How Security tags and Security Label Work

How security tags and labels work

When it comes to combatting shoplifting, security tags and labels remain one of the most effective strategies employed by retailers across the globe.

Also known as electronic article surveillance (EAS), it’s a loss prevention method used by 73 per cent of retailers worldwide, and 69 per cent of retailers in the US, according to the most recent Global Retail Theft Barometer. Used effectively, EAS can reduce shoplifting by an estimated 60-80 per cent.

So how exactly does it work, and what do you need to know?

Electronic article surveillance elements

EAS comprises a series of essential elements that all work together to monitor and protect stock within a store.

Antenna

Antenna are usually housed within the entrance to a store. Most often they are a single pedestal-style antenna or a set of two or three antennas found just inside the doorway. They can also be concealed within the doorframe, under the floor at the entry, or even overhead.

These detection antennas send out a signal, and security tags or labels attached to products and merchandise within a store answer back. When an item with an active tag or label passes by or between these antennas, an alarm sounds, indicating an item is leaving the store.

Two systems

There are two widely used types of EAS systems available – Radio Frequency (RF) and Acousto Magnetic (AM). The key difference between them is the frequency at which they operate, which is measured in Hertz.

AM (Acousto Magnetic) systems operate at 58 KHz, which means a signal is sent out in pulses or bursts between 50 and 90 times a second while (RF) Radio Frequency operates in a sweep at 8.2 MHz.

Security Tags

Commonly used to protect items like clothing, accessories, liquor and even eyewear, security tags comprise a hard, external casing with a transmitter housed inside. This transmitter is in constant communication with the antenna guarding the entrance to the store.

Security tags are available to suit either RF or AM security systems.

In the case of clothing and soft items, the security tag is affixed to an item using a pin, which passes through the fabric of the product. This pin then locks into the security tag.

There are two common types of locking mechanisms used within security tags – mechanical locks and magnetic locks.

In the case of magnetic locks there are different strengths available, ranging from standard to SuperLock, HyperLock and Multipolar. The higher the magnetic strength, the more difficult the tag is to illicitly remove, with SuperLock being the minimum magnetic strength recommended.

Meanwhile, the security pin should have a large enough head to ensure it cannot be forced through the fabric of the item it is affixed to, and there are a range of pinhead sizes available.

Security tags are also available in a variety of shapes, which also have a bearing on how hard it is to illicitly remove a tag.

These shapes include round, square and pencil shaped tags. Round tags (or clamshell-style tags) with a pinhead that corresponds to the size of the tag are considered one of the most difficult tags for shoplifters to remove. They are more difficult to force open because there is little surface area to get a purchase on, and the pinhead cannot be forced through the product without making a significant cut or tear.

Meanwhile, hard tags can also be affixed to items like handbags and shoes using a steel enforced lanyard, and bottles and eyewear can be secured using purpose-designed hard tags that clip on to the product.

Security tag removal

Security tags require removal when a product is sold. This simple process occurs using a detacher device which is mounted or installed in the counter at the Point of Sale. Either a mechanical device or a high-powered magnet, the detacher releases the security tag’s locking mechanism and allows the tag to be removed. Tags can then be re-used on other products.

Security labels

Suited to high-volume, low value merchandise like books, CDs, hardware, non-perishable groceries and pharmaceuticals, security labels are also available for both RF and AM systems and come in a range of shapes and sizes.

They work in the same way as hard tags in that they are in constant communication with a store’s EAS antenna, causing an alarm to sound if they pass the antenna without being deactivated. However, labels can be quickly adhered to products and are flat or feature a very low profile.

The benefit of adhesive security labels is that they offer affordability and disposability. They are simple to apply and quick to deactivate.

Security label deactivation

Security labels are usually deactivated by a deactivator that is situated at the point of sale or integrated into the scanner. This deactivator works by breaking a circuit within a label so they no longer emit a signal and can pass near an antenna without causing an alarm to sound. Labels cannot be re-used.

If you’re looking to understand which security tags or labels are best suited to your retail outlet, further information is available here, or you can contact our friendly staff for expert advice.

