Month: June 2019

RFID

What is RFID?

In the world of retail, a host of little acronyms abound, and one of the most recent to attain popularity is RFID or Radio Frequency Identification.

Not to be confused with RF, which is a common term in electronic article surveillance, RFID offers retailers a host of benefits when it comes to inventory tracking, an improved customer experience and managing stock.

So, what exactly is RFID?

What is RFID?

Arguably one of the biggest innovations in the past 20 years, RFID involves small chips that can collect and store data. The technology is utilised for a variety of purposes including animal microchipping, passports, and the tracking of cars during the manufacturing process.

In retail, it’s used in conjunction with apparel or product tagging, providing insight into stock levels, relaying when an item is picked up and put back, and adding limitless potential to enhance the customer’s in-store experience.

RFID tags have readers to decipher the information they contain, but unlike barcodes, an RFID tag can be recognised from a distance or even when embedded in an object, allowing for greater accuracy in stock monitoring.

What’s the difference between RF and RFID?

Although they sound alike, RF and RFID are vastly different. RF refers to radio frequency and in retail relates to an electronic article surveillance system and tags or labels that work on a swept frequency.

RF tags and labels answer the call of an RF antenna and are used as a theft prevention strategy to notify a retail outlet when an item is being shoplifted.

Meanwhile, RFID is used as a barcode but reveals vast amounts of information about a product. This insight is contained in its chip and can include information like the product type, colour, size, date of manufacture, shipping date, exact location and more.

Forbes explains: “…where a simple barcode can tell you, ‘this is a $250 jacket in grey’, an RFID tag can tell you ‘this is a $250 jacket in grey, size medium, the one which was returned last week and it’s just walking out the door’”.

RFID’s main purposes include inventory tracking, stock monitoring and customer experience, and here’s how that plays out…

Supply chain accuracy

When applied at the point of manufacture or distribution, RFID allows retailers to track items throughout the entire supply, distribution and sales chain. This helps minimise stock loss from the outset, right through to the sales floor.

In fact, recent reports indicate RFID can improve supply chain insight by offering 99.9 per cent accuracy.

Inventory counting

RFID

One of the most compelling arguments for RFID lies in the efficiency it offers in inventory tracking. Statistics indicate RFID allows inventory accuracy to increase from 65 per cent to 95 per cent.

Meanwhile, it provides up-to-the-minute information and dramatically shortens the time spent stocktaking. Where manual counts allow for 250 items per hour, RFID can cycle count inventory at a rate of 18,000 items per hour.

RFID can also enable streamlined processes like automatic reordering when stock levels fall too low.

Customer experience

The third advantage of RFID that’s now being embraced by retailers is its ability to improve the customer service experience courtesy of the unique identification features and information contained within each chip.

Cutting-edge retailers are experimenting with a whole host of features and add-ons that enable consumers and sales staff to use RFID to quickly ascertain whether an item is available in another colour, in another size, at another outlet, when it will arrive in-store and more.

The technology is being applied to everything from smart mirrors to virtual sales assistants, and with its ability to detect items within a vast area, some predict it may do away with the checkout all together.

RFID adoption

This combination of inventory accuracy, supply chain tracking and benefits to the customer experience are now seeing RFID adoption rapidly increase, with Accenture’s 2018 RFID in Retail Study finding 92 per cent of US retailers are now progressing towards RFID.

“A majority of retailers worldwide adopt RFID for the technology’s most well-known use case: inventory accuracy. Within just one year of leveraging RFID, retailers typically recognize increased inventory accuracy and omnichannel fulfilment,” they note.

What security tag or label would I use for that?

What security tag or label would I use for that?

In the highly effective world of Electronic Article Surveillance (EAS), security tags and labels are available to suit all sorts of products, meaning there’s a wealth of choice for retailers looking to harness the power of product-based security.

But with so many options available, it begs the question, what tag or label would I use for that?

Here’s a quick guide to when a tag or label suits best and what type of tag or label should be employed to best protect a product against theft.

Tags or labels?

Whether you opt for a hard tag or adhesive security label depends on a range of factors including the type of product you are looking to protect, its value and the volume sold.

As a general rule of thumb, hard tags are used to protect high-value items like clothing, fashion accessories, and electronics. These items tend to command a higher price and are sold in single transactions or transactions involving only a few items.

This allows the tag to be detached at the point of sale without causing undue delay to the consumer or an excessive impost on the sales associate.

