The 98%’: Strategic Marketing to Reduce Internal Theft in Retail

How Communications Can Reduce Staff Dishonesty and Reduce Internal Theft in Retail

Foreword

Retailers are very aware of the risks of staff dishonesty, indeed, they estimate that maybe a third of unknown losses can be attributed to internal theft. However, for many reasons, the problem receives relatively little attention compared to external theft. This paper addresses how to reduce internal theft in retail. And looks at the role of employee engagement in reducing retail loss.

As with the problem of external theft, the consensus is that retailers cannot “arrest their way out of” staff dishonesty. In fact, it is estimated that, at best, retailers, for all the investments they make in, for example, exception-based EPOS data analytics and whistleblower hotlines, they probably detect and close just 2% of employee theft cases.

As this report highlights, there is strong evidence to suggest that communications to the other 98% can lead to some significant reductions in loss; in one example, a 15% reduction in loss. To get new and fresh ideas around communication strategies we collaborated with the Loughborough Business School and their final year Marketing Masters students.

In the report, we share the five winning communications strategies and advertising posters for each of the participating retailers. We hope that these will be adapted and results on their effectiveness measured.

Most of all though, we hope that other retailers can be inspired by this report and look again at the potential of developing new communication strategies for their business to dissuade internal theft and collusion.

We would like to thank the academic team at Loughborough Business School, the students, and Professor Emmeline Taylor for their ideas and this report.

As with all the research undertaken on behalf of ECR Retail Loss, it would not be possible without the active support and involvement of the retail community and the many employees who generously gave their time to participate in the most meaningful of ways.

Finally, I encourage you to not only read and share this study but also take part in the work of ECR Retail Loss. Further details can be found at: ecrloss.com.

John Fonteijn

Chairman, ECR Retail Loss

Introduction

Internal theft is commonly defined as ‘the unauthorised taking, control or transfer of money and/or property of the formal work organisation perpetrated by an employee during the course of occupational activity which is related to his or her employment.’1 Although the misappropriation of tangible assets such as cash or inventory is often the most immediate association with staff dishonesty, internal theft encompasses a broader range of behaviours. It can include, for example, the misuse of discounts (e.g. sharing with friends), manipulating returns, faking voided items, or falsifying timesheets. As retail operations evolve, becoming more technologically integrated and operationally complex, so do the methods and opportunities for internal misconduct.

The growing adoption of retail models such as Buy Online, Pick Up in Store (‘BOPIS’) and Buy Online, Return in Store (‘BORIS’) has introduced new avenues for internal dishonesty. Employees can exploit these fulfilment methods to commit theft and fraud, including through collusion with external parties. While ‘sweethearting’2 has traditionally involved staff providing unauthorised discounts or free items at the point of sale, these newer models of fulfilment present additional vulnerabilities and points of risk. As a result, the range of dishonest behaviours has expanded, increasing the complexity of loss prevention and detection strategies.

Estimating the Extent of Internal Theft in Retail

Employee theft, fraud, and other forms of dishonest conduct have long posed significant challenges for the retail sector. In fact, as far back as 2008, estimates suggested that employees were responsible for up to 50% of the total value of retail theft. Subsequent industry reports continue to show that internal offenders not only steal more frequently than external perpetrators but also tend to do so at higher values. Table 1 provides a summary of recent estimates that illustrate the continued scale and impact of internal theft in retail environments.

Table 1. Recent Estimates Relating to Internal Theft in Retail

*It is important to note that some sources calculate ‘internal theft’ percentages/values as a proportion of theft, whereas other sources calculate it as a proportion of shrink (i.e. the proportion that is internal theft compared to external theft, inter company errors/frauds, and breakages). This can have a big impact on the percentage size attributed to each category.

** It is presumed in all figures above that internal theft refers to all forms of misappropriating money and physical goods (including fraud) but does not include a calculation for less tangible dishonesty such as ‘time theft’. On this point, it would be beneficial for the industry to establish universal definitions and metrics to enable both geographic and temporal comparisons.

While customer theft is often cited as the leading source of shrinkage, internal theft frequently ranks a close second – yet it receives disproportionately less attention in many loss prevention (LP) and asset protection (AP) strategies. A recent survey of 177 major U.S. retail brands found that nearly half (48.5%) believe internal theft warrants greater focus and prioritisation across the industry.