Retail predictions for 2019

Five retail predictions for 2019

The customer experience will dominate retail as online shopping continues its rapid rise and the industry embraces further technology in 2019.

These are the major predictions for a retail industry already grappling with major disruption, with the retailers who understand how best to employ data, analytics and tech-enabled service best primed to enjoy a prosperous future ahead.

So, let’s take a deep dive into what’s tipped to occur in retail over the coming months, with five retail predictions for 2019.

It’s all about the experience

The “customer experience” has been the catchphrase of recent years, and 2019 shows no signs of this trend abating. However, this year that experience will become increasingly personalized.

Ragtrader notes “customer experience” is shifting to “intimate experience”, with consumers now expecting greater personalization when it comes to both offers and service.

They note 55 per cent of consumers now expect to receive personalized offers within 24 hours of making themselves known to a brand. Meanwhile, 70 per cent express frustration at impersonal shopping experiences.

In addition to better customer loyalty programs, and e-marketing, that’s seeing major bricks and mortar retailers rethinking their offering. In a bid to cater to a better informed, time-poor consumer, the lure of browsing is no longer enough.

Now, customers are increasingly attracted to an expedited in-store experience, or alternatively, the point of difference that only bricks and mortar can offer where the “touch, feel, try” elements of real-world retail are played to their strengths.

Online retail rising

It’s no surprise, but online shopping is tipped to increase further this year, with Amazon and eBay leading the charge.

Statista predicts online retail revenue will increase from $504.5 billion in 2018 to $560.7 billion this year and rise further to $700 billion by 2022.

For real-world retailers that means an omnichannel presence is imperative. Consumers may still be buying from them, but chances are they will use the store to experience a product, and research and purchase it online.

Augmented Reality

Already utilized by industry leaders like Lacoste and American Apparel, augmented reality is set to play an increasing role in the purchasing experience, allowing consumers a virtual way to understand a product.

Shopify notes Lacoste created a mobile app that customers could use to virtually try on shoes. The app also created AR experiences with window displays, in-store signage, and promotional postcards.

“More than 30,000 users engaged with 3D products while using the app. They quite literally put the shopping experience in the customers’ hands,” they explain.

“It’s a smart move, especially considering 61 per cent of consumers prefer stores that offer AR experiences — and 40 per cent of them would pay more for your product if they have the chance to experience it through AR.”

Chatbots the first point of contact

Whether it’s via a retailer’s website or social media, chatbots are now becoming commonplace as the first point of contact for answering mundane queries. This virtual, tireless customer service assistant will add more retailers to her resume in 2019.

Handling everything from inquiries about store opening hours to available stock, chatbots are working 24/7 to answer consumer questions and advance the purchasing journey.

That’s having the added benefit of allowing physical customer service personnel to better answer more detailed inquiries and complaints.

Voice-activated retail increasing

Recent research indicates one in six Americans own a smart speaker, and retail is one of its major uses.

According to OC&C Strategy Consultants, voice commerce sales reached $1.8 billion last year and they’re predicted to reach $40 billion by 2022.

Meanwhile, Google states 52 per cent of voice-activated speaker owners would like to receive information about deals, sales, and promotions from brands, and 39 per cent would like to receive options to find business information.

The roundup

This year’s predictions should come as little surprise to retailers already in the grips of a tech revolution.

In short, 2019 will see the customer expect more both online and in the real world, and technology will be the tool that delivers.

NRF 2019 HIghlights

Five highlights of the NRF Big Show

Spanning three days, the National Retail Federation’s annual “Big Show” has just concluded in New York, with technology, and a personalized experience among the key themes explored by over 38,000 attendees over three days.

Here’s a quick recap of the event, with five key highlights from the NRF’s Big Show 2019.

What retail apocalypse?

The purported demise of retail remained a key theme with NRF chairman Chris Baldwin asking the crowd assembled at the opening: “Who remembers 2016?”

“That was the year of the supposed “retail apocalypse,” complete with store closings, bankruptcies and layoffs.

“I would love to say that retail is back, but that would be wrong,” he said. “Retail never went away. As I stand here today, I can say that our industry is more healthy, vibrant, innovative and exciting than ever.”

