Protecting high-value stock from theft

A selection of handbags on display in a retail store.

Did you know that retail crime costs UK retailers a whopping £4.2 billion per year?¹

Many retailers across the UK are feeling the pinch (literally) and are taking action. Tesco has started locking away alcohol in keypad-opened cabinets that set off an alarm if the door is left open for more than seven seconds², while Iceland has responded by locking up premium cuts of meat in security boxes³. Shoplifting has now become so common that many shop workers wear body cameras as a precaution⁴.

While larger businesses like Tesco and Iceland may have the budget to invest in extensive security measures, for small and medium sized enterprises (SMEs) that’s not always the case.

However, the good news is that there are some practical solutions and cost-effective ways that SMEs can take to help reduce the risk and protect their high value stock.

Step 1 – Do your research

Research is a great place to start when it comes to protecting your stock. Knowing which products are most attractive to thieves can help make it easier to figure out what additional security measures can be put in place to reduce the risk.

Step 2 – Create a “crime map”

Police recommend a process called “crime mapping” where retailers keep a record of all thefts and attempted thefts, including the date and time, the item(s), where it’s located in the store, whether CCTV covers it, and if there was any previous suspicious behaviour⁵. Over time, this information can be helpful for identifying any trends, any particularly vulnerable areas in your store and where to focus your security efforts.

Step 3 - Invest in physical security measures

Once you’ve discovered the products that are most at risk, the next step is to look at making them harder to steal. Introducing simple security measures can act as an effective deterrent and make would-be shoplifters think twice. Depending on your budget, these could include:

Installing CCTV systems to cover key areas in the store

Putting electronic security tags on high-value products and installing anti-theft terminals at the doors

Installing security mirrors to eliminate blind spots

Improving lighting throughout the premises and keeping aisles tidy to avoid visual obstructions

Having any premium items in cabinets or displays that lock, ideally near tills or well-staffed areas

Installing alarm systems

Some of these measures may work better than others depending on your business, but even small changes can make a difference when it comes to protecting your high-value stock.

Step 4 – Know how to spot a shoplifter

There are a few behaviours that could be an indication that someone is planning to shoplift from you, including:

Trying to go unnoticed

Looking nervous

Picking up and putting back the same item of stock

Looking distracted and paying more attention to what’s going on around them

Wearing large coats in warm weather

Carrying big bags that are relatively empty looking

Although these aren’t foolproof, they might be a tip off. Police UK recommends greeting each customer as they enter to deter theft⁶. They note that shoplifters assess how easy it is to steal from a shop in the first three-to-five seconds and speaking to them tells them that you’re paying attention and makes them more likely to leave. For those shoppers who are genuine, it helps create a welcoming environment so it’s a win-win on both fronts.

Don't overlook internal theft

While most employees are honest and hardworking, internal theft can still happen, and it’s something businesses should be aware of.

As employees have access to stockrooms, tills and inventory records, it can be difficult to notice and deal with theft. To help reduce opportunities, there’s a few simple measures you can put in place:

Perform pre-employment checks like background checks

Carry out regular training and make it clear from the employee’s induction that you have a zero-tolerance approach to theft

Limit till access to those who need it

Restrict access to high-value inventory

Implement security checks at the end of the day

Carry out regular stock takes and investigate any discrepancies promptly

Allow employees to anonymously report any concerns

Try to build a positive workplace environment with your team where open communication is encouraged

These steps help reduce opportunities for theft while also creating a transparent and supportive workplace for your employees.

Protect your stock and your business

By getting an understanding of which products are most at risk and investing in practical security measures where possible, you can reduce the likelihood of theft.

While prevention is always the first line of defence and having robust internal controls in place is great, no business can remove risk entirely. Having the right insurance in place for your SME can provide valuable financial protection and reassurance if the unexpected happens.

Let's talk

Find cover that fits your business

At Everywhen, we understand the risks and challenges facing SMEs and how important it is to protect your assets and your bottom line. If you have any questions about insuring your high-value stock, speak to your usual adviser or visit our website.

Diane Caplehorn

Head of Partnerships – Direct

About Diane

Diane is a respected industry leader with over 25 years' experience within the insurance sector. She works across a wide spectrum of insurance products and policy development, delivery and optimisation for health and beauty, professional risks and martial arts clients, including managing partner relationships helping clients in protecting their businesses. Her areas of expertise within the sector include Micro-SME, Medical Charities.

Diane currently works at Everywhen as Head of Product – Direct. Everywhen combines regional care with national reach, deep sector knowledge and strong insurer relationships to deliver tailored solutions across 55+ schemes. We help our clients navigate everyday and emerging risks with confidence, always and at all times.

She previously worked for 14 years at Gallagher’s as Executive Director.

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The information contained in this article is for general information purposes only. It does not constitute legal or other professional advice and cannot be relied upon as such. Should you have any queries, we recommend that you consult the appropriate professional adviser. The links provided in this document are for reference only. Please note that we are not responsible for the content of any linked site.