According to statistics published by the National Retail Foundation (NRF) in 2024, there was a 93% increase in shoplifting incidents in stores in 2023 compared to five years earlier. This alarming statistic makes it clear that for retailers, theft is a legitimate problem that needs to be stopped now.
However, retailers may overlook one of their most effective solutions to curb this retail theft: experiential marketing. “While people often think of shoplifting and retail theft as ‘petty theft,’ the truth is that for retailers, the consequences are anything but petty,” says Ray Sheehan, founder of Old City Media, a leading experiential marketing firm based in Philadelphia.
Studies have found that US retailers lost approximately $45 billion to retail theft in 2024 alone. Even if the value of the stolen products is relatively small, theft and its effects can compound quite quickly.
To curb the growth of retail theft, many retailers have implemented anti-theft measures, such as installing additional cameras, removing self-checkout lines, or utilizing physical barriers like locking cabinets. Yet, many of these methods have proven ineffective at actually stopping theft. And worse yet, some of these approaches burden the customer experience of those who wouldn’t steal, putting off potential customers.
How experiential marketing strategies could be a brand’s best way of curbing retail theft
That being said, experiential marketing may be the key to helping retailers thwart potential shoplifters before they even get the chance to think about stealing from their store. By employing techniques common to experiential marketing, such as having brand ambassadors interact with customers and creating more interactive shopping experiences, retailers could see shrinkage levels drop as a positive externality.
One of the main reasons experiential marketing efforts serve as such a powerful hedge against retail theft is that they increase the presence of human employees in the store. When you have brand ambassadors working throughout the store, it means more sets of eyes to deter thieves.
“Of course, our brand ambassadors are not security, and they should not be treated as such,” says Sheehan. “It’s not their job to catch or apprehend shoplifters. But simply having more people on the floor during experiential marketing events makes potential wrongdoers feel more wary, as it increases their likelihood of getting caught.”
Experiential marketing also shifts the retail environment from a transactional to an interactive one. When a customer goes to a traditional brick-and-mortar retailer, they’re likely just browsing the shelves and putting whatever products they want to buy in their carts. However, when a retailer effectively implements experiential marketing, their goal is no longer merely to purchase products but instead to interact with a knowledgeable brand ambassador and get guidance on their purchasing decisions.
These in-person marketing experiences engage customers in a way that no other experience could replicate. Marketers who deliver this through pop-ups, brand activations, and engagement marketing in stores will find that it goes far beyond simply selling the brand’s products or services and boosting brand awareness.
In this way, experiential marketing is also a powerful tool in brands’ arsenals to fight customer apathy.
How engagement marketing tools fight customer apathy
When a customer visits the storefront of their average grocery store, they probably don’t have a strong connection to the brand itself; they’re likely there for the express purpose of purchasing food. However, when they visit a high-end clothing or accessory store, they tend to have a stronger alignment with that specific brand. More general retailers would be wise to replicate the success of these high-end brands’ experiential campaigns to create increased brand awareness.
Furthermore, through immersive experiences, retailers can build a feeling of value and reciprocity that creates a psychological barrier to theft for potential wrongdoers.
“By using strategies like giveaways and offering free branded merchandise, brands are creating a sense of brand loyalty that makes it harder for people to take something that isn’t theirs,” says Sheehan. “After all, why would someone want to steal from a company that just gave them something?”
How experiential marketing campaigns can redefine the brand experience and ease shrinkage
Indeed, with an effective use of experiential marketing, brands can entirely reshape their store’s dynamics. A great example of this can be found at your local Apple Store.
Apple has built its entire retail experience around experiential marketing. From interactive experiences using virtual reality and augmented reality to its open-concept retail layouts and engaged employees, everything about the Apple Store is designed to make shopping there a unique and memorable experience. Although the retailer also employs traditional loss prevention strategies, such as mechanical locks and alarms, the way they create the shopping experience is also a form of loss prevention in itself.
Ultimately, experiential marketing may not be a direct countermeasure to combat retail theft, but brands that strategically utilize this marketing method may find that it has an indirect effect in deterring shoplifters from stealing.
“If your business is looking to maximize its marketing budget — helping fight shrinkage at the same time as you build brand loyalty among your target audience — consider the power of experiential marketing,” Sheehan concludes.