The reason? Good leaders and nimble companies who were helping “reimagine” the industry.

Tech a focus

Technology was naturally a big focus of this year’s big event, with retailers looking to better understand the potential impact of data and digitization.

The NRF noted: “Concepts like artificial intelligence, robotics, automation, facial recognition and the digital store were popular topics”.

A panel discussing robotics investigated the role robots could play in retail, and more specifically delved into a recent project that saw a 6-foot-3-inch-tall rolling robot named Marty become a fixture of grocery stores in Harrisburg and Carlisle, Pa.

“We wanted to personify the robot,” a panelist noted. “So we gave him googly eyes and a name. The customers love him, especially the kids. They’ve taken thousands of selfies with him.”.

The robot currently trundles about the stores identifying spills, but plans are afoot to see him also recognize out-of-stock items.

The panel explained that in retail, customer service was key. If a robot could take over the chore of preventing out-of-stocks, store associates could make more profitable use of their time, personally assisting customers.

Meanwhile, another panel, featuring representatives from Whirlpool, Sleep Number and the Autonomous Vehicle Alliance, looked at how technology connects consumers to products by bringing “ease, convenience and anticipation to consumers’ lives”.

They explained:

  • Whirlpool had rethought product presentation in showrooms and customized the selling experience to help associates bring deeper information to consumer purchase decisions.
  • Sleep Number added consumer value by connecting its products to their well-being, which was key to building loyal customer relationships; and
  • Automated vehicles could assist retail by serving as both on-demand modes of transportation as well as distribution centers for retailers.

The customer experience – more than tech

While technology is playing a vital role in retail, it’s not the be-all and end-all and using it effectively is about good deployment.

This was the message at a session hosted by Healey Cypher, CEO of Zivelo, and Albert Vita, director of in-store experience and visual merchandising at  Home Depot, who noted the store of the future combines the best of online thinking into the physical world.

“Having big stores with a lot of stuff and great selection is not enough,” Cypher said. “Customers want more. They have more at their fingertips every day so now it’s about experience. It’s about service, it’s about speed.”

They urged retailers implementing new technology to:

  • Start with the right mindset and ask the right questions when considering what their consumer wants and needs
  • Use the wealth of instore data available
  • Ensure solving problems using tech doesn’t create friction elsewhere
  • Make store associates feel like heroes by offering incentives and ensuring they know what they’re talking about
  • Remember innovation is the by-product of solving a genuine customer problem

Bricks and mortar building brand equity

In a compelling presentation on the new role of bricks and mortar, Lee Peterson of WD Partners, took a deep dive into the evolution of physical retail over the past 20 years.

He noted while retail sales are up, foot traffic in stores had been going down 10 per cent year-over-year for the last decade or so.

“Physical retail is no longer about the distribution of goods,” he said, “but about building brand equity.”

He cited brands such as Vans and Dr. Martens, who have stores with no merchandise. They exist for people to socialize in or otherwise use as a gathering place, and along the way to increase their affinity for the brand.

Another new role for stores, Peterson noted, was click-and-collect where people order online and pick up in the store, while a further strength was online order fulfillment; in many cases it’s easier and cheaper to ship an item from a store’s inventory than from an online distribution center.

Four major goals

In a session about the major advancements retailers were looking to make this year, Forrester Research analyst Sucharita Kodali noted their latest survey indicated there were four main goals:

  • Grow revenue – Retailers are focusing marketing efforts on acquiring and retaining customers and launching new products to drive revenue.
  • Reduce costs – While growing revenue, many retailers are also seeking to reduce costs by lowering IT spending but improving the supply chain and retaining employees.
  • Improve customer experience – Most retailers who responded to the survey said they will be working on both the online and in-store shopping experiences and increasing the frequency of engagement with customers.
  • Improve products and features – Retailers will simultaneously be making products easier to use, launch products faster and increase customer input when designing products.

Big Show and retail quick stats

This year the NRF Big Show marked its 108th year, drawing nearly 40,000 attendees from across the globe, including 700 exhibitors. There were more than 500 scheduled speakers in more than 200 sessions, making up more than 100 hours of content.

