The Ultimate Guide to Retail Security & Loss Prevention

Retail theft is a growing problem affecting stores across Canada. For retailers, the threat of crime not only results in financial losses but also compromises the safety of staff and customers. At Blackbird Security, we’ve seen an increase in businesses seeking retail security solutions to safeguard their customers, staff, and bottom lines. 

Based on our decade of experience in the retail sector, we’ve created this guide for retailers, owners, managers, and decision-makers. We’ve covered everything you need to know about retail security and loss prevention, and you’ll learn our proven best practices that keep businesses like yours safe. 

Table of contents:

1. The Cost of Retail Theft Across Canada
2. The Roles and Duties of Retail Security Personnel
3. How Security Guards Identify Shoplifting
4. How Guards Apprehend Shoplifters
5. Unique Retail Security Threats During In-Store Sales
6. How to Prepare Your Store for Busy Sales Periods
7. What is Organized Retail Crime?
8. Strategies to Combat Organized Retail Crime
9. Case Study: Preventing ORC at Arc’teryx
10. How to Choose a Retail Security Company 
11. Why Partner With Blackbird Security for Retail?
12. FAQs About Retail Security

1. The Cost of Retail Theft Across Canada

If you’re involved in the retail industry, you’re likely well aware of the impact theft has on businesses. At a time when inventory and labour costs are high while profit margins are low, even small levels of shoplifting can have a significant impact on operations, including raising prices. This creates a vicious cycle: more theft incidents raise prices, which in turn increases shoplifting. 

Here are some quick stats about retail theft at a glance:

• A recent report from the Retail Council of Canada found that shrinkage across Canada now accounts for $9 billion annually.

• Retail theft has increased by 82% since 2018, when the total reached just $5 billion (RCC).

• The Canadian Federation of Independent Business found that 45% of small businesses are directly affected by crime and safety issues.

• The Toronto Police have estimated that organized retail crime costs businesses $5 billion annually. 

The Connection Between Violence and Retail Theft

Retail theft is both an expensive and a dangerous problem. The RCC found that 76.2% of retailers report increased violence during theft incidents. A primary driver of retail violence is organized retail crime (ORC), which typically sees perpetrators commit violent assaults against staff and customers.

Beyond the dollars lost to theft, these incidents can have devastating consequences for brands, including lost customers, damaged reputations, and potential lawsuits. As a result, many retailers are turning to retail security to safeguard their customers and profits. 

As we’ll cover in the next section, retail security guards play key roles in keeping customers and employees safe from threats.

2. The Roles and Duties of Retail Security Personnel

There are several types of retail security guards that can be deployed to your store, depending on your specific needs, each contributing a different role to your retail security strategy. Here’s an overview:

Loss Prevention Operatives (LPOs)

A loss prevention operative is typically an undercover retail security professional who is expertly trained to identify theft, recover stolen items, and discreetly make arrests. LPOs roam the store floor, keeping a watchful eye out for any theft being committed by shoppers and, in some cases, employees. 

Find out more about LPOs in our previous blog, What Are the Duties of a Loss Prevention Security Guard?.

Standard Security Guards

Standard security guards are a store’s first line of defence against theft and bad actors. They wear distinctive uniforms that clearly identify them as members of a store’s security team. Their appearance, combined with their typical presence at store entrances and self-checkout areas, provides a visual deterrent against thieves. Guards also maintain a professional and friendly presence, greeting and assisting customers. 

During their shifts, security guards conduct regular store patrols, monitoring key areas, high-value merchandise, and the store floor. They also assist with crowd control during busy periods and respond to emergencies that require immediate attention. These guards provide a holistic approach to security that combines customer service with protection, surveillance, and emergency response.

Tactical Security Guards

Tactical security guards provide enhanced protection for retail locations at increased risk of crime, such as stores in high-crime neighbourhoods or those that have experienced repeated thefts. 

Tactical guards serve a similar function to standard guards, such as conducting patrols, surveillance, and emergency response. However, tactical guards wear a tactical vest, carry specialized equipment, and are trained in the use of force. This enables them to respond more effectively to serious threats, such as ORC incidents. 

