The latest data from NRF shows that the top sources of inventory shrink are external theft, internal theft, and process failures.

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POS (point of sale) systems with security features can help you prevent loss. A POS system is used to process transactions in retail stores. Typically, it includes a tablet or computer, a cash drawer, and a card reader, allowing employees to process sales easily and accept payments.

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Loss prevention is any practice designed to reduce a business's losses from theft, fraud, and operational errors. The goal of loss prevention is to eliminate preventable loss and preserve profits. It’s primarily found in retail, but also exists in other business environments.

Retail loss prevention consists of identifying shrinkage causes and following up with solutions. Businesses often implement strategies like hiring a loss prevention manager or installing security cameras to improve loss prevention and increase profits.

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Not only does your brain interpret sign colors, but it also recognizes certain shapes as meaning certain things. Road sign shapes and colors together can a single mean meaning. Virtually every driver or pedestrian would immediately understand a red octagon as a stop sign even with no writing on it.

It's easy to get loss prevention training. You can take an online course from Loss Prevention Academy or Loss Prevention Foundation or hire a third-party security and loss prevention expert to train your employees.

You can attach RFID tags to products and install RFID readers at the store's entrance and exit. If a customer leaves the store with a product bearing a RFID tag, the reader will pick up the signal and sound an alarm. It can alert store employees to possible thefts so they can take action.

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Loss prevention officers look for any suspicious activity that could lead to theft or loss of merchandise. They also monitor daily activities and inventory levels to ensure store policies are being followed.

RFID can help retailers prevent losses in many ways. For example, you can use RFID tags and readers to track the movement of products throughout the store.

The loss prevention team used data and video analysis of in-store surveillance cameras to identify patterns, like areas of the store where customers spent a lot of time. By analyzing these patterns and sharing them across all stores, the team was better able to train their focus on “hot spots,” or areas prone to theft activity, and to catch shoplifting behaviors before they became a problem.

The goal of loss prevention is to identify and reduce risks that could result in losses from theft, fraud, accidents, or other sources. It seeks to identify threats and vulnerabilities, and use measures to mitigate the potential for losses.

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On roads across the United States, your vehicle can be legally moving as fast as 75 miles per hour in some locations. Because of that speed, any important information needs to quickly get through the filters that your brain uses to process messages. You simply don't have time to read every sign to find the information you need. For this reason, road authorities rely on familiar road sign shapes and colors to attract your attention.

This loss prevention guide discusses the top types of loss and strategies to prevent them, with examples from popular retailers.

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Your store's loss prevention plan should be tailored to your specific needs and goals so that it balances loss prevention measures with customer experience.

Inventory control is a system that retailers use to manage and track their inventory levels. This includes tracking product flow in and out of the store and keeping accurate sales records. You can reduce inventory losses and boost profits by implementing an inventory control system.

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Loss, also referred to as retail shrinkage, robs your retail business of its profits. The higher your shrinkage rate, the harder it will be for you to stay in business. Addressing loss can lead to unexpected benefits beyond saving money, including better employee training, improved security and prevention measures, and better customer service.

Meijer’s loss prevention team took a different approach. They use intelligent point-of-sale monitoring to collect mounds of data. Then they let the software analyze it all to identify events that don’t fall into the normal pattern of transactions. That means they spend more time mitigating losses and eliminating the causes of retail shrink that fall within their control.

The RFID tag also holds bespoke multimedia content specific to the product for customers to watch on in-store display screens or phones. Burberry’s tags communicate with consumers’ phones and give information about where the product was made and recommended design options.

Now that we’ve covered the basics, let’s look at some successful loss prevention plans out there in the wild. Whether your current budget is $100,000 or $0, every store can learn from these case studies.

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Using CCTV also acts as a deterrent for potential thieves. It gives the appearance of strong security and shows you take losses seriously.

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Investing in a POS system with security features can make a lot of sense for retail store owners. It helps protect against potential loss and gives insight into sales and inventory.

One of the bigger retail developments of the past decade has been the appearance of self-checkout lines at major chains. Eliminating the cashier (scanning each item, interacting with customers, observing behavior) presents an obvious barrier to loss prevention efforts.

