Shoplifting is a serious problem, as almost all stores are exposed to it in some degree. The stores must find a balance between having a customer-friendly environment and preventing shoplifting without offending customer integrity.

The purpose of this paper is to analyze how the design of the store environment can promote the reduction of retail shrinkage that happens through shoplifting in textile retail stores. This is evaluated through examining how textile retail stores work with preventing shoplifting in the store, as well as how they design store layout that promotes a customer-friendly environment and prevents shoplifting.

The study is conducted primarily through empirical material that consists of interviews and participant observations, as well as through secondary sources including academic literature and other literature. The empirical material was analyzed on the basis of the theoreticalmodels. The models used are the ABC model and CPTED – Crime prevention through environmental design.

Throughout the work we have come to the conclusion that there are several methods that stores can use to prevent shoplifting. There is no method that suits all stores, but as an outcome from the study one method stood out as most beneficial and efficient way, which is focused on the open store layout. The stores today work with preventing shoplifting, but have sales and a customer-friendly environment as the main focus.