Exacerbating this issue is the retail sector’s characteristically high employee turnover.11 According to The International Retail Academy (2022), the average staff turnover rate in the UK retail industry stands at 57.3%. The British Retail Consortium (2023) reported a similar figure of 50.8%. This continual churn presents additional challenges to internal controls, staff vetting, and long-term employee engagement, all of which are important factors when trying to mitigate internal dishonesty.

Impact of Staff Dishonesty

The impact of staff dishonesty can be wide-ranging and although losses are thought to be significant, it is not solely a financial issue for retailers. Alongside the more obvious impact on the profitability of the business, companies might also experience issues of reputational brand damage amongst both customers and suppliers, poor on-shelf availability (OSA) resulting in a negative shopping experience for customers, and an undesirable workplace culture, thus compounding the issue of high staff turnover outlined above. On this last point, Kennedy and Benson (2016) have highlighted the multiple ways in which employee theft can cause emotional and psychological damage to the whole organisation. In fact, staff dishonesty can be so detrimental to the overall health of a business that it can bring about its demise. For example, in the USA it is estimated that 33% of corporate bankruptcies were caused by employee theft in 2020.

The Detection Gap

The internal theft ‘detection gap’ refers to the difference between the estimated amount of theft committed by employees and the known amount that is detected or recorded by the retailer. It is widely acknowledged that most internal theft goes undetected or is only discovered – and actioned – after significant losses have occurred.

And while detection rates vary significantly across countries and store cultures, the gap between incidents and identification remains substantial, and is likely to persist.

Even the most advanced strategies are unlikely to uncover a high volume of internal theft cases efficiently or in real time. With less than 2% of offenders being apprehended, this raises a critical question for the sector:

‘How can the behaviour of the other 98% of dishonest employees
be influenced in a cost-efficient way?’

Strategies to Tackle Staff Dishonesty and Reduce Internal Theft in Retail

There are a range of ways that businesses attempt to deter and detect dishonesty amongst employees. These include staff searches (physical searches or using technological screening devices), staff training, target hardening measures e.g. secure cages, access control, data mining capacity/exception reporting analysis, CCTV monitoring, process controls and monitoring e.g. audits, anonymous reporting tools / whistleblowing practices, and of course communications to highlight to employees that the business is aware of internal theft, has mechanisms to detect it, and to communicate that there will be consequences for dishonest behaviour ranging from dismissal to criminal procedures.

Exploring communications more deeply, we have learnt that some businesses have reported a range of successes from the deployment of communications campaigns, particularly the use of posters in staff areas. For example, following the introduction of internal theft posters as part of a trial across 16 locations over a 12-week period, one major UK grocery retailer chain reported the following positive outcomes:

• Prepared food losses (e.g. sandwiches) reduced by 6% over the trial period and were 33% lower than the control group (which increased during the trial period).

• Tobacco losses reduced by 78% over the 12-week trial period. Stores that had the poster campaign showed losses that were 293% lower than the control group (which increased during the trial period).

• Overall shrinkage slowed. Across all the layout groups for this retailer, shrinkage had increased by 23%. However, in the trial stores where the communications were deployed, shrink was growing at a lower rate of 8%,suggesting a 15% improvement in shrink.

Another major grocery retailer accompanied the launch of a new remote CCTV security hub with a communications strategy delivered into enlisted stores. The communications highlighted that the store was being monitored remotely. To test the impact, stores were matched to a control based on size and geographical location. This retailer reported a 15% reduction in shrinkage and a 5% reduction in cash loss measured over a period of two years.

The positive findings from retailers are supported by some broader academic research evidence. This body of work explored the degree to which signage and imagery can cause people to behave more pro-socially in a variety of contexts. For example, in the presence of images of eyes people are more likely to pay for their drinks via an honesty box, donate to a charity bucket in a supermarket and recycle appropriately. They are also less likely to leave litter on cafeteria tables or steal bicycles from a university campus. Figure 1 shows the images that were used at Newcastle University to deter bike thieves. The two-year study found that bike racks where the poster was present had 62% fewer thefts than the previous year, while those without the poster saw thefts rise by 63%.

These results raise the possibility that inexpensive interventions based on simple images of watching eyes could be used to tackle anti-social behaviour, and even crime, in a range of real-world situations. The feeling of being watched, or reminders that this might be a possibility, appears to make humans change their behaviour for the good.

