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While perhaps not the nicest of subjects to talk about, lossprevention is one of the most important topics when it comes to retail environments. So, what else can retailers do to combat lossprevention? However, thieves are becoming savvier and continue to bypass existing measures to get out the store without paying.
Most retailers attribute 50-60% of losses to associate actions. Increasingly, Organized Retail Crime (ORC) and Cybercrime rank at the top of the list of LossPrevention (LP) concerns, along with associate fraud and returns fraud. Shrinkage means the retailer has less physical inventory than their system reflects.
Retail profitability can be critically impacted through stock loss with inferior or outdated protection systems. Retailers face continual challenges with increasingly sophisticated shoplifters causing in-store ‘shrinkage’. The result is costing retailers billions in stock loss each year.
According to the 2022 Organized Retail Crime Survey from the National Retail Federation, in partnership with Appriss Retail and the LossPrevention Research Council, for every $1 billion in revenue that a U.S. Organized retail crime is a growing problem. retailer makes, more than $700,000 is lost due to ORC.
Lossprevention: Employs advanced surveillance techniques to detect and prevent shoplifting. Lossprevention: AI combats retail shrinkage also, by integrating computer vision and motion analytics at self-checkouts, detecting suspicious activities and ultimately reducing theft.
FOR YOUR CONVENIENCE… This 6 hour workshop is separated into two 3-hour sessions Click the link below for all the details: Retail LossPrevention & Profit Protection Workshop – ONLINE (Registration covers both sessions and includes recording and full presentation emailed following session whether you attend or not.)
These technologies are helping retailers achieve efficiencies in operational functions including staff deployment and management, customer service, shrinkage reduction and lifecycle pricing. This is particularly helpful for someone bringing a new product to market, where there is no sales history.”
According to the 2020 National Retail Security Survey , retail theft, or shrinkage, is at an all-time high. In fact, in 2019, shrinkage accounted for an average rate of two percent of inventory, calculated at retail, costing the industry a record $62 billion.
According to the 2020 National Retail Security Survey , retail theft, or shrinkage, is at an all-time high. In fact, in 2019, shrinkage accounted for an average rate of two percent of inventory, calculated at retail, costing the industry a record $62 billion.
Security and LossPrevention Ensuring the security of your retail store and merchandise is paramount. Outsourcing security and lossprevention services to professionals can significantly reduce the risk of theft, shoplifting, and inventory shrinkage.
We lose approximately $10 million a year on shrinkage – that covers a range of things but the majority of that is goods that are unaccountable,” Drake said. “It’s Incidents of theft are on the rise with Drakes’ 50+ stores across Queensland and South Australia experiencing shoplifting on a weekly basis. “We
Factoring in the roughly US$700 million of inventory shrinkage that occurred in 2022, mainly attributed to retail crime, the company is on track to lose up to a total of US$1.2 billion due to organised retail crime over the past two years alone. It’s the best move they can make,” he noted.
Lossprevention – in the US alone, retailers lose around $100 million a year to shrinkage, + which is a direct hit on the bottom line. Loyalty information ensures customers are recognised in store as well as online; and ensures that promotions are 100% aligned with shopping preferences.
The software is used to gather evidence on repeat offenders, and is largely used to prevent theft and shrinkage. There’s the argument that the stores are using [facial recognition] for lossprevention, and to improve their ability to identify those that are engaging in criminal behaviour or theft.
Fueled by a surge in organized retail crime, shrinkage costs the industry almost $100 billion a year, according to National Retail Federation’s “2022 Retail Security Survey.” The study, conducted with the LossPrevention Research Council, found that the average shrink rate in 2021 was 1.4%, resulting in losses of $94.5
As counterintuitive as it is, we all know losses are an accepted norm in retailing. Factored into the bottom line, as sales increase for stores, so will the losses of product inventory. Lossprevention teams call this inevitable outcome “external shrinkage”. But is this a prime example of too much, too soon?
The scarcity of labor is exacerbating shrinkage issues, with reduced in-store supervision affecting lossprevention efforts and hampering efficient inventory management practices.
Many retailers expect to deploy lossprevention analytics (49%) and demand planning and forecasting (54%) by 2026. While omnichannel shopping causes challenges for retailers, most shoppers prefer options. The Zebra study indicates 36% of retailers believe better analytics on shrink could help drive profitability.
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