A majority of retailers feel that theft has reached a crisis point, shows a recent survey report, which also talks about how retailers are spending a part on anti-theft measures.
According to recent research commissioned by Avery Dennison, the leading digital identification solutions company, almost two-thirds (64 per cent) of retailers in the UK and US agree that the impact of theft has reached a crisis point. In addition, over four-in-ten (42 per cent) believe that theft is more of a concern today than it was twelve months ago.
The research collates the views of 300 senior retail leaders in the UK and US representing brands with 200+ 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 per cent), optimizing omnichannel (27 per cent), increased operating costs (27 per cent), improving staff efficiencies (26 per cent), and retaining customers (24 per cent).
In response to these challenges, many retailers are fighting back with a combination of anti-theft and loss prevention measures. Over half (53 per cent) say 3 per cent to 4 per cent of their total IT budget is allocated to retail theft detection and prevention, while almost a quarter (23 per cent) are allocating 5 per cent to 6 per cent of their total IT spend.
For 57 per cent of the retail leaders surveyed, these budgets equate to an increase in spend over the last two years, however, a third (33 per cent) 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 Radio Frequency Identification (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 per cent) as the most effective measure deployed to date followed by facial recognition technology (23 per cent), and RFID tags (21 per cent).
Retailers also shared their future plans, with 76 per cent stating they have either deployed RFID tags or plan to in the next 24 months. Over a third (38 per cent) plan to deploy AI enabled cameras, while 37 per cent will introduce facial recognition technology within the same period.
Francisco Melo, president, Solutions Group at Avery Dennison, says, “While theft remains a significant concern, shrinkage extends further to include supply chain waste, misplaced inventory, human error and even fraud. 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.”