Figure 1. Poster at Newcastle University located above bicycle racks. [Source: Sky News]

Developing Marketing Strategies to Reach ‘the 98%’

Drawing together the above evidence and information, ECR Retail Loss believed there was a compelling argument for retailers to do more with communications strategies within businesses to deter internal theft.

The ‘detection gap’ scenario reveals just how few dishonest employees are apprehended – less than 2%. Against the backdrop of industry surveys highlighting the huge losses that are attributed to internal criminal activities, and early research that suggests that shrink can be reduced by 15% through internal communications, strategic marketing techniques emerge as a fruitful avenue to pursue.

If  just some the 98% who are not detected / apprehended can be dissuaded through internal campaigns, this strategy offers retailers a relatively cost-effective way to tackle some aspects of internal dishonesty, particularly in a context of high staff turnover.

To bring inspiration and new thinking to retailers, ECR Retail Loss collaborated with Loughborough Business School to co-develop a project named ‘Strategic Marketing Solutions – Loss in Retail 2024’.

The following section outlines the project brief as presented to the Marketing students at Loughborough Business School`.

Project Brief:
Marketing and Communication Strategies to Reduce Internal Theft in Retail

The previous sections have outlined the high proportion of retail loss attributed to employee dishonesty, alongside the significantly low rates of detection and apprehension. In an effort to address ‘the 98%’ (i.e. the vast majority of cases that go undetected / unapprehended), ECR Retail Loss sought to examine the potential role of marketing and internal communications in influencing dishonest behaviour.

Traditional visual deterrent campaigns, such as the ‘watching eyes’ poster used in quasi-public spaces such as at Newcastle University (see Figure 1), are often perceived as punitive and are typically aimed at external offenders. However, when communicating with employees within non-public areas of retail environments, a more nuanced approach may be required.

Although the offender profile is not fully understood due to low apprehensions, there is agreement across the industry that employee theft is not confined to any particular role, level of seniority, or length of service. Opportunities for dishonest behaviour exist throughout the business, with documented cases ranging from embezzlement and kickbacks to various forms of fraud. It is therefore important that businesses avoid disproportionately targeting a single segment of the workforce, as doing so may overlook other areas of vulnerability. Nonetheless, the focus of this project is specifically on employees based in stores or warehouses who have direct access to stock and/or are responsible for handling cash, as these roles often present the greatest opportunity day-to-day for loss.

Retailers are increasingly mindful of the importance of maintaining a positive and supportive workplace culture (indeed this is in itself an important factor for deterring employee dishonesty), particularly in the context of high employee turnover. For this reason, the study drew upon principles from the field of Marketing – rather than more conventional disciplines such as Criminology or Security Studies that are typically used in loss prevention research – to explore whether internally facing communication strategies could be designed to deter dishonest behaviour without alienating or demoralising honest staff.

The ‘Strategic Marketing Solutions – Loss in Retail 2024’ module was developed as a collaboration between ECR Retail Loss and Loughborough Business School (LBS). Students enrolled on the module, Strategic Marketing Solutions, as part of their broader MSc in Marketing degree, were given the opportunity to collaborate directly with retailers to apply their learning from their postgraduate degree to a real-world problem scenario.

From June 2024 to September 2024, 19 students developed a marketing and communications strategy focusing on reducing internal theft in the retail sector. A full breakdown of the timeline of activity is provided in Appendix A. The research objectives, as shared with students, were threefold:

1. Undertake secondary research to understand the issues relating to retail loss and internal theft to devise strategic and tactical marketing solutions.

2. Recommend strategic marketing solutions to retail loss and internal theft for retailers.

3. Recommend internal communications tactics and creative ideas in relation to retail loss and internal theft.

Industry Engagement and Collaboration with Academia

The active involvement of the five participating retailers was central to the success of this project. From the outset, they worked closely with the student cohort, contributing to the development of the project brief and offering candid, in-depth insights into the internal challenges they faced. Their openness enabled a shared understanding of the complexities surrounding internal dishonesty within their business.

Students were given the opportunity to visit retail stores and security operations centres, allowing for direct observation of operations and engagement with loss prevention practices. These site visits were complemented by in-depth discussions with senior loss prevention professionals, which provided valuable context around operational vulnerabilities, risk exposure, and importantly, the core values and branding of each business.

This high level of industry engagement enriched the students’ understanding and informed the development of tailored outputs that were both brand-consistent and practically relevant. The close collaboration between academia and industry ensured that the proposed interventions were grounded in the realities of retail environments and aligned with business needs.

