Last Updated on July 12, 2024 by Alarm New England
Every day, retail businesses can face numerous security challenges. From inventory theft to safety hazards, the risks are diverse and can evolve over time. Understanding these potential threats is crucial in developing effective strategies to protect your business, employees, and customers.
Alarm New England is a security provider working in MA, RI and CT who has helped hundreds of retail businesses with their alarm system, video surveillance, commercial fire, and access control needs.
Let’s explore the key security risks that can arise in a retail environment, with a focus on employee and customer safety.
Security for Retail Store Owners
Shoplifting and Theft
Shoplifting remains one of the most prevalent security risks in retail. It can range from opportunistic theft by individuals to organized retail crime (ORC) involving sophisticated groups– as we’ll talk about later. Modern shoplifters employ various techniques, from simply concealing items to using foil-lined bags to bypass electronic article surveillance (EAS) systems.
The impact of shoplifting goes beyond the immediate loss of merchandise. It can lead to inventory discrepancies, increased prices to cover losses, and a general sense of insecurity in the store.
Employee Theft
While it’s uncomfortable to consider, employee theft is a significant concern in retail. This can take many forms, including:
- Cash theft from registers
- Merchandise theft
- Sweethearting (giving unauthorized discounts to friends or family)
- Refund fraud
It even goes beyond the theft of physical goods. A retail store can also fall victim to employee time theft (in other words, falsifying work hours).
Employee theft can be particularly damaging as it often involves larger amounts over time and it can be harder to catch since perpetrators have insider knowledge of the store’s systems and procedures.
Robberies and Break-ins
Robberies and break-ins pose a serious threat to retail businesses. These crimes not only result in financial losses but can also traumatize employees and customers. Stores with high-value merchandise or those operating in high-crime areas are at particular risk.
Violence and Aggressive Behavior
Unfortunately, retail employees sometimes face violence or aggressive behavior from customers. This can range from verbal abuse to physical assaults. Such incidents not only pose immediate safety risks but can also lead to long-term psychological impacts on staff.
Employee Safety Concerns
Beyond external threats, employee safety is a critical concern in retail environments. Some potential risks include:
- Slip and fall accidents due to wet or unkempt floors
- Injuries from improper lifting or handling of merchandise
- Repetitive strain injuries from prolonged standing or repetitive motions
- Exposure to hazardous materials (e.g., cleaning products)
Customer Safety Risks
Ensuring customer safety is paramount for any retail business. Potential risks to customers include:
- Customer slip and fall accidents
- Injuries from falling merchandise or displays
- Allergic reactions to products or materials in the store
- Food safety issues in stores with food service areas
- Parking lot accidents or assaults
Product Tampering
While less common than some of the other risks listed above, product tampering can also be a serious concern. This can involve intentional contamination of products or tampering with packaging. Besides the immediate safety risks to consumers, such incidents can severely damage a retailer’s reputation.
Organized Retail Crime (ORC)
ORC (or organized retail crime) involves groups of individuals working together to steal large quantities of merchandise for resale. These operations are often sophisticated, using professional shoplifting tools and techniques. Organized retail crime can lead to substantial losses and can be challenging to combat without coordinated efforts between retailers and law enforcement.
Cash Handling Risks
For retailers dealing with cash transactions, there are inherent risks in cash handling. These include:
- Theft during cash transfers
- Errors in cash counting or reconciliation
- Counterfeit currency acceptance
Proper cash handling procedures and security measures are crucial to mitigate these risks and ensure employee safety during cash transactions.
8 Step Retail Security Checklist
The retail environment faces its fair share of security risks, many of which can directly impact employee and customer safety. Each of these risks can have a significant impact on a retailer’s bottom line.
To effectively combat these threats and ensure a safe environment, security needs to be put into place. Below is a simple security checklist for retail stores.
- Implementing physical security measures (e.g., CCTV, EAS systems)
- Training employees on security protocols, safety procedures, and threat awareness
- Developing strong cash handling and inventory management procedures
- Implementing regular safety inspections and maintenance routines
- Creating and practicing emergency response plans
- Fostering a culture of safety and security awareness among all staff
- Collaborating with law enforcement and industry partners to combat organized retail crime
- Regularly assessing and updating security measures to address evolving threats
By understanding these potential risks and taking proactive steps to address them (like the 8-step checklist above), retailers can create a safer environment for their business, employees, and customers. Remember, security and safety are ongoing processes, and staying informed about emerging threats is key to maintaining a secure and safe retail business.
For information about a free retail security assessment, contact Alarm New England today.
