The Evolution of “Saving the Sale” and What It Means Today | Part 3 of 3

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So far in this three-part series on how to “Save the Sale”, I have covered:

In this third and final part to this “Save the Sale” series, the discussion will slightly shift toward the challenges retailers experience when attempting to digitize their business model to increase sales by enhancing their customers’ experiences.

Seek First to Understand (the Challenges)

In a recent article entitled, The Digitalized Retail Store – a Conversion Driver or a Giant Headache?, author Tom Vieweger highlights the challenges retailers face when digitizing their operations, as well as the steps retailers must take to successfully accomplish this relevant transition. Vieweger states retailers must first lay a foundation, meaning whatever “digital touch points” a retailer utilizes (i.e., displays, in-store kiosks or smart mirrors), they can only drive conversion if the promoted products are actually available.

 

To accomplish the next step laid out by Vieweger, retailers must “play, measure, learn & adjust,” meaning they need to learn how customers react to offering new services so they can begin innovating with customers, as opposed to for customers. The third and final step Vieweger lays out for retailers looking to successfully digitize is to stay flexible by removing internal barriers while creating new, agile approaches that can be adjusted as technology changes.

The bottom line? Accurate, real-time stock information is essential for any organization launching into this new world of retail. Launching new digital initiatives that inspire customers to purchase more items, only to be disappointed when the item is not in stock, will only serve to damage a retailer’s brand and alienate customers. RFID and EPCIS standards are the keys to success in this arena, as RFID enables a high stock accuracy while EPCIS is a standardized protocol to exchange information on RFID events.

Secure Self/Mobile Checkout: Lessons from US & UK Retailers

At the Retail Industry Leaders Association’s (RILA) Asset Protection Conference that will be held April 29 – May 2, 2018 in Orlando, Fl., retailers and academia team up to present an education session entitled, Teaming Up to Secure Self/Mobile Checkout: Lessons from US & UK Retailers. In light of the fact that self-reporting by retailers, video, and other evidence indicates current mobile checkout and self-checkout business models may be creating significant losses and inventory distortions, Read Hayes of the University of Florida & the Loss Prevention Research Council (LPRC), and Adrian Beck of the Department of Criminology, University of Leicester, teamed up with retailers to produce this engaging, value-packed session that will address the technologies needed to effectively play in the new retail landscape.

Attendees will hear from these respected academics who will share their latest research findings on the nature and extent of the risk posed by self-scan systems, together with retailers who are utilizing this technology in their businesses. If you have not already registered to attend this conference, you may do so by clicking here. This is a session you will not want to miss!

 

The Meeting You Need at the Time You Need it
Nedap will be displaying their latest RFID technology, including RFID-based EAS, at this year’s RILA Conference April 29 – May 2, 2018 in Orlando, Fl This is the perfect opportunity for you to stop by Booth 626 to experience firsthand how RFID provides the technological foundation needed to successfully launch a self-checkout or mobile pay platform while still protecting your merchandise.

If you would prefer to schedule a meeting with us at the RILA Conference, you may do so by clicking here.

The Evolution of “Saving the Sale” and What It Means Today | Part 2 of 3

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I recently started a series on the evolution of the phrase “Save the Sale” and what it means today.  Part One discussed the definition of “saving the sale” and how not saving the sale impacts inventory and shrink.  Part two discusses the importance of having merchandise available and how mobile payment is becoming the standard to keep impatient customers fulfilled in this omnichannel world.

“Saving the Sale” is means merchandise need to be available of course and retailers must make it a seamless checkout experience.  Here’s additional detail on “saving the sale” solutions:

Merchandise Simply Available is Saving the Sale
Nedap offers practical solutions to typical challenges retailers face worldwide. Our mission is to make it simple for retailers to always have the right products available. We help you to make sure your customers feel they are the entire focus of your attention – that they can find whatever they want, wherever and whenever they want it – because your products are in stock and on the right shelf. Nedap’s solutions also help ensure your store teams spend less time looking for missing products and spend more time serving your customers.

Saving the Sale with Seamless Mobile Checkouts
The way consumers shop has changed dramatically over the past decade. The ‘traditional’ way of shopping; entering a physical store, choosing items and then lining up to pay at the checkout has been completely revolutionized. An increasing number of retailers are offering alternatives to the traditional point-of-sale by offering the possibility for their customers to make payment on their personal mobile devices. However, these ‘seamless checkout experiences’ tend to conflict with traditional EAS solutions. Nedap showcases how mobile payments can be combined with RFID-based EAS systems to effectively prevent merchandise from being stolen throughout the mobile pay process.

Seamless and cost-efficient security with RFID tags makes this solution sustainable. Additionally, Nedap’s solutions integrate nicely with existing systems, and the ability to use existing barcodes makes it even easier to adopt.

As digital sales continue to rise, it’s never been more important for retailers to optimize their checkouts in stores.

Use In-Store and Cloud-Based Technology to Save the Sale

RFID-based EAS
The role of electronic article surveillance antennas at the entrances and exits of stores have also changed. Traditional EAS systems alarm on active tags leaving stores, but intelligent article surveillance systems are capable of not only recognizing specific items. They can also detect and trigger alarms for several different scenarios. These systems are more advanced than ever before. Within this modern retail environment, Nedap distinguishes different levels of intelligent article surveillance to meet the needs of each retailer, all with one thing in mind: We make it simple for retailers to always have the right products available.

