The current state of convenience stores

Convenience stores are evolving beyond fuel and snacks, becoming key players in food service and retail. As this rapid expansion continues, many C-stores face growing challenges in loss prevention, requiring modern solutions to protect their inventory and profits. 

In 2025, the United States is home to 152,255 convenience stores, according to the National Association of Convenience Stores (NACS). A significant shift in the industry shows that nearly 90% of these stores now offer food service, ranging from grab-and-go meals to fully prepared dishes. In fact, food service sales made up 27% of in-store revenue in 2023, generating an impressive $88 billion (about $270 per person in the US).

As convenience stores across the United States expand rapidly, many struggle to keep up with the need for robust loss prevention and asset protection teams. Without the ability to effectively share information across locations, C-stores are often left relying on outdated or inefficient loss prevention strategies, creating vulnerabilities that demand immediate attention.  

With high volumes of customers and valuable inventory, it is crucial for convenience store owners to implement effective loss prevention solutions sooner rather than later.

Why retailers need convenience store loss prevention solutions 

An effective loss prevention strategy is crucial for any retailer, and convenience stores are no different. With the increasing challenges posed by theft, fraud, and operational errors, it is essential for C-store store owners to implement effective loss prevention solutions to protect assets while maintaining profitability and customer satisfaction. 

Common areas of loss prevention weakness in convenience stores 

For convenience stores, the impact of shrink, like inventory loss and theft, is significant as they are often targeted by shoplifters, employee theft, and organized retail crime (ORC).  

Some common areas of loss prevention weakness in convenience stores include: 

• Shoplifting: The small size and open layout of these stores make it easier for shoplifters to conceal stolen items and exit unnoticed. Small, high-value items like alcohol, tobacco products, over-the-counter medications, razors, baby formula, and other high-value, easily concealable goods are targets for thieves and organized retail crime groups. To combat theft, many retailers have resorted to locking up these items or placing them behind the register, creating an inconvenience for shoppers and negatively impacting the overall customer experience.

When merchandise goes missing, the store loses the cost of the stolen item and incurs additional costs in replacing inventory, investigating incidents, and implementing preventive measures. Furthermore, inventory shrinkage leads to inaccurate stock levels, resulting in stockouts and dissatisfied customers. 

• Employee Theft: Employee theft can occur through fraudulent voids, sweethearting, or stealing cash from the register. Employees may also take inventory for personal use.
• Vendor Fraud: Dishonest vendors can contribute to shrink by delivering fewer goods than ordered, billing for products not delivered, or substituting lower-quality items. This type of loss can be intentional or unintentional. 
• Operational Errors: Mistakes such as inaccurate pricing, incorrect inventory counts, or mishandling cash can lead to unintentional shrink.  
• Gift Card Fraud: While not as heavily impacted by return fraud as larger retailers, convenience stores are still vulnerable to return fraud, particularly with gift cards. Learn more about how to tackle return fraud in our latest 2024 Consumer Returns Report with Deloitte. 
• Organized Retail Crime (ORC): Organized retail crime groups targeting convenience stores often steal high-demand goods, like energy drinks, alcohol, or electronics, to resell elsewhere. 
• Food and Beverage Loss: Spoilage, expiration, or improper handling of food and beverages is a significant source of shrink, especially for stores with extensive food service offerings. 
• Lottery Ticket Fraud and Theft: Lottery tickets are prime targets for theft due to their high value and easy resale. Convenience store employees may steal non-activated tickets or manipulate transactions by voiding sales or scanning tickets to check for winners before purchasing. If undetected, convenience stores can experience thousands in losses due to backstock. Regular inventory checks, strict cash-handling procedures, and regular audits are essential to prevent fraud. 
• Fuel Theft and Fraud: ORC groups have been known to manipulate fuel pumps, adding devices to slow down the flow meter measurements (by volume) allowing them to steal hundreds of gallons of fuel for a fraction of the cost. Fuel loss can also occur due to vendor theft, undetected tank leaks, or operational errors.

