According to Capital One Shopping Research, stores lost $121.6 billion to retail theft in 2023, and projections indicate shoplifting could cost retailers more than $150 billion in 2026. Internal theft is equally daunting. According to the National Retail Federation, internal theft is the second largest contributor to loss behind external theft.
Installing and using key control systems is one of the best ways to thwart internal and organized theft. Having restricted keyways that cannot be duplicated goes a long way in stopping unauthorized access, ultimately saving the business money and stress.
Understanding the Risks of Unauthorized Access in Retail
Unauthorized access in retail reveals itself in three key ways: internal theft, organized theft, and turnover.
Internal Theft: The Invisible Threat
Internal theft in retail settings can result in significant losses. According to the National Retail Federation, the average dollar loss reported for an internal theft was $2,180 per investigation. That can add up quickly, so reducing or implementing strategies to eliminate internal theft is imperative. As such, controlling internal access to your facilities and inventory remains crucial in reducing shrinkage and improving profitability.
Organized Theft: A Growing Concern
Organized theft is a growing problem for retail chains. Organized retail theft significantly increased between 2023 and 2024. Retailers reported a 93% jump in shoplifting incidents in 2023 compared to pre-pandemic levels, with a 90% increase in monetary losses. In 2024, the trend continued, with shoplifting incidents surging by 24% in the first half of the year compared to the same period in 2023
Organized retail crime occurs not only at the retail location but also at distribution centers and en route between facilities. More specifically, according to Capital One Shopping Research:
- 40% of organized retail crime happens at the distribution center.
- 45% of organized retail crime happens en route from the distribution center to the store.
- 38% of organized retail crime is in-store theft.
- 35% of organized retail crime happens en route from one store to another.
Employee Turnover Challenges
Employee turnover presents many challenges in retail business operations. Common challenges include finding qualified replacements and addressing staffing shortages. However, an equally important challenge is controlling access if an employee leaves without returning the keys to your facility. That puts your staff, facilities, and inventory at risk.
The challenge of maintaining secure access during high employee turnover is exacerbated by the ease with which traditional keys can be duplicated. When employees leave and retain their keys, they inadvertently create a security loophole that could lead to unauthorized access and potential loss. Without the ability to restrict key duplication, retail stores face the ongoing risk of compromised security, which can extend beyond the immediate aftermath of an employee’s departure and affect the store’s safety and operational continuity.
The Role of Key Control Systems in Retail Security
Utilizing restricted keyways in your key control system can increase your security and lower your risk of theft or unauthorized access.
What Are Restricted Keyways?
Unlike standard keyways, which use a common key shape and groove pattern that can be easily duplicated, restricted keyways contain unique shapes and groove patterns that are not commonly available. That means your restricted key cannot be duplicated without your knowledge and authorization.
Benefits of Restricted Keyways
Unlike standard keys, key blanks for restricted keyways are unavailable at your local hardware store or locksmith. That means you control when a restricted key is duplicated, limiting who can get extra keys to your facilities.
As a result, employees can't have duplicate keys made, so they can then pass them along to others. Restricted keys can also be serialized, meaning you know who has it and what locks it opens. If an employee leaves without returning that key, you can quickly rekey that lock to reduce internal and organized theft significantly.
Implementing Key Control Systems for Long-Term Savings
A robust key control system that includes restricted keyways does have initial upfront costs, but the security it provides leads to long-term savings.
Partnering for Success
To build and implement a successful key control system, it’s important to partner with a key system vendor who is experienced and knowledgeable about these systems. Doing so can alleviate stress and free up resources for Loss Prevention Directors.
Achieving Peace of Mind with Smart Security Solutions
Restricted keyways can be a strategic investment for protecting assets and ensuring profitability. Because they cannot be easily duplicated, restricted keyways provide an additional step of security to prevent unauthorized access. In addition, having serialized keys allows you to track who has each key and what access they have. Lastly, consider utilizing cloud-based key tracking software to manage it all. These are essential components of an effective key control system that helps minimize internal theft, organized theft, and unauthorized access due to staff turnover.
Contact us to learn more about how restricted keyways can benefit your security systems.