!D Cloud
Making sure that a product in the right size and the right color is available for your customers is crucial these days. However, merchandise availability should not result in overstocked stores and the associated high capital cost. That is why having accurate stock information at all times is key. RFID technology makes it possible to automate in-store stock management – resulting in optimal merchandise availability for customers and an in-store stock accuracy of over 98%.

To enable a fast RFID deployment and optimum scalability, Nedap has designed !D Cloud. !D Cloud is a cloud-hosted software suite that functions as a scalable integration layer between the existing ERP system and RFID readers. There is no need to replace existing IT infrastructures, add any new in-store infrastructure, or change the current ERP system.

Stay tuned for the conclusion to the series next week.

The Evolution of “Saving the Sale” and What It Means Today | Part 1 of 3

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Reflecting upon recent conversations I’ve had with Loss Prevention (LP) leaders, I have noticed an interesting shift in the way inventory shortage, or shrinkage, is being talked about. Over the many years I have been in the retail loss prevention industry, I have seen the focus of loss prevention leaders volley from one thing to the next. Robberies, employee theft, shoplifting and Organized Retail Crime (ORC) are still some of the most commonly talked about LP issues. However, these discussions are no longer solely focused on how these issues impact shrinkage. Most recently, these discussions focus on how these issues impact sales.  After all, retailers cannot sell off empty shelves.

The phrase “Save the Sale” started to surface in 2009, but it has recently gained ever more momentum.  Loss Prevention executives from retailers of all kinds are being charged with “Saving the Sale” in all areas of their focus.

Over the next few weeks, I’ll be publishing a series on how Saving the Sale affects you and how you can help your organizations “Save the Sale.”  Here’s the first two critical points to saving the sale:

Save the Sale Means Real-Time Access to Inventory
Retailers like Macy’s and The Children’s Place are still hot on ‘omnichannel retail,’ which is the term used to describe how retailers connect online and offline shopping behaviors. In a recent article in Forbes Magazine, Macy’s Executive Chairman, Terry Lundgren, stated that Macy’s is continuing to see serious growth in the area of “buy online, pick up in store” (BOPUS). He believes “physical stores are not going away,” and that, “customers will always want the option of coming into the store to try on jeans instead of buying three different sizes online.”

In this same article, Jane Elfers, CEO of The Children’s Place, stated her organization is also making a “big move towards digital and employing a lot of the omnichannel use cases like BOPUS and ‘Save the Sale.’” The article goes on to acknowledge that ‘Save the Sale’ requires store associates to have the ability to access real-time inventory across the network of stores, and that this inventory access enables store associates to keep customers from walking away from a purchase by finding their desired item online or at another store location with ease.

Failing to Save the Sale Increases Shrink

People rarely consider that sales directly impacts reported shrinkage percentages. The most successful loss prevention executives understand that when sales are up, shrinkage often decreases. Conversely, when sales are soft, the reported shrinkage percentage often increases. This is because shrinkage is typically reported as a percent-to-sales. This is calculated by dividing the total dollar amount of inventory shortage by the total sales. For example, if a retailer that does $3 million/year in sales takes inventory and determines $100,000 of inventory is unaccounted for, they simply divide $100,000 by the $3,000,000 and report a 3.33% shrinkage rate.

This means that if the inventory shortage of $100,000 stays the same, but sales increase to $3.2 million/year, their reported shrinkage rate decreases 20 basis points to 3.13. Conversely, if sales decrease to $2.8 million, their reported shrinkage rate would increase by 24 basis points to 3.57%. This is partly why retail’s classic saying – “Sales cures all ills” – has stood the test of time.

Stay tuned for the next in the series, “Seamlessly Saving the Sale”…

The Consumer Push for Mobile Pay Checkouts

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“What’s a Cashier?”

Checkouts haven’t changed since the beginning of retail. Sure, there are different models of the checkout, such as customer-unload designs, cashier unload designs, and even self-checkouts. But all of these types of checkouts have one thing in common: Cashiers.

With the Mobile revolution and the continued development of RFID technology, checkouts as we know them will soon be a thing of the past. This is not just a sci-fi vision into some impossible future. This is our new reality. Some say that within the next 10-20 years, children will be asking, “What’s a cashier?”

Winners Always Want the Ball

Some retailers will wait on the sidelines as their more in-tune-with-reality competitors pass them by in this new world. Unfortunately for them, they may never recover. In his recent blog, The Missing Piece in the Mobile Payment Puzzle and How RFID Completes It, RFID expert Hilbert Dijkstra lays out not only the benefits of mPOS, but also how retailers can protect their merchandise in this new, fresh and exciting retail environment.

The new world of mPOS still has unclaimed land, meaning there are still creative ways to deploy it. This is demonstrated in our whitepaper, How to Prevent High Shrinkage Levels When Introducing Mobile Checkouts in Retail Store. As stated in the whitepaper, Apple stores employ a unique version of mPOS. Any Apple employee walking the sales floor carries an iPad that allows them to ring up customers where they stand, thereby eliminating lines that traditional checkouts still contend with. This system of ringing sales may work well for Apple, but other retailers are experimenting with an even more unique way to use mPOS: one that involves RFID.

