Defensive Merchandising: How can retailers reduce shrinkage without sacrificing sales?
By Daryl Bedford, Managing Director at Harrison Retail
According to an annual crime survey from the British Retail Consortium (BRC), there were 20 million thefts committed between January and August in 2024, equating to 55,00 a day, costing retailers £2.2 billion in losses. This has risen dramatically from 16 million in 2023, with the rise in crime linked to orchestrated attacks from criminal gangs. Police attendance at incidents has remained low, leading many retailers to invest billions in loss-prevention technology, including CCTV and body-worn cameras.
To battle back against theft, Morrisons opted to install security cabinets for their alcohol in 2024 by introducing a buzz for booze initiative where customers would have to press a button requesting staff to open the security cabinet to allow them to purchase a product. This was met with dismay from customers, with many reporting that it ruined their customer experience, leading to lost sales. To find the right balance, retailers must prioritise a comprehensive, multi-layered loss prevention strategy before resorting to extreme defensive merchandising measures.
Fighting back with loss prevention solutions
Advanced technology systems may seem like the quickest resolution to the ongoing theft crisis. Yet, point-of-sale loss prevention solutions, when implemented correctly, can be equally effective at deterring criminals by making theft more difficult. Advanced systems are notoriously expensive and do not always resolve the issue.
Retailers should avoid rushing into costly tech investments that could compromise customer shopping experience, especially when more affordable, bespoke loss prevention solutions are available. POS and advanced technology loss prevention solutions complement each other and should be integrated into retailers’ wider anti-theft strategy.
Loss prevention strategies must be multilayered
To effectively address theft and ensure comprehensive safeguarding of stock, there must be a multi-layered loss prevention strategy in place that takes store layouts and fixtures into account. This bypasses the initial goal of safeguarding stock using defensive merchandising and goes further by creating and tailoring a customer-friendly shopping environment where products remain secure yet accessible and visually appealing, maintaining a positive customer experience.
Poundland recently launched its Against Retail Crime initiative. The discount store will roll out communication headsets to all 800 UK shops and body cameras to those with the most significant crime issues. The initiative represents Poundland’s ongoing efforts to address theft and abusive behaviour, using body cams as a visual deterrent and headsets as a communication tool to flag incidents as they occur.
While this initiative will provide some initial success, products will still be easily swiped from shelves without the addition of POS loss prevention solutions. Simple solutions, such as one-at-a-time dispensers, are enough to stop criminals from accessing and stealing multiple products at a time, reducing shrinkage.
The impact of shelf loss prevention solutions
At present, retailers are prioritising traditional security measures like security cameras and alarm tags and have shied away from innovative shelf solutions specifically designed for the fast-paced retail environment. Smart point of sale alternatives, such as automated pusher systems that control stock retrieval or gravity risers that limit shelf access, not only help secure products but encourage customer interaction, removing the barrier created by locked cabinets. Customers want to experience the product they are pursuing before purchasing, and point-of-sale solutions make this a reality.
As theft becomes an increasingly ingrained challenge in the evolving retail landscape, retailers must look beyond quick fixes and costly tech and return to the fundamentals. There must be an assessment of all vulnerabilities present on the shop floor, whether that be product placement or operational inefficiencies. With the additional insight and understanding of the unique challenges faced in each store, retailers can implement comprehensive, evidence-based loss prevention strategies that keep customers at the heart while safeguarding their merchandise.
To find out more about Harrison Retail, visit them online here.
