Based on responses from retail professionals worldwide, new research shows retailers increasingly view physical security as a business function that supports operations, employee safety, and modernization efforts—not solely loss prevention.
According to the 2026 State of Physical Security Report from Genetec, retailers are now using physical security data to improve broader business outcomes. More than 60% of retailers identified improving operational efficiency within the security department as a primary objective for security data, while an equal percentage said improving safety and security was a top priority. More than half (55%) cited compliance, and nearly half (48%) said they are using security data to improve the customer and employee experience.
Aging Infrastructure Is Driving Modernization Goals
Despite growing interest in AI and analytics, many retailers remain focused on modernizing aging environments before expanding their technology footprint.
The report found aging physical security infrastructure (40%), training and upskilling staff (38%), attracting and hiring talent (37%), and aging IT infrastructure (33%) ranked among retailers’ biggest operational challenges. These challenges are influencing how retailers approach modernization.
Rather than replacing entire systems, retailers are pursuing measured modernization strategies. Looking ahead, 54% of retailers plan to leverage existing technology to address new challenges, 51% intend to use AI to streamline security processes, and 48% plan to evaluate new security systems for specific use cases.
“Physical security is becoming a strategic business asset for retailers, extending well beyond traditional loss prevention,” said Scott Thomas, national director for signature brands at Genetec. “The retailers that will see the greatest return on their security investments are those that treat modernization as an ongoing strategy rather than a one-time project. By building on existing infrastructure while introducing new capabilities, they can adapt to changing business needs without sacrificing the value of past investments.”
The full report is available here.