Leveraging Labor

There are many forward-thinking retailers today who understand the importance of being on the leading edge. Those first to adapt to the consumers’ push for mPOS will reap the rewards that come with building strong brand loyalty. But other benefits, such as labor reallocation or reduction, can be realized with mPOS.

mPOS retail mobile checkout

Imagine a customer walking into an apparel store. She sees a handbag she wants and simply scans the item using her smartphone, then exits the store. Far-fetched? Not at all. Some retailers are already doing this, while others are still wondering when the right time is to start their RFID journey. But one thing is for sure. Customers will flock to those utilizing this RFID technology.

Omnichannel Bliss

The use of RFID with mPOS is not the only benefit to retailers. Those in the omnichannel space also need RFID to solve their customer service woes. To successfully implement omnichannel strategies like click&collect or ship from store an accurate stock is a must have. When items that are ordered for instore pick up or to be send from the store are not  the apologies that ensue does little to help the brand damage that takes place each time this type of incident occurs. To read more on why RFID is the true omni channel enabler, please read more here.

With the introduction of mPOS to the market, omnichannel has come full circle. Now, when customers arrive to pick up the items they already paid for online, they can simply arrive at the store, select their purchased item, scan it out and leave. No lines. No hassle. No employees needed.

This is an interesting time in the world of retail, and consumers are in the stands patiently waiting to cheer for and support the retail winners who want the ball. Who will that be?

About Nedap

Nedap’s retail loss prevention products include electronic article surveillance, RF EAS systems, RFID EAS systems, Customer Counting and Retail Store Access Control systems.  Nedap’s retail solutions are based on intelligent identification and registration of people, animals and objects, or on innovative, ‘green’ electronic controls and power supplies. Innovation is driven by clients’ operations: systems are developed and adapted to optimize clients’ production and information processes.

Nedap brings 40 years of global experience, market expertise and close cooperation with leading retailers. Everything Nedap Retail does is driven by their mission to make it simple for retailers to always have the right products available. To achieve this, Nedap Retail offers industry-leading solutions for their customers’ diverse needs in loss prevention and stock management. For more information, visit Nedap Retail’s website: www.nedapretail-americas.com.

Nedap Sponsors D&D Live at NRF Retail’s Big Show

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Tune in to Join Nedap Retail for the D&D LIVE Event!

Nedap continues their support of the D&D Daily by sponsoring the LIVE broadcast featuring retail leaders addressing today’s hot topics at the NRF Retail’s Big Show January 15 -17, 2017 in NYC.

Tune in to watch us LIVE!  Click this link for LIVE viewing:
www.d-daily.net/live-in-nyc 

With more than 40 years of global experience, Nedap’s intelligent article surveillance solutions bridge the gap between high-performance loss prevention and a pleasant customer experience with smart features such as metal detectors, dashboarding, customer counting and much more.Take a look at last year’s LPNN Quick Take with Patrick O’Leary and Wouter Ubbels of Nedap Retail discussing its innovative product line and their support of the D&D Daily’s ORC Resource Center.

D&D Daily Live Broadcast by Nedap

Watch The D&D Daily LIVE in NYC 2017 Here.

Nedap Retail is the proud sponsor of the D&D Daily Reception and Dinner at the NRF Protect Retail’s Big Show. Keynote speaker, NYPD Commissioner “Jimmy” O’Neill, will speak during the reception and will be available for pictures with attending LP teams and vendors. In partnership with the NRF, a senior LP executive will be awarded The Daily’s LP Leadership Award that evening. For more information, click here.

NRF Retail Dinner
 

To learn more about Nedap’s smart loss prevention solutions, or to schedule a free consultation, visit:nedapretail-americas.com.

About Nedap Retail

Nedap’s retail loss prevention products include electronic article surveillance, RF EAS systems, RFID EAS systems, Customer Counting and Retail Store Access Control systems.  Nedap’s retail solutions are based on intelligent identification and registration of people, animals and objects, or on innovative, ‘green’ electronic controls and power supplies. Innovation is driven by clients’ operations: systems are developed and adapted to optimize clients’ production and information processes.

Nedap brings 40 years of global experience, market expertise and close cooperation with leading retailers. Everything Nedap Retail does is driven by their mission to make it simple for retailers to always have the right products available. To achieve this, Nedap Retail offers industry-leading solutions for their customers’ diverse needs in loss prevention and stock management. For more information, visit Nedap Retail’s website: www.nedapretail-americas.com.

Topics: RFID Retail Analytics loss prevention re

Retail’s Pursuit of Product Knowledge

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The Problem

Ask any retail executive to list their top 5 pet peeves, and a lack of product knowledge within their employee base will undoubtedly make the list. Employees with little product knowledge is one of the most sales-reducing dilemmas in all of retail.

According to research, retail sales associates with strong product knowledge sell 87 percent more than peers without out. And although there are a myriad of categories that fall within product knowledge, such as knowledge about the brand, shelf life, product performance, and level of assembly difficulty, a leading problem that falls under the product knowledge dilemma is simply whether or not the employee knows if a particular item is in stock.

