Police now say that shoplifting or retail theft is the biggest retail crime in Australia. The penalty is pretty minimal. 

Most shoplifting incidents tend to occur in specific retail store areas, typically concentrated in locations where higher-value items or easily concealed products are displayed. 

As a retailer, understanding where shoplifting occurs in your store is crucial for effective loss prevention. By mapping out these hotspots, you can implement targeted retail security measures to reduce shrinkage and protect your bottom line. I have seen it done, and it works. Let's explore how you can create a practical shoplifting map using your POS system and some simple tools.

Getting Started: The Basics of Shoplifting Prevention

To begin your shoplifting prevention journey, you'll need:

1. A recent stocktake in your POS software
2. A large piece of paper or white cardboard
3. A pencil
4. A tape measure or your pacing skills

Creating Your Store Layout for Optimal Security

First, draw a rough sketch of your store layout. This will serve as the foundation for your shoplifting prevention strategy.

Pro tip: Use a pencil to make adjustments quickly. I've found that creating these maps saves time and frustration.

Once you're happy with your layout, it does not need to be perfect. Now, make at least four photocopies. Label two "Quantity" and two "Value". Keep the extras for future use because there is much you can map.

Leveraging Your POS System for Loss Prevention

Now, it's time to dig into your POS system. Look for the variance reports in the stocktake section. These reports will show you the following:

1. Missing quantities
2. Missing values

Your POS system is a powerful tool in your loss-prevention arsenal. It can help you track inventory accurately and identify discrepancies quickly.

Mapping the Data: A Visual Approach to Retail Security

On one of your "Quantity" maps, jot down the figures for missing quantities in each area. Do the same for missing values on a "Value" map.

My experience: Using subtotals from your POS reports can speed up this process significantly.

Analysing the Results: Identifying Shoplifting Hotspots

Once you've filled in your maps, it's time to analyse. Add up the totals for each area and divide them into three groups:

• Blue = Good (low losses)
• Yellow = Moderate to bad
• Red = Terrible (high losses)

Now, colour-code your fresh maps accordingly - one for quantity and one for value. You will now have something that looks like this.

Interpreting Your Shoplifting Map: Key Insights for Retailers

Your completed maps will reveal a lot about your store's vulnerabilities:

1. The quantity map shows how often items are stolen
2. The value map indicates the financial impact of these thefts

Key Areas to Watch

Look for:

• Red areas surrounded by blue: These could be blind spots or areas with highly desirable items
• Red areas behind the counter: What is a real worry if it is behind the counter because then it's staff.

Important note: Remember, the area of loss might not always be where the actual shoplifting occurs. Thieves may move items before concealing them.

Here is one distribution of shoplifting hotspots in a store that I did for a client, categorised by severity.

Taking Action: Implementing Anti-Theft Devices and Strategies

With your shoplifting map in hand, you can now implement targeted anti-theft devices and strategies:

1. Rearrange store layout to eliminate blind spots
2. Increase surveillance in high-risk areas
3. Train staff to be more vigilant in problematic sections
4. Consider additional security measures for high-value, frequently stolen items

Effective Anti-Theft Devices for Small Retailers

1. Security tags and labels
2. Surveillance cameras
3. Convex mirrors
4. Electronic tags
5. Display locks for high-value items

Practical Tips for Shoplifting Prevention

To address the search intent of retail store owners and managers looking for actionable strategies, here are some practical tips:

1. Train your staff: Educate employees to spot suspicious behaviour.

2. Optimise your store layout: Place high-value items in visible areas, use low shelving to improve visibility, and ensure cash registers have a clear view of the store.

3. Use signage: Display signs indicating that shoplifters will be prosecuted. This can act as a deterrent.

4. Implement a customer service strategy: Train staff to greet and engage with customers. Attentive service can discourage potential shoplifters. Shoplifters do not want people near them.

5. Utilise your POS system: Regularly review inventory reports to spot discrepancies early.

6. Use dummy products: Consider displaying empty boxes for high-value items.

7. Install proper lighting: Well-lit stores deter shoplifters and make it easier to spot suspicious activity.

8. Implement a bag check policy: Require customers to leave large bags at the front of the store.

Revolutionising Your Approach to Store Security

Think of your shoplifting map as a retail security GPS. It will guide you to the heart of your loss prevention challenges, helping you protect your inventory and boost your bottom line. But remember, the retail landscape is constantly shifting—so keep mapping and learning. You'll soon have a clearer picture of your store's security landscape. Combine these insights with your POS System and vigilant staff, and you'll see a noticeable dip in your shoplifting incidents.

Give it a try. You will find something.

The retail industry is facing a crisis. Since COVID struck, we have seen shoplifting incidents rising across Australia. This threatens the livelihoods of retail and undermines the safety of our communities. This surge should alert retailers, law enforcement, and industry bodies alike to clarify that urgent action is needed.

The Sobering Reality: Staggering Statistics

Here are some statistics from Victoria’s Crime Statistics Agency in their latest report.

Shoplifting offences had increased in the 12 months to September by 7308, or 27.9 per cent, to 26,229 – the highest on record.

I found some figures for some other states here. 

