{"id":17247,"date":"2025-08-12T11:43:56","date_gmt":"2025-08-12T11:43:56","guid":{"rendered":"https:\/\/staging.chubbfs.com\/uk-en\/?p=17247"},"modified":"2025-08-12T11:43:56","modified_gmt":"2025-08-12T11:43:56","slug":"protecting-retail-profits-how-smarter-security-helps-retailers-fight-shrinkage-and-safeguard-margins","status":"publish","type":"post","link":"https:\/\/staging.chubbfs.com\/uk-en\/protecting-retail-profits-how-smarter-security-helps-retailers-fight-shrinkage-and-safeguard-margins\/","title":{"rendered":"Protecting Retail Profits: How Smarter Security Helps Retailers Fight Shrinkage and Safeguard Margins"},"content":{"rendered":"
In a competitive and cost-sensitive sector like retail, every pound matters. With tight margins and increasing operating costs, retail shrinkage \u2014 the loss of inventory due to theft, fraud or error \u2014 can have a devastating impact on profitability. And it\u2019s not just about what happens on the shop floor. From internal theft and vendor fraud to stock mismanagement and checkout discrepancies, the threats to profit are complex and evolving.<\/span><\/p>\n In this blog, Chris Mursell, retail security expert at Chubb Fire & Security, explores how a smarter, more proactive approach to security can help retailers protect their profits, reduce shrinkage and create a safer environment for staff and customers.<\/span><\/p>\n Understanding Shrinkage in Modern Retail<\/span><\/b>\u00a0<\/span><\/p>\n When most people think of retail shrinkage, they picture shoplifters slipping items into bags or bypassing self-checkouts. But in truth, external theft is only part of the story \u2014 and sometimes not even the biggest part.<\/span><\/p>\n According to industry data, nearly half of all retail shrinkage is linked to internal threats, including employee theft, administrative errors and vendor fraud. A poorly entered invoice, stockroom miscount, or collusion with a supplier can be just as damaging to your bottom line as a stolen item on the shop floor.<\/span>\u00a0<\/span><\/p>\n What\u2019s more, as retail operations become more complex with multi-channel fulfilment, self-checkout areas and increased reliance on temporary or seasonal staff; the opportunities for both intentional and accidental loss increase. With retail profit margins under pressure and operational complexity on the rise, it\u2019s never been more important for retailers to take a comprehensive approach to loss prevention \u2014 one that looks beyond the tills and into every corner of the operation.<\/span>\u00a0<\/span><\/p>\n AI: The Game-Changer in Retail Security<\/span><\/b>\u00a0<\/span><\/p>\n Innovations in artificial intelligence are transforming retail operations \u2014 not just in customer experience and stock control, but in crime prevention too. Chubb\u2019s AI-enabled CCTV systems use behavioural analytics to identify suspicious activity in real time, giving security staff an early warning of potential theft before it happens.<\/span><\/p>\n This kind of proactive monitoring is particularly effective in high-risk areas like self-checkout areas, which have seen a dramatic surge in misuse. A <\/span>2024 feature in <\/span>The Grocer<\/span><\/i><\/a>1<\/span> reported that major retailers are turning to computer vision AI to spot the subtle behaviours that often precede shoplifting \u2014 from item concealment and scan avoidance to repeated bagging without scanning, or even unusual patterns of customer hesitation or loitering.<\/span><\/p>\n