Obvious to the consumer, the tags also act as a deterrent against shoplifting. Tags are then available with further deterrents like ink-dye pins, which discharge indelible ink into a product when the tag is tampered with, thereby rendering the item useless.

In contrast, labels are used for low-value, high-volume items like non-perishable groceries, hardware and pharmaceuticals.

These are the types of items that might be sold in bulk transactions, and the labels allow for easy deactivation at the point of sale, with a deactivator often incorporated into the POS scanner.

AM or RF?

What security tag or label would I use for that?

In the world of EAS, there are two major types of labels and tags available – Acousto Magnetic (AM) and Radio Frequency (RF). The type of tag or label you select will depend on whether you have an RF or AM EAS detection system installed.

Radio Frequency

RF tags and labels range from an array of small ultra-thin adhesive labels through to a variety of hard tags and are suitable for numerous applications, including clothing, food and pharmaceutical products. RF labels can be printed on.

Historically RF has been considered more affordable to install and is often most popular with retailers who use adhesive security labels over security hard tags

Who uses RF?

Radio Frequency EAS is perfectly suited to retailers with a high volume of packaged products due to the convenience of adhesive, flat tags.

That makes RF the system of choice for supermarkets, discount stores, chemists and video stores.

That said, the ability to upgrade some RF EAS systems to RFID means its usage has recently grown in apparel stores.

Acousto Magnetic

AM hard tags are also available in a range of sizes. When it comes to labels, AM options are often smaller than RF labels, but are not paper thin and instead have a raised profile.

The raised profile of AM labels is sometimes considered a drawback for retailers like grocery stores who sell small, high-turnover goods.

In the past, AM was traditionally more expensive to install than RF, however, due to increased competition, system costs have come down in recent years.

Who uses AM?

AM is more often seen in small to large clothing apparel outlets, large department stores, DIY shops, electronic shops, and pharmaceutical retailers where products have metallic components in their packaging.

What style of tag?

If a security tag is the option of choice, there are also additional factors to consider, like what type of product you are protecting.

While clothing lends itself to hard tags with pinheads, accessories like handbags and shoes often utilize lanyards or cables and tags so the tag can be affixed without needing to pass through the product.

Meanwhile, there are additional tag types for specific high-value products.

For example, optical items like sunglasses and reading glasses can be protected using purpose-made optical tags that are designed not to interfere with the consumer’s experience of a product yet protect each item individually.

In recent years bottle tags have also been developed which are designed to protect high-value liquor against theft. These tags sit snugly over the lid of the bottle, preventing it from being opened instore or stolen.

If you’re looking to better understand which type of tag or label best suits your retail environment, our friendly Security Tags staff are available to assist and can be contacted here.

Internal theft

279,000 shoplifters caught in internal theft in 2018

A survey of 20 of America’s largest retailers has found they apprehended 279,000 shoplifters and dishonest employees in 2018, recovering over $114 million in total from thieves.

Each year, loss prevention consulting firm Jack Hayes International conducts its Annual Retail Theft Survey, with the latest edition indicating the value of both individual shoplifting incidents and employee thefts soared.

Here’s an insight into what the survey found…

The Jack Hayes International Theft Survey

Now in its 31st year, the Jack Hayes Theft Survey interviewed 20 large retail companies, who last year had 13,674 stores between them and over $330 billion in retail sales.

The survey respondents account for a large cross-section of the retail community, encompassing department stores, mass merchants and big box retailers.

Their latest survey found 55 per cent of survey participants experienced an increase in shrink in 2018 compared to the year prior, with 35 per cent reporting a decrease in shrink, and another 10.0 per cent reporting shrink stayed about the same.

Apprehensions down, loss value up

This year’s survey noted retail theft apprehensions were down, but the dollar value of incidents had risen.

In 2018, there were 279,196 theft apprehensions valued at $114,126,134, compared to 316,704 apprehensions in 2017, valued at $110,620,301.

“Theft case values soared in 2018 with the average shoplifting case value ($301.97) increasing 11.8 per cent; the average dishonest employee case value ($1361.37) increasing an amazing 30.1 per cent; and the total average theft case value ($408.77) up 17.0 per cent,” President of Jack L. Hayes International, Mark R Doyle said.

“With the increase in dollar recoveries, retail theft overall continues to be a serious problem for retailers negatively impacting their bottom-line, which results in higher prices to consumers.”