The use of RFID tags is becoming more prevalent in the retail industry. It has the potential to track items throughout the supply chain until final sale. Burberry uses RFID technology to identify products using radio signals. The RFID technology is found in a small tag typically in the swing ticket, and embedded into the product through a textile RFID label.

As Burberry explains on its website, “We have started to initiate the use of RFID technology throughout our Burberry product lines to assist with stock and quality control, while also enhancing the customer experience in selected stores.”

Loss prevention continues to be a challenge on both digital and retail fronts, from skilled cybercriminals to shoplifters who steal low-priced items. But that’s only one element of loss prevention.

Sears Canada focused on combining old standbys and cutting-edge technology. It armed loss prevention personnel with the best tools, not just the newest. It relied on video surveillance in all Sears Canada stores—but not to catch shoplifters after the fact.

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If someone breaks your policy, you can take action to enforce the rules, like asking the person to leave the store, alerting a security officer, and/or calling local law enforcement.

There are many types of awareness and education programs. The NRF’s National Security Survey asked which programs retailers used to train and educate team members about loss prevention and retail asset protection.

Managing loss prevention can feel overwhelming, especially if you’re a small to mid-sized operation. By implementing a few key security measures, however, you can reduce your risk of loss and improve profitability. This guide discusses the top types of loss and strategies to prevent them, with examples from popular retailers.

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Loss prevention in the retail industry is critical. By implementing effective strategies like surveillance systems, employee training, and inventory management, you can keep losses to a minimum and boost profits.

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Loss prevention is how you prevent inventory loss and preserve profits. It’s a critical concern for retailers, amounting to over $94.5 billion in U.S. retail losses in 2021, up from $90.8 billion in 2020.

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Over 93% of retailers have a security policy or “code of conduct” for preventing loss and keeping people safe. For your store, outline specific rules and expectations for employees and customers.

It can be cumbersome and time-consuming to look for proof (or lack thereof) of both employee theft and ordinary shoplifting when it comes to surveillance. Loss prevention personnel may watch an employee’s entire shift only to find no evidence of theft—not exactly an efficient process.

It’s no wonder some 45% of retailers increased their loss prevention budgets in 2022. They know that theft, fraud, and unexplained inventory shrinkage can quickly eat up profits.

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You can also keep your store safe by monitoring activity with CCTV (closed-circuit television). These cameras can watch entry points into the store, like the customer entrance and loading docks. They record what's going on so you can see if anyone's trying to get in who shouldn't.

Target approached this problem by leaning hard into one of the anti-shoplifting tactics above: conspicuous surveillance. If you’ve gone through self-checkout at a Target store recently, you might have noticed—right at eye level—your own face staring back at you. “You’re being monitored,” it reminds you. Target also trains surveillance on the scanner, so loss prevention personnel can see which items the customer scanned and which they didn't.

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Keeping track of cash and other assets is one of the best ways to prevent loss. Setting up surveillance cameras, hiring security guards, implementing security tags, and doing regular audits can also help.

It's important for retailers to invest in effective employee training to prevent shoplifting and other types of fraud. Educating staff on recognizing and preventing crimes can further protect your business and customers.

Five ways to prevent loss: using access control and surveillance systems, taking inventory regularly, implementing security protocols, training employees on loss prevention, and investing in inventory management.

RFID, or radio-frequency identification, tracks and manages inventory by attaching small tags to products. A special machine, called a RFID reader, can read these tags quickly and easily.

Train your employees on the rules and expectations of your security policy. Meetings and trainings are good ways to remind employees about the policy. To remind customers about the rules, you can also post signs around the store.

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According to The 2022 National Retail Federation’s Retail Security Survey, loss prevention teams are also working to protect store associates and customers.

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RFID systems have become a popular retail loss prevention technology, with nearly 39% of retailers using them. In recent years, RFID has replaced Electronic Article Surveillance (EAS), a traditional retail theft measure, to improve inventory visibility across the supply chain.

Although Sears Canada finished shutting all its doors in early 2018, we can still learn from its example on the loss prevention front.