Rethinking Loss Prevention: 5 Ways to Modernize Retail Security While Balancing Customer Experience

Retail theft is at an all-time high. U.S. retailers lost roughly $125 billion to shrink in 2024, with shoplifting and organized retail crime (ORC) accounting for a growing share of those losses. But as threats evolve, so too must the strategies retailers use to defend against them. 

What’s clear is that yesterday’s loss prevention tools – locking pegs, spider wraps and heavy surveillance  – no longer cut it. They frustrate customers, burden store staff and often fail to stop theft. Today’s retail environment demands a smarter approach – one that blends strong security with seamless customer experiences. 

Here are five ways forward-looking retailers are reimagining loss prevention for the modern store.

1. Secure Without Sealing: Let Shoppers Interact with Products

Smart retailers are finding innovative, highly protective product security that allow products to remain on display and guarantee a customer interaction. Tamper-resistant brackets like OnQ’s Dfi™ retail security offering are used by top retailers to secure high-value electronics like phones, tablets and smartwatches, while still letting customers interact with  the products before purchase.

This approach eliminates a major point of friction. Instead of waiting for a store associate to unlock a cabinet, customers can explore products freely. That hands-on experience increases confidence and leads to faster purchase decisions – all while maintaining security.

2. Use AI Surveillance to Prevent, Not Just Record

AI-powered video analytics are redefining in-store surveillance. Platforms like Veesion analyze video feeds in real time to identify suspicious behaviors like concealment or product tampering, sending instant alerts to store associates when shoppers demonstrate those behaviors.

Retailers piloting this technology have seen a reduction in theft and profit increase up to 50%. The best part? Shoppers aren’t burdened by visible surveillance or heavy-handed security. The system works quietly in the background, creating a secure but welcoming environment.

3. Design Fixtures That Protect and Perform

Store design plays a huge role in loss prevention. By integrating RFID systems, sensor-enabled displays and smart planograms into store fixtures, retailers can protect inventory without disrupting the store layout or shopper flow.

Retailers have successfully reduced shrink by up to 25% using RFID, while also improving checkout speed by 40%. These technologies track movement, detect tampering and improve stock accuracy – all while maintaining a clean and intuitive in-store experience.

4. Empower Staff with Tools and Training

People are a crucial piece of the LP equation. Well-trained associates, armed with the right tools, are more effective at identifying issues and responding to incidents safely.

Many retailers are using mobile alerts, body-worn cameras and situational response training to keep teams prepared. This creates a calm, confident environment where staff can de-escalate issues quickly – improving safety without putting pressure on the customer. 

5. Integrate Intelligent Fulfillment In-Store

In high-theft categories like phones, laptops, smartwatches and high-end accessories, some retailers are removing boxed products from the sales floor entirely, holding all inventory in a back room. But that doesn’t mean sacrificing the customer experience.

Solutions like OnQ’s Take-a-Ticket (TAT) system offer a smart middle ground. The product display remains engaging and customers can still interact with products on display. Adding the Take-a-Ticket kiosk enables customers to browse specs, compare features and make informed decisions and purchase online if their chosen product is out of stock or only available via the retailer’s ecommerce platform. The interactive kiosks make it possible for retailers to merchandise far more products than are physically on display or carried in the store.

When they’re ready to buy, customers simply scan a QR code or print a product ticket and retrieve the item securely at the register. This ensures that products remain protected until the moment of purchase – without removing the informational and emotional touchpoints that drive conversion.

By turning the display into a digital decision-support tool, retailers elevate the CX while dramatically reducing theft risk. And because tickets are tied to inventory systems, stores can also improve fulfillment accuracy and prevent stock-outs.

Final Thoughts: Designing for Safety and Experience

Loss prevention and customer experience no longer have to exist in opposition to one another. In fact, the most forward-thinking retailers are proving that strong security can enhance the in-store experience when it’s thoughtfully implemented.

From intelligent product brackets that invite interaction to AI surveillance and interactive kiosk systems that empower smarter buying, the future of LP is about subtlety, service and strategy. It’s not just about preventing loss – it’s about designing retail experiences where security and CX work hand in hand.

ABOUT THE AUTHOR:

Carolyn Nolan spent 13+ years at National Retail Services, and served as one of OnQ’s earliest employees shortly after the company’s founding. Following a six-year hiatus away from OnQ to help run a software company specializing in human capital workflow, she returned to OnQ in an executive capacity and currently serves as Chief Strategy Officer.