Stock-on-Hand issues are an astonishing problem for retailers. In fact, Stock On Hand (SOH) issues are responsible for $1.1 Trillion in lost sales annually, according to a recent study by The IHL Group. But what is most fascinating about the SOH problem identified in the study is that the retailers identified by customers as being out of stock on a particular item may actually not be out of stock at all! How could this be? There are many reasons for this, but they all boil down to a lack of product knowledge.

In a 2016 whitepaper published by the Calibration Group, LLC, entitled, Stock-on-Hand: The Retail Problem That’s 7 Times Greater Than ORC, this dilemma was explained:

“The truth of the matter is that it really doesn’t matter whether or not a retailer is truly out-of-stock. What matters is whether or not the consumer experiences that the retailer is out-of-stock. For example, if a customer comes into a store to buy a specific brand of headphones but finds the rack empty, then she has concluded the store is out-of-stock and leaves empty-handed. However, the store may have several sets of that exact brand of headphones on a special display elsewhere in the store. In this example, the store’s management team would report they were in-stock on this particular set of headphones, and they’d be right. Conversely, the consumer would report the store is out-of-stock on this particular set of headphones, and based upon her perspective, she too, would be right.”

With the magnitude of costs brought by this globally persistent dilemma, retail executives, including Loss Prevention executives, are working hard to identify the proper remedy. Imagine a world where employees had easy access to information regarding not only how many of a particular item is in the store, but precisely where it is located. This would prevent the situation described above and would increase sales and customer loyalty.

The Solution

Not too long ago, the acronym, “RFID” was a word that fostered thoughts of high-dollar technology and unknown technological challenges. But that has all changed in recent years. What RFID brings to the retail space is a competitive edge to those who embrace it. Now that this technology is affordable, retailers are using it to finally gain traction on the product knowledge and Stock-on-Hand issues. Just a few years ago, the idea of an Electronic Article Surveillance (EAS) system that prevents theft, while simultaneously helping retailers know the exact quantity of SKUs in any given store within a moment’s notice, was a pie-in-the-sky dream. But with technological advancements and a thirst for perfecting inventory management solutions, Nedap Retail has created this solution that is causing a paradigm shift throughout the world of retail. For those retailers using Nedap Retail’s intelligent, future-proof products, customer satisfaction isn’t the only thing that has improved. Clients of Nedap Retail are seeing sales increase as well.

What Nedap Retail brings to the industry is more than just the standard EAS system offered by their competitors. Nedap Retail understands the breadth and complexity of retail and, therefore, has successfully designed and implemented solutions that address multiple challenges within a single solution. Nedap Retail’s EAS systems do not just prevent shoplifting. When a retailer chooses to activate the RFID technology that is encapsulated within the EAS system, they immediately enjoy the spoils of an inventory management system that improves ordering, significantly reduces labor expenses attributed to counting inventory, and increases sales as employees instantly know exact item quantities and locations.

Future-Proof Loss Prevention

Nedap Retail understands that some organizations are not yet equipped to launch a full RFID inventory management system. That is why Nedap’s products are future-proof. This means retailers who select Nedap Retail’s products can simply use the system in an EAS-only capacity until the retail organization chooses to expand into the use of RFID inventory management. Future-proofing is the best option for retailers looking for an efficient, results-oriented EAS system because they won’t have to replace any equipment should they decide to enter the RFID space.

About Nedap Retail

Nedap’s retail loss prevention products include electronic article surveillance, RF EAS systems, RFID EAS systems, Customer Counting and Retail Store Access Control systems.  Nedap’s retail solutions are based on intelligent identification and registration of people, animals and objects, or on innovative, ‘green’ electronic controls and power supplies. Innovation is driven by clients’ operations: systems are developed and adapted to optimize clients’ production and information processes.

Nedap brings 40 years of global experience, market expertise and close cooperation with leading retailers. Everything Nedap Retail does is driven by their mission to make it simple for retailers to always have the right products available. To achieve this, Nedap Retail offers industry-leading solutions for their customers’ diverse needs in loss prevention and stock management. For more information, visit Nedap Retail’s website: www.nedapretail-americas.com.

Check out Nedap Retail’s client Case Study with DSW Shoe Warehouse.

Why Not All EAS Systems Are Created Equal

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As with a lot of other things, when it comes to surveillance equipment, not all systems are created equal.

In an age of the Cloud, the Internet of Things and Big Data, companies must take steps to systemize their operations in a measurable way. And that requires turning away from outdated technology and embracing new advancements.

Compared to other technologies, such as the aforementioned cloud computing, loss prevention technologies have made remarkably little progress in the past decades. Analog and electronic-based tools are still prevalent in most retailers across the country.

These archaic surveillance methods leave much to be desired. Their inherent lack of intelligence, analytics and integration makes it easy for theft to occur — from casual shoplifters to organized retail thieves.

Each of these aspects plays an important role in the imbalance of equality.

Electronic-Based Systems Lack Intelligence

Electronic-based EAS systems are ineffective because they rely on your employees’ motivation to test and monitor them to prevent theft. According to a study by Hayes and Blackwood, only 60% of EAS pedestals were able to read products with a soft tag inside — and even more shockingly — in 91% of stores visited, there was no form of acknowledgment by any person in the store when an alarm was activated!

