C-Stores Rethink Loss Prevention Amid Rising Fuel Theft and Organized Crime

C-store retailers are leveraging technology, data analysis and proactive strategies to address increased operational risk.

Loss prevention trends

As technology advances and theft trends change, loss prevention (LP) best practices are getting an overhaul at convenience stores. Retailers and experts agree that we’re in the midst of a big shift in the c-store industry from the reactive LP of yesterday to a more modern proactive risk management approach.

“Convenience operators are no longer just responding to incidents; they’re investing in identifying patterns before loss occurs,” elaborated Khris Hamlin, VP of asset protection, Retail Industry Leaders Association (RILA).

Wes Pate, VP, loss prevention & risk management, Refuel Operating Co. LLC, which operates 244 stores in South Carolina, North Carolina, Texas, Mississippi and Arkansas, is seeing this trend play out at store level, where LP practices are shifting from a security operation to, as he calls it, “a proactive business performance driver.”

“The practitioners who are generating the most executive support right now are the ones fluent in EBITDA contribution, trend analysis and cross-functional problem solving, not just case counts and recovery metrics,” Pate said. “What’s interesting is that organizations are beginning to recognize this, and LP professionals are being asked to carry more than just LP.”

For example, Pate leads not only the LP function at Refuel, but also the company’s Risk Management, Inventory & Audit and Sourcing & Value Optimization business units.

“This is a unique and rewarding part of working at Refuel, and the industry is increasingly acknowledging that LP professionals are equipped to derive value well beyond the traditional LP scope,” he said, noting that staffing models and organizational charts at most c-store chains haven’t caught up to this shift yet.

Organized retail crime

One reason for the movement toward a proactive approach is that crime itself is changing. Organized retail crime (ORC), or professional, coordinated theft, is continuing to grow, and it’s appearing more frequently in smaller-format environments like c-stores, Hamlin noted.

“These aren’t always large-scale grab-and-go events; they’re often repeat, targeted thefts focused on high-margin, easy-to-resell items like tobacco, over-the-counter medications and energy products,” Hamlin said. “Teams are being asked to manage not just shrink but also employee safety, customer incidents and broader operational risk.”

C-stores are also experiencing crime that is more calculated and repeated as opposed to the opportunistic theft of years past.

“Offenders are learning store routines, shift changes, staffing gaps, delivery windows and exploiting those moments,” Hamlin said. “There’s also an increase in ‘low-dollar, high-frequency’ theft, where individuals intentionally stay under prosecution thresholds but create significant loss over time.”

Pate agreed that on the merchandise side of the business, theft is becoming more calculated, with thieves showing a familiarity with store layouts, camera positioning and associate blind spots.

Hamlin noted it’s also more common to see small groups of thieves working together, with one person distracting employees while another shoplifts.

“In some cases, these activities are being organized or influenced through online channels, which accelerates how quickly tactics spread,” Hamlin said. “Retailers are also seeing more brazenness. The perceived lack of consequences in some jurisdictions has changed behavior, and retailers are feeling that on the front lines.”

David Johnston, VP, asset protection & retail operations, National Retail Federation, is also observing these trends. In addition, he pointed to a rise in fuel theft, payment fraud and phone-based scams “that manipulate employees into surrendering cash or access to sensitive information.”

“The common thread is exploitation of speed, trust and operational gaps — making awareness and pattern recognition more critical than ever,” Johnston said.

Fuel theft is where Refuel is seeing the most significant external loss. “Merchandise theft, while present, is far outpaced by fuel-related loss,” Pate explained. “The sophistication we are seeing in the manipulation of the pumps to get fuel, and the means these groups have to traffic this product, is concerning.”