Retail theft is something that affects all merchants, store owners, and their employees. Unfortunately, organized retail crime is a common issue for Canadians. For instance, the Retail Council of Canada says that retail theft continues to happen and is growing. Shoplifting and retail theft have become a $5 billion annual problem and the Retail Council of Canada (RCC) is concerned about thefts becoming more brazen and violent with weapons being used.
What is the difference between retail theft and shoplifting?
Retail theft and shoplifting are terms often used interchangeably, but they have a few distinct differences. Shoplifting normally refers to customers stealing merchandise from an open business. Retail theft normally refers to a broader scope of theft-related activities, involving both customers and employees. As an example, retail theft can include crimes like under-ringing, where an employee intentionally charges a customer less than the full price of an item to facilitate theft.
Manage the risk of shoplifting as a business
Limiting the risk of theft can be difficult, but there are some retail theft prevention steps you can take. We’ve listed a few of them below.
Optimize the interior layout of the shop
Make sure your store is organized in the best possible way to prevent theft. That means having adequate lighting, bell alarms that notify you when customers enter and exit the store, and an elevated sales counter for better visibility. It’s also always a good idea to place expensive items that are easy to steal near the checkout counter, so you can keep an eye on them.
Use cameras to monitor the store
No matter how alert you are, it’s hard to constantly be on the lookout. Security cameras or closed-circuit television (CCTV) cameras can be great assets: when you’re busy attending to customers, or simply momentarily distracted, video surveillance ensures you’ve still got your bases covered.
Use technology to your advantage
Electronic tags are a great way to deter people from leaving your store with items they didn’t pay for. It’s also important to issue receipts for every purchase and refund, so that shoplifters can’t return to the store with a stolen item and demand a refund or store credit.
Training employees to prevent shoplifting
The more eyes you have looking out for theft, the greater chance you have of catching someone in the act. Depending on the size of your store, more employees could be helpful. The added bonus is they can help with other things too, like re-stocking shelves and assisting customers.
Prepare a retail theft prevention plan
Store policies: It’s all well and good to have these preventative measures in place, but what will you do if you actually catch someone stealing? It’s important to have clear policies and procedures in place to deal with shoplifting incidents. This includes listing all emergency contact numbers and media protocols. And as the numbers point out, sometimes it’s your own employees that have sticky fingers, so make sure to have procedures in place to address that situation, should it arise.
Keep an eye on and engage with customers
Greet every customer who walks in. Or, if your store is large, consider hiring an employee to greet customers as they enter and exit the store (and also to keep an eye out for any shady behavior). Never leave the store floor unattended and consider posting signs around the store clearly stating your policy of prosecuting shoplifters.
Ensure you’re protected
While retail theft prevention should be a top priority, it’s also vital that you protect your business with insurance. Preventative measures can help reduce crime, but things can still go wrong. Without the right coverage, you may have to cover all the costs if you’re a victim of theft. Luckily, Federated Insurance offers insurance specifically designed for wholesalers and retailers.
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.
