Retail security and loss prevention was analyzed in a recent report by Software Advice. Survey data reveals that 68% of small and medium businesses (SMB) retailers are experiencing shrink rates above the industry standard of 1.5%. This rise is predominantly attributed to external theft (e.g., shoplifting, organized retail crime and fraudulent returns) and marks a significant challenge for businesses with smaller margins and less sophisticated loss prevention strategies.

Thirty-four percent of SMB retailers report a rise in shrink over the past 12 months, and 46% have experienced more theft at their stores. With shrink taking a bigger bite out of small-business sales, the focus on effective loss prevention strategies is paramount. Of the retailers who have observed more theft, 88% say they now consider loss prevention a top priority.

SMB retailers are adopting a range of strategies to curb shrink. Over half (54%) have installed or updated security cameras in the past year, a move indicative of their commitment to improving surveillance and reducing theft. Additionally, the introduction of new inventory management system reporting software and training techniques reflects a shift toward a proactive, technological approach that can keep employees safe.

Read the full report here.