When an alarm sounds, theft prevention depends entirely on whether someone chases down the customer and asks them to open their bags. If this doesn’t happen, people learn they can steal things from the store without repercussions.

Meanwhile, no data gets communicated or stored into your ERP. This leaves you lacking insight into potential weak areas. What if you knew that more thefts occur during peak hours in the middle of the week? You could increase your staff accordingly. Or which item was stolen, so you could replace the floor model in order not to lose more sales.

But you don’t.

Relying on an electronic-based system creates gaps where items get lost or stolen, and no one knows about the losses until the next inventory audit. It’s simply not an efficient way to run your business in today’s society.

You Cannot Measure, Analyze or Report On Anything With Electronic-Based Systems

Measuring, analyzing and reporting are critical factors to the success in today’s extremely competitive retail world. But electronic-based surveillance systems do not provide these capabilities.

You can’t get any insights into the performance and health of your security systems. You can’t see how your customer dwell times and peak shopping times play a part in your security strength.

Instead, you’re left guessing and hoping that your protocols and technology work.

And this inequality is another area that makes software-based solutions stand out. Modern surveillance systems are equipped with retail analytics that allow you to:

  • Monitor store locations remotely.
  • Access vital information 24/7 from the web or mobile device.
  • See real-time analytics, reporting and dashboards on loss prevention performance.
  • Benchmark and compare all stores within your organization.

This level of monitoring allows you to start focusing on what really matters.

Electronic-Based Systems Do Not Integrate With Other Systems

In the era of big data, it’s important that all your solutions communicate with one another. This helps to keep everything aligned, systemized and unified.

With software-based solutions, you get access to a complete suite of integration technology. Processes such as enterprise resource management, warehousing, point of sale systems, staff planning and customer relationship management can all work alongside your loss prevention solution. This opens the door of opportunity for a wealth of knowledge and insight.

On the other hand, electronic-based solutions cannot communicate and integrate with other technologies at all which keeps it isolated from other valuable information.

Having solutions interconnected helps them reinforce each other and gives you valuable insight. It’s a win-win situation that you just can’t achieve with electronic-based systems.

Are You Ready for Software-Based Solutions?

More and more retailers will turn to software-based systems in the coming years. It’s the only logical pathway along this journey of technological advancement.

If your company isn’t thinking about the future, it will get stuck in the past. And that will not only lead to an increase in shrinkage but will do immense damage to the entire infrastructure.

It’s time. Start making plans to pitch a loss prevention upgrade to the C-Suite at your company. They’re the biggest thing standing in the way of your vision.

50 Tweetable 2015 Loss Prevention Statistics

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I love data! I like to measure, analyze and report on progress made, challenges mastered and new opportunities pursued. In the loss prevention and retail field, a lot of professionals share this love of data with me — for an excellent reason. It makes us more confident in the decisions we make; it makes us sound smart, and it allows us to provide tangible proof to an argument.

Because we love data so much, we put together a list of 50 statistics and data points that all center on loss prevention, shrinkage, and the retail industry.

To make sharing a lot easier, we also made them tweetable. To tweet a statistic, simply click on the Twitter icon and a new window will pop up — ready with the tweet — just click tweet and it will post the update to your Twitter account.

To keep this page handy, we recommend bookmarking it and feel free to refer to it in any blog posts you write. 

General Loss Prevention Statistics:

  • In 2014, American retailers lost $44 billion in potential sales due to shrinkage. (Source: NRF Retail Study) Tweet: American retailers lost $44bn in sales due to shrinkage in 2014 #retail http://ctt.ec/2e0eQ+
  • #Shoplifting is #1 cause of shrinkage (37%) for US retailers in 2014. (Source: NRF Retail Study) Tweet: #Shoplifting is #1 cause of shrinkage (37%) for US retailers in 2014. http://ctt.ec/4T5_k+
  • Employee theft contributed 34.5% to $44bn lost #retail sales in 2014. (Source: NRF Retail Study) Tweet: Employee theft contributed 34.5% to $44bn lost #retail sales in 2014. http://ctt.ec/fx34I+
  • Admin errors (16.5%) and vendor fraud (6.8%) contribute to $44bn shrinkage problem. (Source: NRF Retail Study) Tweet: Admin errors (16.5%), vendor fraud (6.8%) contribute to $44bn shrinkage http://ctt.ec/33R7z+
  • Retailers lost about 1.38% of retail sales to shrinkage. (Source: NRF Retail Study) Tweet: Retailers lost about 1.38% of retail sales to shrinkage #lossprevention http://ctt.ec/Rpcr3+
  • Technology matters. Shrinkage % down in US for 1st time in 24 years. (Source: NRF Retail Study) Tweet: Technology matters. Shrinkage % down in US for 1st time in 24 years. http://ctt.ec/ULwdd+
  • Shrinkage costs US shoppers about $300 per household every year! #lossprevention Tweet: Shrinkage costs US shoppers $300 per household every year! #lossprevention http://ctt.ec/85u6g+
  • 1 out of 11 Americans (approximately 27 million) shoplift. (Source: NASP)  Tweet: 1 out of 11 Americans (approx. 27 million people) shoplift. #retail http://ctt.ec/3eJ93+
  • More than 10 million people have been caught shoplifting in the last five years. (Source: NASP) Tweet: +10mn. people have been caught #shoplifting in the last 5 years. http://ctt.ec/5foYc+

