It’s hard to stress just how much LP has changed in the last decade—or just the last five years. Retail itself has evolved fundamentally, and the role of LP, consequently, has gone through a sort of rebirth.
“Asset protection is seeing a bit of a renaissance,” said one VP of LP who chose to remain anonymous. “With the focus on ORC, life safety concerns, homelessness, transients, etc., AP is being counted on to come up with innovative and cost-effective solutions to keep our associates and customers safe.”
With so many changes and different factors affecting the industry at this moment in time, LPM set out on an ambitious task about six months ago. We spoke with LP organization leaders along with the VPs of LP at a wide range of retailers—from home improvement to grocery to sporting goods to fine jewelry to specialty and everything in between—and asked them a long list of questions to gauge what exactly the state of LP is as we start 2025.
This was not a scientific survey but rather a gathering of anecdotal evidence of what it’s like working in LP right now from those in the thick of it. Many chose to remain anonymous, which allowed them to be completely candid when answering questions such as “How does the C-suite perceive LP?” “What are the most promising or overpromised technologies being promoted to LP?” “Has funding increased or decreased for LP?” and more.
Our hope is that this serves as a snapshot of LP at this moment in time and, more than anything, that it starts conversations—with colleagues, different retailers, law enforcement, and government officials. You’ll notice there’s truly no definitive answer to any question, leaving plenty of room for discussion and disagreement.
Perception from the C-Suite
The relationship between LP and the C-suite hasn’t always been an easy one. However, with the rise of retail crime making mainstream news headlines and becoming a topic of earnings calls, retail executives are relying heavily on LP to right the ship.
“I believe our C-suite sees more value in AP than ever before,” said one anonymous grocery retailer. “They are coming to us to identify or create solutions to some very difficult issues. Ensuring the safety of team members and customers and providing a safe place to work and shop has remained a top priority across the industry but has also required a bit of outside-the-box thinking in recent times.”
Todd Fernandez, director of LP and safety at Stater Bros. Markets, agrees: “We have a voice at the table in all aspects of operations. Experienced LP professionals can impact the bottom line in many different areas.”
This sentiment was echoed in other retail verticals beyond grocery.
“Within our organization’s C-suite, there is a clear understanding of the crucial role of loss prevention in safeguarding the company’s employees, physical assets, and brand,” said Tiffany VP of Global Protection Services Hank Siemers, CFI.
Mark Stinde MBA, LPC, who has served as VP of AP at Casey’s since December 2022, said his “total loss” methodology has helped strengthen the relationship between LP and the C-suite.
“The way we approach the business is very holistic, connecting the different ways the company might suffer loss in our ‘total loss’ approach,” he explained. “This approach ultimately supports improved margins for the company. As a result, the executive team sees the value in our function, and we are viewed as an essential piece of the overall business.”
One anonymous retailer said that the C-suite’s perception really depends on the current state of their company.
“In many organizations, the C-suite recognizes LP as essential, especially with the rise of ORC and retail violence impacting the bottom line,” they said. “However, the level of prioritization can vary depending on the company’s current challenges and goals. Companies facing significant shrinkage or reputational risks are likely to view LP as integral to the overall strategy.”
An anonymous home improvement retailer said the C-suite is starting to count on AP for more than traditional LP.
“Overall, I would agree that the C-suite values LP’s role and its purpose in preventing loss,” added National Retail Federation (NRF) VP of AP and Retail Operations David Johnston. “To what extent depends on the individual department, organization, and, most importantly, the alignment of expectations and measuring value between the C-suite and LP. There are several examples of LP leaders building strong, strategic relationships with C-suite leaders and securing a seat at the table. There are just as many examples of situations where LP has been blindsided and impacted due to an assumed perspective of their value. The questions to always consider are ‘Does your LP function measure value the same way as your C-suite?’ and ‘How can you continue to increase the value of LP in your organization?’”
Funding
The amount of funding LP receives is often directly tied to the importance the C-suite places on its role. The majority of the retailers we spoke with said that funding for LP is increasing within their organization. However, that funding doesn’t necessarily mean more manpower.
“It’s frustrating,” said an anonymous grocery retailer. “From a human capital standpoint, I think funding is remaining the same. But I think we’re getting more technological investments passed through, and that’s a higher priority for companies than in the past. So we’re not getting more people, but we’re getting more resources and tools from the technology standpoint.”
