Retail shrinkage is loss of inventory that occurs as a result of shoplifting, employee theft, admin error, return fraud, and damage in transit.So what retail loss prevention techniques and solutions can you put into place to reduce or minimise the amount of retail shrinkage.

Different Types Of Retail Shrinkage & How To Combat Them

With regards to the 5 above discussed types of retail shrinkage, all but damage in transit and administrative error can be combated with retail security and loss prevention strategies. So how can you fight against shoplifting, employee theft, and return fraud using store security systems?


This crime comes in many different forms, it includes both calculated frequent theft and opportunistic attacks on your profits that strike only once. As such, you need to consider both experienced criminals and opportunistic theft when implementing security measures.

There are many ways that you can combat shoplifting, for example your store layout and organisation can be a very powerful tool at your disposal. If your store is not optimised and shelves are filled with disorganised merchandise, it's much easier for shoplifters to steal undetected. Additionally another way you can combat shoplifting is by encouraging your staff to greet and interact with customers; offering them assistance. Not only does this provide great customer service to your paying customers, but those with shoplifting intentions may be deterred due to the knowledge that staff are always watching.

However with regards to security solutions, you could use security tags with visible pedestals, sending a clear message to would-be-shoplifters that your products are protected. “In England and Wales there were over 374 thousand shoplifting offences recorded by the police in 2018/19." [source Statista] As such, it's essential that you take all reasonable steps in order to reduce the impact shoplifting has on your business; however visible security solutions such as pedestals also have another advantage. In addition to acting as a deterrent against those attempting to steal from your retail establishment, it could also deter other forms of anti-social behaviour, such as product vandalism.

2.Employee Theft

In an ideal world you would never have to consider your employees as a potential threat to your business, however you need to be vigilant for those who will take advantage of your business. There are many different types of employee theft, including merchandise theft, fake returns, fraudulent gift cards, skimming cash, and improper use of the employee discount.

Whilst there are lots of different methods that businesses can use in an attempt to tackle employee theft, such as monitoring or POS software, it's important that you don't forget about the value of security tags. After all, EAS security tags and other similar security tagging and labelling solutions will ensure that items cannot be simply 'pocketed' and will need to have the label or tag removed.

3.Return Fraud

This form of retail shrinkage is very difficult to spot, after all the evidence usually only becomes apparent later in the year. Return fraud includes things such as returning stolen merchandise, returning products which have been purchased with counterfeit money, and much more. Return fraud is harder to tackle that many other types of retail shrinkage because of the numerous ways it can occur, however there are policies that you can use to help minimise its impact on your business.

For example, you can set up a simple returns policy that requires a receipt for cash returns, and ask for ID when processing returns. This way, you can keep an eye out for fraudulent receipts and frequent or suspicious return customers.

How Can Tagmax Help YourBusiness? What Solutions Can We Provide?

Here at Tagmax, we specialise in anti-theft and retail loss prevention services, including a selection of different security tags and pedestal systems. We are able to offer three different ranges of tag security which havea minimal false alarm and a high pick rate, including XpondrTM 66Khz, AM - 58Khz and RF - 8.2 Mhz. All three ofthese tagging options can be used to protect both hard and soft retail products, including clothing, DVDs, toiletries, and more.

Additionally, if you're concerned about the threat of de-taggers, we recommend scorpion tagging systems, one of which is a pin security tag; if the tag is separated from the pin, the device will immediately sound an alarm, allowing employees and security staff to respond in an appropriate manner.

Stop Profits Walking Out The Door; Talk To Tagmax

Here at Tagmax, we aim to provide national retail groups with unique, well made security products that prevent theft and reduce shrinkage within their store environment. Our team of retail security specialists. Oursecurity and loss-prevention team are here to ensure that your business can protect its employees, customers, property and profits. So if you would like advice or have any questions regarding the security solutions that are available, our team of experts will be happy to help you identify the product that best meets your business' needs.

Simply put, without our bespoke retail security, there is no doubt that these retailers would be extremely vulnerable to theft and anti-social behaviour across the country. So, for more information, or to take advantage of our loss-reducing security solutions, don't hesitate to get in touch with our professional team of security specialists on 0800 044 3160.

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If you would like to book a consultation, or if you have any questions or queries, please contact us by calling 0800 044 3160, or use the form below.
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TAGMAX (UK) Limited

London Office 3rd Floor London EC2A 4NE United Kingdom

0800 044 3160
07770 870 875