How to Stop Theft in Retail: 5 Common Mistakes Retailers Make

Retail theft is something that hits from every direction. After 30 years, the National Retail Federation (NRF) stopped publishing its annual shrink report in 2024. This change left retailers scrambling for new ways to identify where theft is coming from, what’s causing it, and how much companies are losing.

Trying to grasp the causes, symptoms, and cures for retail theft is a bit like Googling the cause of a symptom and getting 100 different possibilities of illnesses—not very helpful, right? The same goes for retail theft. There’s a lot of confusion, and many of the common suggestions for how to stop theft in retail come and go faster than fashion trends. So how do you know where to start?

Many retailers unknowingly make mistakes that leave their stores vulnerable, or they follow every suggestion they see from articles that fuel their fears. But here’s the good news—you can dramatically decrease theft with the right strategy. In this post, we’ll go over 5 common mistakes retailers make in their security practices, how those mistakes contribute to theft, and how to fix them.

How to Stop Theft in Retail: 5 Common Mistakes

Besides the usual shoplifting and employee theft, other methods like return fraud, stolen cargo, and inventory mysteriously going missing are becoming more common. Before you rush to buy every piece of security tech or follow every article you see online, it’s important to first focus on what’s within your control and build from there. Here are 5 common mistakes you may be making and how to fix them.

One of the biggest retail mistakes is not planning for the future when it comes to security solutions. If your store’s security system is outdated, thieves will find ways around it. Older systems, like magnetic security tags, can be easily defeated—ironically, with another magnet.

As new tech emerges, these outdated systems quickly lose their effectiveness. By the time they’re developed, produced, and distributed, they often only solve yesterday’s problem, leaving you stuck with an old system that’s no longer cutting it. This usually leads to costly, disruptive upgrades down the line. As the saying goes, “buy it nice, or buy it twice”—you’ll end up blowing your loss prevention budget on repeated fixes.

For example, many retailers resorted to locking up everything they could in a panic to prevent theft. While it might have worked for a time, it creates a new problem—turning customers off completely. Nearly 25% of shoppers will abandon a purchase if they can’t get their product and leave quickly.

What happens when a better solution comes along than simple locks and keys? Completely refitting your entire store? It’s already an outdated solution considering most people use smart locking devices on their homes and cars and would ultimately like to use them when they shop, too.

Solution:

To stop theft in retail, invest in security solutions that grow with your business. Cloud-based systems, for example, offer real-time updates and remote monitoring, so you’re always in control, no matter where you are.

Instead of sticking with outdated mechanical locks and keys, switch to asset protection and access control solutions that evolve with your business. InVue’s Smart Locks are designed to meet the needs of today’s and tomorrow’s shoppers. You have two options: OneKEY Locks that use our patented IR-technology OneKEY, or LIVE Locks, which use a smartphone or store-issued device for access. Both eliminate the need for rekeying every time you need to secure more merchandise, lose a key or an employee.

Expanding your store or adding more fixtures? No problem. Simply add more Smart Locks and easily program them to the OneKEYs or smart devices you’re already using. The software that works with these locks lets you set permissions, giving you complete control over who can access specific products and allowing you to track exactly who’s unlocking which fixtures—and when.

InVue’s LIVE Locks take convenience even further. Customers can receive a one-time access code to retrieve merchandise themselves, providing greater flexibility. Plus, if a OneKEY is lost or stolen, it automatically times out and can’t be used again. No need to replace every lock.

By investing in this scalable technology, you’ll avoid costly upgrades and ensure your store’s security keeps up as your business grows. These solutions adapt to the way people shop, helping you stay ahead of the curve and stop theft in retail without constantly rethinking your strategy.

Another common mistake retailers make is using security solutions that don’t work together. Think of your store’s security like a team—if it’s not operating as one, things will fall through the cracks.

Many retailers use separate systems, like video surveillance and alarms, from different providers, and these don’t always integrate well. Even worse, loss prevention teams are often disjointed from company decision-makers, which leads to significant security gaps. Without clear communication and alignment, security strategies can become fragmented, and critical issues get overlooked.

It’s like this: Imagine having a Samsung Galaxy tablet and an Apple iPhone. Individually, they’re both great, but they don’t work seamlessly together. The same goes for your security systems. Even if your tools are excellent, if they don’t integrate properly, they won’t be as effective in preventing theft.

Solution:
What you need is an integrated security system. Are you selling smartphones, but also small household appliances like vacuums? Or maybe you have clothing alongside small jewelry accessories hanging from pegboards? If you’re using different security solutions for all these products, you’re probably dealing with multiple keys and mechanisms to unlock them. That’s not only a hassle, but it can also make managing your store more complicated.