Learn more about tactical guards in our blog, The Role Tactical Security Guards Play in Retail.

Suit-and-Tie Security Guards

Primarily serving boutiques, elevated department stores, and designer brands, suit-and-tie security guards provide protection for high-end clientele. As their title suggests, these security guards wear suits, rather than standard security guard uniforms, to enhance a store’s shopping environment. 

Mobile Patrol Security

For stores located in high-crime areas or that have experienced overnight break-ins, mobile patrol security is an effective solution to prevent crime. Driving security vehicles between sites throughout their shift, these security guards conduct patrols of store properties on a randomized schedule. This prevents thieves and criminals from identifying patterns or gaps in security coverage.

Mobile guards also assist with alarm response during overnight hours. If an alarm is triggered at your store, the nearest mobile patrol unit will be dispatched to investigate and respond to the situation. This provides protection against burglaries without the cost of on-site overnight guards. 

Next, we’ll explore how security personnel identify shoplifting.

3. How Security Guards Identify Shoplifting

Security professionals are trained to watch for suspicious behaviour that may indicate an individual is shoplifting or intends to shoplift. These behaviours, or giveaways, include:

1. Grabbing Multiple Items

Shoppers who appear to be grabbing items quickly, without regard for what they’re taking or how many, are likely shoplifters.

2. Making Direct Eye Contact With CCTV Cameras

Shoplifters often look at CCTV cameras to identify a store’s blind spots. Security guards closely monitor shoppers for this behaviour, and may observe the individual.

3. Wearing Bulky Clothing With Pockets

Shoplifters sometimes wear bulky clothing to conceal stolen goods. Outside of winter months, this can be a helpful indicator that an individual is about to shoplift.

4. Using Personal Bags

In most stores, shoppers aren’t allowed to use personal bags instead of shopping carts. If a security guard sees this happening, they will calmly address the individual and inform them of the store’s rules against personal bags. 

Learn more about how guards identify shoplifting in our blog, How to Identify Shoplifting & Organized Retail Crime. 

4. How Guards Apprehend Shoplifters

Can security guards apprehend people? The answer is yes, with limitations.

Under Canadian law, any Canadian citizen is authorized to make a citizen’s arrest when witnessing an individual committing a criminal offence or actively attempting to flee immediately after being apprehended. Security guards derive their authority to make arrests from this same legislation. 

Importantly, anyone, including security guards, who makes a citizen’s arrest can be criminally liable for using excessive force. Consequently, security personnel must use only the force reasonably necessary to effect the arrest.

Retail security guards follow a structured, five-step approach when making an arrest to ensure safety, compliance with the law, and the protection of all parties involved. 

1. Identify & Identification

A retail security guard will first observe and clearly identify an individual committing a criminal offence. This involves careful monitoring of the individual’s actions to ensure there is clear evidence of the offence and that all legal elements, as outlined in the Criminal Code, are met.

2. Notice of Arrest and Reason

If the guard determines an arrest is necessary, they must give the subject clear notice of arrest. This includes stating that the individual is under arrest and specifying the reason, including the name of the offence. The guard will communicate calmly and clearly to ensure the subject understands the reason for the arrest and to encourage compliance without escalation.

3. Physical Control and Mechanical Restraints

If necessary, the guard may use reasonable and justifiable force to detain the individual, understanding that excessive force may result in criminal liability. Handcuffs or other mechanical restraints may be applied, and the subject should be escorted to a secure holding area.

4. Rights to Counsel (RTC)

Guards should inform the subject of their right to speak to a lawyer and their right to remain silent. If the subject is a juvenile, their legal guardian must be notified immediately.

5. Police Notification and Transfer of Custody

The final step is to contact local law enforcement. As outlined in the Criminal Code, anyone who makes a citizen’s arrest must deliver the arrested individual to a peace officer without delay. Until that point, the guard is responsible for maintaining control in accordance with the law.

