Back-of-house is back: A smarter solution to loss prevention

Back-of-house is back

Over the past decade, the layout and logistics of European grocery and convenience stores have undergone a quiet revolution. In pursuit of ever-increasing efficiency, retailers streamlined their operations, reducing or even eliminating back-of-house storage in favor of high-density, high-productivity sales floors. Daily replenishment from centralized warehouses became the norm. Shelf space was maximized, and the traditional back room became an afterthought – a space reserved for promotional overflow and occasional overstock.

But this approach, designed around supply chain optimization, is beginning to show cracks under the pressure of an entirely different challenge: loss prevention.

Loss prevention is more important than ever

For years, retailers have quietly accepted a shrinkage rate of 1-2%. But in today’s landscape, that figure is rapidly increasing. The rise of self-checkout, coupled with organized sweep theft, has driven loss figures into alarming territory. In some locations and categories, shrinkage is now exceeding 15% of sales. That’s not just a margin problem—it’s an existential threat.

Traditional prevention is falling short

Retailers have responded in familiar ways: locking up high-theft items, using product dummies, placing goods behind counters. But these measures are double-edged. They increase staff handling time and degrade the shopper experience. Cameras, too, have limitations: they’re expensive, can’t see everything, and often trigger after the fact. None of these interventions address the heart of the issue—theft as it happens.

A smarter solution: event-based intervention

The real solution lies in targeting loss events in progress. Not too early to frustrate innocent shoppers, and not too late to be useless. MOOS offers exactly that. With breakthrough shelf sensing technology, MOOS delivers real-time visibility on shelf activity—flagging high-value, high-risk, or unusual transactions as they happen. It enables store personnel to intervene smartly and discreetly, maintaining a welcoming environment while deterring theft in action.

Reintroducing back-of-house for intra-day replenishment

Here’s where the rethink comes in. What if we used back-of-house not as a buffer for daily replenishment, but as a tool for loss prevention? By limiting shelf depth—artificially reducing the amount of product exposed on the sales floor—retailers can lower the risk of theft. Instead of displaying a full day’s rotation, shelves can hold a multiple of a typical basket size, keeping products available for real shoppers while reducing temptation and opportunity for theft.

And when the shelf runs low? MOOS triggers intra-day replenishment from the back-of-house. Not only does this preserve high availability, it also revives a long-lost retail behavior: staff stepping in to assist customers by fetching items. In the age of automation and impersonality, this human touch can be a powerful differentiator.

The economics add up

Let’s say a store suffers a 5% shrinkage on a high-theft category. On €10,000 in weekly sales, that’s €500 lost. If limiting shelf exposure cuts that loss in half and intra-day replenishment costs €100 in labor, the retailer is still €150 ahead every week. Even better, shelf availability remains high, and service levels improve with staff more engaged in real-time operations.

Back-of-house is no longer just a relic of retail’s past. In the right context, it becomes a modern tool for precision operations and loss prevention. And with MOOS enabling the intelligence behind it, retailers can strike a new balance: efficient, secure, and shopper-friendly.

The front may still be where the action is, but the back is where the strategy begins.