In This article
Profit-tanking challenges with loss prevention continue to plague retailers in 2025, as theft and shrinkage remain major issues for physical stores. Below is the recent data that highlights the urgent need for innovative strategies to tackle these problems effectively.
Retail Theft is Escalating
An area that’s hard to see, but substantially damages earned profits and income instantaneously and over-time:
- Shoplifting Surge: The National Retail Federation (NRF) reported a 93% increase in average annual shoplifting incidents in 2023 compared to 2019, alongside a 90% rise in financial losses attributed to shoplifting during the same period. (NRF)
- Organized Retail Crime (ORC): A survey of loss prevention executives revealed that 84% perceive an escalation in violence associated with crimes like shoplifting from 2022 to 2023, with a majority expressing heightened concern over ORC and shoplifting. (Modern Retail)
- Financial Impact: Retail shrinkage, encompassing theft, fraud, and errors, is projected to reach $132 billion in 2024, marking a significant increase from previous years. (Invue)
The Consequences Beyond Financial Losses for Retailers
You’ll be shocked to know the impact retail theft has beyond immediate financial setbacks – it’s quite mind-blowing.
- Consumer Costs: Retail theft indirectly adds about $400 annually to each household’s shopping expenses, as retailers adjust prices to offset losses. (Safe and Sound)
- Operational Challenges: To deter theft, retailers are implementing measures such as locking up merchandise, which can lead to a cumbersome shopping experience, potentially driving customers towards online alternatives. (The Sun)
- Additional Security and Materials Costs: Retailers must factor in additional costs for safekeeping products such as locks, safes, and security guards.
Strategic Approaches to Loss Prevention: Where AI and Advanced Technology Come to the Rescue
Addressing these challenges necessitates a multifaceted approach:
- Advanced Technology Integration: AI-powered loss prevention tools enable the analysis of customer behaviors and transaction patterns to detect potential theft or fraud. (Forbes)
- Loss Prevention Solutions: Platforms that provide stores with advanced analytics that can promote efficient action plans and optimization for improving operations.
- Collaborative Efforts: Initiatives like Project Pegasus in the UK demonstrate the effectiveness of retailers partnering with law enforcement to identify and apprehend habitual offenders. (The Retail Bulletin)
- Employee Training and Safety: Comprehensive training programs ensure staff are equipped to handle theft-related incidents safely, mitigating risks associated with confrontations.
What Industry Leaders Have to Say
“DTiQ has allowed us to spend more time on the sales floor,” says Claire Connely, VP of Retail at Crocs.
As a long-time customer of DTiQ, I can confidently say their solutions have transformed our operations. We struggled with an ineffective camera solution, but DTiQ’s seamless reporting capabilities have been a huge benefit, enabling us to address issues swiftly and optimize performance. DTiQ finally allows us to focus on what matters the most––our customers––by providing efficient, reliable, and innovative support.
DTiQ’s motion detection and video analytics have been game-changers for Crocs, allowing us to quickly identify and resolve theft, and the ability to find archived footage has been unbeatable for loss prevention. Recently, the Retail Loss Prevention Manager leveraged DTiQ’s platform to quickly obtain a confession, showcasing the system’s impressive speed and accuracy.
DTiQ proudly helps retail owners and operators prevent lost profits with tailored technology designed to address each establishment’s unique challenges.
How YOU Can Take Action
Retail theft remains a significant challenge in 2025, and DTiQ offers a suite of solutions designed to help retailers combat these challenges effectively.
- Intelligent Video provides real-time monitoring that helps detect suspicious behavior and improves operational visibility.
- SmartAudits™ helps streamline compliance and ensures consistency across locations.
- Advanced Analytics integrates POS data to identify trends and deliver actionable insights that help minimize shrinkage and enhance profitability.
- Retail Loss Prevention serves as a suite of products that monitor foot traffic, ensure employee accountability, and address fraud, theft, and shrinkage, either with internal support or a fully outsourced solution.
Partnering with DTiQ enables retailers to improve their loss prevention efforts while also optimizing operations and enhancing customer experiences.
Let’s work together to create a safer, more efficient and profitable future for your business.