Learn more about this process and its accordance with Canadian law in our previous blog, How Retail Security Guards Apprehend a Subject.

5. Unique Retail Security Threats During In-Store Sales

The holiday season brings the two busiest shopping events of the year: Black Friday and Boxing Day. When businesses lack a strong security presence during sales periods, they may face shoplifting, property damage, or physical threats to staff and other customers. 

The chaos of high-intensity sales periods can create threats not seen during other times of the year. These can include:

• Overcrowding: The risk of overcrowding can overwhelm staff and pose a serious safety hazard to guests. Poorly managed crowds can result in injuries, accidents, and potential liabilities for businesses.

• Theft: Shoplifters can blend in with crowds more easily during sales, while valuable items are often displayed in easily accessible locations, making them prime targets for theft. 

• Disorderly lineups: Disputes over places in line or misunderstandings about store policies can quickly escalate into disorderly conduct.

• Fire hazards: Overcrowding and blocked exits create fire hazards in retail spaces, making it difficult for customers to evacuate quickly in the event of an emergency. 

• Customer conflicts: Arguments over products or altercations between customers are common during sales, and without proper intervention, they can escalate into serious issues.

Fortunately, a team of security guards and LPOs can keep your store safe during busy sales periods through crowd control, surveillance, peaceful de-escalation, and emergency response.

Learn more about retail security during sales in our blog, Preparing for Black Friday With Blackbird Security. 

6. How to Prepare Your Store for Busy Sales Periods

While your security team will be essential in keeping your store secure during sales, here are some best practices you and your team can follow in advance:

• Prepare early: The sooner you plan your security strategy, the better prepared you’ll be to enter the sales season with confidence. 

• Review last year’s insights: When reviewing reports from previous year’s sales, take note of what worked and what didn’t, then use these insights to adjust your strategy for this year.

• Organize access control: Limit entry and exit points, use barriers to create pathways around entrances, and assign a staff member to be stationed outside to limit customer flow into your store. 

• Prepare to manage crowds: Crowd surges are a risk during busy retail events. Train your team to recognize the early signs of crowd surges and potential conflicts. 

• Plan around high-value merchandise: Consider moving expensive goods behind checkout counters or inside locked cases. 

• Update staff on loss prevention protocols: Hold team-wide information sessions to review procedures for reporting shrinkage and theft, and flagging security incidents to security guards.

See our other recommendations for Black Friday and beyond in our blog, Top Retail Security Tips for Black Friday.

7. What is Organized Retail Crime?

Organized retail crime (ORC) is a highly organized, precise form of shoplifting conducted by groups of individuals. Unlike normal shoplifting, in which perpetrators steal small numbers of items for personal use, ORC involves a coordinated, systematic effort to steal large volumes of high-value goods from stores. These stolen goods are then resold on alternative markets, including online marketplaces such as Facebook Marketplace and eBay. 

ORC operations involve multiple people working together, including 'boosters' who conduct the thefts, getaway drivers, and 'fences' who sell the stolen goods through various channels. Rather than one-off incidents, ORC groups often hit multiple stores in succession, sometimes stealing thousands of dollars’ worth of merchandise in a single run.

As we discussed previously, ORC thefts tend to be violent, with offenders using violence, weapons, and threats against staff, business owners, shoppers, and good Samaritans. It’s essential for stores to understand the threat of ORC, implement procedures and protocols for staff, and have a dedicated team of security personnel on hand to handle the situation. 

Learn more about ORC in our blog, The Impact of Organized Retail Crime on Ontario Businesses.

8. Strategies to Combat Organized Retail Crime

Since ORC is such a high-risk threat, only retail security teams should address ORC incidents directly. Employees and store staff should avoid confronting ORC perpetrators and focus on keeping customers a safe distance from criminals. 

Here’s how your retail security team will combat ORC:

1. Prioritizing Safety

Retail security guards are trained to handle ORC thefts and will take immediate action to protect your store, customers, and staff. The safety of bystanders takes precedence over the recovery of stolen goods, and security guards will ensure everyone is safe before pursuing thieves.

