Shrink and Safety: How Modern Surveillance Helps Grocery Retailers Stay Ahead

By Jason Chiu

In Canada, shrinkage now costs retailers $9 billion annually – a sharp increase from $5 billion in 2018. At the same time, shoplifting continues to rise, climbing another 14% in 2024 compared with 2023. For grocery operators, this means that while customer and employee safety remains a top priority, there is also increased pressure to safeguard profitability.

Addressing both challenges is far from straightforward. Grocery stores handle enormous volumes of small-ticket items ever day, operate through multiple points of entry, and manage a constant flow of deliveries. Margins are thin, often not justifying the cost of putting in additional systems or solutions to combat shrink. The growth of self-checkout and mobile payment has also created new opportunities for loss through mis-scans or skipped items. In today’s environment, shrinkage isn’t limited to theft – it can also stem from honest mistakes at checkout, supplier errors such as short shipments or pricing mismatches, or even mishandling in storage and transit.

Safety risks further complicate the picture. From slips and falls to obstructed aisles and exists, hazards remain an ongoing concern for retailers striving to maintain secure and welcoming spaces.

Against this backdrop, surveillance has become more than just a deterrent. Modern systems now offer a suite of tools that help retailers address shrink and safety simultaneously, while also adapting to the unique demands of grocery environments.

What Modern Surveillance Brings

Today’s surveillance is no longer just about recording footage for after-the-fact review. Systems have become proactive, intelligent, and adaptable – able to spot risks in real time, support investigations with high-quality evidence, and even deter incidents before they happen. Solutions can often be implemented on cameras that are already purchased for general surveillance and security purposes, reducing the total cost of ownership while enabling new capabilities.

For grocery retailers, these capabilities translate directly into stronger protection against shrinkage and safer environments for customers and staff. Some of the most impactful features include:

• Analytics and Intelligent Video: Cameras equipped with analytics can detect loitering near exits, falls, carts moving quickly toward doors, or unusual activity at checkout, prompting staff to intervene in real time.
• High-Resolution, Wide Coverage: Modern multi-sensor or pan-tilt-zoom (PTZ) cameras eliminate blind spots, making investigations faster and evidence more reliable – whether on the sales floor, at entrances, or outdoors.
• Access Control and Verification: Integrated access systems ensure that only authorized staff enter restricted zones such as cash rooms, storerooms, or loading docks – areas often vulnerable to theft or fraud.
• Integrated Real-Time Alerts and Deterrence: Pairing video with alarms, mobile notifications, or audio announcements turns surveillance into a proactive tool, enabling staff to respond immediately rather than react after the fact.
• Privacy and Compliance: Features like facial masking allow retailers to meet privacy expectations while still capturing the information needed for investigations and compliance.

Best Practices for Grocers

Even the most advanced surveillance tools won’t deliver full value without the right strategy behind them. For grocery operators, the key is to align technology with day-to-day processes, staff training, and long-term planning. The following best practices can help ensure systems work as intended and deliver measurable results:

• Risk Mapping: Identify high-risk zones such as self-checkouts, entrances, and loading docks.
• Scalable Systems: Ensure solutions can grow with the business, from single-store operators to national chains.
• Integration: Maximize effectiveness by connecting surveillance with access control, loss prevention, and operational data.
• Training: Ensure staff know how to respond to alerts, de-escalate situations, and maintain proper evidence handling.
• Continuous Review: Track shrinkage, safety incidents, and response times to refine practices and policies.

Looking Ahead

Retail security will keep evolving as shopping patterns change. Self-checkout expansion, curbside pickup, and 24-hour operations create new vulnerabilities that require smarter, integrated responses. Grocery operators that combine advanced surveillance with strong process will be positioned to reduce shrink, protect staff and shoppers, and safeguard their reputations.

BIO

Jason Chiu is the Professional Services Group Manager with Axis Canada. He has a background in IT and networking and has spent over 18 years in the security industry, from being an integrator, consultant and manufacturer. Jason is an ASIS board certified Physical Security Professional (PSP), is trained in Critical Infrastructure Protection (CIP), Crime Prevention Through Environmental Design (CPTED Levels 1 & 2), and (ISC)2 Certified in Cybersecurity.