Shoplifting incidents

The number of shoplifters apprehended decreased 11.7 per cent in 2018, with 251,051 shoplifters apprehended by the major retailers.

Meanwhile, over $75 million was recovered from apprehended shoplifters in 2018, a slight decrease of 1.4 per cent from 2017, and an additional $126 million was recovered from shoplifters where no apprehension was made, down 1.4 per cent from 2017.

The cost of shoplifting

The survey noted in 2018, a University of Florida study found total retail losses were approximately $44.2 billion annually, with shoplifting estimated to account for 30 to 40 per cent of total retail loss and the average shoplifting case for all types of retail costing approximately $50.

Therefore, Hayes estimates shoplifting costs retailers:

  • $13 – $18 Billion per annum
  • $36 – $48 Million per day
  • $1.5 – $2 Million per hour
  • $25,000 – $33,000 per minute

Employee theft

For the major retailers, internal theft also decreased in 2018 on the year prior but the money recovered from their crimes was significantly higher. 28,145 dishonest employees were apprehended in 2018, down 12.7 per cent from 2017.

Over $38 million was recovered from employee apprehensions in 2018, up a substantial 13.5 per cent from 2017.

In a shocking figure, the survey found one in every 40 employees was apprehended for theft from their employer in 2017.

“Employee theft is perceived by many to be the most severe problem facing industry today,” the survey noted.

“Many people often think of theft and abuse in companies as being isolated acts, which in themselves cost an organization little. Unfortunately, this is untrue. It is also not true that most employees are caught stealing inexpensive items such as ‘pens, pencils, and paper-clips’ from their employers.

“Over the years, Hayes International has witnessed a steady and significant rise in this serious problem. Each year thousands of employees are caught stealing from their employers and co-workers.

“Furthermore, our studies reflect that this group of thieves are being caught stealing far more than a few insignificant supplies.”

You can learn more about protecting your retail outlet from shoplifting here, and securing your store against internal theft here.

NRF Protect

Top takeaways from NRF Protect

The National Retail Federation’s annual loss protection conference has concluded in California, with over 2500 visitors and retail representatives attending NRF Protect from June 11-13.

Considered one of the biggest events on the annual loss prevention calendar, this year’s conference looked at the most recent loss statistics along with a focus on Organized Retail Crime and an increased emphasis on cybersecurity.

Here are some of the key takeaways from the 2019 event…

Latest retail theft figures

Professor Robert Hanson of Northern Michigan University, and Asset Protection & Safety VP Dan Faketty of Southeastern Grocers took a walk through the latest National Retail Security Survey findings, noting the 28th annual survey revealed retail loss in the US now totalled 1.38 per cent of sales or $50.6 billion.

Within those figures there were “new threats and emerging areas of concern”, the pair reflected.

These included:

  • Identifying the cause of shrink
  • Combatting internal theft through mobile POS fraud
  • Combatting external theft through mobile POS fraud
  • Understanding the technology criminals use

In terms of employee theft, they explained the average dollar loss per incident had remained stead for the past four years, equating to $1264 in 2018.

Meanwhile, each shoplifting incident resulted in an average loss of $546.67.

When it came to robberies, the average loss per incident was $2885.15, which was a 65 per cent decline on 2015.

You can read more about the full findings of this report here.

Organized retail crime

In a panel discussion featuring security specialists and law enforcement professionals, attention turned to Organized Retail Crime (ORC).

They noted three in four retailers had seen a rise in ORC in the past year, with more than one third of those who had seen an increase noting it was significant. Almost half of retailers experiencing ORC also said they believed gangs were exhibiting more aggression.

The cybersecurity issue

Cybersecurity expert and CEO of LMG Security and BrightWise Training, Sherri Davidoff, explained the changing landscape of cyber threats and the risk it posed to retailers.

She noted a lack of security allowed customers and vendors to fall victim to hacking, resulting in retailers losing both money and their reputation.

In a bid to thwart hacking, retailers should ensure they have:

  • Phishing protection, including user training and technical controls
  • Strong authentication, including two-factor authentication and long passwords
  • Patch management
  • Proactive threat hunting
  • Outreach and education

Insider risk

Gap Inc Director Nathan Niese, and Petco Loss Prevention Manager Tina Ayo looked at insider risk in the digital age, noting there were three potential types of threats when it came to cybersecurity and the enemy within:

  • The negligent employee
  • The exploited employee
  • The malicious insider

Privilege, misuse and error by insiders account for 30 per cent of breaches, they explained. Combatting the problem came down to creating both a “physical firewall” and technology to protect against threat.