As we mentioned earlier, tactical security guards at Blackbird Security are trained in the use of force, allowing them to safely and efficiently take down subjects. Having trained security guards on site to address the situation prevents untrained staff members or bystanders from intervening and getting hurt. 

2. Visual Deterrence

The presence of security guards in uniform deters ORC groups, who are less likely to target stores visibly protected by security. Deterrence is an example of proactive deterrence, which is generally more effective at preventing crime than reactive measures.

3. Strategizing Effectively

Your store’s retail security team will get to know your business’s unique security challenges and create an optimized strategy that addresses all of your needs, as well as any blind spots. 

9. Case Study: Preventing ORC at Arc’teryx

At an Arc’teryx store in Coquitlam Center Mall, Blackbird Security retail security guard Gautam Suri demonstrated exceptional bravery and quick recall when he recovered 18 stolen items worth over $19,000 from organized retail crime (ORC) thieves. 

The theft occurred at 11 AM, when three suspicious individuals entered the store and began removing items from racks. Gautam took immediate action and verbally instructed the thieves to stop. The subjects became aggressive and fled the store. Gautam pursued them and dialled 911. 

After chasing the subjects to the mall’s exterior, Gautam successfully recovered all 18 stolen items and provided a statement to Coquitlam RCMP. 

Read the full story in our blog, Retail Security: Spotting and Preventing Shoplifters at Arc'teryx. 

10. How to Choose a Retail Security Company 

Gautam’s quick thinking and rapid training recall were part of what enabled him to successfully prevent the theft at Arc’teryx. However, not all security providers offer the same level of protection, guard training, or incident response procedures. Below are our recommendations for choosing a provider that will serve your business best: 

1. Experience and Case Studies

Case studies, like the one we just discussed, are a hugely important consideration, especially in retail security. You need to trust that your retail security provider will deliver the service you need for your particular store.

2. Training

While all security guards undergo basic security training to earn a security guard license, additional training significantly increases the level of protection they can provide. The best security companies provide advanced training in areas such as:

• Reporting

• Peaceful de-escalation

• Customer service

• First aid

• Emergency response

• Fire response

3. Range of Services

Choosing a provider who offers a full range of retail security services ensures you won’t have to switch companies later on and can remain flexible as your needs develop.

4. Clear Communication and Reporting

Clear communication is essential when working with a security company. You should know who to contact, how incidents are reported, and how information will be shared with your team. Ideally, you should have a dedicated point of contact at your security company who understands your store's day-to-day operations and challenges. 

5. Area of Coverage

Selecting a provider that covers all of Canada will allow your business to grow nationally while maintaining an ongoing relationship with a team that understands your brand.

6. Customer Service

The best security companies train their teams to greet customers, answer questions, and maintain a friendly presence. Professional and approachable guards reflect well on your brand and help create a welcoming atmosphere. 

Find out more tips on how to choose a retail security company in our blog, What to Look for in a Retail Security Company. 

11. Why Partner With Blackbird Security for Retail?

At Blackbird Security, we have a decade of experience safeguarding household-name businesses across Canada, from large-scale retailers like Canadian Tire and MEC to high-end boutiques like Harry Rosen and Holt Renfrew. International brands trust us to deliver premium security services, with a team that understands your business’s specific needs. 

Each Blackbird Security guard undergoes advanced training through our in-house Blackbird Academy program. This training goes beyond the standard security training required to obtain a security license and equips our guards with the knowledge to provide exceptional security services to you and your customers. 

At Blackbird Security, we’re proud to offer a customer-first approach to security. We prioritize your guests’ experience, contributing to increased customer retention and a more premium shopping experience. 

Our guards are also supported by TrackTik, the industry-standard security reporting software. TrackTik enables our clients and leadership teams to maintain real-time oversight of all activity at their stores, with live report updates. TrackTik centralizes our guards’ reports in a single, easily accessible digital location, enabling our teams to stay informed about trends and make proactive decisions.

