ID Verification Blog

How to Combat Retail Theft Without Compromising Customer Experience

Written by Patronscan | Oct 10, 2024 2:56:13 PM

Picture this: you're in a store, trying to quickly grab a bottle of cold medication to ease your aches and pains, but it’s locked behind a glass case. You press a button and wait for assistance to no avail—leaving you frustrated and questioning if you’ll return to this location. This scenario is all too common as retail theft continues to rise. While businesses increase security to protect their products, customers often bear the brunt of the inconvenience—leading to negative shopping experiences.

Retailers are left with a dilemma: how do you prevent theft without making customers feel like they’re navigating a high-security zone? In this article, you’ll discover how retail security measures are evolving in a way that will help you protect your business while maintaining an enjoyable customer experience. We’ll talk about:

  • The current state of retail theft in North America, Australia, and the UK
  • Current methods of retail theft prevention 
  • A less invasive approach to retail security: IVAC

The Current State of Retail Theft in North America

Retail theft is a growing concern for businesses across North America. In both the U.S. and Canada, financial losses due to retail theft—commonly referred to as shrinkage—are hitting retailers hard, forcing them to find new ways to protect their businesses without sacrificing the customer experience.

In the first half of 2024, retail theft in the U.S. was up 24% according to a July report by the Council on Criminal Justice. Retailers are seeing more bold and coordinated attempts at theft ranging from shoplifting, to employee theft, and organized retail crime (ORC), which together led to stores losing $121.6 billion to retail theft in 2023 alone.

In Canada, the situation is just as stark. According to the Retail Council of Canada, theft accounts for about $5 billion in losses annually, amounting to roughly 1.8% of all retail revenues in the country. As a result, businesses are searching for creative ways to strengthen their retail security and keep criminals at bay. 

The Current State of Retail Theft in the UK & Australia

In the UK, retail theft has reached alarming levels. According to the British Retail Consortium’s 2024 Crime Survey Report, the total cost of retail theft surged to £1.8 billion during the 2022-2023 fiscal year, nearly doubling from the previous year. With over 45,000 theft incidents occurring each day, retailers are facing a crisis that not only affects their bottom line but also leads to a sharp increase in violence and abuse toward retail workers. The BRC survey revealed that there are now 1,300 violent or abusive incidents every day—many involving racial abuse, threats with weapons, and physical assault. Despite increased spending on security, businesses are calling on the UK government to introduce stronger protections for retail staff.

In Australia, the industry is similarly plagued. Across nearly 700,000 retail crime events recorded by Australian retailers in the year ending April 2024, 16% involved threatening or violent behaviour. During the 2024 Retail Crime Symposium, Australian Retailers Association CEO Paul Zahra highlighted that retail crime has become one of the industry’s most pressing issues, with devastating impacts on both businesses and their employees. 

Current Methods of Retail Theft Prevention

Retailers have tested many strategies to deter theft—however, many of these methods come with their own set of challenges and can end up creating a less-than-ideal shopping experience. As CBS News aptly puts it: “As businesses invest in anti-theft technology to deter criminals, consumers express frustration at the many products, from toiletries to snacks, that they now find locked up on store shelves.”

Here are some of the most common retail security measures stores are using today: 

  1. Hiring Security Guards: While placing security guards at store entrances or patrolling the aisles can help deter theft, it’s also costly to hire full-time security, and can make some customers feel like they’re being watched too closely. No one wants to browse in a tense or uncomfortable environment!  

  2. Removing Goods from Shelves: In some cases, retailers have pulled high-theft items like electronics, alcohol, or cosmetics off the shelves or locked them behind cases. This can be frustrating for customers who just want to grab what they need quickly and end up waiting for staff to unlock items. This inconvenience may lead them to shop at different stores or online.

  3. Surveillance Cameras: Many retailers rely on cameras to monitor store activity and catch thieves. While this can help identify theft, it doesn’t always prevent it from happening in the first place. Plus, installing and maintaining these systems can be pricey, and privacy concerns are increasingly growing as technology evolves. 