In a large case with a major convenience store chain, Appriss Retail used Secure and the store’s fuel data to identify when and where the chain was affected to help gather evidence and build stronger cases for law enforcement. 

• Cash Handling Risks: Convenience stores often operate with higher cash transactions, increasing the risk of theft internally and externally. Effective cash management solutions, like Appriss Retail’s Secure Cash Over/Short module, help identify register overages and shortages by consolidating transaction and over/short data across all registers. The module provides an easy-to-view detailed analysis to help identify trends and discrepancies worth investigating. 

Because the root issue often lies in operational inefficiencies, to best protect C-stores, a holistic loss prevention strategy and shrink action plan is needed to encompass challenges beyond theft. By investing in a comprehensive loss prevention strategy that includes food waste, fraud, and operational efficiencies, convenience store owners can minimize these losses and protect their profits. 

Effective convenience store loss prevention solutions

To protect convenience stores from theft and minimize losses, implementing effective loss prevention strategies that address specific needs is crucial. Convenience stores are often targeted by criminals due to their high volume of cash transactions and limited staffing. By utilizing advanced technologies and training employees on best practices, convenience store owners can create a secure environment for both their business and customers. Here are four key strategies to consider:

1. Implementing surveillance systems to deter theft

Video surveillance systems are a powerful tool for deterring theft in convenience stores. By installing high-quality cameras throughout a store, owners can monitor and record activities in real-time.

With a more robust surveillance system, convenience store owners can use loss prevention technology like Appriss Incident to empower their loss prevention team to swiftly capture incidents, collect evidence, manage multiple suspects, vehicles, events, and resolve investigations, all while putting preventative measures in place to avoid repeats. Additionally, with generative AI technology, C-store owners can vastly improve the time it takes for loss prevention specialists to analyze data and develop incident cases, allowing them to take immediate action and simplify investigations for law enforcement.

2. Utilizing inventory tracking and management software

Efficient inventory tracking and management software can enhance a C-store’s loss prevention efforts. When inventory is inaccurate, it can negatively impact customer satisfaction, reduce employee efficiency, and increase shrink. By accurately tracking inventory, convenience stores can identify discrepancies and quickly detect potential theft, monitor stock levels, track sales patterns, and identify unusual behavior. 

3. Training employees on loss prevention best practices 

Convenience store employees play a crucial role in loss prevention. By providing comprehensive training on loss prevention best practices, C-stores can empower staff to identify and address potential security risks. This includes recognizing suspicious behavior, understanding theft prevention techniques, and implementing effective customer service strategies. Equipping teams with regular training sessions and ongoing reinforcement of these practices helps create a vigilant and proactive team that can reduce losses and operate more efficiently. 

Long-term success starts with an informed workforce. 

4. Utilizing convenience store loss prevention software solutions

Loss prevention software solutions can provide a comprehensive view of store operations, equipping loss prevention teams with advanced tools to identify vulnerabilities, reduce shrink, and optimize performance.  

Appriss Retail’s solutions make it easier to investigate cash loss by leveraging tools like Secure Exception Based Reporting (EBR), which analyzes POS data to detect trends and flag suspicious activities that impact sales. It also provides insights into food waste and operational inefficiencies, helping retailers optimize their processes and improve profitability. This level of visibility allows C-store owners to quickly detect and address issues that would otherwise be difficult to identify.  

To further support loss prevention efforts, Appriss Retail offers tools for employee coaching, which helps identify staff who may benefit from additional training. Tracking training sessions and results can help pinpoint errors and prevent costly mistakes. Learn more about strategies for effective retail loss prevention training. 

Retailers who have implemented similar solutions have seen a strong ROI by identifying and resolving more cases of fraud and theft, ultimately increasing sales. With our comprehensive suite of solutions, we can help convenience stores create tailored solutions to enhance security, improve profitability, and provide a safe shopping experience for their customers.  

Contact us today to learn more about how our advanced technologies can help protect your business.