Unlocking the future of retail security

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How integrated security systems solve retail’s biggest challenges, according to Scott Elliott, Executive Vice President – the Americas, Gallagher Security.

Protecting assets

Retailers face mounting pressures to safeguard profits, protect assets and maintain seamless operations, but from traditional shrinkage to sophisticated cyber-attacks, the challenges grow more complex by the day.

Yet, for all the sophistication of modern threats, the solutions can be surprisingly straightforward.

Integrated security systems, which combine physical and digital security measures into cohesive, actionable platforms, offer retailers a powerful way to address these challenges while simultaneously unlocking unexpected business efficiencies.

Reimagining loss prevention

Shrinkage remains one of the most persistent issues for retailers.

Whether it’s shoplifting, employee theft or errors in inventory management, these losses chip away at profit margins, and when taken as a percentage of total retail sales in 2021, shrinkage accounted for nearly $100 billion in losses that year, according to the National Retail Federation.

Integrated security systems go beyond traditional cameras and alarms to offer a proactive approach to loss prevention.

Access control is one of the most transformative tools in this space.

By managing and monitoring who enters stockrooms, loading docks and other sensitive areas, retailers gain real-time insights into their inventory flow.

Consider a supermarket chain that implements an integrated system combining access control with RFID tagging.

This setup not only tracks who accessed inventory areas but also pinpoints discrepancies between stock levels and access logs.

If a pallet of high-value items goes missing, the system generates a detailed report identifying anomalies in seconds, eliminating guesswork and enabling immediate action.

Protecting the digital frontline

While physical theft grabs headlines, cybersecurity threats are an equally significant concern for retailers.

Point-of-sale (POS) systems, payment networks and Internet of Things (IoT) devices have become prime targets for hackers seeking to exploit vulnerabilities.

Take quick-service restaurants (QSRs), for example.

The rise of mobile ordering and digital payment systems has expanded the attack surface.

A coordinated cyber-attack can disrupt operations, compromise customer data and severely damage brand reputation.

Integrated security systems help bridge the gap between physical and digital security.

For instance, integrating surveillance with POS systems allows retailers to flag suspicious transactions in real time.

If a fraudulent transaction occurs, the system automatically links it to the corresponding video footage, providing crucial evidence for investigations.

For many, attacks like these are an abstraction, something that happens to someone else, somewhere else.

But the average person may be shocked to learn just how close to home these breaches can reach.

Recently, East Coast shoppers felt the real-life effects of retail cyber-attacks.

In November 2024, as reported by NBC News, the popular grocery chain Stop & Shop experienced a “cybersecurity issue” that resulted in bare shelves just days before Thanksgiving.

In addition to shortages of popular products like meat and produce, pharmacy activities were disrupted, debit and gift card payments went down, and product deliveries were forced to a halt.

Videos of empty shelves made the rounds on social media with many warning others to avoid the chain during what should have been a prime retail week for Stop & Shop, compounding losses even further.

It’s a powerful example of why retailers must protect their digital frontline with the same vigilance as their physical counterparts.

Emerging threats require integrated solutions

Retailers are navigating an increasingly complex threat landscape, where emerging challenges demand innovative responses.

Self-checkout exploitation, for example, is a growing concern.

A customer might scan an item, modify its weight or switch barcodes to pay less than the actual price.

Traditional standalone systems struggle to detect such nuanced behaviors.

However, an integrated security approach changes the game.

By combining surveillance such as cameras and biometrics with self-checkout terminals, systems can flag suspicious behavior like item switching or identify frequent system abusers.

During peak shopping hours, these technologies can also enhance the overall shopping experience by automating routine security checks, reducing the need for interventions that could inconvenience honest customers.

Beyond shrinkage, retailers of high-value and controlled substances face their own unique risks.

For example, the growing cannabis industry (both medical and recreational) must address compliance violations, which can result in steep fines or even license revocation.

An integrated system that combines access control, inventory tracking and real-time reporting offers a safeguard.

By automating compliance checks and generating audit trails, these systems help cannabis businesses stay ahead of regulators while deterring potential internal theft.

The same technology that prevents theft also builds transparency and trust with regulators – that’s innovation.

The hidden benefits of integration

Of all the traditional benefits these systems deliver, perhaps one of the most surprising advantages is their ability to drive operational efficiency and accountability.

For many decision-makers, these systems represent more than just tools to prevent theft – they’re investments in smarter business operations.

Consider how integrated systems streamline inventory management.

By linking access control with inventory monitoring, retailers can maintain precise stock levels without manual checks.

When an employee accesses a secured area, the system logs their entry and automatically updates inventory levels as items are removed or added.

This creates a seamless, real-time picture of inventory flow, enabling better restocking decisions and reducing waste.

Quick-service restaurants offer another compelling example.

These businesses often struggle with high employee turnover and inconsistent training, which can lead to operational inefficiencies.

An integrated security system helps by automating tasks like employee clock-ins through access control.

Employees gain entry to workstations using secure credentials and the system records their attendance while simultaneously monitoring for potential breaches.

The result is not only improved accountability, but also significant time savings for managers.

Unlocking the future of retail security

Retailers increasingly recognize that siloed security measures can’t keep pace with today’s threats.

Integrated systems represent the future, offering comprehensive protection while delivering unexpected value in the form of enhanced efficiency, compliance and accountability.

Large grocery stores provide a case study in what’s possible.

These businesses operate at the intersection of supply chain complexity, high-value inventory and diverse security challenges.

By implementing integrated solutions that track goods from distribution centers to store shelves, supermarkets can reduce shrinkage across the entire supply chain, proving that holistic solutions aren’t just effective, but transformative.

In today’s economy where every dollar counts, integrated security systems do more than protect assets – they empower businesses to operate smarter, more efficiently and with greater peace of mind.

For decision-makers seeking to turn security from a cost center into a strategic advantage, the answer is clear: integration isn’t just an upgrade, it’s a necessity.

About the author

Scott Elliot leads the Gallagher Security teams across the US, Canada and Latin America and has over 30 years’ experience in security technology leadership positions.

With expertise across risk management, compliance and strategy, Scott is passionate about leaving the world safer and more secure than we found it.

This article was originally published in the January edition of Security Journal Americas. To read your FREE digital edition, click here.

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