Addressing Violent Crime in Retail

I had the honor of being invited as a distinguished speaker/panelist at the esteemed Retail Risk Conference held in Cape Town. The conference was organized by the eminent Retail Risk organization, known for its valuable contributions to the retail industry. I encourage interested individuals to explore their website at https://www.retailrisk.com/ ?for further insight into their commendable efforts. In preparation for a panel discussion centered on the crucial topic of violent crimes and their impact on retail, I have prepared the following article, which I would be pleased to share.

Violent crimes in retail

Violent crime is an alarming issue affecting South African retail businesses. Recent headlines attest to this reality; “SA’s ‘bloodbath of violent crime remains out of control’, latest police stats reveal”, “Shopper and Robber shot dead during R200k at Pretoria Mall”, “South African gunmen in Shopping Mall shoot-out”, “SA police launch probe after two killed in Mall of Africa shooting”, “A massive wave of red as violence escalates”.

According to official statistics from the South African Police Service (SAPS), serious and violent crimes such as robbery at non-residential premises, cash in transit (CIT), and truck hijacking increased by 9.8%, 22.1%, and 24.6% respectively in the 2021/2022 period compared to the previous year:

The negative impact of crime on business is a major issue in South Africa. Various surveys have found that South African Enterprises of all sizes, rated crime as one of the top four constraints to doing business.

Safety and security of consumers at retail stores is essential to ensure its growth and sustainability. There is a crucial need in South Africa, if not worldwide, not only to reduce but to prevent crime and violence against businesses, consumers and to create an environment that is safe and secure for consumers to do their shopping without any fear of being the victim of crimes.

What is the impact of crime on South African retailers?

Crime can have a devastating effect on the profitability and viability of retail businesses. For bigger retailers the losses can be alarmingly high.

Crime has both direct and indirect costs: The direct costs are made up of the value of money or goods stolen and/or the cost of damage to property and goods.

Indirect costs include the cost of the disruption to business, lost of working hours for staff, loss of necessary equipment or temporary closure of the business, medical expenses, loss of staff, and increased insurance premiums.

?Then businesses also incur security costs, which can comprise a significant proportion of turnover to a business.

They must also contend with the opportunity costs of crime – which may see businesses limiting growth or staff numbers, or shortening operating hours, to try to reduce their risk of crime.

Preventive measures

Retailers can take several preventive measures to enhance their security and minimize the impact of crime on their business. These measures can be broadly classified into three pillars: intelligence, technology, and people.

Intelligence: Retailers should prioritize gathering and analyzing information to gain greater insight into security threats and collaborate with industry stakeholders and law enforcement agencies. This can be achieved through initiatives such as setting up a national security control room to collect and analyze incident reports, trend analysis of information, proactive use of information for future preventive measures, collaborating with industry stakeholders such as The Consumers Goods Council and Business Against Crime, and partnering with the South African Police Service (SAPS).

Technology: Retailers can leverage technology-led solutions to stay ahead of criminals and act proactively in creating safer environments for their customers and staff. Proper CCTV solutions can help to empower the SAPS in their investigations and assist with identifying suspects and their mode of operation.

People: Training staff on how to act during incidents is also crucial. This not only keeps them safe but also enables them to assist the SAPS with valuable information that can aid in the investigation. For instance, staff should be trained to provide descriptions of suspects, including their race, language spoken, type of vehicle used, and firearms used.

?In summary, retail businesses can implement these preventive measures to enhance their security and reduce the impact of crime on their business. By focusing on intelligence, technology, and people, retailers can stay ahead of the criminals, act proactively, and create safer environments for their customers and staff.

Robbery prevention tips for businesses

The following measures can protect businesses from robbery, increase the safety of staff and customers, secure business assets, and provide peace of mind:

1. Stay alert: Be aware of what is happening inside and around your business at all times. Stay informed about local crimes so that staff can be put on high alert or added security measures can be put in place if required.
2. Train your staff: Share robbery prevention and response guidelines with your staff so that they are informed. Regularly hold practice robbery drills so that the robbery response procedure is near automatic in the event of an actual robbery. Lastly, employees should be told to always cooperate with a robber.
3. Ensure visibility: Make sure your business is well-lit on the inside and outside, especially at night. All areas of your business should be clearly visible.
4. Don’t store excess cash in the register: Cash registers should not store large amounts of cash. Bank deposits should be made often, only during business hours and never at routine times. Large bills should be dropped into a deposit safe right away since safes are a deterrent as well.
5. Install security devices: Alarm systems and security cameras should be installed and announced using signage. Your alarm system should be set up to be monitored by a monitoring company.
6. Use deterrence signage: Inform potential robbers of the measures that your business has taken to deter robbery.
7. Install physical security measures: Depending on the location of your business, entrances should be outfitted with deadbolt locks. Windows and doors should have metal crossbars. Windows should have burglar-resistant glass. Parking lots should have a fence and gate if required.
8. Be an active member of your community: Befriend your neighbours and participate in community events.
9. Hire security personnel: The above security measures are further strengthened by the presence of professional security guards.

?In conclusion, violent crime is a significant challenge facing South African retail businesses. Retailers must prioritize gathering intelligence, leveraging technology-led solutions, and training their staff to act proactively to create safer environments for their customers and staff. Crime has a substantial impact on businesses, including direct and indirect costs, security costs, and opportunity costs. Preventive measures can be taken, including staying alert, training staff, ensuring visibility, and not storing excess cash in the register. By implementing these measures, retailers can enhance their security and reduce the impact of crime on their business, making the retail industry safer and more sustainable.