6 Steps to Success when Conducting a Retail Security Audit

If you’re experiencing retail shrink and aren’t sure how to address it, you’re not alone. You may have already implemented various security measures, yet something still feels off. So, what can you do?

Conduct a retail security audit.  A retail security audit is a systematic evaluation of a store’s current security measures, designed to identify weaknesses and potential risks. It involves assessing everything from physical security, like locks and surveillance systems, to policies that govern employee access to merchandise.

The goal of the audit is simple: ensure that your store is protected against theft, whether from external shoplifters or internal sources. By regularly conducting audits, retailers can proactively address security gaps before they lead to significant losses.

• Identify current security issues
• Generate a security audit report
• Streamline the process for conducting regular audits
• Determine if you need to enlist the assistance of external auditors

The frequency of your audits can vary. For example, if there’s a data breach that puts sensitive information at risk, you’d likely launch a company-wide data security audit right away. A significant in-store security incident, like a theft attempt, could prompt an internal audit.

There’s no limit to what you can audit or how often to perform one. However, it’s usually a good idea to check in at least twice a year to ensure your physical security measures—like surveillance cameras and security staff—are effective.

Now that you know how security audits can help, let’s talk about how to conduct one.

Conducting A Security Audit: 6 Steps to Success

A larger corporation often has a dedicated audit team to spot security weaknesses and enhance loss prevention, but smaller retailers can also take charge. If you’re new to auditing and unsure where to begin, here are seven key steps to help you identify security issues in your store.

This may be the most important step, as success comes from the intersection of preparation and opportunity. You want to determine if your current strategies are effective, but consider your specific goals: Are you looking to get key stakeholders to approve a larger loss prevention budget, or are you trying to identify whether most theft is internal or external? Start by answering these questions:

• Which products are the most popular targets for theft?
• What security policies and measures do I currently have in place and are they being followed?
• Are my asset protection solutions flawed (e.g., poor quality or hard to use)?
• Do I have an audit trail for which employees are accessing products and when?

This isn’t an exhaustive list; you may have additional questions based on your industry. The goal is to identify a focus point for your audit. If you don’t know what you’re looking for, you won’t be able to gauge the success of the audit or determine the next steps if you uncover any security problems.

Conducting a risk assessment is a critical step in the audit process. Evaluate the specific risks associated with your retail environment, considering factors like:

• Location: Is your store situated in an area with high crime rates?
• Type of Merchandise: Are you selling high-value items that are more prone to theft?
• Store Layout: Does the design allow for easy monitoring of all areas?

What will you use as your main security audit tool? Some examples include interviewing staff and security to uncover pain points or issues they’ve noticed while interacting with customers. A simple store walkthrough can also help you spot problems like broken security locks, obstructed camera lenses, and faulty security devices.

Do you rely solely on EAS gates at your store entrance as your alarm system? If so, you can conduct your own test audit by walking through the gates with a tag you currently use. This will help you check if the system is functioning properly and see how staff respond to the alarm.

Test audits can be a great tool in uncovering issues you may never have considered. For example, you may discover that a current security solution you’re using protects against theft, but inadvertently hinders sales by deterring customers from interacting with products, signaling it may be time to look for more customer-friendly merchandise protection.

Once you’ve determined your methods, it’s time to decide who you want to help conduct the audit. Will you be going solo, enlisting your loss prevention specialists, other employees, or an outside party? Remember: Conducting an audit alone may save you money in the short term, but will likely cost you valuable time.

Now, you can perform your audit! Depending on the size of your store, number of locations and available manpower, it’s estimated store audits can take a few weeks. If you’re doing a simple walkthrough of one location, it could day a couple of days to a week.

Be sure to keep track of what you find by:

• Document Observations: Clearly note any security risks, vulnerabilities, and observations during the audit. Be specific about locations, times, and circumstances.
• Categorize Findings: Organize your findings into categories (e.g., physical security, personnel practices, technology issues) to make them easier to analyze.
• Include Evidence: Attach photos, diagrams, or documents that support your findings. This adds credibility and clarity.
• Prioritize Issues: Rank the findings based on their severity and potential impact. This helps focus attention on the most critical areas.

You’ve collected everything you need, but it’s not over yet. Now you have to make sense of everything you’ve found.

After completing the audit, compile your findings into a detailed audit report. Highlight your store’s strengths, weaknesses, and specific recommendations for improvement. This documentation will serve as a roadmap for enhancing your security practices.

• Summarize Key Points: At the end of the report, include a summary of key findings and recommendations for quick reference.
• Review and Revise: Before finalizing the report, review it for clarity and completeness. Make sure it’s easy to understand for stakeholders.
• Distribute the Report: Share the report with relevant stakeholders, ensuring everyone who needs to know is informed.

Finding security gaps is one part of the process, the other would be to come up with a plan to fix what’s broken.

After reviewing the results of your audit, you should be able to adjust your security strategy and better prepare for future audits. Based on what you discovered, you may need to implement better employee security training, replace existing merchandise security products with more reliable solutions, change the layout of your store, focus on lighting and merchandising, or a combination.

Enhance Your Security Process with InVue

As your retail store grows or products change, you can always tailor your internal audits to meet your store’s needs. Just remember, conduct security audits regularly to speed up the process and maintain your security. Technology changes rapidly, as does the cunning of potential shoplifters. Solutions that may have worked just a few years ago may become obsolete faster than you anticipated. Consider an external audit if you need additional support.

At InVue, we can help you enhance your security measures with products that not only provide reliable security, but also enhance the customer shopping experience. Whether protecting the latest iPhones, Apple Watches, or power tools, we provide asset protection solutions that protect against both internal and external theft through a verifiable audit trail of who is access what and when.

Have you conducted an internal audit and need new innovative security solutions? Contact us today.