Retail Shoplifting and Loss Prevention: How to Protect Your Business

Shoplifting has become a serious threat to the retail industry. In Canada, retail crime costs $5 billion each year, resulting in higher prices and more incidents of violence toward employees. 

Shoplifting erodes profits, damages business reputations, and affects the customer experience. In critical cases, it can even force small businesses to close down. Retail shoplifting refers to the act of taking merchandise illegally without paying for it. However, it also includes altering price tags, manipulating merchandise, or modifying packaging to avoid paying the full price. 

According to Statistics Canada, shoplifting incidents increased by 18% in 2023, representing a 31% rise compared to 2022. Peel Regional police reported 3,567 cases of shoplifting at LCBO stores in Mississauga and Brampton. Alarmingly, the Retail Council of Canada states that shoplifting in retail stores has evolved into organized crime, with groups of people stealing large quantities of items at once and thefts becoming more brazen and violent. This alarming trend underscores the urgent need for effective loss-prevention strategies to protect businesses and their employees. 

Shoplifting Tactics in the Retail Industry 

Shoplifters use various tactics to avoid paying for merchandise. Some common methods include: 

• Altering price tags: This occurs when shoplifters switch price tags to pay a lower price at checkout. 
• Manipulating merchandise: This involves tampering with packaging or labelling to hide the true price of an item. 
• Putting goods into different containers: Some shoplifters transfer items into other containers to avoid full payment. 
• Self-checkout tactics: At self-checkouts, some shoplifters pretend to scan items while only scanning a few, taking advantage of fewer security checks. 

What Can a Store Owner or Retail Security Guard Do During Shoplifting? 

According to Canadian Legal FAQs, Canada’s Criminal Code allows anyone to perform what’s known as a “citizen’s arrest.” This means that if someone witnesses an indictable offence, such as shoplifting, they can legally detain the offender. They may also detain someone if they have reasonable grounds to believe the person has committed a crime and may escape before the police arrive. 

However, store owners and security guards may not search a shoplifter’s personal property, even if they see the shoplifter placing items into their bags. The Canadian Charter of Rights and Freedoms applies here. Section 8 states that everyone has the right to be secure against unreasonable search and seizure. 

Surveillance cameras play a crucial role in identifying and deterring shoplifters. Store owners and security personnel can use camera footage to monitor suspicious behaviour in real time. This evidence can assist law enforcement in identifying offenders. Moreover, cameras serve as a visible deterrent, discouraging shoplifting attempts before they occur. 

Advanced surveillance systems like Verkada offer powerful tools to investigate shoplifting and theft in seconds. 

What is a Retailer’s Most Effective Tool Against Shoplifting? 

Most effective tactics retailers can use against shoplifting are:

• Surveillance systems: Effective surveillance helps monitor shoplifters and provides evidence in the event of theft. 

• Security cameras: This includes Placing cameras strategically throughout the store to cover critical areas. 

• Alarms: Use alarms that activate when someone tries to steal items, especially near exits. 

• Security personnel: Hiring trained security officers to patrol the store and watch for suspicious behaviour could decrease shoplifting rates. 

• Employee training refers to offering staff training to educate them on how to remain alert and observant for any signs of shoplifting, stay safe, and avoid confrontations that can involve violence. 

• Electronic article surveillance (EAS): These are anti-shoplifting devices attached to merchandise, which trigger alarms if removed without proper deactivation. 

Investing in comprehensive security solutions is crucial to safeguard your business from the rising threat of retail shoplifting. Cloud Managed Networks, a trusted partner of Verkada, offers cutting-edge surveillance systems to help protect your store and prevent losses. Contact us today for a free assessment. 

Cloud Managed Networks is also preparing a report on shoplifting in Canada. Interested? Stay tuned to participate in our upcoming survey!