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In an effort to combat shoplifting, TJX, the parent company of TJ Maxx, Marshalls, and HomeGoods, has announced that some of its store workers will be equipped with body cameras. The move is part of a broader strategy to reduce "shrink," a term used in the retail industry to refer to theft.
The decision was revealed by TJX CFO John Klinger during a recent earnings call. He explained that the presence of body cameras on Loss Prevention (LP) associates tends to discourage potential shoplifters, as they are less likely to commit theft when they know they are being recorded.
"One of the things that we've added, we started to do last year, late towards the year, were body cameras on our LP associates," Klinger said. "And when somebody comes in, it's sort of — it's almost like a de-escalation where people are less likely to do something when they're being videotaped. So, we definitely feel that that's playing a role."
The use of body cameras by retail workers is a relatively new approach in the fight against shoplifting. It is yet to be seen how effective this measure will be in reducing shrinkage and whether other retailers will follow suit.
Shrinkage is a significant issue for retailers, with losses from shoplifting, employee theft, administrative errors, and vendor fraud impacting profits and inventory accuracy. In the U.S. alone, retail shrinkage amounted to a staggering $94.5 billion in 2022, representing an average loss of 1.45% of retail sales.