How to Prevent Shoplifting in Cannabis Retail

While all businesses face the risks of theft or diversion of product, retailers face the added risks associated with shoplifting. Additionally, cannabis retailers could be targeted for their valuable cannabis products and cash on-site if not properly secured. Despite this, there are many ways that cannabis business owners can prevent shoplifting in cannabis retail by utilizing effective security policies and procedures, as well as adhering to state and local regulations.

Shoplifting Risks in Cannabis Retail v. Standard Retail

Although security systems and procedures will likely vary, there are typically stricter state or local regulations to which cannabis businesses must adhere than retailers in other industries. Cannabis retailers utilize advanced video surveillance, alarms, and access control systems, as well as security personnel, to ensure that cannabis products and currency are not subject to shoplifting tactics. These advanced security measures make it much more difficult to shoplift at a cannabis retailer than a standard retail store.

Though some had feared that the spread of cannabis legalization across the United States would increase crime rates, recent research suggests that this is not the case. Current data indicates that cannabis legalization does not appear to significantly impact crime rates. Additionally, the Denver Police Department found that cannabis stores were 3% less likely to be robbed or burglarized than liquor stores and 17% less likely than banks. The Denver Police Department concluded that the statistics of cannabis robberies were most similar to rates associated with pharmacies than any other business type.

Secure Displays and Product Security

In addition to advanced security systems and devices, cannabis businesses also utilize vaults, safes, and secure storage areas to store cannabis products, currency, and other high-value items. When cannabis product is outside of secure storage areas, like when it is out for display on the sales floor, it should always be inside of a locked and secure display cases or tethered sample pods. At the close of business hours, cannabis products should be returned to secure storage areas for overnight storage.

Instead of using authentic cannabis products for retail displays, some cannabis business owners opt to use sample “dummy” products. These dummy products appear to be real product to give the customer an idea of what they would be purchasing, but the packaging contains rice, cotton, or some other filler instead of cannabis.

Additional Tips for Preventing Shoplifting

Anytime displays or the layout of the store is rearranged, cannabis business owners should ensure that no cameras or security devices have been blocked, rendering them ineffective. Additionally, cannabis business owners should ensure all security systems and devices are updated and maintained, as well as tested regularly.

Even with the best security, retailers in any industry are still at risk for shoplifting. In addition to daily security measures, cannabis businesses should create a security plan to accommodate for increased customers during sales or holidays. Cannabis business owners should begin by ensuring all employees understand the safety and security policies and procedures in place at the retailer. Specific scenarios that could lead to shoplifting, theft, or diversion should also be reviewed so that employees can respond safely and efficiently in these situations should they occur.

How Can Sapphire Risk Help?

Tony Gallo and the team at Sapphire Risk Advisory Group has over 30 years of security experience and expertise. Schedule a risk assessment with our security experts to ensure your cannabis security is efficient and effective. Follow us on social media to stay up to date with current cannabis security news and trends!