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Target is known for its industry-leading loss prevention practices. Here are some techniques the retailer uses that you can incorporate into your own business.

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So, what can your business do to combat these potential causes of shrinkage? Apart from keeping tabs on your inventory to identify shrinkage or stockouts, you can try these 10 loss prevention strategies to maximize your inventory.

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And the cost of shrinkage is growing. In 2023 alone, Capital One’s Shopping Research reported that stores lost $121.6 billion of goods due to theft. The same report projects that that number will grow to more than $150 billion by 2026.

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Your business may not have its own team of loss prevention officers working to stop theft, but you can implement loss prevention strategies that work. And Fishbowl is here to help.

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Retail loss, or retail shrinkage, occurs when items disappear from your inventory without you receiving payment, whether that’s because they’re stolen, damaged, or otherwise unsellable.

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Target has a culture of surveillance and reporting, with loss prevention officers on site who are specially trained to spot and address suspicious behavior patterns on the floor or by watching the cameras.

Effective retail management needs to focus on protecting your profits, and that includes devoting resources to retail loss prevention. From human error to shoplifters, there are many ways you might lose merchandise without receiving payment.

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Even small businesses may be able to implement this technology, as companies like Amazon develop affordable automated tools for image recognition and analysis. Like AI surveillance cameras, this technology could raise privacy concerns. Customers should be informed of the use of facial reduction software and of any policies in place for protecting their information. Make certain the data is securely stored and disclose which, if any, entities you intend to sell or disclose the data to so you don’t lose your customers’ trust.

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Target incorporates facial recognition technology with cameras that record customers in the store and parking lot. Security staff monitor suspicious customers and immediately act when theft occurs.

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Loss prevention strategies aim to prevent this from happening so merchandise doesn’t go missing. These strategies range from employee training to anti-theft software and developing a better store layout.

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Fortunately, today’s retail loss prevention systems go beyond traditional security tags and surveillance cameras. You can incorporate those tried-and-true methods with modern approaches to avoid shrinkage and protect your merchandise.

Use strategically placed cameras by focusing them on high-value items at the greatest risk of being stolen. AI software can flag signs of suspicious behavior picked up on these feeds.

Target has a sophisticated CCTV network that employees monitor in real time and save as evidence to prosecute shoplifters. There are also many cameras focused on the self-checkout area that record both the scanner and the customer to confirm the items they scan.

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While RFID tags aren’t on every Target item, they’re affixed to ones that are prime targets for shoplifters. If someone tries to take an item out of its packaging or leave the store without paying, an alarm triggers. Consider attaching them to your highest-value products.

Whether your company has the budget for this specific role or not, you can train your current staff on behaviors to watch for and create a culture of vigilance and reporting that reduces risks.