Retail security: Safeguarding growth and profitability

Unleashing the power of data in the retail industry, by Alan Stoddard, President, Intellicene.

In the rapidly shifting world of retail, businesses grapple with numerous security and operational issues.

They contend with threats of fraud, cyber-attacks, supply chain interruptions, shifting consumer preferences, reputation maintenance, natural disasters, economic uncertainties and workforce-related risks.

These challenges can lead to financial losses, tarnished reputations, disrupted operations and potential legal ramifications.

High on the list of issues is shoplifting, organised retail theft and internal loss. For instance, in May 2023, Target announced that its profits would be cut by a whopping $500m due to inventory shrinkage.

Given a further shrinkage-related profit dent of about $700m in 2022, Target is projected to experience a combined loss of $1.2b in profits.

Target’s predicament isn’t an outlier in the retail industry. A 2022 survey by the National Retail Federation (NRF) revealed the hefty cost of shrinkage to the industry.

In 2021, retail shrinkage resulted in $94.5b in losses, a noticeable hike from $90.8b in 2020 compared to total retail sales percentages.

Moreover, violent incidents are on the rise. Between the beginning of 2020 and late November, there were at least 363 firearm incidents and 112 gun-related deaths at Walmart stores nationwide, according to Guns Down America. A tragedy in 2019 saw a mass shooting at an El Paso, Texas store claim 23 lives.

In light of formidable challenges, businesses must enhance their security and loss prevention measures.

It’s crucial for retailers to anticipate and neutralise these risks through comprehensive security procedures, cyber-safety protocols, workforce training and effective risk management tactics.

By taking these steps, businesses can safeguard their operations, retain customer confidence and ensure their continued competitiveness.

To tackle urgent problems, the industry recognises the necessity of fostering a secure shopping environment for staff and customers, prompting investment in security strategies and technologies.

Target, for example, announced plans to bolster its security by adopting enhanced security solutions.

By strengthening its infrastructure and partnering with law enforcement and industry associates, Target seeks to stifle organised retail crime and lessen the impact of inventory shrinkage.

The future of retail security

Success in navigating the ever-evolving retail landscape requires constant vigilance and a proactive approach to security.

By employing innovative strategies like intelligent security operations and centralised intelligence hubs, businesses can enhance their ability to detect, counter and prevent incidents of fraud, violence and theft.

These measures are vital to preserving the retail industry’s future and cultivating consumer trust and confidence.

As the industry continues to morph, adaptability becomes paramount.

Retailers must take hold of the benefits of digital transformation and find ways to harness the power of data to stay ahead of emerging threats.

By using IoT and network-enabled applications, retailers gain access to more data, enabling the conversion of raw information into actionable insights to strengthen security measures.

By gathering data from interconnected systems such as video surveillance cameras, access control systems, inventory tracking and customer behaviour analysis, retailers can efficiently spot potential irregularities and proactively manage theft, fraud and operational disruptions.

An integrated approach like those found in intelligent security operations centres and centralised intelligence hubs allows for comprehensive risk management.

Retail organisations that have a centralised, enterprise-wide view across various systems and technologies gain greater situational awareness, reduce operational costs and enhance employee safety.

This integrated approach enables seamless information sharing with external partners, employees and authorities, ensuring swift and coordinated action when necessary.

Intelligent and informed security operations have become a top priority for retail security leaders. The focus on security, combined with the promise of a connected world, fosters collaboration among stakeholders and departments.

It empowers employees in stores and corporate offices, providing them with continuous visibility, detection, response and incident management capabilities.

By merging technologies, best practices and services, leaders can elevate operations to new heights, adding an extra layer of efficiency.

In response to increasing theft, fraud and violence, retailers must adapt quickly to protect their assets, employees and valuable data.

By harnessing the power of data and embracing innovative solutions, retailers can strengthen their security infrastructure and stay one step ahead of evolving threats.

Organisations like Target are making significant investments in comprehensive security measures, collaborating with law enforcement agencies and adopting technologies to combat organised retail crime and reduce inventory shrinkage.

The retail industry is at a critical point where the protection of assets and the safety of customers and employees are of utmost importance.

By embracing digital transformation, retailers can utilise the potential of IoT and AI to effectively detect, prevent and respond to threats.

The deployment of intelligent security operations enables retailers to have a holistic view of their operations, enhancing situational awareness and enabling proactive risk management.

As the retail landscape evolves, security is paramount.

By recognising the challenges posed by theft, fraud and violence, and investing in innovative technologies, retailers can safeguard profitability, maintain customer trust and secure a prosperous future.

Through collaboration, advanced technologies and data-driven insights, retailers can navigate the complex security landscape with confidence, creating a safe and secure environment for all stakeholders involved.