Many Retailers In ‘theft Crisis’ Mode, Survey Finds

New research has found that almost two-thirds (64%) of large retailers in the U.K. and U.S. believe the impact of theft has reached a crisis point. In addition, over four-in-ten (42%) believe that theft is more of a concern today than it was 12 months ago.

The survey and resulting analysis, commissioned by Avery Dennison, collated the views of 300 senior retail leaders in the two regions representing brands with 200-plus stores. Theft was found to be the leading business concern. 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%).

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%).

Retailers also shared their future plans, with 76% stating they are using RFID or plan to begin doing so within the next 24 months. Over a third (38%) plan to deploy AI enabled cameras, while 37% will introduce facial recognition technology within the same period.

“While theft remains a significant concern, shrinkage extends further to include supply chain waste, misplaced inventory, human error and even fraud,” said Francisco Melo, President, Solutions Group at Avery Dennison, a global materials science and digital identification solutions company. “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.”

The report described department store chain Macy’s as “something of a pioneer” when it comes to long-term deployment of RFID technology. Almost a decade and a half into its RFID journey, Joe Coll, the company’s VP of Asset Protection, adds: “RFID has proven a game-changer for us. It has definitively unlocked so much insight and completely changed our visibility into what is happening inside of our stores.”

Click here for more from the study.

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