Understanding the changing risk and threat priorities in retail

Whether you own a bricks and mortar retail store or manage an online retail activity, your business requires protection from risks. Any business is subject to threats to its success, and retail, regardless of its format, is no exception.

From digital criminals launching cyber attacks, to fires or burst pipes and customer injuries, threats will negatively impact your business if proper protection is not in place.

Consider these common risks to a retail business and what security strategies can be enacted to ensure protection.

Theft

Shoplifting is probably the most common threat posed to traditional retail bricks and mortar stores.

Whether stealing physical items from shelves or off racks, or robbing the cash register, theft is one criminal activity that is not likely to disappear.

The National Retail Federation estimates that shoplifting cost an average of $460 per incident in 2020, while robberies accounted for an average loss of $7500. 

One very effective method for contrasting in-store theft is the installation of surveillance systems for businesses to monitor store inventory. AI and machine learning integrated into video monitoring can detect suspicious behavior.

The video feed will also support law enforcement with proof of criminal acts or attempted criminal activities for investigative and judicial purposes.

Other strategies include attaching sensor-based tags to items that sound an alert if a customer attempts to leave the store without paying and neglects to have the tag removed during the payment process.

Business owners can further increase protection through the installation of a retail store access control system at all entrances, exits, and private zones limiting access to authorized employees or service deliveries.

These systems can be invaluable for warehouse storage of inventory. Control systems monitor access, maintain a log of who enters and exits with times, manage locks to lock and unlock at specific hours, and send alerts when unauthorised attempts of entry take place.

Training employees to recognise telltale signs of shoplifting should be included in security strategies as an ulterior mitigation technique as well.

Digital theft and data breaches

As e-commerce grows, so do cyber crimes. The Federal Trade Commission reported losses of $770 million in 2021 due to social media scams.

Cybercriminals use numerous attack methods for targeting retail businesses including phishing, malware, ransomware, DDoS attacks (Distributed Denial of Service), or unprotected Wi-Fi to PoS attacks targeting the payment systems of bricks and mortar stores.

Encrypted cloud storage of sensitive data like credit card information, updated PoS machines, and MFA for employees accessing data can aid in preventing breaches and the theft of sensitive information. 

Natural disasters, fires, and forced closure

Retail businesses must store their inventory. Disasters whether natural or manmade can threaten the inventory of bricks and mortar stores or e-commerce warehouses.

Structural damage, damage to inventory, and power outages can all contribute to a loss of products and potentially close your shop, translating into a loss of income.

New technology can alert retailers and first responders to flooding and fire risks through sensors, video, and acoustic monitoring all integrated into store or warehouse security systems.

Retail insurance policies together with property insurance can protect retail inventory from financial threats, while business interruption insurance can aid in a case of forced closure and loss of income.

Injuries involving employees or customers

Both inventory warehouses and bricks and mortar stores can unfortunately be a theatre for employees being injured on the job. Workers’ Compensation Insurance is required by law and acts as an important protective tool for both owners and workers. 

While customers may not be at risk for accidents when shopping online, they are at risk in physical stores. Wet or recently waxed floors, as well as various materials on surfaces, can easily cause clients to slip, fall, and injure themselves seriously after which you may be sued.

Apart from attention to safety within your store, liability insurance is an important tool to protect businesses and their owners.

Monitor competitors and maintain a digital presence beyond your retail site

Most retail oriented communication today is no longer limited to retail websites. Successful retailers maintain an advertising presence on social media platforms.

For bricks and mortar retail stores that include an e-commerce sales venue, or strictly online retailers, it’s important to monitor competitors’ products and prices.

For bricks and mortar stores that do not sell online, now may be the time to begin, especially if the competition already has established a digital presence.