelligence technology, you’ll be able to track customer and employee behavior and receive alerts when suspicious activity occurs.
An integrated mobile app means you can monitor your business from anywhere and rely on DTiQ’s 24/7 customer support.
To learn more about DTiQ’s retail loss prevention systems get connected with our team today.
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