Project Findings and Outputs

Project Findings and Outputs

The student projects culminated in 19 theses with a combined total of over 130,000 words and 5,700 learning hours. The below outlines a summary of the core literature that students used to inform their approaches, alongside an analysis of the macro and micro factors they considered.

Situational PESTLE Analysis

Most students started their analysis with an outline of the issue of staff dishonesty in the retail sector. For the majority of students this took the form of a PESTLE analysis which involves the examination of Political, Economic, Social, Technological, Legal, and Environmental aspects of the context in which the business is operating and the macro factors that might amplify the risk of internal theft.

Macro Factors contributing to the likelihood of internal theft

The students identified the following external factors as potential contributors towards internal theft and considered how they might shape the marketing and communications strategies that they devised.

• Inflation. Although inflation is decreasing and average wages have been increasing in 2024, the cost-of-living crisis continues to exert financial pressure on employees.

• Staff turnover and employee wellbeing. Post-Brexit, there remain record numbers of job vacancies and staff retention is a problem for most retailers – people are changing careers, moving to online retail sales, have higher salary expectations, and employee burnout due to poor mental health.

• Evolving threats. Whilst the use of technology to deter internal theft has proven to be effective in some applications, the UK retail sector is now more vulnerable to cyber-attacks than other sectors. The recent high profile cyber attacks against household names including Harrods, the Co-op, and Marks and Spencer provide a case in point. The retail sector is growing increasingly vulnerable to cyber-attacks due to a lack of investment in IT protection combined with the huge increase in identity and payment data they hold as loyalty programs grow, and card payments replace cash transactions.

Micro Factors contributing to the likelihood of internal theft

In addition to the above broad issues and concerns, the students identified a range of internal factors to be considered.

• Workplace culture. Fostering a positive work environment and providing regular employee training can enhance job satisfaction and accountability. This could potentially counter temptations and the motivation for internal theft.

• Job satisfaction. Unhappy employees are more likely to commit unethical acts such as stealing. This is for a range of reasons including feeling unappreciated or excluded from feeling part of the organization’s objectives.

• Corporate Social Responsibility (CSR). Businesses that prioritise Corporate Social Responsibility (CSR) and foster a healthy work environment may be able to lower the risk of internal theft.

• Job security. It has been estimated that 58% of the workforce do not feel that they have job security. This figure has more than doubled since 2020 (24%) and could present a risk factor for internal theft if employees feel transient or disposable.

Theorising Internal Theft

The students looked to established concepts and theories to underpin their marketing strategies. These are outlined in Table 1 and summarised below.

Table 1. Key literature informing student marketing strategies

The Fraud Triangle

All projects drew upon The Fraud Triangle; a model used to understand why individuals might commit criminal acts such as fraud. The model outlines that fraud is more likely to occur when three key elements are present:

1. Pressure/Motivation: This refers to the incentives or pressures that drive an individual to commit fraud. It can be financial (e.g., debt, lifestyle choices), or non-financial (e.g., perceived need to protect reputation, pressure from superiors).

2. Opportunity: This element refers to the circumstances that allow an individual to commit fraud without being detected. It can be due to weak internal controls, lack of oversight, or inadequate segregation of duties.

3. Rationalization: This refers to the ways an individual justifies their fraudulent behaviour to themselves. It can involve the dishonest employee minimising the impact of their actions, blaming others, or believing that the fraud is justified in their specific circumstances.

These elements, when combined, create a situation where an individual might engage in criminal activity such as internal theft. For the discipline of marketing, this provides key touch points to influence perceptions and behaviour through signage and messaging. For example, challenging typical rationalisation strategies e.g. ‘the sandwich was going to be thrown away anyway’.

Theory of Planned Behaviour

Ajzen’s (1991) Theory of Planned Behaviour (TPB) provides a framework for understanding the factors that influence intentional behaviour. It proposes that an individual’s decision to engage in a particular action is primarily determined by their intention to perform it, which is, in turn, shaped by three core components:

1. Attitude toward the Behaviour: the degree to which a person has a favourable or unfavourable evaluation of the behaviour in question.

2. Subjective Norms: the perceived social pressure to perform or not perform the behaviour

3. Perceived Behavioural Control: the individual’s perception of how easy or difficult it is to carry out the behaviour, reflecting both internal confidence and external constraints.