Data To Effectiveness Of Loss Prevention:

  • Only 60% of EAS pedestals were able to read products with a soft tag inside (Source: Hayes and Blackwood Study) Tweet: Study: Only 60% of #EAS pedestals read products with a soft tag inside. http://ctt.ec/9fx3J+
  • In 91% of stores visited, there was no form of acknowledgment by any person in the store when an alarm was activated. (Source: Hayes and Blackwood Study) Tweet: Study: In 91% of #retail stores, there was no reaction after EAS alarm! http://ctt.ec/05F2b+
  • Only 5% of staff responses to a #lossprevention alarm is “meaningful” e.g., checking the receipt or identifying the product that triggered the alarm. (Source: Hayes and Blackwood Study) Tweet: Only 5% of staff responses to a #lossprevention alarm is “meaningful” http://ctt.ec/SX4ba+

Loss Prevention Budget Statistics:

  • #Lossprevention budgets represented less than 1% of overall 2014 sales. (Source: NRF Retail Study) Tweet: #Lossprevention budgets represented less than 1% of overall 2014 sales. http://ctt.ec/W1gJI+
  • 39.4% of retailers increased their #loss prevention budget for 2015 (Source: NRF Retail Study) Tweet: 39.4% of retailers increased their #loss prevention budget for 2015 http://ctt.ec/4XYe1+
  • Over one third (36.6%) of US retailers keep #lossprevention budgets the same in 2015. (Source: NRF Retail Study) Tweet: 36.6% of US retailers keep #lossprevention budgets the same in 2015. http://ctt.ec/H_fiW+
  • 23.9% of retailers in the US decreased #lossprevention resources.(Source: NRF Retail Study) Tweet: 23.9% of retailers in the US decreased #lossprevention resources. http://ctt.ec/lfM9b+
  • Specialty apparel retailers spent an average of 0.63% of sales on loss prevention measures (Source: NRF Retail Study) Tweet: Specialty apparel retailers spend 0.63% of sales on #lossprevention http://ctt.ec/tyUBd+
  • US grocery stores allocate only 0.36% of sales to reducing shrinkage. (Source: NRF Retail Study) Tweet: US #grocery stores allocate only 0.36% of sales to reducing shrinkage. http://ctt.ec/mB6dx+

Employee Theft & Organization-Wide Measures To Prevent Shrinkage:

  • 75% of employees steal at least once. (Source: U.S. Chamber of Commerce) Tweet: 75% of employees steal at least once. http://ctt.ec/7c9ME+ #retail #lossprevention
  • US retail employees are responsible for 39% of inventory losses. (Source: Global Theft Barometer) Tweet: US #retail employees are responsible for 39% of #inventory losses. http://ctt.ec/Hayf4+
  • Worldwide, the rate of employee theft of overall shrinkage is 28%. (Source: Global Theft Barometer) Tweet: Worldwide, the rate of employee theft of overall shrinkage is 28%. http://ctt.ec/XucR3+
  • 89% of retailers conduct criminal conviction checks pre-hiring. (Source: NRF Retail Study) Tweet: 89% of #retail stores conduct criminal conviction checks pre-hiring. http://ctt.ec/PG7a9+
  • 86% of retailers conduct multiple interviews before hiring a new worker. (Source: NRF Retail Study) Tweet: 86% of retailers conduct multiple interviews before hiring a new worker http://ctt.ec/7IcVs+
  • 73% verify employment history of potential employees before hiring. (Source: NRF Retail Study) Tweet: 73% of retailers verify employment history of potential employees. http://ctt.ec/RdvT3+

Industry Specific Loss Prevention Statistics:

  • Meat, next to alcohol, is one of the higher-priced items in any grocery store — Purloined Sirloin being the hottest item. Tweet: Meat remains the most attractive category for shrinkage. #retailhttp://blog.nedapretail-americas.com/2015-loss-prevention-statistics
  • Men’s and women’s specialty apparel stores and supermarkets are pre-employment screening leaders, with 92% checking criminal convictions and 83% verifying past employment. (Source: NRF Retail Study) Tweet: Specialty apparel stores / supermarkets do most pre-hiring screening. http://ctt.ec/7bfcL+
  • Grocery stores and supermarkets reported 100% criminal background checks (Source: NRF Retail Study) Tweet: Grocery stores, supermarkets reported 100% criminal background checks http://ctt.ec/NV68e+
  • 83% of retail stores test for drugs prior to employment. (Source: NRF Retail Study) Tweet: 83% of grocery stores test for drugs prior to employment.  #retail http://ctt.ec/mgDyU+