In terms of a physical firewall, retailers should look at:

  • Risk and compliance
  • Leveraged resources
  • Monitoring, incident response and reporting
  • Training education and awareness

Package theft and pickup fraud

In a rising era of internet shopping and home delivery, attention also turned to the growing incidents of package theft.

Bust Buy representatives Lisa Brock and Jim Behrend explained 30 per cent of Americans had experienced package theft, with the average value per item equaling $140.

They reflected the issue presented a unique challenge but ways of reducing the problem included documentation, and new technology.

Meanwhile, combating pickup fraud involved identity authentication at the time of sale and pickup, with new technologies allowing new identification methods.

In terms of shipping from store, the biggest challenge was issues like label fraud and theft, they reflected. And here, auditing, restricted access to the warehouse, strategic store set-up and reporting could all play a role in reducing loss.

Identify gaps in your processes and policies, they urged retailers. Also align all channels, including eCommerce, customer care, retail, supply channel, legal and real estate, while focusing on reporting.

The self-checkout

NRF Protect

Technology offers the potential to save in labor costs, and one such innovation is the self-checkout, loss prevention researched Mike Giblin, and loss prevention professional Laura Lasko noted in their presentation.

First introduced in 1992, the self-checkout is now present in 59 per cent of stores. But it also poses a risk for retail shrink, accounting for approximately 21.7 per cent of loss.

Addressing the problem involved using attentive self-checkout attendants to oversee the area, they stated. These attendants should be trained in all areas of self-checkout misuse including failing to scan items, improper weighing, and incomplete payments.

“Enough self-checkout attendants should be scheduled to help monitor the area during busier hours. Attendants should avoid standing at the podium and regularly interact with customers,” they said.

Meanwhile, reporting also played a critical role in self-checkout loss.

NRF Protect is held annually and features a focus on cyber and digital crime, risk management, talent and culture, theft and fraud, and workplace violence.

 

 

Photo Source: NRF Protect 2019

Why use security tags and labels?

Why use security tags and labels?

A recent security survey by the National Retail Federation indicates more and more retailers are turning to security tags, labels and electronic article surveillance (EAS) in a bid to reduce theft.

Here’s an insight into why EAS is gaining popularity and how retailers are using security tags and labels to lower the incidence of shoplifting when it comes to both individual theft and organized retail crime.

The recent findings

On June 6, the NRF released the National Retail Security Survey and found amidst emerging loss prevention strategies, security tags, and labels were on the rise, with an estimated 80.9 per cent of retailers now harnessing the power of EAS.

They found:

  • 46 per cent of retailers now use merchandise alarms/electronic security tags – an increase of 25.4 per cent since 2018.
  • 9 per cent of retailers now use acousto magnetic/electronic security tags – an increase of 12.7 per cent on 2018

So why the increase?

A bit about EAS, security tags and labels

Electronic Article Surveillance is considered the prime strategy when it comes to protecting items at a product level.

The system sees tags and labels affixed to products. These labels and tags are then in communication with a surveillance antenna positioned at the entryway to a retail outlet.

When tags and labels come into proximity of that antenna, an alarm sounds indicating an item is leaving the premises.

EAS has been around since the 1960s, and in the decades since, the technology, accuracy and affordability of this loss prevention method has increased dramatically.

Here are the benefits it offers.

EAS benefits

Why use security tags and labels?

Effective

EAS is renowned as extremely effective, resulting in an estimated 60-80 per cent decrease in external theft.

Individual product protection

The system is designed to protect individual products, meaning any item that a label or tag is affixed to will cause an EAS alarm to sound if it is being taken illegally from a store.

Immediate alert

The audible alarm means retail associates are immediately alerted to a theft in progress as the item is leaving the store. That allows them to retrieve the product and then seek to ascertain whether law enforcement should become involved.

Easy to use

Security tags and labels are easy to use, while the EAS antenna requires only minimal servicing and simple daily checks after installation.

Tags can be affixed quickly by staff and are removed at the Point of Sale using a detacher during the sales transaction. They can then be re-used time and again.

Labels do not require detaching, but rather are deactivated at the Point of Sale using a device that breaks the circuit in the label. This deactivator can even be incorporated into the barcode scanner for greater speed and efficiency.

