Product theft refers to the illegal act of stealing physical goods or merchandise, either during production, transportation, or directly from retail stores. This type of theft can occur at various points in the supply chain, including warehouses, delivery trucks, or retail shelves. Product theft is a significant issue for businesses, as it leads to lost revenue, inventory shortages, and increased security costs.
Common forms of product theft include shoplifting, employee theft, cargo theft (where goods are stolen during transit), and organized retail crime (ORC), where large-scale theft is planned and executed by criminal groups. Product theft not only impacts businesses financially but can also disrupt operations and lead to higher prices for consumers as businesses attempt to recoup losses.
To mitigate product theft, businesses often employ a combination of security measures such as surveillance cameras, anti-theft tags, security personnel, and inventory tracking systems. Training employees to recognize suspicious behavior and performing regular audits are also critical steps to minimize theft.