Top Security Measures for Beverage Alcohol Retailers

security

Store security remains a critical concern for beverage alcohol retailers.

A recent study conducted by the National Retail Federation found that retailers reported a 93% increase in the average number of shoplifting incidents per year in 2023 versus 2019 and a 90% increase in dollar loss due to shoplifting over the same time.

And this isn’t the first time there’s been a spike in theft.

Shortly after physical storefronts began reopening after the height of the pandemic, the Council on Criminal Justice cited an increase in shoplifting incidents that were reported to police. New York and Los Angeles had the largest increases in reported shoplifting among the cities that were studied, according to the report.

Esquin Wine & Spirits owner Marques Warren also noticed an uptick in security incidents at his Seattle, Washington store during the pandemic.

“The decision was made at that time to install access control and a buzzer at the front door,” he explains. “Initially, it was thought that this might not be well received by customers, but the imposition to customers is very minimal and the peace of mind it has provided the staff is immeasurable.”

Especially at a time when shoplifting incidents are increasing, it’s important for beverage retailers to make sure that their employees feel safe.

The most common types of security threats

Beverage alcohol retailers face a variety of security threats. Identifying the most damaging risks can help management implement effective solutions.

In Interface Security Systems’ 2024 State of Remote Video Monitoring in Retail Chains Report, the organization identified the top three security incidents from retailers in 2024 that led to police dispatch: theft or loss, disturbances and loitering/panhandling. Loitering or panhandling had the highest rate of police dispatches (65.76%), followed by burglary (65.02%) and disturbances (63.97%), according to the report.

Interface Security Systems’ data revealed a steady rise in theft/loss incidents over 2024, with the highest number recorded in July (4,621 incidents) and the lowest number recorded in September (3,467 incidents).

By taking note of your store’s busiest seasons, you can help prevent security threats. Specialty Retailer spoke with a few store owners to see what works best for them.

Bay Ridge Wine & Spirits.

Employees are the best security system

Aside from the installations Warren made to Esquin, “being able to control who is in your store is another key to keeping theft to a minimum,” he says.

At his other liquor store, Downtown Spirits, also nestled in Seattle, Warren had the opportunity to design the store from scratch, which allowed him to build a longer pathway between the entrance and merchandise. He also added a greeters’ station and cashpoint at the very front.

“This reduces the speed at which shoplifters can operate and increases our ability to recover any goods that a shoplifter might try to walk out with,” he says.

Sometimes the best security system is your employees. With the right training, they can stop a shoplifter before they leave your store with the goods.

This is a belief that David Marberger also stands by. As the owner of Bay Ridge Wine & Spirits in Annapolis, Maryland, he relies heavily on his staff “above and beyond any system we can put into place.”

But you also need to make sure you hire good employees who work according to sound policies and procedures. All prospective employees should undergo preemployment background screening. It’s also important to review incidents to assure that policies and procedures are adequate and sufficient and are being followed.

Aside from the employees, Marberger also has an extensive network of cameras lining the facility and even hires off-duty city police officers for Fridays and Saturdays ─ the store’s two busiest days.

Purchasing expensive technology to increase the security in your beverage store can be arduous for smaller businesses, which is another reason why Marberger relies heavily on his staff to protect the merchandise in his store.

“Any other major updates to secure our business from either theft or overnight break-ins would require an extensive amount of money,” he says. “I know other retailers who pay somebody to sit and watch video footage for eight hours a day. I just don’t see that as being financially viable.”

Warren notes that the best way to keep your employees protecting your store is to provide them with the right training.

“The most important thing is staff training and maintaining awareness of the store and all occupants,” he says. “Greeting customers and providing quality customer service not only helps your business reputation, but also gives an opportunity to disrupt any potential shoplifters.”

Video surveillance

Almost every retailer has a security camera system installed in their store. And with the wide availability of doorbell cameras, thousands of homes across the U.S. even have them, too.

Security cameras have greatly evolved over the years. What was once basic live video footage has unfolded into advanced technology that utilizes AI to detect suspicious activity.

“When you think about traditional cameras, you think about maybe a door sensor or control sensors inside of a building,” says Dave Gustafson, VP of Hardware at Rhombus, a security system solutions provider. “But these systems are becoming more advanced, with some of the AI technology being able to detect people or comb through hours of footage to find someone.”

Dave Gustafson, VP of Hardware at Rhombus.

These types of camera systems can help beverage alcohol retailers stop theft before it happens or easily find a person of interest.

Due to an increase in theft over time, Marberger has installed some of these cameras with facial recognition features in his store.

“Going back to the early 1990’s, we relied 100% on our staff for security,” he says. “But since then, we’ve migrated to where we are now with over 20 cameras, some of them with facial recognition capabilities. We also have better inventory tracking capabilities.”

Downtown Spirits and Esquin Wine & Spirits’ Warren has also installed security technology in his stores.

“Currently, we use multiple levels of security,” he says. “We use a layered approach with technology that allows us to monitor our stores and limit access. This includes a camera system that provides after-hours monitoring, an alarm system and access control pin pads to limit access to staff-only areas, including our back of house.”

Keeping merchandise locked away

Another affordable way of keeping merchandise safe is to install lock systems, which is something that both on- and off-premise beverage alcohol retailers can add.

A golf club course in Ohio recently updated the lock systems for all their wine and beverage coolers in the restaurant and outside patio area. One of the locks was missing from a wooden wine cabinet, and the manager had misplaced the key for another wine cooler.

“The third cooler was outside at the bar patio,” explains Bryman’s Locksmith owner Bryan Runk and the one who fixed the golf club’s locks. “The manager wanted a cooler lock hasp installed so the drinks inside could be stored securely when the bar is closed. Once the hasp was installed, we added a keyed padlock to ensure limited access to the cooler.”

If you don’t have enough space behind the counter, locked glass cases are another great way to keep your more expensive and rare merchandise safe from shoplifters.

Additional security measures

While we discussed the main security concerns beverage alcohol retailers may face, there are also smaller concerns that, while not as big of a threat, are still critical to address.

Business liability insurance should be reviewed on an annual basis to ensure you are properly covered. Like everyone else, beverage retailers tend to look at insurance as a necessary evil. They often only review it when it is time to renew, if at all. And then they typically only focus on the price changes of the policy.

Managers should also be documenting and reviewing security incidents when they occur. Problems cannot be adequately addressed unless there is some basis for analysis.

“Having a documented plan-of-action in place for dealing with security concerns is a must,” advises Warren. “This is because your team’s ability to disrupt shoplifters in their tracks is the best way to keep your merchandise from walking out the front door. The technology that you can overlay is helpful, but nothing will replace good old-fashioned staff awareness.”