Scalable

A major benefit of EAS is that it’s scalable. If a retailer increases their stock volume, they simply buy more compatible tags and labels that communicate with the installed antenna system.

Additional retail outlets can also be easily outfitted with antenna, while using the same type of tags and labels across multiple outlets allows for economies of scale.

Visible deterrent

As shoplifting is often a crime of opportunity, the simple presence of a security tag or label means a product is much less likely to be a target of shoplifting.

Cost effective

Broadly speaking, a reputable EAS system has an expected lifespan of about 10-15 years.

Meanwhile, ongoing costs include purchasing replacement tags (when required) and labels. Compared to the cost of shrink, which results in an average loss of between one and three per cent of sales, EAS costs often pale into insignificance.

Aesthetically pleasing

As EAS technology has improved, so too has its look. Some EAS antenna can now be discreetly positioned within door frames, under the entryway floor or even in the ceiling, allowing for a streamlined look in-store.

Many options available

Security tags and labels are available for almost all imaginable products and in a variety of shapes and sizes. From clothing tags to labels, optical tags and liquor tags, there is a huge array of security tags and labels to suit every purpose in retail.

You can learn more about how EAS works and the types of security tags and labels available, or contact our friendly staff for further advice.

Retail Shrink

Retail shrink cost US retailers $50.6 billion in 2018

Retail shrink cost US retailers $50.6 billion last year, according to the National Retail Federation (NRF) which released its latest security survey last week.

While the figure represents a value rise on the year prior, the NRF notes the shrink rate is actually holding steady at 1.38 per cent and the increase in the monetary figure is also representative of an increase in sales.

Meanwhile, they note the retail risk landscape is rapidly shifting, with new threats requiring new strategies to combat loss.

Here’s an insight into what their latest security survey found…

The report

Compiled each year, the National Retail Security Survey gathers input from loss prevention professionals based on their experiences in the year prior, as well as their current situations and future plans.

This year’s results indicate a number of new trends are emerging, with an increased focus on organized retail crime, internal theft, cyber crime, and return fraud. Meanwhile, the shrink rate remains “stubbornly steady”.

The shrink rate

The total shrink rate remains at 1.38 per cent, and the NRF explains it has lingered around this point since 2014.

“While the lack of movement in shrink rate might sound like a positive, as LP professionals are well aware, it can mean billions of dollars in losses for the industry overall,” they note.

“Perhaps even more concerning is the spike in the highest levels of shrink: 36.3 per cent of retailers reported shrink rates of 1.5 per cent or higher, up from just under a third (32.7 per cent) in FY 2017. The amount with the highest shrink rate – 3 per cent or higher – has climbed steadily from 6.6 per cent in FY 2014 to 10.9 per cent in FY 2018.”

Shoplifting apprehensions down

In positive news, shoplifting apprehensions have decreased significantly. In 2018 apprehensions, prosecutions and civil demands equaled an average of 1248.9 in total, compared to 2377 in 2017, 2190 in 2016 and an astounding 7458.7 in 2015.

However, the average dollar loss per incident remains high. In 2018, the average cost per incident was $546.67, compared to $543.28 in 2017, $798.48 in 2016, $376.80 in 2015, and $317.84 in 2014.

Emerging threats

Cybercrime, organized retail crime and return fraud are among the emerging threats retailers are now looking to target.

The report noted: “Compared with the last five years, LP leaders say they see a greater urgency in combating various methods of crime. Organized retail crime and cybercrimes in particular are more of an issue. For retailers with fewer than 500 stores, organized retail crime has become much more of a priority. For retailers with more than 500 stores, e-commerce crime has become much more of a priority.”

In terms of statistics:

  • Organized retail crime – 28.6 per cent of all retailers said organized retail crime was becoming much more of a priority, while 36.5 per cent noted it was becoming somewhat more of a priority
  • Cyber crime – 26.5 per cent of all retailers stated cyber crime was becoming much more of a priority, while 42.9 per cent noted it was becoming somewhat more of a priority
  • Internal theft – 25.4 per cent of all retailers stated internal crime was becoming much more of a priority, while 34.9 per cent noted it was becoming somewhat more of a priority
  • E-commerce crime – 17.5 per cent of all retailers stated e-commerce crime was becoming much more of a priority, while 47.6 per cent noted it was becoming somewhat more of a priority
  • Return fraud – 12.7 per cent of all retailers stated return fraud was becoming much more of a priority, while 38.1 per cent noted it was becoming somewhat more of a priority

Strategies to combat loss

Retail Shrink

More and more retailers are investing in technology to combat loss. This year some of the biggest increases in adoption included security tags, database screening systems, POS analytics and digital video recording.