This is a summary of the stark picture:

• Victoria: Shoplifting offences increased 27.9% in just 12 months, reaching 26,229 incidents—an all-time high.
• Western Australia: Shoplifting is up over 40% compared to last year, significantly higher than pre-pandemic levels in 2019.
• New South Wales: A 36.1% surge in offences totalling 27,015, surpassing figures from previous years.
• Queensland: Shoplifting incidents were consistently higher in 2023 than in any month of the past two decades.
• South Australia: A shocking 31% increase in offences, with 17,572 cases recorded.

I just got some figures from the United Kingdom. 

Their figures mirror this trend, with a 37% jump in offences, the highest since records began in 2003.

The Root of the Problem: More Than Just Cost of Living

In my experience, while the rising living costs may contribute, but the erosion of law enforcement also plays a significant role in fueling this shoplifting epidemic.

Your Bottom Line: Understanding Shrinkage

The critical first step for any retailer is understanding your "shrinkage." This is the gap between the inventory you should have and what you have. Shrinkage is caused by:

• Shoplifting
• Employee theft
• Errors & paperwork mistakes
• Spoilage & damage

Calculating Shrinkage:

1. Full Formula: (Starting Inventory) + (Purchases) - (Sales) * (1-Profit Margin) - (Ending Inventory) = Shrinkage
2. Quick Estimate: (Purchases) - (Sales) * (1-Profit Margin) = Approx. Shrinkage
3. Shoplifting Rule of Thumb: Roughly 1/3 of shrinkage is often due to shoplifting.

Why Calculate?

• Awareness: Forces you to face the actual impact on your business.
• Targets Prevention: Is it specific items? A problem aisle? Numbers guide solutions.
• Measure Improvement: Did your new security measures reduce shrinkage?

Make a planogram for shoplifting.

This tells you the extent of the problem by quantifying current shrinkage levels and identifying problem areas. Drawing problem planograms in the shop of the problem places helps a lot.

A picture is worth a thousand words.

This image could be a planogram of your shop with your problem areas marked.

The information is available from your stocktake figures.

Blue = Good

Yellow = Moderate to bad

Red = Very bad

blank = Zero

See how it visually shows the problem areas.

Detail on how to do it are available here.

YOUR Business Defense Checklist

The fight against shoplifting demands a comprehensive approach:

• Staff are Key: Train employees to spot shoplifters, intervene safely, and understand protocol.
• Technology as Ally: Invest in modern security systems, such as cameras, anti-theft tags, and data analytics to spot patterns.
• Eyes on the Floor: Redesign aisles for visibility and remove blind spots where thieves hide. Do a simple experiment: walk around your shop and imagine you are a shoplifter. Now, where do you strike?
• Draw a map of your shop: Mark the places with the highest shoplifting. Details above.
• Never Stop Learning: Shoplifting tactics evolve; look up YouTube as many shoplifters explain how they do it. 

Calculate Your Shrinkage Now

The fight against shoplifting is an ongoing battle for the soul of our retail sector. By understanding your losses and acting decisively, you protect not only your own business but the well-being of your entire community. Let's stand together to make our stores safer and our businesses stronger and reclaim a sense of security for everyone.

Shoplifting isn't just about the cost of stolen goods. It's a threat to your business. If word gets around that you are an easy mark, you're in big trouble. One of the best methods of dealing with it is having cameras right at the checkout. It's simple but surprisingly powerful and can make everyone think twice. I have spoken about this many times. Plus I can quote from personal experience doing this for years, that this will work.

Why It Works: You're Not Catching Thieves

You might be surprised, but those cameras aren't mainly about catching bad guys after the fact. The trick is psychology! When people know they're on camera, even the most honest of us feel more careful. 

Time Is Money: Proof for when you need it

Of course, sometimes you do need to play detective. Matching up your till records with that camera footage is way easier when you've got timestamps on your videos. This is solid evidence to take to the authorities if something serious goes down. Its actually one of the few pieces of evidence that the authorities do accept.

Let's Be Honest: Nobody Loves It

We all get it; staff and customers might feel a bit iffy about being on camera. But with shoplifting on the rise, protecting your business is the top priority. That's the message to communicate clearly to your team.

Tips for Success

• Clear Signage: Let everyone know cameras are rolling with visible signs. This is often a legal requirement.
• Show a video of the filming: The idea is to let people know you are recording them.
• The Right Tech: If you want, we can supply cameras that sync into your POS system.
• Staff: Unfortunately, staff theft can be a factor alongside customer shoplifting, so let them know. That's why cameras protect everyone's jobs.

To make the most of your till cameras, ensure they are focused on these key elements:

• The Staff Member: Clearly capture who is conducting each transaction.
• The Transaction: Record the exchange of money and goods between the customer and staff member.
• The Till: Video of the opening of the till drawer and the process of cash or card payments being processed. 
• Timestamps: This is crucial for quickly matching camera footage to specific transactions in your POS system, providing clear evidence if needed.

Real-Life Aussie Business Example

"Since adding till cameras, that sneaky feeling of items 'walking away' has gone down loads. My stress levels have gone down too! It was definitely the right move." - Sarah an Owner of a newsagency,  in Adelaide

Small Retailers, Big Protection

Such systems are relatively cheap today. They're an affordable smart move for businesses of all sizes. Think of it less like sneaky surveillance and more like adding an extra layer of honesty to your checkout.

Need help getting set up? We are available to help you find the right camera solution!