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Retailers under pressure: Why risk management may matter more than revenue

Small retailers often see a large spike in revenue around major holidays but the same surge in traffic that drives sales can also create more opportunities for things to go wrong, even in well-run stores.

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July 1, 2026 | Julie Rosland, head of commercial Liability & Property Claims, ERGO NEXT Insurance

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Small retailers often see a large spike in revenue around major holidays like Mother's Day or Small Business Saturday. But the same surge in traffic that drives sales can also create more opportunities for things to go wrong, even in well-run stores.

For example, Capital One Shopping reports that 20% of all small businesses experience shoplifting incidents multiple times a week. For many retailers, that's one more strain during peak seasons, when teams are already stretched thin and the stakes are high.

Protecting revenue can't come at the expense of productivity and efficiency, but it often feels like retailers are forced to choose. And it doesn't take much to break the math. A single claim can erase months of hard-earned profit. Legal costs, lost time and reputational damage add up fast, and recovery is even harder without clear records or timely reporting.

I've processed thousands of claims for small retailers, and the pattern is consistent: Retail risk management and preparedness can't be a secondary concern. It's a core part of business resilience — and one of the most practical ways to protect revenue.

The retail risks you don't see until it's too late

Retail has always carried risk. What's changing is how quickly routine issues can escalate during high-traffic periods, when attention is focused on the line at the register, not the small details that become big problems later, which is a key challenge in effective retail risk management.

Everyday safety hazards add up. Slip-and-fall incidents remain one of the most common retail claim types and are among the most difficult to prevent, according to the Insurance Information Institute. Often, the causes are ordinary issues like overstuffed displays, crowded aisles, or seasonal setups that narrow walkways. When customers are moving quickly or using mobility aids, a few inches of clearance can be the difference between a smooth visit and an incident.
Fraud is getting harder to spot. Many retailers report an increase in sophisticated, tech-enabled schemes that move fast and thrive on distraction. Deloitte found that 69% of retailers experienced AI-driven fraud incidents in the past year. Busy periods are exactly when staff are least able to pause and question inconsistencies, and small losses can compound quickly.
Weather can derail operations overnight. Natural events are a growing operational risk, not just an "edge case." The U.S. Chamber of Commerce has reported that one in four small businesses say they are one natural disaster away from shutting down. For retailers, even a brief closure can mean lost sales, damaged inventory and unexpected cleanup costs — and the hit is worse during peak shopping periods, when the store is most exposed.

Why peak seasons create the perfect conditions for costly claims

When it comes to claims, patterns matter. Peak retail periods tend to surface the same set of vulnerabilities — not because retailers are careless, but because the store is moving at full speed. From a retail risk management perspective, these periods require extra vigilance.

When teams are stretched thin, urgent tasks like serving customers, restocking shelves and keeping lines moving understandably take priority. But that's also when routine checks are skipped and small hazards are easier to miss.

Delays compound the problem. If an incident isn't addressed right away, the details that clarify what happened can disappear quickly. Video gets overwritten. Spills are cleaned up. Merchandise is moved. Even well-intentioned fixes can erase the evidence needed to resolve a claim efficiently.

Finally, documentation often makes the difference between a straightforward incident and a costly dispute. Without photos, witness statements or a basic report, it becomes harder to assess what happened and why. What should be manageable can turn complex — and expensive — fast.

Seven practical ways small retailers can protect their businesses during peak periods and beyond

Preparedness doesn't require a major overhaul. It's built through repeatable habits and clear expectations, especially during the busiest hours, which is the foundation of strong retail risk management practices.

Run quick safety checks during peak hours. Focus on entrances, high-traffic aisles and restrooms — the places where small issues become big fast.
Keep aisleways navigable. Displays should attract attention without creating obstacles. Reassess seasonal setups as traffic increases.
Document incidents immediately. Take photos, preserve video footage, and capture the basics while the scene is still fresh. Gather witness names and a short statement of what they saw.
Review coverage regularly. Gaps often aren't discovered until after an incident. A periodic review helps align coverage with changes in inventory, operations and exposure.
Plan for your location's weather risks. Simple steps — floor mats, drainage checks, elevating inventory in vulnerable areas — can reduce both safety risks and financial loss.
Loop in your insurer early. Retailers sometimes wait until something feels "serious." Early notification can help preserve details, guide next steps and reduce the chance of disputes.
Train for the moments that matter. Seasonal and new employees need clear direction on what to look for and what to do when something happens — especially when the store is crowded.

Preparedness keeps retailers moving forward through better retail risk management

Revenue will always matter. It keeps the lights on and makes growth possible. But that progress can be surprisingly fragile when a single incident leads to legal costs, lost time and reputational damage — and pulls employees away from customers when the store can least afford it.

Preparedness lives in the day-to-day: smart layouts, clear roles when something happens and a consistent process for documenting incidents quickly and correctly.
In today's retail environment, robust sales are only part of the story. Long-term success hinges on how well the business is protected along the way and how effectively retail risk management is embedded into daily operations.

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