How Convenience Stores Can Reduce Shrikage with ID Verification Technology

Retail theft is rising. Shrinkage is eating into your profits. Here’s how technology can help you fight back.

Across North America, convenience store operators are grappling with a familiar challenge: inventory disappearing from the shelves. Whether it’s liquor, tobacco, or high-theft general merchandise, retail shrinkage is more than a nuisance—it's a direct hit to your bottom line.

The good news? You don’t have to solve this alone.

Convenience stores and retail operators are beginning to see real results by using ID verification technology combined with access control solutions to protect high-risk products, and deter opportunistic crime before it starts.

In this article, we’ll break down:

• Why retail theft is a growing threat for convenience stores
• How technology like Patronscan is being used to prevent it
• What practical steps store owners can take today

The Shrinkage Problem: Growing, Costly, and Often Hidden

Shrinkage in convenience retail typically stems from:

• Opportunistic theft and repeat offenders
• Organized retail theft targeting liquor, cigarettes, and high-ticket goods
• Employee theft or untracked inventory handling

According to the National Retail Federation, shrink now accounts for over $112 billion in annual losses across U.S. retailers, and convenience stores are particularly vulnerable due to limited staffing and frequent turnover. To outline the growth of the problem, between 2019 and 2023 retailers reported an increase of 93% in shoplifting incidents.

And it’s not just corporations brining their voice to the issue. Governments are increasingly concerned with the trends and the impacts on the larger economy, as outlined in a recent news release from the City of Calgary in Canada.

What’s most alarming? Much of this loss is preventable.

Real-Time ID Verification: The First Line of Defense

Unlike traditional surveillance or passive deterrents, ID scanners actively verify a customer’s identity and age before access is granted to high-risk areas or products. This isn’t just about compliance—it’s about customer experience and safety.

Patronscan ID scanners, used in liquor stores, and convenience retailers across North America, can:

• Instantly scan and validate nearly 5,000 types of IDs
• Detect fake, expired, or duplicate IDs in real time
• Help identify repeat offenders before problems occur

Result: You stop theft before it happens—and improve your operations with data.

👉 Learn more about preventing liquor theft with ID scanning

The Case for Controlled Access in Convenience Retail

In one example from a multi-location retailer, Patronscan helped a store curb repeated shoplifting by pairing ID scanners with locking access doors. The process was simple:

1. Customers approached the merchandise zone, in some cases age-restricted product.
2. An ID scanner verified their age and identity.
3. Only then did the gate unlock, granting access to the products.

This system dramatically reduced shrinkage and internal theft, as each interaction was logged—and unauthorized access attempts were blocked entirely. One major roll-out saw retail theft reduced over 95% across their network of retail locations.

Why Relying on Cameras, Security Guards, and Clerks Isn’t Enough

Traditional theft prevention relies heavily on:

• Surveillance cameras
• Locked merchandise
• Increased staffing in the form of security professionals
• Manual ID checks by staff
• Post-incident investigation

But these are reactive tools. They help after the theft occurs, or have a negative impact on customer experience. They also put a heavy burden on staff, who are often tasked with other responsibilities.

In contrast, ID verification technology is:

• Proactive: Stops theft before it occurs
• Consistent: Doesn’t rely on human error
• Cost Efficient: The cost of systems is dramatically lower than increased labour
• Data-driven: Analytics provide insights to measure ROI

Want more context? 👉 Explore the full breakdown of retail theft security solutions

Additional Benefits for Store Operators

Implementing ID scanning technology doesn’t just protect your products—it also:

• Builds trust with regulators: Show dedication and investment in compliance with local laws
• Supports insurance claims: Provide hard proof of prevention measures
• Reduces liability: Block underage purchases and unauthorized access
• Lowers shrink-related costs: Less loss, fewer write-offs

And with Patronscan, implementation is flexible. Whether you're running a single location or managing 50+ stores, the system is built to scale with your needs.

Key Takeaways: Shrinkage Is a Technology Problem

Shrinkage isn’t just a cost. It’s a solvable challenge.

Today’s convenience store operators are embracing a new standard of theft prevention—one that puts identity verification and intelligent access control at the center of retail security.

Top strategies to reduce shrinkage:

1. Explore how technology is a key pillar of your financial, customer experience, and loss prevention strategies
2. Install ID scanners at points of sale or product access
3. Use locking gates or cabinets for high-theft areas
4. Utilize analytics to strengthen investigations and reporting
5. Train staff to understand and support technology-based controls
6. Partner with vendors who are focused on retail security and compliance

Want to see the full strategy? 👉 How to Combat Retail Theft—Full Guide

Why Patronscan?

Patronscan has been at the forefront of ID verification and access control for nearly 20 years, helping thousands of retailers across North America reduce liability and protect profits.

With proven results in liquor stores, convenience chains, and retail, Patronscan is trusted by operators who value:

• Accuracy: Best-in-class ID detection across 5,000+ document types
• Speed: Lightning-fast verification keeps lines moving
• Security: Encrypted data logs and compliance-friendly reporting
• Partnership: Dedicated onboarding and support teams

Ready to protect your store from shrinkage?