Siemers agreed that overall funding remains steady while investments are being made in different elements of LP: “Funding for LP appears to be maintaining its current level across most retail companies, with a notable emphasis on investments in cutting-edge technologies and comprehensive training initiatives.”
Fernandez said funding for LP is “definitely increasing” at Stater Bros.
“Investments in store design, remodels, and technology such as video and AI are leading the way,” he said. “We are in the process of reducing our entry/exit designs to one exit instead of two, which will make it much easier to control our losses. Technology will continue to be a force multiplier for our industry, but it will come at a steep investment.”
An anonymous sporting goods retailer said that funding has increased, but they don’t expect that to last.
“Over the past few years, funding for LP appears to be slightly increasing in companies where shrinkage and retail crime are pressing concerns,” they said. “In 2025, I expect funding to plateau as most companies have developed a strategy to deal with this new level of shrinkage and retail crime.”
Khristopher Hamlin, VP of AP at the Retail Industry Leaders Association (RILA), stressed that while funding for LP generally remains steady at most retail companies, it comes with significant pressure.
“Our members are increasingly challenged to demonstrate the return on investment for the dollars spent on LP initiatives,” he said. “Retailers recognize the importance of LP, but with economic uncertainties, tighter budgets, and competing priorities, every dollar spent is scrutinized. LP teams are often asked to justify their budgets by clearly showing the value they bring to the organization, not just in terms of reducing shrink but also in protecting brand reputation, ensuring employee safety, and enhancing the overall customer experience.”
LP Headcount
The NRF’s Impact of Retail Theft & Violence 2024 report, released in December, shows that 64 percent of respondents have created or added positions or roles within their LP teams in response to increases in theft, violence, or loss since 2019. In addition, 39 percent increased internal payroll budgets from 2022 to 2023.
“Our team is still growing as we continue to find ways to add value and solve difficult problems across the entire enterprise,” said an anonymous grocery retailer.
Another grocer said their team is also growing, adding non-traditional roles like data scientists and finance and technology teams, in addition to growing field and ORC teams. Talking to other retailers, this seems to be a trend.
“An increase in department ORC teams has been growing in various companies,” said an anonymous specialty retailer. “Data analyst and forensic teams have continued to grow based on the nature of the continuous flow of never-ending data to identify trends, patterns, and focused solutions internally and externally.”
“[The number of LP personnel] is remaining close to the same, and some positions are being reassessed to adapt to changing demands,” said Stater Bros.’ Fernandez. “We are adding LP analyst positions to assist with gathering case data and providing that data to our investigators.”
Hank Siemers said he is seeing a growing demand for expertise in cybersecurity and data analytics, leading to an increase in LP positions and the creation of new roles tailored to technological integrations.
Hamlin has also seen an increase in investigation-level roles in LP departments, but a decline in leadership-level roles.
“With organizations acquiring other companies and retailers going out of business, there’s probably fewer total LP positions today than there were a couple years ago,” Stinde shared.
One anonymous retailer believes the number of LP positions has remained the same or decreased, while another said that, though the number has increased in recent years, they expect that growth to plateau in 2025.
Finding Quality Talent
So, with many organizations increasing the number of LP personnel on staff, how difficult is it to find quality talent right now?
“Hiring and promoting top talent has always been a priority for me,” said one grocery retailer. “With that said, we spend a great deal of time making sure we hire the best AP professionals possible and that is not always easy. It seems that fewer people are willing to leave a role they are confident and comfortable in. This may be because they perceive change as risky or uncertain at this time. I also believe that many retailers are doing a better job of keeping their team members engaged, making them less likely to leave their current company and role.”
A home improvement retailer agreed that finding quality talent has been difficult, as did a sporting goods retailer, saying the demand for candidates with both traditional LP skills and familiarity with emerging technologies narrows the talent pool.
One grocery retailer said that finding qualified talent to fill leadership positions has been particularly challenging, while they haven’t had much trouble hiring talented investigators.
Todd Fernandez shared that employees’ attitudes toward work has made hiring challenging.
“Entry-level positions have been a little tough to fill,” he said. “The work ethic of many applicants has changed. Also, the level of loyalty to their employers is the worst I’ve ever seen.”