Together, these factors help predict the likelihood that a person will engage in a specific behaviour, assuming they have the opportunity to do so. TPB is particularly useful in contexts where behaviour is reasoned and deliberate and could be used to assess how internal dishonesty can prevail where there are cultural norms that allow it to occur, social pressures and a perception that it is easy.

Social Exchange Theory

Blau’s Social Exchange Theory (1964) views human interactions as being based on a cost-benefit analysis. The theory suggests that social relationships are formed and maintained through a process of reciprocal exchange, where individuals seek to maximise rewards and minimise costs. Within organisational settings, employees assess the benefits they receive (such as fair treatment, recognition, or job security) against the effort or compliance they are expected to contribute. When employees perceive the exchange to be equitable and rewarding, they are more likely to demonstrate commitment, cooperation, and honest behaviour. However, if the perceived balance of exchange is perceived as negative or exploitative, it can lead to poor performance or dishonesty. Social Exchange Theory is particularly relevant in understanding employee-employer dynamics, offering insight into how workplace culture and values can influence behaviour, particularly over a long period of time.

Organisational Culture Model

Schein’s Organisational Culture Model (1985) presents a framework for understanding the layers of culture within a business. According to Schein, organisational culture operates at three interrelated levels:

1. Artifacts: the visible and tangible elements of culture, such as dress codes, office layout, and formal policies. These are the observable elements of underlying organisational cultural assumptions.

2. Espoused Values: the stated values, beliefs, and strategies that an organisation claims to uphold. These often appear in mission statements, codes of conduct, and leadership communications.

3. Basic Underlying Assumptions: the deeply embedded, unconscious beliefs and perceptions that truly guide behaviour within the organisation. These are often taken for granted and difficult to articulate but form the core of organisational culture. They can be contrary to espoused values.

Schein’s model is particularly useful in identifying where there might be cultural misalignment, especially in the context of behavioural expectations. In relation to internal dishonesty, understanding the implicit assumptions held by employees, such as beliefs about fairness, accountability, or the enforcement of policies, can provide critical insight into why certain behaviours persist despite formal policies that prohibit them.

Hierarchy of Effects Model

The Hierarchy of Effects Model, developed by Lavidge and Steiner (1961) outlines the stages a consumer typically progresses through when moving from initial awareness of a product or message to eventual action, such as a purchase. The model comprises three key stages:

1. Cognitive (Thinking): This initial phase involves creating awareness and developing knowledge. The individual becomes conscious of the message and begins to process information about it.

2. Affective (Feeling): In this stage, attitudes are formed as the individual develops interest, evaluates the message emotionally, and may begin to form preferences or feelings towards the brand or behaviour.

3. Behavioural (Doing): The final stage involves action, such as trying a product or adopting a specific behaviour.

This model is commonly used in advertising and communication strategy to guide message development. In the context of internal communications on workplace dishonesty, the model provides a useful framework for designing interventions that first raise awareness, then shift attitudes, and ultimately encourage behavioural compliance through structured and persuasive messaging.

Whistleblowing and Ethical Behaviour

Near and Miceli’s (1985) work on whistleblowing provides a theoretical framework for understanding why and how employees report wrongdoing within organisations.

Their model identifies four key elements:

The Whistleblower: the individual who observes and chooses to report wrongdoing.

The Act of Whistleblowing: the process of disclosure, whether internal (within the organisation) or external (to regulators, media, etc.).

The Perceived Wrongdoing: an action or situation viewed by the employee as unethical, illegal, or in violation of organisational policies.

The Recipient of the Report: the person or body to whom the concern is raised.

Near and Miceli’s foundational work was later built upon to consider additional factors that influence whether whistleblowing occurs, including perceived organisational support, retaliation risk, and the employee’s sense of responsibility.

These theories highlight that whistleblowing is not simply a matter of personal ethics but is shaped by the organisational context, including culture, leadership behaviour, and the existence of safe and credible reporting mechanisms. Promoting ethical behaviour, therefore, requires fostering an environment where concerns can be raised without fear of reprisal and where integrity is embedded within organisational values and systems.

Internal Marketing Mix: The 7Ps Framework

Booms and Bitner (1981) introduced a model known as the 7Ps, which incorporates both tangible and intangible elements essential for effective marketing.

