Retail theft is one of the largest threats to small business continuity. Shoplifting, organized retail crime, robberies, and internal theft can result in substantial losses. In fact, a whopping 79% of retail business owners report losing between $500 and $2,500 a month to theft, a significant hit to their bottom lines. 

Theft can also impact customer trust, employee morale, and operational efficiency, sometimes even forcing you to close your doors. But proper security measures can minimize the risk of theft and help you better protect customers and employees. 

Top ways to prevent theft in retail stores

Theft is an unfortunate reality of running a business. Even large stores like Target fall victim and feel its impacts — the retailer’s shrink losses grew by $500 million in 2023, and it closed nine stores in 2023 due to theft. 

However, retail theft is manageable with the right measures set in place. Here are some practical ways retail theft can be prevented:

Optimize your store layout

Optimizing your layout doesn't just improve customer experiences. It can also remove blind spots around your store, discouraging would-be shoplifters and preventing retail shrinkage resulting from theft. After all, nobody wants to be caught stealing. 

Here are some ways to optimize your retail business's layout:

• Install mirrors at corners around your store.
• Position high-value items strategically, preferably on high shelves or near checkout stations and cash registers.
• Maintain clear sightlines across all aisles to give your staff a visual of visitors' movements. 
• Position your staff in different parts of your store, ensuring every area is within their field of sight. 
• Install security cameras in high-theft sections. 
• Place store signage in areas that don't block camera or mirror views. 
• Avoid overcrowding your store with too much merchandise. 

Train employees to identify and respond to theft

Your employees are one of your greatest assets in preventing retail theft or minimizing its impact. Offer regular training, highlighting the signs to look out for to identify potential offenders, as well as how to react if they do catch a shoplifter.

Some of the suspicious behaviors they need to look out for among store visitors include:

• Frequently glancing around at security cameras and mirrors
• Looking out for employee presence when handling products 
• Stuffing items into bags or pockets
• Making frequent visits to the store without buying anything
• Fidgeting excessively
• Moving back and forth to different parts of the store

It's worth noting that these signs don't always indicate theft. Some people naturally exhibit nervous habits, so it's important to observe them and establish an intent to steal before confronting them or raising an alarm. 

You also need to have clear processes and guidelines in place in the event that they do catch someone trying to shoplift. For starters, it’s never a good idea to have employees try to confront or stop thieves themselves. In addition to putting staff in harm’s way, it may also be illegal, depending on your jurisdiction and industry regulations.

Instead, employees should immediately alert their manager or supervisor, who can then call the police and report the theft. Make sure to take notes about the incident, preserve any video footage of the perpetrator, and record their license plate number to assist investigators.

To ensure everyone knows how to safely handle a shoplifting incident, conduct regular training courses with role-playing exercises. This gives you an opportunity to make sure everyone is on the same page and answer any questions staff might have.  

Use signage and deterrents 

Criminals typically don’t want to get caught. So including visible warnings that let them know the likelihood of getting caught is high, such as "Area Under Watch" signs, can help discourage cautious ones from stealing. Deterrents like security tags also have a psychological impact on offenders who like to play it safe.

For maximum effectiveness, make your signage look professional, highlight the consequences of theft, and pair it with retail loss prevention solutions like security cameras. 

Implement consistent inventory tracking

Consistent inventory tracking can be a way to reduce employee theft, but it also gives you insights into high-risk products or departments. Conduct regular inventory audits, comparing physical stock levels to inventory records to identify discrepancies. 

Cycle counting is one of the best inventory management strategies, as it allows you to detect irregularities early. This can deter internal theft — employees may be discouraged from stealing because they know that early investigations can increase the likelihood of being caught. 

Cycle counting can also highlight high-theft areas or goods, allowing management to take well-informed action. For example, if you consistently find stock discrepancies in your electronics section, you can amp up your security measures in this area to avoid further losses. 

Schedule staff members strategically

Strategic staff scheduling can help you monitor your store better and reduce opportunities for theft. For more positive outcomes:

• Position multiple employees in high-risk areas, like electronics sections. 
• Ensure adequate staff coverage during high-traffic or high-risk times, such as over the holidays or at night.
• Rotate staff across different departments (this can minimize internal theft).
• Maintain employee presence at entrances and exits to deter potential shoplifters.

