Loss prevention, an increasingly strategic area for any retailer

The recent survey of the Brazilian Association for Loss Prevention (Abrappe) pointed out a worrying data in the country: the growth of losses in retail. The average index in 2023 reached the historical mark of 1.57%, which in values represents something around R$ 35 billion (in 2022 it had been 1.48%), considering the sales of the restricted retail. A fable in reais that, if placed in the ranking of the companies that grow the most in the country, in billing, would be on the list of the top 100, as pointed out by Econodata, is almost water, or control of the retailers.

If it is worth consolation, it is worth remembering that the same research Abrappe points out that, among the retailers participating in the study, 95,83% maintain an area of loss prevention.Signal that the culture of loss prevention is even gaining ground in corporations, although at slow steps.But the index, fortunately, has been high in recent times (above 90% at least), which certainly does not happen among small and even medium-sized companies.

Having an area dedicated to loss prevention in the company is essential for several reasons that directly impact the financial and operational health of the retailer.It is responsible, for example, for reducing financial losses, protecting inventory, improving operational efficiency, reducing operating costs, safety of employees and customers and improving brand reputation. In short, a well-structured loss prevention area not only protects store assets, but also contributes to a more efficient, safe and profitable operation.

But over the past ten years, retail losses have undergone significant evolution, driven by changes in both consumer behavior and the technology available for loss prevention and management

1. Technological advances: Technology has played a crucial role in transforming retail losses.More sophisticated surveillance systems such as high-definition cameras and artificial intelligence-based video analytics enable more effective store surveillance, identification of suspicious behavior and theft prevention.
2. RFID and inventory management: The adoption of technologies such as RFID (Radiofrequency Identification) has become more common in retail, enabling more accurate and efficient inventory management.This not only reduces losses due to inventory errors, but also improves product availability for customers.
3. Security systems integration: There has been a growing trend in the integration of different security systems such as cameras, alarms, sensors and access controls.This integrated approach not only improves incident detection but also optimizes response to security events.
4. Data analytics and artificial intelligence: The ability to analyze large volumes of transaction data, customer behaviors, and buying patterns has allowed retailers to better identify areas of risk and implement more effective loss prevention strategies. AI algorithms are also used to predict potential threats and fraud.
5. Customer experience focus: While strengthening security, retail has increasingly focused on improving the customer experience.This means finding security solutions that do not compromise convenience or customer satisfaction during the purchase process.
6. Challenges of e-commerce: With the growth of e-commerce, retailers face new challenges in relation to losses, such as online fraud and returns management. Adapting loss prevention strategies to the digital environment has become essential for many companies.

In summary, the transformation of retail losses in the last decade has been marked by significant technological advances, a more integrated and proactive approach to security, and a greater emphasis on data analysis and customer experience.What we will have ahead of us still do not know, but some international fairs, such as NRF in the United States and Euroshop in Germany, always give us some clues (the theme artificial intelligence was something constant in the most recent meetings).

One thing is certain: these changes must continue to shape the way retailers approach and mitigate losses in their business, always seeking continuous improvements and adaptation to the new realities of the market. If this response is not fast and assertive, it is to be expected that they have problems. And this, definitely, no one wants!!