It’s the biggest event on the retail calendar servicing a retail industry that the NRF notes:

  • Supports one in four jobs in the US
  • Comprises 42 million workers
  • Contributes $2.6 trillion to the country’s GDP.
  • Has grown faster than the nation’s GDP since 2016
  • Featured 2000 net new store openings in 2018 and an expected sales increase of at least 4.5 percent over 2017.

 

 

The different types of shoplifter

Think you can spot a shoplifter? Think again

As American retailers prepare wear the cost of a whopping $50 billion in inventory loss this year, it would be nice to think the shoplifters behind much of this shrink would be easy to spot.

The unfortunate reality is they’re not. According to extensive research by the National Association of Shoplifting Prevention (NASP), shoplifters come from all walks of life, all ages and demographics, and they’re a lot more common than you think.

Here’s an insight into the “average” shoplifter, and how to thwart their attempts.

The average shoplifter?

If research tells us anything it’s that there is no such thing as an average shoplifter. The NASP notes one in 11 Americans steal, women are as likely to steal as men, children and teens are the ones stealing 25 per cent of the time, and all types of stores are targeted.

In most cases (around 73 per cent of the time) the offender doesn’t even intend to steal, they just seize opportunity when it’s available. Meanwhile, many shoplifters buy and steal during the same retail visit.

The seven types of shoplifter

While you can’t judge a shoplifter by appearance, there is research to suggest a series of reasons prompt the offence, with shoplifters falling into seven major categories:

  • The opportunist – An amateur shoplifter, the opportunist is likely to steal something just because they can, targeting goods that aren’t secured or monitored adequately. This shoplifter may even be a regular customer, who feels entitled to a discount due to their ongoing, repeat clientele.
  • The impoverished – The impoverished shoplifter steals out of need, but despite their disadvantaged socio-economic situation, may still be hard to pick.
  • The drug user/addict – This shoplifter steals to feed a habit either re-selling the items they take or attempting to return them for a financial refund.
  • The thrill seeker – Usually egged on by a dare, the thrill seeker tends to steal on a whim and as part of a group. Teenagers often fall into this category.
  • The kleptomaniac – This type of shoplifter generally targets low value items and steals out of compulsion.
  • The absent minded – This unintentional shoplifter steals by pure mistake, and may include the elderly, and parents distracted by young children.

Commonly targeted items

Although most shoplifting isn’t premeditated, the most recent Global Retail Theft Barometer found some items were more likely to be stolen than others.

Often-targeted products share common features: they are small and easy to conceal, and/or have high resale value.

In the US, that sees items such as footwear, mobile device accessories, wines and spirits, and fragrances among the most commonly targeted items.

Suspicious behavior

Whether it’s stealing out of necessity, stealing as a profession, or stealing for the rush, loss prevention retailer Vitag notes that rather than relying on profiling, spotting a shoplifter generally comes down to recognizing suspicious behavior and body language.

Key clues a shoplifter may exhibit include:

  • Spending more time watching the cashier or salesperson than actually shopping.
  • Wearing bulky, heavy clothing during warm weather or coats when unnecessary.
  • Walking with short or unnatural steps, which may indicate that they are concealing stolen items.
  • Taking several items into a dressing room and only leaving with one item or none.
  • The customer’s eyes are not looking at what their hands are doing; instead they are looking out for staff! So if the eyes don’t match the action…beware.
  • Appearing nervous and picking up random items with no interest.
  • Frequently entering store and never making a purchase.

Best prevention strategies

The best loss prevention involves using multiple strategies and having a comprehensive approach to product security.

It includes:

  • Educating staff as to the behavior of shoplifters and suspicious activity to watch out for.
  • Electronic article surveillance to monitor stock, including labels for low value items and security tags with increased magnetic strength like super lock, hyper lock and multi-polar tags for more expensive products.
  • Regular stocktakes and RFID inventory tracking to ascertain whether items are stolen and what stock is most at risk.
  • Good store layout to eliminate hidden areas, and positioning high value stock/commonly stolen items within view of staff.
  • Good customer service.
  • CCTV monitoring.
  • Tethered cables, lockable displays and cabinet locks.