While originally developed for external service marketing, the framework has been widely applied in internal marketing to promote organisational values, policies, and behaviours to employees to drive alignment and performance. The 7Ps are as follows:

Product: In internal marketing, this refers to the job itself and the work environment. Roles should be meaningful, well-designed, and aligned with employees’ values and capabilities.

Price: Represents what employees ‘give up’ in return for working (e.g., time, effort, stress) and should be matched with fair compensation, recognition, and career development opportunities.

Place: Refers to the channels through which internal messages are delivered, such as meetings or training sessions. Effective delivery ensures accessibility and relevance.

Promotion: The communication of organisational values, culture, and expectations. Messaging should be consistent, transparent, and supportive of ethical and behavioural standards.

People: Emphasises the role of leaders, managers, and peers in shaping the internal brand. Positive interpersonal interactions are critical to trust and engagement.

Process: Refers to the systems and procedures employees interact with. These should be user-friendly, fair, and reinforce desired behaviours, such as honesty and accountability.

Physical Evidence: Includes the physical and symbolic elements of the workplace (e.g., uniforms, signage, workspace design) that reflect and reinforce the internal culture.

When applied to internal communication strategies, particularly around issues such as dishonesty and workplace ethics, the 7Ps offer a framework for influencing employee attitudes and behaviour through a strategic and brand-aligned approach.

Experiential Learning Theory

Kolb’s Experiential Learning Theory (1984) presents learning as a dynamic process grounded in experience. Kolb, in essence, argues that we learn through experience rather than being passive recipients of information. Kolb’s model is structured around a four-stage learning cycle:

Concrete Experience: The learner encounters or actively engages in a new experience.

Reflective Observation: The learner reflects on the experience, considering what happened and why.

Abstract Conceptualisation: The learner develops theories or generalisations based on their reflections.

Active Experimentation: The learner applies their new understanding to test ideas in practice, leading to new experiences.

This cycle is continuous, with each stage informing and reinforcing the next. In a workplace context, particularly when addressing complex issues such as dishonesty or compliance, Kolb’s model supports the use of scenario-based learning, simulations, and reflective practices. These methods engage employees more deeply than instruction alone, promoting internalisation of values and behavioural change through lived experience.

Drawing on the above concepts, theories, and frameworks, the students developed campaign strategies aimed at addressing internal theft in a manner consistent with each retailer’s brand identity and values. These strategies, along with their underlying rationale, were presented to the participating retailers. Of the 19 projects submitted, the following section presents the five that were identified by the retailers as best reflecting their brand ethos and most effectively meeting the project brief.

Five Winning Campaigns

The campaigns below have been selected by the participating retailers as the winners. The decisions were based on a range of criteria including brand relevance, impact and responding to the brief. Bios of the winners can be found in Appendix B.

Fisher Tung for Boots: ‘Do not Steal Your Future’

Student Rationale

“I crafted a poster that emotionally contrasts the outcomes of honest work and misconduct. On the left side of the composition, I depicted smiling employees who radiate confidence and a sense of belonging—representing those protected and empowered by company policies. On the right side, employees are shown with bowed heads, expressing remorse after theft. The central element, a sheet of bubble wrap, symbolizes the protective nature of Boots’ rules and care.

I applied the MECCAS model to guide emotional messaging and incorporated both positive and negative reinforcement to shift behavior effectively. Working with Boots was a rare and valuable experience—I had access to internal insights that helped me align my design with real employee needs. Presenting my ideas directly to the company allowed me to receive professional, market-oriented feedback, which greatly sharpened my understanding of practical marketing communication. I’m grateful for this collaboration, which deepened my belief in how design can contribute to ethical change in the workplace.”

Retailer Appraisal

The poster and the concept developed by Fisher really captured the heart of the emotional impact that internal dishonesty can and does have on our team members. Having shared this poster concept with our wider team, they all felt that this poster really struck a chord with the message we are trying to convey.

Over the past few years, we had already created our own staff dishonesty posters, but fair to say they were a much softer message than this poster. It has really enabled us to challenge our own comfort level with the message we want to deliver and agreed internally that we should be pushing a harder message that will elicit a more emotional response from our colleagues.

The visual imagery aligned to our existing marketing themes from a colour perspective, so would fit in well into our stores. We are now working on how we can align this approach with our existing internal theft marketing campaign.

