- Owner
- Loss Prevention Manager
- Effective date
- September 15, 2026
- Review cycle
- Every 12 months
1.Purpose
To reduce theft and inventory loss through consistent deterrence, observation, and reporting, while keeping staff and customers safe and within company policy and the law.
2.Scope
Applies to shoplifting deterrence, incident observation, and reporting for retail store staff. It does not cover internal cash handling controls, which are addressed in the POS and cash register SOP.
Definitions
- Shrink
- Inventory loss from theft, damage, or administrative error, measured against expected stock levels.
- Concealment
- When a person hides merchandise on their body, in a bag, or in clothing, often used as an indicator of possible theft.
3.Responsibilities
- Sales Associate
- Greets customers to deter theft and quietly notifies a manager or loss prevention associate of anything suspicious.
- Loss Prevention Associate
- Monitors high-theft zones, documents incidents, preserves footage, and runs register and inventory audits.
- Store Manager
- Decides on law enforcement contact per policy and reviews shrink trends with the team.
RACI matrix
| Activity | Sales Associate | Loss Prevention Associate | Store Manager |
|---|---|---|---|
| Greet customers and deter theft | R/A | C | I |
| Monitor high-theft zones | C | R/A | I |
| Document and report an incident | C | R/A | I |
| Decide on law enforcement contact | I | C | R/A |
| Run register and inventory audits | I | R/A | C |
R = Responsible, A = Accountable, C = Consulted, I = Informed
4.Materials and PPE
Materials, tools and systems
- →CCTV monitoring system
- →Daily loss prevention log
- →Incident report forms
- →Electronic article surveillance tags and detectors
- →Cash and inventory audit checklists
5.Procedure
- 5.1
Greet every customer at entry
Sales AssociateGreet every customer who enters within the first few seconds, since visible staff attention is one of the most effective theft deterrents.
- 5.2
Monitor high-theft zones
Loss Prevention AssociateCheck high-theft categories and blind spots on the sales floor and CCTV monitors regularly throughout the shift, rather than only when something looks unusual.
- 5.3
Recognize behavior indicators
Loss Prevention AssociateWatch for indicators like concealment, avoiding staff, or lingering in blind spots, and treat them as a reason to observe more closely, not as proof of theft.
- 5.4
Observe without accusing
Sales AssociateIf a customer's behavior looks suspicious, offer normal customer service from a visible distance rather than confronting or accusing them directly.
Warning: Never accuse a customer of theft based on appearance or behavior alone. Observation only, and only trained staff make a stop decision under company policy.
- 5.5
Notify a manager quietly
Sales AssociateQuietly notify the store manager or loss prevention associate of what was observed, using a discreet signal or message rather than announcing it near the customer.
- 5.6
Follow policy before any approach
Loss Prevention AssociateOnly approach a suspected shoplifter if company policy and applicable law allow it and every required condition, such as watching the concealment and the exit, has been met.
Checkpoint: Any approach follows every condition in company policy, confirmed with a manager before it happens.
- 5.7
Never pursue outside the store
Loss Prevention AssociateIf a person leaves the store without paying, let them go. Do not chase, block, or physically confront them in the parking lot or street.
Warning: Never chase or physically confront a suspected shoplifter, inside or outside the store. Employee and customer safety comes before recovering merchandise.
- 5.8
Document the incident right away
Loss Prevention AssociateWrite down a description of the person, what was taken, the time, and the exit used as soon as possible after the incident, while details are fresh.
- 5.9
Preserve CCTV footage
Loss Prevention AssociateSave or flag the relevant CCTV footage covering the incident before it's overwritten, and note the camera numbers and timestamps on the incident report.
- 5.10
Contact law enforcement per policy
Store ManagerDecide whether to contact local law enforcement based on company policy and the specifics of the incident, and provide the incident report and footage if they respond.
Checkpoint: Every incident report that meets the company's reporting threshold is submitted to the store manager the same day.
- 5.11
Run scheduled register audits
Loss Prevention AssociateRun scheduled, unannounced spot audits of registers and high-shrink categories to catch both external theft and internal control gaps.
- 5.12
Review shrink results with the team
Store ManagerReview the store's shrink and incident trends with staff on a regular cadence, focusing on training and awareness rather than singling out individuals.
6.Quality checks
- →Every reportable incident has a completed incident report and preserved footage.
- →No staff member approaches or pursues a suspected shoplifter outside company policy.
- →High-theft zones are checked at a documented, regular interval each shift.
- →Register and inventory audits happen on the scheduled cadence, not only after a loss is discovered.
7.Records
- →Incident report forms
- →Daily loss prevention log
- →CCTV footage retention log
- →Shrink and inventory audit results
8.KPIs
- →Shrink as a percentage of sales
- →Number of documented incidents per month
- →Register and inventory audit completion rate
9.Common mistakes
- →Approaching or accusing a customer based on appearance alone.
- →Chasing a suspected shoplifter into the parking lot.
- →Failing to document an incident the same day it happens.
- →Letting CCTV footage of an incident get overwritten before it's saved.
10.Revision history
| Revision | Date | Description | Reviewed by |
|---|---|---|---|
| 1.0 | September 15, 2026 | Initial release | Alexa Uskova |
This is a template. Adapt it to your organization, equipment and local regulations before use.