Final thoughts

Retailers may not be able to sot a potential shoplifter but with training, education and the right loss prevention strategies, they can secure their store to minimize the risk and cost.

And when retail loss comes with a $50 billion price tag, prevention is always better than a cure.

Retail Loss Prevention Balancing Act

Treading the line between retail loss prevention and overkill

Since the dawn of retail, loss prevention has always been a balancing act.

On the one hand retailers work hard to attract consumers with attractive displays and a suburb customer experience. On the other they are looking to minimize the potential for a shoplifting epidemic that currently costs them $777,877 per $1 billion in sales.

So, how do you strike the right balance?

The eternal balancing act

Right about now, retail is all about the “customer experience”. In a landscape where bricks and mortar is locked in a head-to-head battle with the online realm, real-world retailers are actively being encouraged to play to their physical strengths offering a tactile encounter where consumers can touch, feel and try the items they hope to buy.

At the same time, however, statistics indicate loss through shoplifting, fraud and employee theft remain at a high.

“It’s the classic dilemma of retail,” Professor Emeritus and long-time National Retail Federation advisor Richard Hollinger recently told USA Today.

“You don’t want your stores to be just display areas where goods are locked down… Shopping remains a tactile, visual experience.”

So, how do you tread the fine line?

The right technique in the right place

From smart locks to electronic article surveillance, the loss prevention sector has come of age in recent times, with a range of suitable options now available to not only protect your stock against theft but offer a minimalist and pleasing aesthetic when it comes to countering retail shrinkage.

The art of using these new techniques to have maximum effectiveness comes down to understanding the value of your stock, knowing which stock is likely to be targeted and finding the security solution that suits.

Getting it right

There are several factors to consider when finding out what strategy is right for your products. These include:

  • The value of the item
  • The volume of sales
  • How customers need to experience that product to encourages sales
  • The item’s likelihood of theft
  • It’s positioning in your store

When you have determined these factors, then choosing the right solution to suit is simplified.

What product, which strategy?

  • Low-value items

If the product is of low value but high in volume, such as groceries or pharmaceutical goods, then staff monitoring, CCTV, and, where appropriate, labels are better suited to do the job than hard tags or locking an item in a display cabinet.

The key points to remember here are that the item needs to be accessible, the merchandise needs to be the “hero” rather than the security, and the security feature needs to be easily and quickly disabled.

Other ways of combatting theft include positioning low-value, high-volume items where they can be seen and monitored by staff.

  • High-value items

High-value products like electronics, handbags or designer apparel require a different approach. The high value of the product will likely mean that the consumer wants to touch, feel and experience it prior to making a purchase.

Electronic article surveillance and hard tags are the preferred security measure for these items, although lockable displays are also an option.

When selecting security tags for high value items, consider opting for high-strength tags that are less prone to illicit removal. Also factor in the way they are attached to the item. Handbags and shoes, for example, are often best secured using tags attached by reinforced lanyards or cables so as not to damage the product.

Meanwhile, high-value merchandise should be positioned within line of sight to the staff, and kept away from doorways.

  • For fashion and apparel

The best option is the use of security tags, and there is a range of products to help protect these items including clothing tags, and cable/lanyard tags that can attach an EAS tag to your products without a pin passing through the item.

  • For tablets and mobile phones

Security tablet stands or tethered alarmed display works best. Security is often further supported by having one item on display, but the remaining stock is secured in a lockable cabinet or drawer.

  • Regularly stolen items

It is interesting to note that items like electronic accessories, razors, liquor and sunglasses are among the most popular items to be targeted by thieves.

Some of these are high-value and some are minor, but their small size makes them easy for shoplifters to conceal and remove from a store.

For retailers looking to combat the theft of these items, there is a range of options available. These include display hook stop locks and hard tag spider or package wraps for electronic accessories, bottle tags for liquor bottles and small, unobtrusive tags for eyewear.

Meanwhile, many retailers employ different tactics like time delay locking hooks for low-value products that are easy for criminals to turn over quickly, such as often targeted products like razors.