Andrea Pita for Next: ‘Your Voice Matters’ and ‘Every Transaction Counts’

Student Rationale

“The first poster focused on reporting compliance, using emotionally engaging and positively framed messaging to empower employees to speak up when witnessing suspicious activity. The second poster targeted Point of Sale (POS) fraud, outlining simple, practical steps for following correct procedures and avoiding common mistakes. My aim was to make the messaging relatable, easy to digest, and motivating – highlighting how employee actions contribute to a safer, more secure workplace. Both posters were grounded in behavioural and marketing theories, designed to guide employees from awareness to action by linking behaviours to personal values like integrity.”

Retailer Appraisal

Andrea’s efforts within this project were fantastic. Andrea showed a clear understanding of our brand, the anticipated risk and its employees’ profile, the desired message and used strategies that were really subtle but wholly effective. I didn’t expect someone to find such a balance and especially not someone who I hadn’t had to invest a great deal of time into, to help understand the message or brand awareness that we wanted to see delivered. Her finished posters give a clear message without being obtrusive or garish, they resonate with what we’re trying to achieve and strike the chord between important risks but are not accusatory or brand damaging.

I love the style, theme and mixed use of images and icons – something our brand has strengthened internally quite recently, which will make an easier task out of converting into ‘actual’ NEXT material.

Roxana Domniteau for River Island: ‘Let’s Change this Together’

Student Rationale

“This two-part campaign was designed to support River Island’s internal theft prevention strategy by encouraging behavioural change through clarity, empowerment, and inclusion.

Poster 1, “Observe, Report, Engage”, uses bold typography and a strategic red, green, and beige colour scheme to communicate urgency while remaining warm and approachable. Inspired by Means-End Chain Theory and the MECCAS model, the poster links tangible actions to values like trust and community. It promotes a recognition programme and anti-theft training, aiming to shift employee perceptions from blame to shared responsibility and ethical pride.

Poster 2, “How do you feel about our workplace”, reinforces behavioural change through employee voice. With a calming blue background, playful pink and orange text, and doodle-style visuals, it invites feedback in a fun, non-corporate tone. This aligns with objectives to boost engagement and encourage collective improvement.

I found the project really engaging. Being shown around the store by a River Island representative gave me a behind-the-scenes look at how the brand operates, which helped inform the design choices. It was also great to ask questions and understand the retail context—it made the assignment feel real, creative, and professionally rewarding.”

Retailer Appraisal

Roxana’s poster designs really aligned with our existing internal communications and spoke in River Island’s tone of voice. I particularly liked the dual approach of the awareness campaign in conjunction with the employee engagement survey idea.

The awareness campaign encouraging vigilance and reporting allows us to highlight the risk of internal losses, while creating a collective approach to reducing this as a whole team effort. This helps to create a level of accountability and ownership for all team members.

The employee engagement survey provides an opportunity for employees to provide their insights into their experience working in River Island which aligns with cultivating a culture of honesty which is the cornerstone of our internal strategy.

Daniel Adekanle for Sainsbury’s: ‘Family Comes First’

Student Rationale

“The campaign uses imagery and storytelling to highlight the emotional consequences of internal theft, encouraging employees to see themselves as protectors of a shared community.

The poster juxtaposes a unified team against the impact of loss caused by theft, aiming to generate empathy and collective responsibility. I believe this message is effective because it moves beyond rule enforcement and instead appeals to the human values of trust, loyalty, and teamwork—powerful drivers of behavioural change.

Sainsbury’s is an environment that cares for family and community, the image was to help workers to value relationship and community, helping them to understand it is not worth the risk of throwing that image down the drain. Working on this project with insights from the retail industry was incredibly rewarding. It gave me a real-world challenge and helped me apply theoretical knowledge practically. Collaborating with Sainsbury’s made me appreciate the complexity of internal communication and how thoughtful campaigns can influence behaviour in powerful ways.”

Retailer Appraisal

The approach Daniel took was focused on networking –  if you create a conscience and drive the impact of theft on the colleagues and friends around you, individuals are made to feel responsible for their actions and less likely to steal. Daniel’s example used company assets clearly and colour schemes that felt on brand.

Both examples are eye catching and there was a clear call to action, with one using shocking statistics to challenging thinking.

There are two posters submitted, an interesting build might have been to try a different theme for one of the examples, as delivering Loss Prevention deterrents can come in many forms as the studies suggested, what targets one group of people may be less effective on another group.