The report found:

  • 9 per cent of retailers now use acousto magnetic/electronic security tags – an increase of 12.7 per cent on 2018
  • 6 per cent of retailers now use check approval database screening systems – a rise of 11.1 per cent on 2018
  • 1 per cent of retailers now use digital video recorders – a rise of 9.5 per cent since 2018

In addition, more than six in 10 retailers indicated they had implemented point of sale analytics, either fully or in pilot phase.

“Another 25.4 per cent say they will implement this technology in 2019 or 2020,” the report noted.

“However, other LP tech tools are much further behind. Fingerprint ID at the point of sale and facial recognition – while small – are gaining in adoption over last year, when roughly 90 per cent of respondents said they had no plans to implement either technology.”

Technology that is decreasing in use included:

  • Remote IP CCTV monitoring – used by 57.1 per cent of retailers but down 19.1 per cent on 2018
  • Theft deterrent devices like spiderwraps and keepers – used by 23.8 per cent of retailers but down 17.5 per cent on 2018
  • IP analytics – used by 22.2 per cent of retailers but down 9.5 per cent on 2018

The final word

The NRF security survey paints a picture of a complex loss prevention landscape. Many retailers are successfully harnessing technology to counter traditional problems like shoplifting. But even as they do new threats are emerging.

As always loss prevention remains a playing field where retailers are constantly kept on their toes, seeking new and innovative ways to combat loss.

How to best protect your shop against theft this Father's day

How to best protect your shop against theft this Father’s day?

Father’s Day is fast approaching, and Americans are set to dig deep for dad, with a recent survey by the National Retail Federation (NRF) indicating this year spending is set to reach $16 billion, up $700 million on last year.

So, what are likely to be the hot-ticket items when it comes to gifts for Dad this year, and how should you best protect your shop against theft?

A record high

This year the NRF survey has found Americans expect to fork out more than ever on their fathers, with 75.9 per cent of people expected to mark the occasion, spending on average $135.97 each.

The NRF notes that figure is an increase on last year when the average expenditure was $132.82. It also indicates a general trend which has seen Father’s Day spending increase each year since 2009 when average spending was $91.

“Father’s Day spending has grown 70 per cent, approximately $6.6 billion, since 2009. The biggest drivers of Father’s Day spending are growth in spending by consumers ages 35-44, and spending on clothing, special outings and gift cards,” the NRF notes.

The big-ticket items

When it comes to what people buy, special outings, gift cards, clothing and electronics are among the most popular items.

Almost half (46.8 per cent) of people will give the gift of a special outing, spending on average $29.10 per person to equal $3.3 billion in total.

Clothing follows close behind, with 46 per cent expected to purchase apparel, spending on average $21.88 each to equal $2.5 billion in total.

Gift cards are the next big-ticket item, with 43 per cent of people looking to allow dad a gift of his own choosing, spending $19.64 each to equal $2.3 billion in total.

Meanwhile, 20.4 per cent will purchase electronics, spending on average $15.80 to equal $1.8 billion in total.

Where people will shop

The NRF notes, when searching for the perfect gift, most people will look to bricks and mortar retail, but will rely on technology to assist in the purchasing journey.

“Over half (57 per cent) of smartphone/tablet owners plan to use their device to assist in Father’s Day gifting decisions, with 38 per cent using their mobile device to research products and compare prices,” the NRF says.

Their survey also found:

  • 39 per cent of consumers will head to department stores
  • 34 per cent will shop online
  • 24 per cent will shop at a discount store
  • 23 per cent at a specialty store
  • 11 per cent will purchase at a specialty clothing store
  • 2 per cent will shop via catalog

“More than half of those surveyed plan to buy for their fathers or stepfathers (53 percent) while others will shop for their husbands (27 per cent) or sons (9 per cent) among other dads in their lives,” the NRF says.

Protecting your store

Like Mother’s Day, the lead-up to Father’s Day will likely see an increase in foot traffic throughout stores, making theft prevention a priority for retailers looking to maximize the sales increase.

Importantly, electronics and clothing are some of the most commonly targeted items when it comes to shoplifting and, with retailers prioritizing these for display, they will need to be vigilant when it comes to security. Meanwhile, gift cards can be a prime source of consumer fraud.

