Travel Centers Strike a Balance Between Loss Prevention and Customer Convenience
Article created for the digital issue of the NATSO Foundation’s magazine.
Retail theft and pilferage can be serious issues for businesses, but maintaining a balance between loss prevention and the customer experience is essential for businesses, especially at travel centers where speed is a priority.
Schulte said there is no doubt that retail theft—whether it is coming from customers or employees—is a problem in some areas. According to the National Retail Federation (NRF), retail shrinkage in the United States increased to $112 billion in 2023, up from $94 billion in 2022.
So, if locking up merchandise isn’t the answer, what can operators do instead?
Identify At-Risk Items: Schulte recommends operators identify those items they consider to be at-risk and either plan to lock up or are already locking up. “If you’re going to lock a product up, you’re less likely to sell it,” he said. “So why are you carrying it in your travel center?” It may make sense to simply stop carrying certain items, especially if they aren’t selling well because customers don’t want to wait for someone to unlock them.
Turn to Automated Retail: If operators feel it is important to carry products that they are considering locking up, Schulte recommends they invest in automated retail, which keeps products secure but enables customers to purchase them quickly and get back on the road. “I know it is expensive, but I would venture to say it is less expensive than sales you’re losing, the inventory that is just sitting there and the bad customer experience that comes from people waiting for someone to unlock products,” he explained.
Invest in Employees: Employees are one of the most effective tools in preventing theft, and Schulte said a store that is fully staffed with attentive employees can help deter potential thieves while also improving the customer experience. “Think about the cost of theft versus the cost of staffing,” he said, adding that operators should conduct a cost analysis to determine the return on investment of adding staff.
Redeploy Labor: Another option is to deploy labor differently. “Get people out on the floor,” he said. One way to do that is to use technology to speed up certain processes, which can free up employees to focus on other areas. Schulte also recommends owners and managers re-think where their offices are located and position them near the floor. “If you have a process of checking in vendors, instead of doing it in the back, do it on the floor,” he added, noting that visibility is key.
Keep Stores Organized and Clutter Free: An organized store with tidy shelves and displays improves visibility for both employees and surveillance cameras. Well-ordered shelves, racks and displays also eliminate potential hiding spots for thieves trying to stash items in bags or under clothing. Plus, if employees are our on the floor tidying up displays and organizing shelves, it makes them more visible, which deters potential shoplifters.
Look Internally: Most losses come from employees since they have more access to merchandise and cash and more control over security measures. “Make sure your staff isn’t involved,” Schulte said. Daily and shift cash audits, clear trash bags, and manager approval for refunds, over rings and employee meals can all reduce the risk of employee theft. Schulte also recommends employers watch at least 25 seconds of security camera recordings and then catch employees doing something right, which reinforces positive behavior and also lets employees know they watch the footage.
Keep an Eye on Vendors: Another significant source of loss comes from vendors. Schulte suggests managers be present when vendors check in, only allow one vendor at a time on the sales floor, look at inventory as it comes in by checking each box and review invoices. He also advises against letting vendors count products themselves during the check-in process. Vendors should flatten their boxes before they leave.
Retailers must protect their assets and merchandise, but they also have to ensure a frictionless and rapid shopping experience for customers. For more of Schulte’s tips on reducing theft, see his infographic that highlights solutions for specific areas of the location.
// This article was created for Stop Watch magazine, the magazine of the NATSO Foundation. Foundation is the research, education and public outreach subsidiary of NATSO, Inc. The NATSO Foundation provides programs and products to strengthen travel plazas’ ability to meet the traveling public’s needs through improved operational performance and business planning. Visit www.natsofoundation.org for more information.
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