Irin Mariam John for Tesco: ‘Captain Integrity’

Student Rationale

“I developed two concept posters: “Sweethearting, But the Right Way”, which repositions a commonly misused retail term to promote ethics through emotional ties to loved ones; and “Captain Integrity”, a superhero persona that encourages staff to lead by example and take pride in ethical behaviour.

The aim was to shift away from fear-based messaging and instead use positive emotional triggers like family pride, self-worth, and team accountability to change behaviours in a more meaningful way. Visiting Tesco’s Daventry distribution centre added real depth to the project. Hearing firsthand from employees and managers about how internal theft affects morale and operations gave me a more grounded understanding of the issue and helped ensure the messaging was both realistic and empathetic.

The project was a powerful blend of creativity and real-world problem-solving. Being selected as the winning submission and having my work shared across the ECR network has been a rewarding and encouraging experience.”

Retailer Appraisal

We really enjoyed the way that Irin approached it in both of her posters. Captain Integrity is friendly and fun with a serious underlying message which we could see being used in other parts of the business/shop floor. We really like the use of the word “integrity” also, as it would challenge the mindset of colleagues who may think it’s okay to steal from Tesco due to the size of the business.

The Sweethearting concept was really interesting to us as it explores a deeper meaning behind the integrity – the reason why our colleagues get out of bed in the morning to come to work and earn money. We like the visual reminder for colleagues of why it is so important to do the right thing, not just how to do the right thing. We also feel that this could support in building a positive and friendly culture in stores, as colleagues may be able to relate to each other on a more meaningful level and build better relationships with one another. This in itself may deter colleagues from committing internal theft, as the thought of
being found out by colleagues and friends would bring them shame and embarrassment.

Overall, Irin’s ideas stood out to us the most because they got us thinking in ways that we hadn’t explored before. We look forward to continuing our engagement plan on internal threat and implementing our learnings from Irin’s posters.

Conclusion: Discussion and Next Steps

This report has outlined the persistent lack of understanding surrounding internal theft within the retail sector. A significant ‘detection gap’ i.e., the number of incidents that come to be known compared to those that remain hidden is stubbornly high.  This limits insight into the who, what, where, and why of internal theft. Despite all the resources dedicated by retailers to detecting staff dishonesty, drawing on industry surveys, it is estimated that less than 2% of employee offenders are ever apprehended. As a result, current knowledge about offenders, their motivations, methods, and rationalisations is limited, with much of the available research now outdated.

As retail operations continue to evolve (e.g. the emergence of BORIS and BOPIS fulfilment models), new points of vulnerability emerge. These changes, often driven by technological innovation, require a reassessment of traditional loss prevention strategies. Furthermore, it is notable that much discussion on internal theft, and the strategies to curtail it, tends to focus on junior staff as well as those that are on temporary or part-time contracts. However, anecdotal evidence from the sector suggests that some of the most serious and high-value thefts are committed by long-standing employees and those in management positions. This is an area that requires further research.

Internal theft is also one part of a much wider picture. Stolen goods, whether taken by staff or shoppers, often end up on the same online marketplaces. For practical steps to disrupt that flow, see our summary on the illicit market for stolen retail goods.

This project aimed to explore how retailers might reach the 98% of dishonest employees who are never formally detected, challenge their thinking, and ultimately influence their behaviour. Recognising that some national retailers have deployed internal communication campaigns and report significant successes, ECR Retail Loss partnered with Loughborough Business School and five major retailers. The objective was to assess the potential for Marketing students to design internal campaigns to reduce employee theft.

The student-led campaigns presented in this report draw upon established theories and frameworks from both Marketing and Criminology. By applying these disciplinary insights, students developed a series of employee-facing poster campaigns. Some focused on reinforcing company rules and behavioural expectations; others appealed to employees’ sense of morality and conscience or highlighted the consequences of dishonest actions. Crucially, each campaign was designed to reflect the visual identity and ethos of the respective retail brands.

These marketing-based interventions are not proposed as standalone solutions but as complementary tools to be integrated with existing loss prevention strategies, such as exception-based reporting, pre-employment screening, staff searches, and environmental controls (e.g., secure cages and access restrictions).

It is hoped that the concepts and designs developed through this project will be adopted and adapted within the participating businesses, and that the initiative will help to elevate internal theft as a topic for wider strategic discussion. Each of the five retailers is currently tailoring the materials to align with their internal branding, with plans to roll out poster campaigns in select store locations. Outcomes will be monitored, and this report will be updated accordingly once evaluation data is available.

Research Grant Providers: