Retail shrinkage continues to be one of the biggest challenges facing retailers today. And while it’s certainly not a new issue, data shows the situation has become even more serious over the past 12 to 18 months. However, with the acceleration of shrink in retail has come a promising shift in the industry. Many retailers are now taking more proactive steps to tackle shrinkage head-on, including introducing security tagging at scale and identifying high-risk locations through data-led targeting. In this blog, we’ll explore the state of retail shrinkage in 2026 and discuss the measures brands and retailers can take to reduce losses and strengthen their in-store security long-term. The latest figures highlight just how serious the issue of shrinkage has become: At the same time, store environments are becoming more complex. In food retail especially, high footfall, fast-moving products, and blended shopping journeys (self-checkout, scan & go, and traditional tills) create more opportunity for loss, both intentional and accidental. The issue has become so serious that it’s attracted legislative reform. The introduction of the Crime and Policing Act signalled a stronger, more coordinated response, with over 70 measures aimed at tackling retail crime and antisocial behaviour. Key changes include: While these legislative changes are a great step in the right direction, retailers and brands need to do more if they want to see a genuine shift on the shop floor. Retailers are already investing heavily, but spend alone isn’t solving the issue. What’s needed is a more integrated, insight-led approach that: At Dee Set, this is exactly what we’ve been working on to help brands and retailers take a more strategic approach to retail shrinkage. Our approach is built around prevention at scale, precision in execution, and minimal disruption in-store. Here’s how it works: We’re working proactively with brands and retailers to embed loss prevention earlier in the product journey. By shifting tagging upstream, we reduce in-store workload while ensuring consistency and compliance from day one. We’re also continuing to explore category-specific applications, including ongoing trials in high-risk areas such as alcohol. Want to know more about our security tagging solutions and how they could work for your business? Please drop an email to: amie.morrey@deeset.co.uk and jessica.westwood@deeset.co.uk Shrink doesn’t happen evenly – it’s concentrated. That’s why our approach is rooted in data-led targeting, helping retailers: We do this by using our retail analytics software to turn large volumes of retail data into clear, actionable insights for store teams. In short: yes. In one recent initiative, we supported a large-scale rollout: The outcome? Within just three months, shrink reduced significantly, demonstrating the power of targeted, scalable interventions. Read more in our blog ‘Reducing Shrinkage: The Power of Security Tagging’. We also spoke to one of our internal tagging specialists, Amie Morrey to explore how effective modern tagging really is, and where it works best. Her view is clear: “Security tagging remains one of the most effective deterrents in retail, but only when it’s implemented correctly and consistently across the estate.” When tags are visible, they create a stronger deterrent effect. This helps to actively discourage theft before it happens. As well as triggering alarms, RFID and EAS systems enable real-time stock visibility and improved inventory accuracy. Technology alone isn’t enough. Effectiveness depends on: All of these factors need to align for tagging to become both a preventative tool and a performance driver. Shrink will continue to evolve, and so must the response. As we move into peak trading periods and increasingly complex retail environments, the opportunity lies in joining up the dots: At Dee Set, we’re focused on delivering exactly that, helping retailers and brands move from reactive shrink management to proactive performance optimisation. Sounds like something your business would benefit from? Please drop an email to: amie.morrey@deeset.co.uk and jessica.westwood@deeset.co.uk or read more about our retail merchandising solutions here.
Shrink in retail: the latest stats
What can retailers do to combat shrinkage? Dee Set’s tried and tested approach
1. Security tagging at scale
AM (Acousto-Magnetic Tagging) RFID (Radio Frequency Identification) Source Tagging Best for: High-theft items (e.g. alcohol, health & beauty) Stock accuracy and loss prevention combined Efficiency and consistency at scale How it works: Uses magnetic signals to trigger alarms at store exits Uses radio waves to track individual items in real-time Tags are applied at the point of manufacture or distribution, not in-store Why it works: Acts as a visible deterrent, which helps prevent theft before it happens Not just a security tag, but a smart data tool that helps retailers reduce shrink and improve availability. Products hit shelves ready protected, saving time and ensuring consistency. 2. Data-led decision making
Does security tagging really work?
So, what makes tagging effective?
1. Visibility matters
2. The right technology
3. Stock execution