An anonymous specialty retailer shared a different struggle.
“There is a plethora of those interested in LP and the amount of talent is exponential,” they said. “I have not found it difficult to find quality applicants; however, in some cases, based on the residual of COVID-19, the ability to relocate and review options outside of remote work is not realistic. Based on the company and role there is and always will be a level of travel, peer engagement, and live collaboration, so the ability to review continued hybrid options is key. The talent pool is filled with great candidates and continues to grow. However, while growing, the experience has become more refined. Based on the environment of identified needs within companies and the external environment encompassing safety, theft, and fraud, the talent needs to ensure they possess a level of tenure, experience, and cross-functional responsibilities warranted across the industry.”
More advanced training for LP professionals has certainly helped improve the quality of candidates.
“The advent of college curriculum focused on private security has expanded the talent pool greatly,” Siemers said. “Also, law enforcement—a staple in hiring for a long time—has been providing more well-rounded, business-oriented candidates.”
Hamlin said that, with many companies restructuring or realigning, there seems to be a long list of talented LP practitioners ready to work.
“The last couple years, we’ve made some significant investments in our team, and I’m excited about the talent we’ve brought on,” shared Stinde. “And I think right now, especially in light of the fact that there’s been some downsizing and companies that have gone out of business, there’s a lot of really good quality LP talent out there today.”
“It’s never difficult to find good LP talent if you are actively looking and including those currently employed in your search,” said one anonymous source. “Store operations personnel are also a great source of AP talent.”
Promising Technologies
So much progress has been made in LP technologies in recent years, it would be easy to dedicate a whole series of articles just to that topic.
According to the NRF’s Impact of Retail Theft & Violence report, 61 percent of respondents said they have increased their budgets in support of technology software and solutions compared to the year before, with 52 percent increasing capital allocation for LP equipment.
And as technology continues to improve in capabilities at a rapid rate, it promises to continue transforming the way LP functions on a fundamental level.
RFID is one such technology.
“Several retailers have taken a strategic or focused entry into RFID, which led to impactful results and the ability to expand its use through its success,” said the NRF’s Johnston, who recently attended Sensormatic’s RFID Summit which included a tour of Auburn University’s RFID Lab. “I believe RFID has many opportunities across the retail ecosystem, and LP teams need to be engaged early in those strategic conversations.”
“RFID is undervalued and underused,” agreed RILA’s Hamlin.
Many retailers also pointed to AI’s recent impact on the industry—and the potential that is still untapped.
“AI has a place here in our business, not only from the typical AI video use cases,” said Mark Stinde. “I think generative AI could be a resource to help us as we solve problems. I know AI is the big buzzword right now, but I think there is some real value that has yet to be unpacked. We ought to continue to look at and find ways to take advantage of this great new technology that’s out there.”
“I’m also excited to see AI work with video analytics,” Fernandez shared. “For example, an amazing and efficient tool would be the ability to search video archives of thousands of cameras using a text-to-search feature. Show me all the red trucks that drove by our stores, or all of the people wearing a black baseball hat who visited our stores in the past sixty days. That’s a very powerful use of technology that is ready to hit the industry very soon.”
The possibilities with data seem truly limitless, other retailers shared.
“I think data science will undergo another transformation, drastically improving our abilities to identify profit‑reducing activities as more information about the complete product life cycle becomes readily available for analysis—acquisition of raw materials, supply chain, all the way through returns management and reverse logistics and product liquidation,” said a sporting goods retailer.
Though still in its early stages of usefulness, face matching also holds promise.
“Face matching is the number one tool in the loss prevention industry today—nothing else compares to the value and ROI of this tool,” shared an anonymous grocer. “Face matching can be used to combat ORC, boosters, and shoplifters, but it’s extremely effective as an investigative tool for large cases with multiple suspects in multiple locations. It can be used to enhance employee safety and minimize workplace violence.”
“Full facial recognition faces legal and ethical challenges, limiting their effectiveness,” countered a sporting goods retailer.
“Certain technologies such as facial recognition may be overpromised,” Siemers agreed.
Other solutions mentioned as exciting by the retailers we spoke with include license plate recognition, mobile surveillance, edge computing, biometrics, GPS trackers, body-worn cameras, and even drones.
