Shoplifting and other forms of retail crime are far from a fringe issue. Theft is the largest contributor to retail shrink, the difference between the anticipated and actual inventory, which increased to 1.6% in 2022 in the U.S. — accounting for more than $112 billion in losses. In the UK, retail theft has doubled to 16.7 million incidents a year, up from 8 million, costing retailers £1.8 billion, the first time this figure has risen above the £1 billion mark.
High-profile snatch-and-grab shoplifting events have made headlines in recent years, and various types of organized retail crime (ORC) have become a very real and very costly problem for retailers across the U.S. and around the world.
The good news is that leading investigators are finding success combating retail crime using surveillance strategies and technologies, offering new hope to retailers. Surveillance not only acts as a potential deterrent, but also effectively supports prosecutions and interventions.
A rising tide
Retail crime is not new. In the wake of the pandemic, however, we are seeing an up-tick in both the frequency of theft and the boldness with which retail crime is carried out. At a time when a volatile economy and persistent instability in global financial markets are increasing economic pressures for many, retailers are viewed as a soft target. The trend lines we are seeing are not nation-specific but are happening globally. The decriminalization for smaller thefts may also be contributing to the scale of the problem.
Retailers have responded to significant increases in ORC by increasing prices and margins to cover losses. This issue cannot be ignored, prompting many retailers to turn to investigators for a more sustainable solution.
Law enforcement limitations
In the face of increased retail crime, traditional law enforcement methodologies can be of limited utility. When one large Australian retailer was being hit hard by regular thefts, they found that there was often very little that police could do to address the issue. In the U.K., retailers report a similar challenge, citing a lack of law enforcement response and lack of prosecutions, which has led to a decrease in reporting incidents.
ORC often results in a limited police response or surveillance. Labor force limitations and law enforcement’s understandable focus on violent crime and other high-priority items means that other options are needed to address the issue. That is where private investigators come in.
The surveillance solution
Retailers and their investigators find that surveillance, along with the investigative drive it fosters, is an effective method for combating retail crime.
Private sector surveillance, a combination of technology and in-person investigative professionals (typically trained agents with a law enforcement or military background), shows great promise for mitigating the impact of retail crime. By identifying and following bad actors, investigative professionals can gather valuable information about perpetrators and criminal associates, where stolen goods are stored, and other relevant information they can then pass along to police.
The second piece of the surveillance puzzle is to use any information gathered to conduct additional research about the perpetrators and their associates. Valuable information can be unearthed through open-source intelligence (OSINT): consulting internet searches, examining social media profiles, and looking at their relationships with other people, etc. It is remarkable how often criminals share information openly on social media about illicit activities or stolen goods. OSINT research can reveal hidden connections and even future intentions and give retailers more information they can provide to the police. When retail operators and their investigative partners share information collaboratively, the results can be even more impressive.
Certainly, some of this surveillance and research activity falls under the traditional purview of law enforcement, and some countries are setting up initiatives to gather this kind of intelligence. However, the lack of investigative input limits the efficacy of these efforts. This is one of the reasons why private surveillance holds such promise, supplementing police efforts with valuable input. We are seeing that, in cases where retailers and investigators are proactive about sharing their plans with local law enforcement, building a positive working relationship ahead of time, the results can be remarkable. When police know that the information being provided to them is timely and accurate, they are often very quick to respond and act on intelligence.
Security insights
The role of experienced investigative partners in conducting this kind of retail surveillance is about much more than just labor. It is also about using tools and technology to target resources most effectively. Surveillance is most effective in conjunction with sophisticated analytical work in the intelligence sphere. Leading investigators can leverage proprietary intelligence technology for facial recognition and license plate captures, crunching vast volumes of data to analyze patterns and make connections. This data can be used to create risk profiles and unlock predictive insights — and even identify criminals.
Regulations and best practices
Because specific surveillance regulations differ from country to country, and even from city to city, retailers and their partners should know and fully comply with local and national ordinances.
Digital surveillance comes with its own set of restrictions. Managing information and handling evidence also needs to be done appropriately to avoid compromising any future investigations or prosecutions that may result. This makes partnering with an experienced investigative expert essential for retailers looking to increase their surveillance capabilities and decrease losses from theft. From providing trained and sharp surveillance operatives to ensuring legal and regulatory compliance, experts are a necessary ingredient in the recipe for safer stores and fewer losses.
A valuable investment
As tangible results are generated from surveillance practices, retailers will see fewer losses and will be able to publicize their efforts. This is why surveillance shows a great deal of promise as an effective behavioral deterrent despite the up-front costs associated with this work. The long-term ROI comes not just from offsetting retail losses but driving a broader and more substantial and sustained decrease in retail theft. And that is something everyone can buy into.