Here the top tips to guard your store against theft:

Prime your staff – Staff remain a key deterrent for any retail loss, so give them a word to the wise in advance, re-instilling the need to meet and greet customers and remain vigilant about keeping a watchful eye on the floor.

Electronic Article Surveillance – Comprising antenna, security labels, and hard tags, electronic article surveillance is the most effective product-based defence method against loss,.

Secure displays – For high value items or additional stock, secure displays, security packaging and stop locks are also widely used. These are particularly valuable for decreasing the theft of electronics and accessories.

Surveillance – CCTV surveillance is a strategy used complement vigilant staff and EAS, and can also act as a theft deterrent as well as a means to catch thieves in the act. To ward off would-be thieves, consider the placement of signage notifying them CCTV is used.

The final word

As retailers enjoy increased foot and expenditure in advance of Father’s Day on June 16, the holiday looks set to provide a major boon to their annual bottom line.

The key for retailers looking to maximize this welcome spending spike is to ensure their security is up to par and shoplifting doesn’t detract from dad’s big day.

How to minimize employee theft

How to minimize employee theft

Late last year the National Retail Federation noted that while shoplifting is the leading cause of retail shrink, employee theft is only marginally behind.

Their 2018 research found one third (33.2 per cent) of all retail loss came down to employee theft, effectively costing the industry around $15 billion.

Here are the top tips for minimizing employee theft…

Screening

Thwarting employee theft starts with minimizing the type of people you have in your business who are likely to steal, and that comes down to good employee screening.

As part of the employment process, all potential staff should be interviewed, their references and referees should be validated, and where possible their criminal history should be checked.

Training

Training is a critical component of loss prevention in general.

The right training allows staff to understand the signs of shoplifting and how to address it, along with the proper processes and systems that minimize internal error and loss that can’t be accounted for.

Meanwhile, training on employee theft in particular helps staff understand what to do if they feel a fellow staff member is doing the wrong thing, and better understand the repercussions if they are tempted to steal.

Morale

Quite simply, staff who feel valued, appreciated and adequately remunerated are less likely to steal, with ‘retribution’ renowned as one of the major reasons for employee theft.

This also continues further to morale in general, with staff who feel happy, part of a positive work environment and part of a team also less likely to do the wrong thing.

Policy

All retailers should have clear policies on what type of behavior is appropriate within a workplace, and what type of actions are unacceptable. This clear policy allows staff to understand what is expected and what the repercussions will be should someone steal.

Remove opportunity

Temptation plays a role in both shoplifting and employee theft. The less opportunity there is for a staff member to steal, the less likely it is that they will.

Measures that remove opportunity include having a supervisor on duty, requiring access codes for the Point of Sale, using security tags, and employing smart cabinet locks and keys that track which staff member opens what cabinet or drawer within a store.

Meanwhile, Loss Prevention Magazine suggests implementing a two-person rule for the handling of high value stock.

“Don’t just require that two individuals be present when in the presence of extreme valuables; require that they are from different departments,” they recommend.

“Individuals who report to different chains of command and who do not regularly interact are less likely to form the kind of trust required for successful collusion, or suffer the same disgruntlement to motivate theft.”

Monitoring

How to minimize employee theft

Visible monitoring like CCTV can also reduce the likelihood of employee theft, particularly in areas like the Point of Sale. If your staff are aware they are under surveillance, they are less to steal, but there is a fine between the normal monitoring of a retail outlet and implying that staff are not trusted.

Emotional investment

Staff who are emotionally invested in the welfare of a retail outlet are also more likely to act in its best interests. That means they should be involved in discussion about loss prevention and aware how employee theft impacts a retailer financially and ultimately affects their own job security.

Loss Prevention Magazine notes managers who reinforce the message that good security protects the livelihoods of every employee report the most success.

Meanwhile, they also explain having staff involved in the security conversation and rewarded for their contribution also assists in minimizing employee theft.

“One step every organization should take is to consciously reward, rather than marginalize, employees who point out security vulnerabilities and options for improvement,” they note.

The final word

While shoplifting is the loss prevention problem that hits retailers’ bottom line the hardest, employee theft is often the crime that takes the greatest emotional toll.

It occurs at the hands of people who are trusted and considered part of a team, and losses can often be significant before the cause of the problem is determined.

Like all loss prevention, minimizing employee theft requires a mix of strategies, but at its core it is often about good policy, good management and good people skills, with a little technology utilized to assist.