“You’ve got to fit strategy to the situation,” Stinde said. “As I’ve come into the business here at Casey’s, there are things that I think are very valuable that everyone’s investing in, and yet I’ve looked, and it doesn’t make sense for my business. So as an LP practitioner, it’s important that even though something is shiny and new and there’s lots of folks using it, making sure it fits your business is most important.”
Relationships with Law Enforcement
Positive relationships between LP and law enforcement can make a massive difference in reducing retail crime. Thankfully, our respondents said that those relationships have continued to grow in recent years.
“Overall, LP’s relationships with law enforcement are generally improving,” said RILA’s Khris Hamlin. “In many cases, these relationships are evolving positively, as both law enforcement agencies and retail organizations recognize the mutual benefits of collaboration in combating ORC and ensuring safety in retail environments.”
Hamlin said that law enforcement professionals are increasingly aware of the impact ORC has on the economy and public safety, and, as a result, many have stepped up their efforts to collaborate with LP teams, providing support for investigations, sharing intelligence, and working together on joint operations to target sophisticated crime rings.
“This partnership approach is helping to break down silos and foster better communication and coordination,” Hamlin continued. “At RILA, we’ve been proactive in building and enhancing these critical relationships between our members and law enforcement.”
“I think law enforcement relationships have strengthened over the last couple of years,” Stinde agreed. “A lot of this comes with making sure we’re educating each other on the opportunities that exist in retail and law enforcement professionals sharing with us what’s challenging for them. And there’s been a good bit of work done there with our industry partners like RILA and the NRF and others to make sure we are looking together to find solutions and not working independent of each other.”
The NRF’s Johnston said that law enforcement and retailers have a long history of strong relationships and partnerships, and in the past few years, those relationships have grown even stronger.
“Engagement with Organized Retail Crime Alliances (ORCAs), investigative support, and partnerships against ORC have shown the power of public and private partnerships,” he elaborated. “We have also seen some challenges, especially with the lack of law enforcement resources in some areas of the country. We need to continue to understand these challenges, work through these issues, and keep our relationships with law enforcement strong—they are our industry’s biggest partners against theft and violence.”
An anonymous sporting goods retailer said that relationships with law enforcement are generally stable and in a good place but vary by region.
“Collaboration through initiatives like RILA’s Vibrant Communities, Challenge Seattle, or ORC taskforces has improved partnerships in some areas, but in others, strained resources or differing priorities can hinder progress,” they said. “Improving these relationships remains a critical need.”
Fernandez also said that relationships are improving, stressing that retailers must foster these connections.
“Law enforcement agencies are starting to see the value of retail partnerships,” he said. “For us in California, we partner with forty-seven different law enforcement agencies in our marketplace, and we invest a lot of time and resources assisting our law enforcement partners to help them strengthen their cases. We offer a streamlined evidence process with minimal red tape, and we make a strong effort to assist them as quickly as possible. When we are quick to assist them, they reciprocate that service for us when we need their help.”
A huge hindrance to these efforts, of course, is dwindling police budgets in many areas of the country.
“I think relationships are growing from where they were a year or two years ago, but I think we’re still behind where we were pre-COVID-19,” said an anonymous grocery retailer. “It’s not that there’s sour relationships; I think the departments are understaffed, overworked, and police departments just can’t make theft a priority.”
“There is a specific onus on the business more than ever before, however, based on varying agencies, we are seeing a shift in caseloads, arrests, charging, and convictions,” said a specialty retailer. “The pendulum has begun to swing back toward a sense of warranted support, but the work is truly more heavily weighted on the retailers. The caseload and headcount in departments have really fluxed over the years, so it continues to be a challenge, including priority calling and response. Societal pressures and cultural norms have shifted from what we can now expect and turn the onus to controllables. Attending ORCAs and local meetings, and embracing the individual departments who are supportive, has been invaluable when it comes to strengthening the partnerships. It will continue to be a work in progress and any amount of control within that partnership should be handled with all partners in mind to succeed in the long run.”
Relationships with Lawmakers
No matter how good your relationships with law enforcement are, if the laws in place go easy on retail criminals, there’s not much police or district attorneys can do. Because of this, there has been a strong push to help lawmakers understand the issue of retail crime and the ways it impacts society.
