Last month, the National Retail Federation forecast that holiday spending for the 2024 shopping season will reach a new record (opens a new window). A festive holiday season is good news for retailers. But for brick-and-mortar shops, more spending could present security and safety risks for employees and customers.
Recent inflation and supply chain issues could lead to sticker shock and competition for limited supplies, exacerbated by the potential for some products to go viral online. Add that to more traffic in stores and parking lots, and the stress many customers and employees already face at this time of year, and you have a potential recipe for conflict in stores.
Here’s how retailers can prepare for and manage this potential security risk.
Review your insurance coverage
Before an unfortunate event in stores, retailers should take a moment to review their insurance policies and understand how coverage might be triggered. Generally, the following policies could respond:
General liability, sometimes called commercial general liability (CGL), insurance protects against liability from a variety of risks. Types of potential claims include physical injury and property damage to customers and other third-parties that occur on business premises or as a result of negligence in operations.
Workers’ compensation insurance, which protects businesses by providing medical and lost wage benefits to workers who are injured or become ill on the job.
Property and business interruption insurance, which can respond in the event store property is damaged and a retailer is forced to shut down for a period of time (thus losing revenue).
Additional coverage may come into play for third-party incidents, including umbrella and excess insurance, which may be triggered in the event of a sizable loss.
Businesses should review how seasonal contract workers are covered. When stores add temporary workers through staffing agencies, it’s important that they understand who is providing workers’ compensation, and review the contractual agreements and related protections with those staffing companies.
Businesses should also be aware that in extreme cases, such as workplace violence, employees could challenge the exclusive remedy provision in workers’ compensation law, which protects businesses from lawsuits and sets statutory limits on the compensation an injured worker can receive. If a specific circumstance and jurisdiction allows an employee to pursue a claim against an employer in court, they wouldn't receive any workers’ compensation benefits, but rather pursue a broader tort-related claim against their employer.
Preventive safety and security measures
As the busy holiday season gets started, retail businesses can be proactive in limiting their potential liabilities. Among other steps, retailers should plan to hire additional staff as needed and ensure they are properly trained on checkout processes to avoid delays and proper lifting techniques to avoid injuries, as well as all safety measures. Employers should review state and federal labor laws around employee overtime, breaks and rest periods and have proper training in place to prevent workplace harassment and discrimination.
Managers should create detailed staffing plans to manage a high volume of shoppers. Stores may want to have specific plans in place for closing off aisles to allow employees to restock and avoid injury to customers or themselves.
All workers should be informed of emergency and de-escalation plans to address potential dangers, such as overcrowding, abusive or violent acts. Stores should consider having fire and active-shooter drills with all employees, including temporary workers, and providing walkie-talkies or other communications tools for employees to communicate throughout stores and handle any emergency situations.
Retail staff should ensure that individual stores meet all public safety requirements, and all permits and licenses are up to date. If needed, stores should set up rope lines, add signage, and have limited or timed entry to enable crowds to move smoothly and swiftly through stores, including checkout areas. Staff should also check parking lots for proper lighting, working security cameras and hazards, such as potholes.
Retailers should also consider:
Designating and having store managers onsite to make higher-level decisions as needed.
Implementing measures to mitigate shoplifting, such as adding security cameras and securing back inventory areas. Employees should be instructed on how to handle shoplifting and “smash-and-grab” situations.
Having a quiet and safe space as a mental and physical respite for employees to take breaks, regain composure and lower stress levels. Consider stocking it with snacks and water.
Posting in stores and educating employees of the correct phone numbers to call in the event of an emergency.
Ensuring first-aid kits, automated external defibrillators (AEDs) and fire extinguishers are readily available.
Having trained security, police, or crowd management personnel on hand.
Establishing protocols for employees leaving stores late at night, such as the buddy system, to ensure no one is left alone walking to cars or public transportation and everyone has a way to get home safely.
If a situation does occur with an angry or violent customer, managers should plan to have a debrief talk with employees to address the situation, lessons learned, acknowledge any emotional stress employees may experience, and ensure they feel heard and protected on the job.
With proper insurance coverage and preventive measures, you can go into the holiday shopping season knowing you’ve taken steps to keep your employees and customers safe so everyone can have a happy holiday and new year.
