Retail Safety Reinvented: Private Security Surges to Protect Shopping?

By Rohan Singh

Issues from petty theft to violent raids and threats to employees have forced property owners and retailers to take matters — and rising expenses — into their own hands in an attempt to preserve their business. The surge in organized retail crime (ORC) is ringing alarm bells in the retail industry, with incidents of theft and shoplifting on the rise. Recent statistics indicate that ORC-related losses shot up by a staggering 26.5% from 2020. To tackle this growing menace, retailers are stepping up security measures, including the addition of more security guards within their stores. The situation has prompted a shift in approach, with guards stationed strategically to counteract the escalating retail crime wave.

According to the National Retail Foundation (NRF), the retail sector witnessed a significant loss of nearly $100 billion due to shoplifting and ORC activities. The NRF's survey revealed a 1.4% "shrink" rate in 2021, resulting in a hefty $94.5 billion in losses. The alarming increase in ORC crime, surging by 26.5% , has sent shockwaves through the industry. In response, retailers are bolstering their security personnel by adding more security guards to their store premises.

The escalating wave of organized retail crime is proving to be a significant challenge for the retail sector The surge in ORC crime has not only escalated financial losses but has also brought about concerns of violence and aggression towards employees and customers. In response, retailers are revamping their security strategies. Previously, security staff might have been instructed to adopt a "hands-off" approach during theft incidents. However, this approach is evolving. Security guards are increasingly authorized to intervene and detain criminals when faced with an attempted theft, provided it can be done safely. By adding more security guards and redefining their roles, retailers aim to curtail losses and ensure the safety of both employees and customers.

Recent stories from Philadelphia shed light on how these services are becoming a vital component in safeguarding public spaces and businesses. As police departments across the United States face staffing challenges, private security firms are stepping up to address safety concerns and help restore a sense of security within communities.

Filling the Void with Private Security

Neil Patel, owner of the Karco gas station, is just one example of a business owner who has turned to private security to bridge the gap. The aftermath of the 2020 murder of George Floyd and subsequent backlash against police led to retirements and a decline in new recruits in police departments nationwide. Chuck Wexler, the executive director of the Police Executive Research Forum, highlights those police staffing levels in Philadelphia plummeted nearly 10% between 2019 and 2022, as confirmed by a recent government audit. This trend is mirrored nationally, with FBI data indicating a 7% reduction in sworn officers between 2019 and 2021.

As the law enforcement landscape faces these challenges, the private security sector has emerged as a steadfast ally in promoting safety. Rising crime rates and heightened concerns about safety due to factors such as homelessness have prompted businesses and communities to seek additional protection measures.

The private security industry has seen remarkable growth since the terrorist attacks of September 11, and this growth has accelerated since 2020. According to the Security Industry Association, the number of security guards employed in the U.S. has doubled over the past two decades, outpacing the 16% population growth over the same period. This surge has led to a noteworthy ratio of roughly 3.1 security guards for every 2 police officers per 1,000 civilians.

Private Security's Growing Role

Private security firms are stepping up to address challenges by offering tailored solutions to meet the specific needs of retail establishments:

1. Preventive Measures: Private security personnel use their presence as a deterrent against theft and shoplifting. They actively monitor areas prone to suspicious activities and apprehend potential offenders.
2. Customer Assistance: Trained security professionals also serve as customer service ambassadors. They help customers locate items, provide information, and assist in emergency situations, creating a positive shopping experience.
3. Emergency Response: Security personnel are trained to respond swiftly and effectively to emergencies, including medical situations, accidents, and altercations, ensuring the safety of everyone in the store.
4. Technology Integration: Private security firms often integrate advanced technologies such as CCTV surveillance, RFID tracking, and electronic article surveillance systems to enhance their monitoring capabilities.
5. Crowd Control: During high-traffic periods, security teams manage crowds, guide queues, and maintain order, preventing congestion and ensuring a smooth shopping experience.

Promoting Community Cohesion

Despite the surge in private security, it's essential to remember that their role is not meant to replace law enforcement but to complement their efforts. Private security services help bridge the gap during times of staffing challenges, offering an extra layer of protection that contributes to community safety. While the increase in private security presence is beneficial, it's crucial to strike a balance between security measures and customers' privacy rights. Retailers must ensure that surveillance and security measures are conducted in accordance with legal and ethical standards.