General Retail Statistics

  • 98.6% of all retail businesses have less than 50 employees. (Source: NRF Retail Impact Study)  Tweet: 98.6% of all #retail businesses have less than 50 employees. http://ctt.ec/oFdZK+
  • Nearly all purchases (90%) happen in a physical store. (Source: A.T. Kearney) Tweet: Nearly all purchases (90%) happen in a physical store. #retail http://ctt.ec/hn15C+
  • 28% of shoppers enjoy seeing what other customers have purchased. (Source: UPS Report) Tweet: 28% of shoppers enjoy seeing what other customers have purchased. http://ctt.ec/TZobG+
  • 30% of buyers appreciate seeing on-screen recommendations based on their listed preferences.  (Source: UPS Report) Tweet: 30% of buyers want on-screen recommendations based on preferences. http://ctt.ec/Eb06s+

Age & Gender Differences In Shoplifting:

  • Men and women shoplift about equally as often – but for different reasons. (Source: NASP)  Tweet: Men and women shoplift equally as often - but for different reasons. http://ctt.ec/fIEx2+
  • Approximately 25% of shoplifters are kids, 75% are adults. (Source: NASP) Tweet: Approximately 25% of shoplifters are kids, 75% are adults. http://ctt.ec/NUKC3+
  • 55% of adult shoplifters say they started shoplifting in their teens. (Source: NASP) Tweet: 55% of adult shoplifters say they started #shoplifting in their teens. http://ctt.ec/_EKB8+
  • Many shoplifters buy and steal merchandise in the same visit. (Source: NASP) Tweet: Many shoplifters buy and steal merchandise in the same visit. #retail http://ctt.ec/b92xy+
  • Shoplifters commonly steal from $2 to $200 per incident depending upon the type of store and item(s) chosen. (Source: NASP) Tweet: Shoplifters commonly steal from $2 to $200 per incident. #shoplifting http://ctt.ec/m0777+
  • Shoplifting is often not a premeditated crime. 73% of adult and 72% of juvenile shoplifters don’t plan to steal in advance. (Source: NASP) Tweet: Almost 3/4 of shoplifters don’t plan to steal in advance. #shoplifting http://ctt.ec/56LfY+
  • 89% of kids say they know other kids who shoplift. 66% say they hang out with those kids. (Source: NASP) Tweet: 89% of kids say they know other kids who shoplift. http://ctt.ec/5Q3zB+

Organized Retail Crime:

  • 3% of shoplifters are “professionals” who steal solely for resale or profit as a business. (Source: NASP) Tweet: 3% of shoplifters are “professionals” stealing for resale or profit. http://ctt.ec/EfbZ4+
  • “Professional” shoplifters are responsible for 10% of the total dollar losses. (Source: NASP) Tweet: “Professional” shoplifters are responsible for 10% of the total dollar losses. http://ctt.ec/Udrs1+
  • The vast majority of shoplifters are “non-professionals” who steal, not out of criminal intent, financial need or greed but as a response to social and personal pressures in their life. (Source: NASP) Tweet: Most shoplifters steal as a response to social or personal pressures. http://ctt.ec/8vlUy+
  • Shoplifters say they are caught an average of only once in every 48 times they steal. (Source: NASP) Tweet: Shoplifters say they are caught only once in every 48 times they steal. http://ctt.ec/sf5LA+
  • They are turned over to the police 50% of the time. (Source: NASP) Tweet: Shoplifters are turned over to the police 50% of the time. #retail http://ctt.ec/8J77_+

The Hard-To-Break Habit Of Shoplifting

  • 57% of adults say it is hard for them to stop shoplifting. (Source: NASP)  Tweet: 57% of adults say it is hard for them to stop #shoplifting http://ctt.ec/rD6Lq+
  • 33% of juveniles cannot stop #shoplifting after getting caught. (Source: NASP) Tweet: 33% of juveniles cannot stop #shoplifting after getting caught. #retail http://ctt.ec/_B02z+
  • Most non-professional shoplifters don’t commit other types of crimes. (Source: NASP) Tweet: Most non-professional shoplifters don’t commit other types of crimes. http://ctt.ec/fTLIu+
  • Habitual shoplifters steal an average of 1.6 times per week. (Source: NASP) Tweet: Habitual shoplifters steal an average of 1.6 times per week. #retail http://ctt.ec/culCY+
  • Many shoplifters steal for the incredible “rush” or “high” feeling of “getting away with it”. (Source: NASP) Tweet: Many shoplifters steal for the rush / feeling of getting away with it. http://ctt.ec/UbS6v+
  • Drug addicts, who have become addicted to shoplifting, describe shoplifting as equally addicting as drugs. (Source: NASP) Tweet: Drug addicts describe #shoplifting as equally addicting as drugs. http://ctt.ec/223Gt+

Have you come across a loss prevention or retail statistics you would like to add? Please share them with us in the comment section bel

EAS Advertising Panels: Small Cost, High Return On Investment

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There is a lot of debate and fear around whether or not customers would be scared off by visible security pedestals on shop entrance and exit areas.

For most shoppers, this is not even a concern. They are either indifferent or in favor of it because it makes them feel safer. Only some feel discomfort or embarrassment when, for example, the alarm goes if someone walks through.

Whatever the case might be, there is one way other than using concealed systems, to make everyone happy: advertising panels.

Advertising panels are thin, but sturdy plastic covers that clip into your electronic article surveillance (EAS) system. It is important to be sure you are using panels made for your EAS system; otherwise you might block the sensors or visitor counting!

