Retailers are increasingly using physical security technology to improve operational efficiency, employee safety and customer experiences, moving beyond its traditional role in loss prevention, according to a new report from Montréal-based Genetec Inc.
The company’s 2026 State of Physical Security Report, based on responses from retail professionals worldwide, found that retailers are placing greater emphasis on using security data to support broader business objectives while addressing aging infrastructure and evolving technology requirements.
The findings suggest retailers are also looking for ways to extend the value of existing security investments rather than replacing entire systems as they pursue modernization.
Security data takes on broader business role
More than 60 per cent of retailers surveyed identified improving operational efficiency within their security departments as a primary objective for using security data. An equal percentage said improving safety and security remained a top priority.
The report also found that 55 per cent of retailers cited compliance as an important consideration, while 48 per cent said they were using physical security data to improve the customer and employee experience.
The findings point to a broader approach to physical security, with retailers increasingly considering how information generated by security systems can contribute to day-to-day business operations and decision-making.
While loss prevention remains part of the security function, retailers are looking at additional applications that could improve efficiency and provide greater value from existing technology investments.
Aging infrastructure presents modernization challenges
Despite growing interest in artificial intelligence and analytics, retailers continue to face challenges associated with maintaining and upgrading existing technology environments.
According to the report, aging physical security infrastructure was identified by 40 per cent of respondents as a major operational challenge. Other concerns included training and upskilling staff, cited by 38 per cent, attracting and hiring talent at 37 per cent, and aging IT infrastructure at 33 per cent.
These issues are influencing retailers’ approaches to technology upgrades, with many looking to modernize existing systems incrementally rather than undertake complete replacements.
Looking ahead, 54 per cent of retailers said they plan to leverage existing technology to address new challenges. Meanwhile, 51 per cent intend to use artificial intelligence to streamline security processes, and 48 per cent plan to evaluate new security systems for specific use cases.
The results indicate that retailers are balancing interest in emerging technologies with the practical considerations of maintaining existing infrastructure and developing the skills needed to operate new systems.
Modernization viewed as an ongoing strategy
Scott Thomas, national director for Signature Brands at Genetec, said physical security is increasingly being viewed as a business asset with applications extending beyond traditional loss prevention.
“Physical security is becoming a strategic business asset for retailers, extending well beyond traditional loss prevention,” said Thomas. “The retailers that will see the greatest return on their security investments are those that treat modernization as an ongoing strategy rather than a one-time project. By building on existing infrastructure while introducing new capabilities, they can adapt to changing business needs without sacrificing the value of past investments.”
Genetec, which is headquartered in Montréal, develops physical security technology for enterprises, governments and communities. Its product portfolio includes video management, access control, automatic licence plate recognition, intrusion detection, intercom and digital evidence management solutions.
The company said it serves more than 42,500 customers through a network of accredited channel partners and consultants in more than 159 countries.
Security role expanding
Thomas said retailers are increasingly looking at how video and other physical security systems can provide operational intelligence about customer traffic and behaviour in their stores. The desired outcome is improving the shopping experience by optimizing available in-store resources.
“From an operational standpoint, retailers are using data such as customer counts to ensure appropriate staffing levels across stores and individual departments. They can also analyze customer traffic patterns to adjust layouts, improve merchandise visibility, and identify areas where customers may be experiencing friction. This includes monitoring wait times at checkout or around merchandise that may be locked up to prevent theft,” explained Thomas.
“From a safety standpoint, chains are incorporating different technology strategies, including body-worn cameras, panic alarms and real-time remote monitoring from security operations centres (SOCs). These tools can help teams identify and respond more quickly to situations that may pose a risk to employees or customers.”
Biggest barriers retailers face
The biggest barrier to fully modernizing physical security is usually budget-related. Retailers have substantial existing investments in cameras, alarm panels, access control and peripheral devices. This requires a thoughtful strategy that uses existing hardware whenever possible while migrating to a platform that can facilitate their needs for operational intelligence and enhanced safety, said Thomas.
“Open architecture platforms, like Security Center from Genetec, can give retailers greater flexibility to introduce AI and cloud capabilities without replacing their entire existing infrastructure. A hybrid approach, for example, can combine on-prem capabilities, including metadata generated by existing IP cameras, with cloud-based tools that analyze that data and turn it into actionable insights,” he said.
“This gives retailers the flexibility to determine which workloads make sense to move to the cloud and which should remain on-prem. Some cameras or data could be used for cloud-based analytics, while others continue recording locally for traditional loss prevention and risk management purposes.”
Evolution of security role in retail
Physical security teams will likely become more involved in broader conversations about store operations and strategy, said Thomas.
“That could include providing input on new store formats, merchandising layouts, register and checkout systems, and replenishment logistics. The common goal of enhancing the customer experience, in conjunction with employee safety & security, will be a shared responsibility across all phases of the organization,” he noted.
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