EYE on RETAIL: Concern over theft
According to a report from Mentor, Ohio-based Avery Dennison, almost two-thirds (64%) of large retailers in the United Kingdom and the United States agree that the impact of theft has reached a crisis point.
Plus, 42 percent say they believe that theft is more of a concern today than it was twelve months ago.
The research commissioned by Avery Dennison, The Retail Theft Crisis: Strategies to Protect Your Business, collates the views of 300 senior retail leaders in the UK and US representing brands with 200 or more stores.
“While theft remains a significant concern, shrink extends further to include supply chain waste, misplaced inventory, human error and even fraud,” said Francisco Melo, president of solutions group at Avery Dennison. “The impact is substantial. To protect profits and create improved store environments, it is imperative that retailers take a data-led approach to loss prevention. Leveraging advanced track and trace technologies such as RFID, with real-time analytics, will help to turn loss prevention into a proactive operation rather than a reactive one.”
When asked to list their top five business challenges, the most cited responses were
• addressing the impact of theft (36%),
• optimizing omnichannel (27%),
• increased operating costs (27%),
• improving staff efficiencies (26%), and
• retaining customers (24%).
In response to these challenges, many retailers are fighting back with a combination of anti-theft and loss prevention measures. Over half (53%) say 3% to 4% of their total IT budget is allocated to retail theft detection and prevention, while almost a quarter (23%) are allocating 5% to 6% of their total IT spend. For 57% of the retail leaders surveyed, these budgets equate to an increase in spend over the last two years, however, a third (33%) still believe the resources allocated are insufficient.
Retailers have been deploying a myriad of high-tech and low-tech measures to tackle an increase in theft, in addition to security guards. From RFID tags to body-worn cameras to facial recognition technology, retailers are using a combination of solutions for a holistic approach. Respondents listed security guards (27%) as the most effective measure deployed to date followed by facial recognition technology (23%), and RFID tags (21%).
Avery Dennison is a global materials science and digital identification solutions company.