These panels can be utilized in a variety of ways:

Promote Your Own In-Store Marketing Campaigns. Of course, the most obvious is to support your internal marketing campaigns. If you are a large retailer, that is currently running a back to school sale, make sure you tell your customers about it!

Generate Extra Revenue By Running External Promotions. You can even generate some additional revenue by letting vendors whose products you sell in your store advertise on the advertising panels. They will love the exposure in your high traffic exit and entrance areas!

Attract passerby Into Your Stores. Speaking of high-traffic areas: Advertising panels carrying enticing promotions will attract passing shoppers to enter your store and have a look around! This is an excellent way to get new visitors into your store or shoppers who did not intend to come by today.

Change in Ad Panel Makes Your EAS System Seem Newer Too. As much as an advertising panel makes passersby come into your store, it also gets the attention of potential shoplifters. The seemingly new pedestals become a visible deterrent and have a possible effect on your decrease of shrinkage.

Protecting Your Equipment. Of course, every retailer is concerned about the safety of its shoppers and employees. Advertising panels will help you prevent your littlest shoppers from climbing on the gates and potentially hurting themselves.

Blend Your EAS System Into Your Store Decor. Last, but not least, your advertising panels don’t even have to have any promotional content on them. You can also use them as a design element and integrate your security gates into your store design.

Conclusion

The bottom line is: Advertising panels can provide you with a high return on investment at a small cost; helping you to promote your products and store, protect your equipment and much more.

5 “Soft Skills” You Must Have As A Successful Loss Prevention Manager

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What is the most important skillset a loss prevention professional has to bring to the table? Outstanding verbal and negotiation skills? Excellent investigative talent? A strong interest in justice? Or is it the ability to follow a roadmap?

Measuring Loss Prevention Performance

Before we look at which skills are needed, let’s have a quick look at how most retailers measure the performance of their loss prevention professionals.

Most of the time, they are evaluated by how many cases they have uncovered and investigated, have many security audits they performed, and the actual shrinkage numbers. These goals lend themselves naturally to evaluations because you can formulate them into a specific, measurable, attainable, relevant and timely manner.

The Big Drawback

But they have one huge drawback!

They do not consider the soft skills that any highly successful loss prevention manager should have. These soft skills are incredibly important to establish initiatives and policies as well as an effective company culture that helps proactively prevent shrinkage — instead of continually paying “Gotcha!”

By measuring how many shoplifters someone caught last month or how many dishonest employees they have found out, retailers are actually doing themselves a disfavor by in fact discounting these important skill sets that would prevent losses more effectively long term then the wait and see approach.

So, without further ado, here are the top five soft skills that you should be looking out for:

1) Excellent Leadership Skills

As a loss prevention manager, you wear a lot of hats. You have to teach store employees; you coach executives, and you raise awareness within your organization. But first and foremost, a successful loss prevention manager is a role that requires exceptional leadership skills, such as decisiveness, consistency, and selfless service to others. And of course, you must command respect and authority and be passionate about what you do.

2) Relationship Building

According to Hoda Ilyavi, the executive director of Field Services at LP Innovations, the ability to build trusting relationships is the number one most important skill for loss prevention specialists: “Whether you are working for an outsource service provider or an internal team, your success relies on your ability to work in tandem with your retail partners. Yes, our work requires us to handle negative situations.  However, our success comes from our ability to identify opportunities to teach, educate and be a resource to assist in success.”

3) Dedication To Excellence

Mediocre efforts will reap average results. So, as the loss prevention manager it is up to you how you approach shrinkage. Will you dress security guards in standout uniforms and place them in prominent locations all over your stores to act as a deterrent but otherwise have a hands-off policy? Or do you have a long-term loss prevention roadmap that lays out corporate-wide awareness programs, invests in the latest technology, and deploys a holistic approach including vendors and employees?

To excel in your job, an aspiration to excellence and a constant commitment to learning and improvement is imperative as a loss prevention manager.

4) Passion

As a successful loss prevention manager, you live and breathe shrinkage. You talk about it all the time and let no opportunity go by that could be used to raise awareness or educate someone. It is much easier to get others excited about your cause if you are truly passionate about it.

5) Analytics & Data-Driven Mindset

It is safe to say that the more you know, the more you can sell — so decisions need to be based on accurate data. But to know as much as possible, you need good quality data that then can be turned into insights that you can leverage to hone your loss prevention efforts.

When trying to prevent shrinkage things are hardly ever as simple as they seem. Without finding the exact cause of an alarm or a breach, you will be tapping in the dark to eliminate the threat. Often it is hard to reconcile item-level store shipment, back-room, on-shelf and sales data correctly.

“The skill set needed to distil all the data and analytics retailers now have at their fingertips is in hot demand and short supply. Our industry needs to find ways to attract software engineers and data analysts. It’s tough because most of the graduates who come out of school with these degrees don’t think retail first — and they certainly are not thinking LP. Still, the explosion of big data creates so many opportunities for individuals with that skill set.” said Pedro Ramos, vice president sales of Agilence in an NRF interview.

Therefore, any successful loss prevention manager will make real-time analytics and actionable insights his foundation for any decisions going forward.

What Skills Do You Think Loss Prevention Managers Should Have?

We would love to hear it from you — please sound off in the comments below.