Retailers face loss every day. Shoplifting is the most recognizable form of theft, but other types include smash-and-grabs, credit card fraud, employee theft, and even organized crime. Here we will cover loss prevention statistics and how you can help to prevent retail theft in your business.

Statistics surrounding retail theft

In 2023, stores lost $121.6 billion to retail theft, according to Capital One Shopping. They predict that in 2026 this number could rise to over $150 billion. Capital One Shopping also provides the following numbers to help you get a better understanding of retail theft and its impact:

• 37% of retail theft is external, such as shoplifting. This represents the largest share of losses when it comes to retail theft.
• 28.5% of retail theft is internal or employee theft.
• 9.09% of Americans shoplift.
• Juveniles aged 12-16 are most likely to shoplift.
• Over a 5-year span, 56.9% of retailers report an increase of internal theft.

In addition to internal and external retail theft, organized retail crime is also becoming an issue. Between 2020 and 2021, these incidents have increased by 26.5%, says Capital One Shopping:

• 40% of organized retail crime happens at distribution centers.
• 45% of organized retail crime happens en route from distribution centers to stores.
• 38% of organized retail crime is in-store theft.

Furthermore, Business Dasher goes on to report why people shoplift, including:

• 52% of people across different demographics said they stole due to financial problems.
• 19% of people asked said they shoplifted to experience a high or excitement.

Business Dasher also provides statistics about how small businesses are impacted by shoplifting:

• 20% of small retailers deal with shoplifting a couple of times a week.
• 15% of small retailers report daily theft.
• For 75% of small businesses, monthly theft losses range from $500 to $2,500.
• 98% of small businesses have put measures into place to prevent theft.

Retail space security upgrades

Preventing theft begins with knowing how theft occurs. Installing quality surveillance systems can help you keep an eye on the entire retail area. This is crucial because employees can’t be everywhere at once.

Every retail store should have clear signage that makes shoppers aware of the surveillance cameras. This can help to deter would-be thieves. Other steps that can be taken to improve the security of retail stores include:

• Add mirrors: when mirrors are placed in strategic locations, monitoring suspicious behavior becomes easier.
• Install alarms: alarms can be installed to detect stolen items and to alert workers to a breach of windows, doors, and ceilings during off-hours.
• Improve store layout: the layout of your store can help or hinder the detection of would-be shoplifters.

Prevent retail theft by training employees 

In addition to adding security cameras to your retail store, you can benefit from training employees to be able to spot suspicious activity and how to approach the situation. When your employees are properly trained, inventory shrinkage will be reduced.

Employees can be trained to interact in a way that a would-be shoplifter changes their mind about their choice and leaves. There are companies that offer this type of training to employees that will enable them to not only know what to say and do, but to be confident in their abilities when the time comes.

Retail theft is a growing problem. As thieves change their tactics, it’s important for retailers to evolve with proven prevention strategies.

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