  4. Electronic Article Surveillance (EAS): These popular systems use tags or labels on products that set off an alarm if they aren’t deactivated before leaving the store. While they can deter casual shoplifting, experienced thieves have found ways to get around them. False alarms can also embarrass customers and create awkward situations. 

While these theft prevention methods can certainly help, and retailers can and should use them where it makes sense, overly strict security measures—like locked doors or guards—can make customers feel uncomfortable, frustrated, or even unwelcome. So, what’s the solution?

A Less Invasive Approach to Retail Security: ID Verification Access Control (IVAC)

Given the challenges that come with traditional theft prevention strategies, retailers are starting to look for more effective, customer-friendly solutions. That’s where Patronscan’s ID Verification Access Control (IVAC) system comes in.

IVAC offers a smarter way to protect high-theft or age-restricted products without creating barriers for customers. It quietly verifies IDs and grants access to age-gated items—like alcohol or tobacco—in a secure, frictionless way, allowing retailers to safeguard their business while keeping the shopping experience smooth.

Here’s how it works: 

  1. ID Verification: Patronscan IVAC scans government-issued IDs, instantly validating authenticity and ensuring compliance with age-restricted laws. This can be done through wall, window, or cooler door mounts, among other physical applications.

  2. Access Control: Once an ID is verified, the system triggers the connected door lock, turnstile, or cooler, allowing secure access without human intervention.

  3. Real-Time Monitoring: You’ll receive instant alerts for flagged patrons, inspectors, or minors, and can monitor live stats and access history through your web admin portal.

Whether you need to manage unmanned entry points or control access to age-restricted areas, IVAC delivers a reliable, frictionless way to enhance security and meet compliance standards while maintaining convenience for your patrons.

How IVAC Is Used for Retail Security and ID Verification

Here are some real-world scenarios demonstrating how IVAC can be applied:

  1. Age-Restricted Product Access
    Scenario: A liquor store implements IVAC to control access to its alcohol cooler. Customers must scan their ID before the door unlocks, verifying they are of legal drinking age. With no need for staff to manually check IDs, lines move faster, and staff can focus on other tasks. 

  2. Unmanned Entry Points for After-Hours Access
    Scenario: A convenience store with a 24/7 self-service kiosk installs IVAC at the entrance. Late-night patrons can scan their ID at the door to verify their age and identity before entering. This ensures that only authorized customers gain access after hours, reducing security risks.

  3. Preventing Theft in High-Risk Areas
    Scenario: A retail location prone to theft installs IVAC to create controlled access points for high-theft areas, like the electronics section. Customers scan their ID at a turnstile before being granted entry. Plus, the store receives real-time alerts if a flagged individual attempts to enter, allowing security to respond proactively.

  4. Compliance in Cannabis Dispensaries
    Scenario: A cannabis dispensary uses IVAC at its entrance for ID verification before allowing customers inside. This guarantees that only individuals of legal age can enter the dispensary and eliminates any chance of staff unintentionally allowing minors into the store.

  5. Membership-Only Retailers
    Scenario: A membership-based wholesale club integrates IVAC with their membership system. When a customer arrives, they scan their ID, which is linked to their membership. This ensures that only active members are granted access, streamlining entry.

  6. Protecting Staff from Conflict

Scenario: Imagine a busy nightclub or age-restricted retail store. The IVAC system eliminates the need for staff to directly reject non-validated (fake) IDs. Instead, the system handles the rejection automatically, removing the staff from potentially uncomfortable or confrontational situations. This not only protects the staff but also helps maintain a positive, unbiased experience for customers.

These are just a few examples of how IVAC can enhance your security, compliance, and customer experience in your retail stores.

Could IVAC Work For Your Business?

From cannabis dispensers and liquor stores to pharmacies and convenience stores—identity verification is changing the way retailers approach security to keep employees and customers safe and satisfied. Curious if it could be a fit for your retail business? Learn more about the solution and request a demo today.