“Certainly [relationships with lawmakers have been improving], I think because of some of the work specifically that RILA has done with the National District Attorneys Association, bringing the district attorneys and local officials together to educate DAs and politicians on what the issues are,” Mark Stinde said. “We had an opportunity recently to meet with DAs in Missouri, and it was enlightening on both sides to understand what we are working on, and beneficial for our DAs to understand some of the challenges we face in our stores day‑to‑day. So, I think there’s some really good work being done on that front right now.”
Johnston also said these relationships are improving thanks to the many retailers who have been great advocates and educators at the local, state, and federal levels.
“Retailers continue to invite community leaders into their stores to listen to employees share their daily issues with theft and violence,” Johnston said. “Retail LP and policy leaders continue to discuss the need for federal legislation and support with Congress. LP professionals attend local and state meetings to educate communities on the true impact of retail theft and loss. All these efforts have aided in a better understanding, and we have seen the positive impact through more states and jurisdictions creating or altering laws, establishing task forces, and pushing for increased prosecution.”
One such state that has seen pressure to stop retail crime in the past year is California.
“Finally, the rise of ORC and events in the news over the past few years have really brought attention to the problems we have experienced for a long time,” Fernandez said. “In California, the smash‑and-grab activity across the state seems to have pushed most people to their limits and they are now asking for reform. Prop. 36 is our chance to make a change to Prop. 47 and hold criminal behavior accountable again. The DA’s office led the way on Prop. 36, and it’s great to see their involvement at this level.”
This isn’t the case across the nation, though.
“There’s a growing awareness, particularly around ORC and its economic impact,” said an anonymous sporting goods retailer. “However, translating this understanding into meaningful legislation and consistent enforcement varies widely across jurisdictions.”
“Some [politicians] are becoming more aware, but many continue to fail,” said one grocer. “When I see headlines that state a shoplifter was arrested more than 100 times and was still released, I can’t help but think the DA can’t connect the dots. These crimes affect everyone in some way or another, and they are also often violent. Therefore, I don’t believe these DAs are appropriately representing our industry or the communities they serve.”
Organized Retail Crime
While organized retail crime has always existed on some level, it has become the ultimate buzzword in the LP industry and beyond over the past few years. But is it really as large of a problem as we’ve been led to believe?
“ORC continues to grow, not only impacting retail stores but supply chains and digital and online environments,” Johnston said. “The frequency of thefts, selection of merchandise, and profile of the repeat offender are indicators that ORC continues to plague retailers across all segments. Apprehensions over the past year have shown the layers and scale of ORC, ranging from local individuals or small groups to transnational polycriminals. We are only at the tip of the iceberg—above the water line—with regards to ORC. There is much more to be done to start decreasing its impact on our economy and nation.”
In the NRF’s Impact of Retail Theft & Violence 2024 report, a whopping 76 percent of respondents said that ORC shoplifting is more of a concern now than in the previous year, outranking every other concern they were asked about in the survey.
“Our priority at NRF is to seek passage of national legislation against ORC,” Johnston explained. “We continue to see how ORC groups cross jurisdictions to thwart apprehension or ship stolen goods across state lines and even beyond US borders. ORC is a national issue, and a federal law will bring federal resources and support to assist local and state agencies in their efforts to disrupt these organized groups.”
One home improvement retailer said that it’s clear ORC is growing based on their internal data—case closure rates and case backlogs are increasing at double-digit rates.
“ORC is growing, driven by factors such as the ease of online resale and economic pressures,” said a sporting goods retailer. “Sophisticated networks and the anonymity of digital marketplaces amplify this issue. The biggest single cause of loss industry‑wide is external theft, particularly ORC.”
Not all retailers are created equal when it comes to the impact of ORC, though.
“I think ORC has been a problem for a long time—I don’t know that I would say it’s growing, but it still remains a significant issue,” Stinde said. “It’s probably more of an issue depending on what type of retail sector you’re in, but I don’t think it’s the only problem. I think the problem for retailers is that there is a lot of coverage on the issue; there’s a lot of volume related to ORC, because often what comes with it is violence. So, we need to give it the time, effort, and focus that we are as an industry, but we also need to make sure we keep a balanced focus in our business to attack some of the other issues that are creating shrink and loss.”
