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Retail shrinkage is an ongoing challenge for retailers, cutting into profits and disrupting operational efficiency. In 2022, shrinkage in the retail sector reached nearly $100 billion, according to the National Retail Federation (NRF), largely due to theft, administrative errors, and fraud.

Retail stores face constant challenges when it comes to theft prevention. One effective method involves using AM (Acousto-Magnetic) and RF (Radio Frequency) security systems.

The landscape of retail security is continuously evolving as retailers seek advanced solutions to tackle escalating threats, such as organized retail crime and shoplifting. Security tags—a mainstay in loss prevention—have undergone significant transformations to address these challenges effectively.

While external theft like shoplifting is often the focus of theft prevention, it’s not the only source of retail theft. A shoplifter can only work while the store is open, but an employee can steal before the store opens and after it closes.

Not all retail loss comes from theft. In fact, administrative error can cause significant inventory losses for your business. According to the National Retail Federation (NRF), administrative and paperwork errors are responsible for up to 18.8 percent of retail shrink. Unlike shoplifting, organized retail crime (ORC) or employee theft, I see administrative error shrink as completely within the retailer’s control. By following a strict inventory control process and consistently training your employees, you can prevent administrative error from affecting your bottom line.

Keeping costs down is a major concern for every security team. Luckily, with recent technology developments, you don’t need to replace your entire security system to improve it. In fact, integrating smaller technology add-ons is a more effective way to boost your security, while controlling the costs.