The holiday shopping season doesn’t last a day. It runs from early November through the January returns rush, and for most retailers it’s the longest stretch of elevated risk all year. More shoppers, more temporary staff, more inventory on the floor, and more returns all add up to more opportunities for loss.
Yet many stores head into the season with assumptions that leave gaps in their retail loss prevention strategy. Below are seven of the most common holiday security myths, and what actually holds up when the store is at its busiest.
Myth 1: “Busy stores are safer because more people are watching.”
Reality: Crowds work in a thief’s favor. When aisles are packed and every associate is helping a customer or running a register, no one is watching the high-value display at the end of the aisle. Shoplifters and organized crews deliberately time their visits for peak traffic because staff attention is spread thin and suspicious behavior blends in.
The fix is coverage that scales with traffic. Peak hours need more eyes on the floor, not fewer, and that usually means adding dedicated on-site security during the hours your sales data shows are busiest.
Myth 2: “Our normal staffing plan will stretch to cover the holidays.”
Reality: A security schedule built for an average Tuesday in March doesn’t fit a Saturday in mid-December. Holiday hours are longer, stores open earlier and close later, and traffic spikes on weekends and in the final days before Christmas.
Build a season-long security calendar that maps coverage to:
- Extended evening and early morning hours
- Weekends in late November and December
- The last five shopping days before Christmas
- Delivery days when receiving doors are open and staged stock is exposed
- The week after Christmas, when returns peak
Myth 3: “Seasonal hires are just extra help, not a security risk.”
Reality: Temporary associates are essential, but they’re also new to your procedures, they haven’t built loyalty to the store, and there’s limited time to train them. That combination creates exposure to internal theft, from discount abuse and sweethearting to fraudulent refunds processed for friends.
Retail loss prevention for the holidays should include:
- Consistent background screening for seasonal hires
- Clear register rules, with manager approval required for voids, overrides, and refunds
- A short loss prevention briefing during onboarding, so new hires know what to watch for and how to report it
- Exception reporting that flags unusual refund or void activity by employee
Myth 4: “The risk ends on Christmas Eve.”
Reality: For many retailers, the riskiest week comes after the holiday. Return fraud surges as gift returns pour in, and the counter gets busy enough that staff skip verification steps.
The numbers are significant. A 2023 report from the National Retail Federation and Appriss Retail projected roughly $148 billion in holiday merchandise returns, with retailers anticipating nearly $25 billion of that to be fraudulent. The same report found that wardrobing (wearing or using an item and then returning it) was the most commonly cited type of return fraud, followed by returns of shoplifted merchandise.
Common return fraud tactics include:
- Returning stolen merchandise for cash or store credit
- Wardrobing, or returning used items as new
- Receipt fraud, using found, altered, or counterfeit receipts
- Price-switching, returning a cheaper item in a more expensive item’s packaging
- Employee collusion, where an associate processes fake refunds
Return fraud detection starts with clear policies: require ID for receipt-less returns, limit receipt-less returns per customer, and train staff to check packaging and serial numbers. A visible security presence near the returns counter also discourages fraud attempts before they reach the register.
Myth 5: “Overnight is low-risk because the store is closed.”
Reality: Holiday inventory levels are at their peak, and backrooms are stacked with stock waiting to hit the floor. Burglary crews know that. Smash-and-grab break-ins often target stores late at night, when response times matter most.
Before the season starts, test your alarm systems and confirm every sensor and door contact is working. Check rear doors, receiving bays, and roof access points, and upgrade locks and safes for stockrooms and cash storage if they’re past their prime. When something does go wrong after hours, a provider with 24-hour customer service means you’re never waiting until morning to reach someone.
Myth 6: “The parking lot is the shopping center’s problem.”
Reality: Shoppers don’t separate the store from the walk to their car. If a customer is robbed or has their car broken into in your lot, that experience follows your brand, and it can create liability depending on who controls the property.
During the holidays, shoppers make repeat trips to their cars and leave bags in view, and darkness falls before 5 p.m. in much of the country. Lighting audits, visible patrols, and clear agreements with property management about who covers what all help. For stores in large shopping centers or mixed-use developments, our experience with parking and transit security covers the shared spaces where shoppers are most exposed.
Myth 7: “Security guards hurt the holiday shopping experience.”
Reality: Well-trained security officers do the opposite. Shoppers who feel safe stay longer and come back. The difference lies in how officers carry themselves. Professional guards greet customers, answer questions, and help people find what they’re looking for, all while keeping watch. They de-escalate tense situations at crowded registers instead of inflaming them.
That’s especially true in high-traffic markets with persistent theft pressure, like the retailers our Phoenix security services and West Palm Beach security services teams protect during the holiday rush.
Your Holiday Retail Security Checklist
Before peak season starts, make sure you’ve:
- Mapped security staffing to your holiday hours and traffic data
- Screened and briefed every seasonal hire
- Tightened refund, void, and return policies
- Tested alarms, cameras, and locks
- Coordinated parking lot coverage with property management
- Planned extra coverage for the post-Christmas returns week
Frequently Asked Questions
What is retail loss prevention?
Retail loss prevention is the set of practices a store uses to reduce shrink, meaning inventory lost to shoplifting, employee theft, fraud, and administrative errors. It includes security staffing, surveillance, inventory controls, policies, and employee training.
What is return fraud?
Return fraud is the abuse of a store’s return policy for financial gain. It includes returning stolen merchandise, wardrobing, using fake or altered receipts, and employee-processed fraudulent refunds.
What are the best retail loss prevention strategies for the holidays?
The most effective holiday strategies combine visible security staffing during peak hours, careful screening and training of seasonal employees, tighter return and refund controls, and well-maintained alarms and cameras. Coverage should extend through the January returns period, not end on December 24.
When should retailers start planning holiday security?
Start in September or early October. That gives you time to review last year’s incidents and shrink data, adjust policies, and book security staffing before demand peaks across the industry.
How do you detect return fraud?
Watch for patterns: frequent receipt-less returns from the same customer, returns of high-value items in damaged or repackaged boxes, and unusual refund activity by specific employees. Requiring ID for receipt-less returns and tracking returns by customer makes these patterns easier to spot.
Prepare Your Stores for Peak Season
ALK Global Security has protected national retailers through some of the busiest shopping seasons in the country. Our officers come from military and law enforcement backgrounds, and they understand that holiday security is about protecting both your merchandise and your customers’ experience. Learn more about ALK Global Security and how our team can help your stores finish the season strong.