Add security measures to high-risk areas

Offenders may take advantage of areas like fitting rooms, backrooms, and delivery zones to steal inventory, as they're often the least protected. You need to change this to reduce your risk of theft. Implement security measures such as:

• Controlled access and time-logged entry systems to backrooms, stock rooms, and delivery zones
• Limiting the number of items customers can take into changing rooms 
• Assigning dedicated fitting room attendants to help customers while also deterring theft
• Installing security viewing systems, like CCTVs, in high-risk sections
• Using license plate readers (LPRs) in parking lots and near exits and entrances to monitor vehicles and deter external threats before they enter the store.

There are some important distinctions to consider if you’re looking at video cameras or license plate readers for added security. While video cameras provide valuable visual coverage, LPR technology offers a specialized advantage—accurate, real-time license plate recognition, which can help you flag suspicious vehicles early. With Flock Safety's LPR cameras, you can capture even more details, including covered plates, vehicle alterations, and paper plates, which can signal potential thieves or other criminals. 

Businesses across industries are already taking advantage of this technology. Academy Sports, for example, uses LPRs at its brick-and-mortar locations, a move that has reduced theft incidents and increased employee morale and operational efficiency. 

Looking to amp up your retail security? Check out our license plate readers today.

How to handle theft most effectively to prevent future incidents

Effectively handling a theft is also a preventive measure, as it can deter offenders from returning to your store. Here's how to limit the risk of future occurrences:

Document incidents thoroughly

In the event of theft, document the incident extensively. Include data from your inventory check, witness statements, and camera recordings to help law enforcement with investigations and facilitate smooth insurance claims for stolen items. 

Flock Safety's solutions, like live video recording, can assist in creating accurate records for follow-ups and investigations. Our high-definition video cameras provide clear footage of vehicles and individuals on your property, allowing you to create thorough reports. 

Collaborate with law enforcement

One of the best ways to deter future theft is to ensure perpetrators are brought to justice. This deters the same criminals from returning to your store and sends a message that you're a risky target, potentially discouraging other offenders. 

For this to happen, you need to collaborate with law enforcement. Call them immediately after the theft, encourage witnesses to give their statements, and provide your incident documentation. Flock Safety can help with the latter. 

Our LPR technology provides actionable data that helps law enforcement prepare detailed incident reports and simplifies collaboration. Plus, our intelligence platform, FlockOS, integrates data from other systems in real time, allowing police departments to track offenders' vehicles across their jurisdictions. 

Conduct a post-incident review

Reviewing theft incidents is an important step, as it helps you identify gaps in current prevention strategies, facilitating well-informed adjustments. So use every tool in your arsenal to review your incident.

Look at footage from your security systems, walk through your store (focusing on the affected areas), and involve employees and management to discuss what worked, what didn't, and how to improve future responses.

Update your store policies

Finally, don’t forget to update your security policies based on your incident reviews. For example, if you experience a high number of thefts in fitting rooms, assign more staff to help manage the area. 

Depending on your most significant risks, you can also add radio frequency identification (RFID) tags to high-value items, ask management to oversee all point of sale (POS) operations when employees give refunds, or introduce more frequent inventory checks.  

If you make policy changes, communicate them to employees and run regular training programs to maintain awareness and preparedness.

Secure your retail business with smarter theft solutions

Proactive retail theft prevention strategies can protect your profits, customers, employees, and overall business. So train your employees to identify and respond to threats effectively, optimize your inventory management processes, use deterrents like RFID tags, and leverage AI-powered solutions, like LPRs, to discourage offenders from targeting your store. 

With Flock Safety, it’s simple to secure your retail business. We offer easy-to-implement, infrastructure-free tools like LPR cameras, helping you deter crime and resolve incidents efficiently if they occur. 

Our tools serve over 3,000 law enforcement agencies, so they can also facilitate easier collaboration in case of theft, helping investigators resolve cases quickly. 

Schedule a demo today to see how Flock Safety's theft solutions help retail store owners elevate their business security.