Britain’s independent retailers’ risk being disproportionately exposed to the growing cost of retail crime as larger chains invest in increasingly sophisticated measures to protect high-value stock.

Insurance broker Everywhen explained retail crime is estimated to cost UK retailers £4.2 billion a year, with major businesses responding by changing the way everyday products are displayed and protected.

Supermarket Giant said Tesco has introduced keypad-operated cabinets for alcohol in some stores, while Iceland has placed premium cuts of meat inside security boxes. Body-worn cameras have also become an increasingly familiar sight among retail workers.

But Everywhen said the bigger story for SMEs is not simply the rise in shoplifting. It is the growing gap between the security measures available to major retailers and those realistically affordable for smaller businesses.

For an independent shop, convenience store or specialist retailer, the loss of a relatively small quantity of high-value stock can have an outsized impact, particularly at a time when many businesses are already managing tight margins and higher operating costs.

Diane Caplehorn, head of partnerships at Everywhen, said: “Retail theft is no longer something businesses can afford to view simply as an occasional loss of stock. For smaller retailers in particular, repeated theft can become a wider business resilience issue.

“Large retailers may be able to invest heavily in technology, security personnel and sophisticated anti-theft systems. SMEs often have to make much more difficult decisions about where limited resources are spent.

“The answer isn’t necessarily to turn every independent shop into a fortress. It is about understanding where the greatest vulnerabilities are and using relatively simple measures intelligently. Knowing what is being stolen, when incidents are happening and where the weak points are can be just as important as investing in expensive technology.”

Everywhen added one of the most useful steps for retailers is to begin treating theft as a pattern of risk rather than a series of isolated incidents. Businesses can create a simple “crime map”, recording thefts and attempted thefts alongside details such as the time, location within the premises, products targeted and whether the area was covered by CCTV.

Over time, this can reveal patterns and help retailers decide where limited security budgets will have the greatest impact. Measures can include repositioning high-value products closer to staffed areas, improving lighting and visibility, eliminating blind spots, installing CCTV or security mirrors, using electronic tags and restricting access to particularly valuable inventory.

“But external shoplifting is only part of the picture,” the company warned. “Businesses should also consider their internal controls, including who has access to tills, stockrooms and valuable inventory. Regular stocktakes, prompt investigation of discrepancies and clear reporting procedures can help businesses identify losses earlier.”

Caplehorn, added: “The important thing is that businesses don’t wait until theft becomes a serious financial problem before reviewing their exposure.

“Prevention should always come first, but no retailer can eliminate risk entirely. As the nature and value of stock changes, businesses should also make sure their insurance arrangements continue to reflect what they actually hold and the risks they now face.

“For SMEs operating on tight margins, resilience often comes down to doing the simple things consistently, understanding the risk, reducing the opportunity for loss and making sure there is protection in place when prevention isn’t enough.”