“If you’re comparing [ORC levels] to five years ago, they’re probably growing,” said an anonymous grocery retailer. “If we’re comparing it with two years ago, it’s either the same or maybe reducing a little. The retailer focus on it has increased since the beginning of 2023, late 2022, to put the technology in place to limit or apprehend these individuals, putting practices in place of locking more things up. We see more lockups now than ever and nobody wants to do it, but it’s successful. I haven’t been able to see anyone directly show the progress they’ve made [on preventing ORC], but I guess I’m optimistic that the work on reducing the online marketplace distribution of stolen goods is helping.”
Unfortunately, as retailers’ ability to prevent ORC improves, so does the sophistication of bad actors.
“The resources and tools available to those bad actors has continually increased and the channels in which they are operating at times can be under multiple layers of operative secrecy,” said a specialty retailer. “A lot of intel continues to highlight the activity and its direct ties to international operations.”
“I believe ORC is growing, but in a different way than we expected,” Fernandez said. “ORC has always been a challenge for our industry, especially in California. But now we are seeing criminal enterprises from China fully engaged in organized crime through the use of tampered gift cards. According to the Department of Homeland Security, Operation Red Hook is a $100 million investigation in multiple states across the country, including Florida, Texas, Louisiana, and California. We are seeing massive amounts of gift card tampering in our stores and it hasn’t slowed down in over a year. The crews we are seeing commit this fraud are organized, disciplined, and efficient. We are making progress to slow them down, but it remains a tough challenge to offer our loyal customers access to gift cards that don’t have a zero balance when they try to use them at a later time.”
In-Store Violence
Even more devastating than ORC—though often linked—is retail violence, which threatens much more than retailers’ bottom lines; it threatens human lives.
“NRF’s latest report underscores that retail violence continues to be the greatest concern for retailers,” Johnston said. “Retailers reported a rise in year-over‑year incidents of violence, particularly the threat or act of violence stemming from a shoplifting or theft event. Also reported was the increase in the threat or use of a weapon during a theft event. Retailers recognize this concern, and many increased their budgets in 2023 to support workplace violence prevention training.”
Most of the retailers we spoke with agreed that violence in stores has grown dramatically worse in recent years, due to a variety of reasons.
“There is no doubt that retail violence has gotten worse over the years,” said an anonymous grocer. “I believe this is the result of societal issues or breakdowns. Retailers can’t solve these problems on their own but have been forced onto the front lines. Many of the problems we are facing are not actually retail issues and we are not equipped to solve them at their root without assistance.”
Fernandez said the violence in his stores is much higher today than it has ever been in the past.
“We are seeing daily and weekly instances of violent behavior against our employees that includes assault, pepper spray, and brandishing of weapons, to include firearms,” he detailed. “This month, we had two female offenders spray our managers with a fire extinguisher to prevent themselves from being apprehended. And this week, we had a male in a motorized wheelchair approach a cashier in the express line with a knife in his hand, yelling, ‘This is a robbery!’ Violent behavior is not acceptable when we are trying to provide an essential service to our communities. We need to reform the laws and hold these aggressive offenders accountable for their crimes.”
Even customers who may not intend to commit any sort of theft have become more violent against employees.
“Customer escalations are on a continuous rise for some of the most basic requests and needs,” said a specialty retailer. “There is a sentiment of customers feeling self-entitled regardless of the situation, lacking respect and a minimal ability to maintain a sense of emotional intelligence when it comes to simple interactions. The violence or threat thereof has challenged teams wanting to work in an environment that possesses a culture of positivity.”
Slowly but surely, lawmakers are starting to realize how serious the threat of retail violence is, though.
“In recent months, you’ve seen some city and state legislation that is focusing on retail violence and the importance of educating our team members on how to respond, and really easing some of the restrictions that law enforcement had on addressing the issue,” Stinde said. “I’m optimistic on this issue. I think that the early signs in recent months show things moving in the right direction, but it continues to be a problem.”
Internal Theft
Long considered the most significant cause of retail loss, internal theft has taken a bit of a backseat since ORC and retail violence have stolen the spotlight. Still, it remains a pressing issue for retailers.
“The issue of internal theft is a persistent challenge, and while it may not be growing at the same pace as external theft or ORC, it is certainly not shrinking,” Hamlin said. “In many cases, it remains at a steady level, but its impact is still significant and should not be underestimated.”
Multiple retailers we spoke with suggested that internal theft is growing because attention has been redirected to issues like ORC.
“With smaller AP programs in general and the focus on violence and ORC, I think those committing internal theft have found a refuge and are looking at new ways to get product,” said one home improvement retailer. “Collusion cases using external resources are increasing.”
“[Internal theft] is growing, I just don’t think it grew as fast as the external piece,” said an anonymous grocer. “I think inflation and all of these things we see in the news about folks having less discretionary money to spend today—if they can find an opportunity to supplement their income, they’re more inclined to do so.”
It’s easy to imagine internal theft ballooning into an even bigger issue if the economy continues to suffer.
“We all feel the pressure, whether at the gas pump or when you go to the grocery store—we’re all just trying to pay the light bill,” Stinde said. “I think with those pressures, it puts folks in difficult situations, and sometimes they make bad decisions. Internal theft is still a problem. I don’t know if it’s growing, but if you don’t have the right controls in place, we could all see this start to increase because folks are just trying to make ends meet. Making sure you’ve got a good program in place and remaining vigilant on this issue is important.”
Watching customers easily walk away with stolen items could also encourage employees to commit theft themselves.
“The lack of loyalty and work ethic has changed,” Fernandez said. “We are seeing a trickle-down effect with theft in some stores—when our customers are getting away with stealing, then why can’t employees?”
Proper education is crucial in preventing employee theft, though it won’t deter all bad actors.
“Robust onboarding, orientation programs, and training curriculum is imperative for performance improvement plans and employee accountability,” said one specialty retailer. “Policy and procedures provide the structure and framework for company culture; however, when working with any workforce, there will always be those who test the systems, forcing companies to be creative in their implemented LP tactics, strategies, tools, and resources.”
Top Priorities for 2025
Clearly, there is a whirlwind of elements affecting the loss prevention world at this time, and every issue seems more urgent than the last. With so much going on, what is at the top of LP leaders’ priority lists for 2025?
“Right now, my issues are leveraging the technology to apprehend habitual offenders,” said one anonymous grocery retailer. “And maybe some of the reason is we’ve put so much focus on operational loss in the past that that piece got a little bit away from us. Anytime you have shrink and loss in retail, you need a balanced approach. Shrink comes in many different shapes and sizes, so you have to have a solution to mitigate each one. And I feel we need more mitigation for habitual offenders, and I think a lot of other companies are shifting that way too.”
A sporting goods retailer said their top priorities include combating ORC, improving employee safety amid retail violence, and integrating advanced technologies to enhance LP efficiency.
Active shooter mitigation, cargo theft, talent development, and the external environment surrounding store locations topped the list for a home improvement retailer.
“[My top priorities are] addressing the surge in organized crime targeting luxury brands, ensuring robust security standards and loss controls while integrating the company’s growth and store design elements, and effectively managing the ever-changing external threats linked to extreme socio-political, economic, technological, and weather events,” said Hank Siemers.
A specialty retailer listed team safety and security, escalations with customers, ORC investigations, and strengthening law enforcement partnerships as their focus.
“Employee safety is still a priority for us,” Fernandez said. “We are tasked with providing our employees a safe working environment, and we also strive to provide a safe shopping experience for our valued customers. This is how we protect our brand as well. If our customers feel safe and have a great shopping experience, then we are making a difference.”
“Continuing to train and educate our team members on the right things to do day-to-day on the front lines to prevent issues from happening within our stores [is my top priority],” said Stinde.
Conclusion
The thoughts and opinions shared by the ten LP leaders we spoke with for this story point to many trends and changes impacting the loss prevention profession at this time. And while some of the challenges they touched on—from ORC to a shortage of entry-level employees—may seem impossible to solve, respondents also shared that the future of LP is bright, with increased awareness of the dangers of retail crime and opportunities to impact their organizations beyond typical LP functions.
Now, we’d like to know what you think about the current state of loss prevention. Please share your thoughts on LinkedIn and tag Loss Prevention Magazine to get the conversation started.