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That means asking questions like: What more can be done to deter theft using store layout, customer flow, shelf height, mirrors, lighting and the placement of gondolas, merchandise and security cameras? How can we better integrate the latest anti-theft technologies and loss-prevention research into our store designs from the outset?
While shrink is far from a new problem in retail, the impact of theft — particularly large-scale operations run by organized retail crime (ORC) rings — has been garnering the attention of executives at some of the country’s largest retailers, including Lowe’s , Target and Dick’s SportingGoods.
Retailers have gotten better about thinking about simple things like power accessibility or creating WiFi shadows around fixtures and things like that, but there are still far too many unintended consequences that come out of store design because they did not think through tech requirements up front.
The perception gained even more support as Lowe’s, Dick’s SportingGoods and Target all blamed ORC for negatively affecting their financial results. billion in 2021 retail shrink could be attributed to ORC. Additionally, definitions remain vague.
Dick’s SportingGoods also attributed part of the brand’s 23% profit drop in the second fiscal quarter of 2023 to theft ( CNBC ). Throughout his retail career, lossprevention remained a focus. It’s not just the biggest retailers who are taking a hit; small businesses are feeling the impact.
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