At Blackbird Security, you’ll have a dedicated team member as your point of contact, providing stability and consistency throughout your day-to-day operations. We’re proud to provide top-tier retail security services all across Canada, and we have the resources and expertise to grow with your business.

Contact us today to find out how we can support your business. 

12. Retail Security FAQs

What is retail security?

Retail security is the practice of protecting customers and property through measures such as access control, customer service, and general security. 

What is loss prevention?

Loss prevention is an element of retail security focusing on preventing theft, shrinkage, and other forms of loss. This practice helps retain company profits while ensuring a safe and secure environment for employees and shoppers. On-site loss prevention security is the most effective way for retail businesses to save money and reduce shrinkage. 

Does my store need retail security?

Yes. While your store may or may not require an LPO or a retail security guard, it is still best practice to install CCTV cameras, alarms, and develop a comprehensive retail security strategy to minimize losses. 

When should I invest in retail security guards?

If you notice an increase in theft or shrinkage, or if your staff report more altercations with customers, you should invest in retail security to protect your store and keep your staff and shoppers safe. Additionally, if you are approaching a busy sales period, such as Black Friday, or if your store will be carrying new, expensive merchandise in the near future, you should consider retail security to provide support for your staff. 

What is shoplifting?

Shoplifting is committed on a small scale by individuals who intend to personally use the stolen items rather than sell them. Shoplifting incidents may seem minor compared to ORC, but their frequency can quickly add up to significant losses. Consistent shoplifting contributes to inventory shrinkage, can disrupt the customer experience, and hurts employee morale. 

What is employee theft?

Employee theft is a commonly overlooked form of retail theft, yet it can be damaging. Since employees have access to stockrooms and registers and may understand security blind spots within their store, internal theft can go undetected for a long time. 

What items are most commonly stolen by shoplifters?

Since shoplifters primarily use stolen goods for personal use, they tend to steal everyday items, such as:

• Makeup and cosmetics

• Gift baskets

• Meat

• Cheese

• Toys

• Alcohol

• Clothing

• Toiletry products

What do security guards look for when monitoring for shoplifting?

Security guards look for visual clues that might indicate a person intends to steal, including:

• Grabbing multiple items

• Direct eye contact with CCTV cameras

• Bulky clothing with large pockets

• Customers who enter in a group before splitting up.

• Distraction tactics to occupy store staff while others commit a theft.

• Carrying large bags and backpacks. 

• Glancing up and down the aisles while selecting products.

• Exiting the store in a hurry without looking at or interacting with staff.

• Lingering in certain areas without making a purchase.

How do CCTV cameras help prevent retail theft? 

While an on-the-ground security presence is effective for deterring, preventing, and stopping crime, CCTV is necessary to provide a full view of the store at all times. A security professional monitoring a store’s CCTV camera system provides a bird's-eye view of all customer and staff activity throughout the store and can relay information on suspicious activity to security guards on the floor via radio communication systems. 

Learn more in our blog, 6 Retail Security Measures Businesses Should Consider.

What items are most commonly targeted by organized retail crime?

ORC groups most often target items with high resale value on the black market. Some of the most commonly stolen items by ORC groups include:

• Designer winter jackets

• Perfumes, colognes, and fragrances

• Sunglasses

• Handbags

• Consumer electronics

• Small appliances like blenders and espresso machines

• Jewelry

Find out more in our blog, Holiday Loss Prevention: Most Frequently Stolen Retail Items.

How do guards identify organized retail crime groups?

Retail security guards can identify ORC groups through several indicators, including:

• Garments that conceal faces (masks, hoods, sunglasses)

• Bulky outerwear garments

• Large bags and backpacks

• Diversion tactics (engaging staff in conversation while the theft takes place)

• Groups of people who enter together before splitting up

• Individuals heading straight to a specific area of the store

Have a question that wasn’t answered here? Check out our Retail Security & Loss Prevention FAQs article.

Ready to Start Your Retail Security Journey?

Get in touch with us to find out how we can support your stores across Canada, or explore our full suite of retail security services.