A lack of security can put shoppers off high streets but retailers are increasingly adopting a range of solutions to keep stores safe and ensure customers keep coming back, says Rebecca Thomson.
Retail crime is a costly nightmare. Not only must retailers invest in security and protect their property, but if a problem crops up they must rush to convince shoppers not to desert the high street.
Antisocial behaviour, vandalism and theft can create an intimidating atmosphere for shoppers. Once a particular problem takes hold, how can retailers get rid of it and entice consumers back?
There are increasing numbers of ways to tackle the issue, but retailers recognise the problem is unlikely to ever go away completely. Keeping stores safe is a long-term job, and as Sainsbury’s head of profit protection Terry Poole says: “Security remains a constant challenge.”
It doesn’t help that retail crime – theft especially – appears to be increasing.
A survey commissioned by retail security consultancy Checkpoint Systems found that shoplifting, fraud, organised crime and administrative errors cost UK retailers £4.9bn in 2011, up 6.2% on the year before.
The British Retail Consortium, meanwhile, has found in its retail crime survey that the overall cost of retail crime in the UK in 2009/10 was £1.1bn. Theft is the biggest proportion of this – the BRC estimates up to two million incidents of retail theft happen every year, although believes only about 12% of incidents are actually reported.
Whichever figures are used, it’s clear that security remains an issue for retailers.
When times are tough
Checkpoint Systems sales and marketing director Russell Holland says the recession is partly to blame for the continued prevalence of retail theft. The recessionary part of the problem is driven by a perceived need to maintain lifestyles, but there are wider trends at work as well.
“More retailers are moving to having open merchandise, because they want good shopping experiences for customers and for them to have the ability to interact with products before they buy,” Howard says. But if products are out on shelves, not made inaccessible, they are easier to steal.
Theft driven by recession means it’s no longer just designer clothes that go missing. Skincare products, razor blades, DIY products and even joints of meat are targets, meaning the issue is now a problem for a wider range of retailers. Any goods that can be successfully sold on become attractive to criminals, not just aspirational products.
There are new technologies being released all the time to help tackle security, but the best methods for solving a problem are often the oldest. “Some of the most progressive retailers put a lot more emphasis on staff training,” says Howard.
“They need to know what to look for in shoplifters, and in colleague behaviour to watch for staff theft.” There also needs to be a clear process for reporting shoplifting – too many staff think of it as just a part of the job that has to be put up with, he adds.
The best way to deal with the problem is prevention – catching people and retrieving goods is an inferior option to putting off potential thieves in the first place. Because many retailers prefer open merchandising, so it’s important to use security tags, and make sure there is material around products making it clear that they are protected.
It also helps to make sure everyone who enters a store knows they have been noticed. It is not just good customer service to greet people, Howard says – acknowledging them means they know they are on someone’s radar and not invisible.
The right reputation
There are other hi-tech options – some retailers, for instance, link their CCTV to their security alarms at the door, so a picture is taken when they go off. But with staff training proving so effective, it’s not just sophisticated systems that will help solve a problem.
Many of the problems caused for retailers dealing with security issues are reputational – once an area or chain fails to contain a problem, the trust customers have in your ability to keep places safe can plummet. But this can work the other way too. Liverpool city centre was highlighted as one area that dealt well with the recent riots that hit several cities across England, coming across as a city centre that is in control and able to cope with any nasty blips.
Its response was fast and effective, and showed the benefits of having a well thought through major incident response plan.
“They had a fantastic major incident planning scheme,” says Association of Town Centre Management chief executive Martin Blackwell. “It kicked into action as soon as there was a threat of public disorder and it worked brilliantly.”
It is often this perception of town centres not being safe that needs tackling, Blackwell says. The Light Night programme aims to do this, with town centres across the UK choosing one night a year to showcase themselves and demonstrate to local residents that the threats they expect are often not there. “It’s thought that town centres at night are not safe, but it’s a perception and it’s not the case,” Blackwell says.
An inside problem
But back inside the store, employee theft accounted for 5.4% of all retail crime by value in 2010, according to the BRC survey. Recorded offences increasing 68% compared with the previous year’s results. This high figure masks some good news though – the BRC says more retailers are investing in data mining software and other detection tools, meaning more offences are being detected.
Staff can be on the receiving end as well – more than 18,000 reportedly suffered verbal or physical abuse in 2010, and it’s a problem that is not going away. One of the biggest challenges for retailers in the coming year will be to increase the profile of retail crime, especially violence against staff, and make sure staff are aware it’s not just “part of the job”, the BRC says in its report.
The longer-term answer may be to develop the emphasis on working in partnership. Communication between retailers and local police forces isn’t always perfect, but there are some good examples to the contrary – supermarkets, especially, are keen on developing ties with local officers (see box).
But keeping stores safe is a long-term issue, and retailers will need a range of answers to what will always be a difficult question.
- Asda sets aside budget for a police community support officer or police constable to patrol stores and the immediate vicinity. It’s expensive, but it’s an effective way of reassuring shoppers, deterring shoplifters and ensuring high visibility of the store’s security. Asda also has some small police offices near the front door of stores
- Sainsbury’s is working with the National Policing Improvement Agency to train its own staff as special constabulary officers. The grocer contributes towards the cost of training, and allows staff one day a month to patrol as officers in the local community. Although the scheme does cost money and relies on a steady stream of volunteers, Sainsbury’s benefits from having constant access to trained police officers in the workplace
- The Co-operative Group is working with various police forces to educate store managers and staff in how to manage the effects of crime and how to report crime. The aim is to engage staff and police officers, communicate different perspectives more effectively and improve relationships
- Greater Manchester Police launched a retail violence initiative in response to a recent spate of incidents, sending environmental health officers round to make sure retailers were doing enough to prevent staff being attacked. They gave advice on removing cash from tills regularly, avoiding staff working on their own, and security equipment upgrades
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