InVue’s security solutions are designed to work together as part of a unified ecosystem. Our asset protection solutions can all be opened with the same key, whether you’re securing smartphones, laptops, cameras, household goods, or jewelry displays.

With this seamless approach, you get a big-picture view of your store, while still having the ability to drill down and monitor specific areas or items. Everything works together to give you better control and visibility over your store’s security. Plus, with OneKEY, there’s no need for associates to scramble to find that elusive old brass key ring—customers won’t have to wait as long to get what they need.

Your store’s layout plays a huge role in preventing theft. A poorly designed layout can actually encourage it. If high-value items are placed in easy-to-reach but hard-to-see spots, thieves will target them. Blind spots and poor lighting also give criminals the opportunity to act without being noticed, making it much easier for theft to happen unnoticed.

For example, the manager of a Charlotte-area hardware store shared,

“We had to move our boots to the back of the store because there’s just no space for them anywhere else. Since we did that, we easily lose a pair a day to theft.”

This highlights how something as simple as the placement of products can directly impact theft.

Solution:
To fix this, rethink your store’s layout to make it less inviting for thieves. Keep high-value items in areas that are easy to monitor by staff or security cameras. Use display cases with InVue’s Smart Locks to make it harder for thieves to grab and go. Ensure your store is well-lit, particularly in corners, near entrances, and in areas where visibility is crucial. Creating a layout with fewer hiding spots and maximizing visibility will go a long way in stopping theft in retail.

A poor point of sale (POS) system—or worse, no system at all—is another retail mistake that can leave you vulnerable to theft. Without detailed reports, it’s nearly impossible to track how much inventory is being stolen. Without accurate data, you won’t be able to spot trends or identify patterns of suspicious behavior.

A good POS system can help you identify losses early. Are products mysteriously going missing before they even reach the sales floor, during inventory counts, or after being put on display? Are an alarming number of invoices showing discrepancies right after delivery? If so, you need a system designed for your store that provides real-time reporting and helps you pinpoint where the gaps are, allowing you to address theft head-on.

Solution:
To fix this, invest in a POS system that provides comprehensive, real-time reporting. A strong system should track sales, inventory, and employee transactions, giving you a clear view of your store’s operations. This way, you can quickly identify discrepancies and spot theft trends early. With accurate reporting, you’ll have the tools you need to take action and prevent further losses.

Remember, not just any POS system will work. Take your time and do your due diligence. There are many different POS systems depending on your industry, store size, and budget. Find one that works for you. Don’t automatically go for the cheapest option or one with all the bells and whistles. If it’s too complicated to learn or doesn’t fit your needs, you’ll be just as vulnerable as if you never had one at all.

Retail theft doesn’t always come from outside your store. In fact, employees are responsible for a significant portion of retail shrinkage—often accounting for the largest share. Whether it’s accidental oversight or intentional theft, when employees aren’t properly trained, it opens the door to vulnerabilities.

Training shouldn’t just focus on security protocols and procedures; it should also include skills development and advancement opportunities. An employee who feels stagnant or unsupported may become more likely to engage in internal theft. If your team isn’t aware of what to look for, how to report suspicious activity, or doesn’t feel empowered to grow within the company, it can leave your store exposed to unnecessary risks.

Interestingly, 84% of companies with over 50 employees say they perform regular training. However, over 80% of small businesses in the U.S. have fewer than 50 employees, which likely means many small businesses aren’t conducting regular training. Plus, nearly 70% of employees say they would prefer to learn on the job. This highlights an opportunity for small businesses to step up their training efforts and engage employees in a way that helps, not micromanages.

Solution:
To address this, invest in regular employee training that not only covers security protocols but also provides growth opportunities. Help your staff build new skills and promote from within to create a sense of upward mobility. Teach them to recognize signs of theft and how to report it immediately. When employees know their actions are being monitored and that there are opportunities for advancement, they’re far less likely to ignore or participate in theft. A well-trained, motivated, and accountable team is one of the most effective ways to stop theft in retail.

How InVue Can Help You Prevent Retail Theft

Retail security isn’t trendy—it’s timeless. It’s something that should always be a top priority, evolving to meet the demands of today’s shopping experience while being built to last well into the future. A strong security system will never go out of style, and when done right, it will continuously serve your business and safeguard your merchandise for years to come.

At InVue, we specialize in providing integrated, scalable security solutions that will grow with your business. Whether you need asset protection or access control, our solutions are designed to help you understand how to prevent theft in retail and protect your store’s profits.

By addressing common mistakes, like failing to future-proof security systems, using disjointed solutions, and neglecting employee training, you can implement a more secure and efficient strategy. This not only reduces theft but also strengthens your store’s operations overall.

Contact InVue today to learn how our innovative security systems can help you reduce losses and improve your store’s bottom line. Let our team help you find the best solutions tailored to your business needs, ensuring your store is protected now and in the future.