From shoplifting rings to network breaches, modern supermarkets are navigating an increasingly complex security landscape.
As a child, I fondly remember the time warp that was going to the grocery store with my grandmother. It was a time investment dominated by squeezing fruit, smelling produce, and inspecting products with interesting packaging that caught our eyes. It was a visceral feed-all-senses, hands-on experience that seemed both natural and necessary.
Some of the most popular supermarket chains have taken that experiential relationship between consumers and their shopping environment and elevated it to a point where it’s become synonymous with the brand. Think of the folksy charm and theme park-like animatronic displays at Stew Leonard’s, the tiki vibe of Trader Joe’s and their friendly employees in Hawaiian shirts, or the open and inviting displays at Wegmans that have created a fan base so devout, they even have a name—Wegmaniacs.
However, crime has hit many grocery store owners and taken a big bite out of their shrinking bottom lines. The security threats they face are forcing grocery stores to rethink how they can protect their products, customers, and employees. In doing so, they’re changing the customer experience as we know it. As a result, customer satisfaction may be changing too.
While theft is unfortunate, it is not entirely unexpected and has always existed in retail. In many cases, businesses account for some of the potential losses from theft by offsetting them by upping the cost of the products themselves. To some extent, shrink is expected and part of the price of doing business. However, those sunk costs are rising quickly and hurting businesses deeply. In fact, recent statistics show that stores lost over $121 billion to retail theft in 2023 and projections indicate shoplifting could cost retailers $142 billion in 2025.
Unfortunately, grocery stores are not immune to this. And while those losses continue to rise, part of the staggering number can be attributed to the increased prevalence of organized retail crime (ORC). Unlike shoplifting, ORC involves coordinated groups targeting multiple stores to steal large quantities of inventory, which they then aim to sell for profit.
Grocery stores and supermarkets are popular targets for ORC for several reasons. Firstly, they offer many of the products that these criminals covet. Goods like food, health and beauty products, and children’s items such as diapers and infant formula are items that are in constant and widespread demand. As a result, they are easily resold and quite lucrative.
Second, supermarkets and grocery stores place very few barriers between products and customers. Part of the business model is for customers to be able to select their own products. The open shelves encourage customer interaction such as reading labels, handling produce, and inspecting items before putting them into grocery carts. Unfortunately, those open shelves act as an open invitation for criminals to steal. Stores are starting to lock up key inventory or place it behind counters, out of reach from potential thieves.
Another reason why supermarkets are common targets for theft is because many employees and guards are instructed not to confront shoplifters. Many companies put policies like this in place to avoid unnecessary escalations and to protect employees from harm. As a byproduct, criminals are met with very little resistance as they make off with unpaid goods.
Not only are criminals feeling more emboldened to steal, but they are also becoming more violent. In a recent survey by the National Retail Federation (NRF), 67% of respondents stated that ORC perpetrators were more violent and aggressive than the previous year.
When it comes to grocery stores and supermarkets, the latest FBI data shows that in 2023 and the first half of 2024, there were approximately 4,500 cases of aggravated assault in a grocery store or supermarket. Experts say these numbers may be conservative and not reflect the urgency of the matters as they don’t reflect incidents that go unreported and don’t include threats made against customers or employees.
Employee and customer safety doesn’t just begin and end when they enter and exit the store but extends into the parking lot as well. Many businesses try to secure the perimeters of their lots so patrons and workers can have peace of mind that their vehicles and belongings are secured while they are indoors. Furthermore, they want to ensure that patrons and workers don’t become victims of crime when in the parking lot.
As criminals become savvier, many are turning their attention to infiltrating company networks—either to create mischief or for more nefarious purposes like stealing personal data, disrupting supply chains, or holding networks hostage.
Earlier this year, supermarket chains Stop & Shop and Hannaford’s experienced cybersecurity issues that affected some Northeast operations. As a result, numerous Stop & Shop locations found their shelves empty leading up to Thanksgiving. Other problems included the ability to process payments through debit or gift cards, disrupting deliveries, and shutting down parts of their websites.
Alan Liska, a ransomware analyst at Recorded Future, a cybersecurity company, told NBC News that the “issues were consistent with a ransomware attack, in which hackers lock up a target company’s computer network and demand payment in cryptocurrency.”
Where traditional crimes like shoplifting are often quick hits, cyberattacks can have much longer-lasting effects. Statistics show that the average amount of downtime or disruption after a ransomware attack in business networks is 24 days. Those interruptions can be an operational disaster, crippling supply chains and resulting in staggering amounts of money lost.
Grocery stores and supermarkets are also prime targets for fraudulent crimes or lawsuits. The most frequent lawsuits are personal injury lawsuits such as slip-and-fall cases and shopping cart injuries. According to the National Safety Council, slip and fall accidents account for approximately 33% of all non-fatal injuries in grocery stores. When it comes to employees who suffer a slip and fall injury, the average worker’s compensation cost is roughly $50,000 annually, and they are out of work for an average of 14 days.
Other lawsuits that grocers and supermarkets are often susceptible to are false advertising claims, including food labeling, deceptive pricing practices, and loyalty programs. Incidents where personal data is compromised can also often lead to legal action.
As grocery stores and supermarkets battle slim margins and increasing threats to their businesses, it’s more critical than ever that they take measures to protect themselves. A security plan can help prevent crime, minimize fraud, and give employees and customers peace of mind.
LVT provides state-of-the-art surveillance systems, including mobile surveillance units that can help curb shoplifting and ORC. Our security cameras provide real-time surveillance and remote monitoring so you can keep a watchful eye on your business anytime and from anywhere. Our solutions also store video in the cloud, and those videos can be recalled and reviewed for investigations and litigation.
If you’re looking for cost-effective, scalable, and innovative security solutions for grocery stores or any other enterprise security needs, we’ve got what you need. Contact us to learn how LVT can be a partner in your comprehensive security solution.
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