Shoplifting and ORC are taking a toll on retailers globally. Retail theft is a growing concern for consumers, with many fearing its negative consequences. A survey revealed that a large portion of US shoppers worry about store closures and price increases as a result of theft.

Key findings by Coresight Research

• 22% of respondents personally witnessed a shoplifting incident in the last 12 months
• 59% of respondents have heard big retailers closing their outlets due to a high level of thefts
• 72% of respondents are concerned about retail price inflations to cover the cost of shoplifting 
• 22% of respondents have stopped or reduced shopping from certain “unsafe” outlets, fearing risky locations 

Fortunately, there are innovative technologies available to help reduce shrink and safeguard businesses from these losses. 

Loss Prevention: A Multi-faceted Approach

Retailers face a constant challenge in preventing theft and maintaining a secure shopping environment. To combat this, a variety of technological and psychological measures can be implemented.

Pre-emptive Strategies:

• Deterrence: Implementing visible security measures, such as surveillance cameras and security personnel, can deter potential shoplifters.
• Employee Training: Equipping employees with the skills to identify suspicious behavior and intervene appropriately is essential.
• Store Design: Designing stores with clear sightlines and limited hiding places can make it more difficult for thieves to operate.

Real-time Interventions:

• Alert Systems: Advanced technology can generate alerts during theft attempts, allowing retailers to intervene quickly and effectively.
• Nudging Techniques: Subtle nudges, such as strategically placed signage or product displays, can discourage theft and guide customers towards honest behavior.

Post-Theft Response:

• Swift Recovery: Efficiently recovering stolen merchandise and addressing the incident can help minimize losses and maintain a positive customer experience.
• Security Measures: Implementing additional security measures, such as increased surveillance or restricted access areas, can prevent future incidents.
• Customer Communication: Openly communicating with customers about the incident and the steps being taken to prevent future occurrences can help maintain trust and loyalty.

By combining these strategies, retailers can create a more secure shopping environment and protect their bottom line from the detrimental effects of theft. Deciding whether to intervene in a shoplifting incident is a delicate balance. Retailers must consider the potential risks and benefits, including the potential impact on their reputation.

Download this report to find how retailers can benefit from a multitude of options and technologies to prevent, mitigate and recover from a shoplifting incident.