10/31/1909/20/24

When to use stoplocks and what to consider

Whether it’s high-volume items like razor blades or high-value items like electronic accessories, sometimes a different approach is required when it comes to securing items against theft.

These types of items are often displayed in bulk, with shelf space, item appeal and customer access among the key features a retailer will be looking to retain while still protecting the items against theft.

Enter the humble stoplock – a loss prevention tool that ticks all those criteria in one simple and small display hook attachment.

Here’s a quick guide on when to use stoplocks and what to consider…

When stoplocks are used

Stoplocks are used by retailers when they have high-volume, theft-prone items which are showcased on display hooks.

They are employed in the knowledge display hooks offer a number of advantages for showcasing wares and saving shelf space, yet the items on display may be vulnerable to shoplifting.

How stoplocks work

Easy to install and affordable to implement, stoplocks work in a series of ways.

Simple stoplocks seal off the end of a display hook with a lock that ensures products cannot be accessed without the assistance of a sales associate armed with a key.

Meanwhile, there are also time delay locks available which dispense singular items from the display hook but then feature a delay before a subsequent item can be accessed.

Common products secured by stoplocks

Among the common items secured by stoplocks are high-volume items like apparel accessories, electronics accessories, small boxed products, and personal care items.

For example, razors are often secured by time delay or general stop locks in both pharmacies and grocery stores. Although these items aren’t necessarily high value, they are among the most commonly shoplifted items in retail, yet they need to be positioned on display, so the consumer knows they’re available.

Electronic accessories are also frequently targeted for theft and are commonly secured using stoplocks. This allows the retailer to showcase their range while conserving space and allowing the item to feel accessible, yet the lock still protects this highly sought-after item against theft.

What to consider

For retailers looking to display their items in a neat, open, affordable and appealing way, stoplocks can offer a series of advantages, but there are a few factors a retailer should take into account.

Customer access

Although stoplocks give the appearance that an item is on open display, a customer seeking to access it will require staff assistance.

That means stoplocks may not be ideal for products that a customer needs to test, try, feel and engage with prior to making a purchase.

Instead, stoplocks should be applied to products that consumers are already familiar with and understand.

That’s why razor blades, ink cartridges and electronics accessories like chargers are ideal products to display with a stoplock. The customer is familiar with the item, generally knows the brand they’re looking for and has committed to the purchase before asking staff to assist.

Staff access

When implementing stoplocks, retailers should also consider how easy it will be for staff to access the item on the customer’s behalf.

Unlocking the stoplock requires a special magnetic or electronic key, which should be made available to all relevant staff, while displays should be positioned in an area that is quick and easy for the staff member to access.

Positioning

Display hooks with stoplocks generally work best in a position that is within the customer’s direct line of sight in a prominent place that they can see as they are shopping in-store.

This adds to the appealing look of the display, while still giving the impression the item is easy to access and buy.

Meanwhile, these locked display hooks should be positioned at a height sales associates can readily access in a place instore which they can get to quickly to expedite the sales transaction.

Alternatives and additions

Stoplocks are an ideal and affordable way of creating an appealing display that protects items in bulk. However, occasionally a frequently shoplifted item might require additional protection or an alternative type of display.

In the case of additional protection, Electronic Article Surveillance in the form of security labels is often employed in conjunction with stop locks. Not only is the item protected in bulk, but the label then further protects the individual item against theft.

Meanwhile, items such as premium electronic accessories which the customer is looking to experience might be better protected using lockable open displays. In this case, a display item is available to test and try yet is secured to a stand or table using retractable tethers or locked cables.

Further stock is then secured behind within locked cabinets.

You can learn more about EAS label and tag options here, or purchase your stop locks directly here.

10/28/1909/20/24

The season of spending – shoppers to spend $1048 each

Gift cards look set to rank as the number one present this Christmas season expenditure as individual customers prepare to spend more than ever before on the festive season.

This year consumers plan to spend on average $1047.83 on gifts, food and decorations and cards, according to National Retail Federation’s recently released Christmas consumer survey.

Here’s an insight into where that expenditure will occur.

Good financial shape, big spending

The NRF’s annual survey of holiday season spending intentions indicates consumers are in good financial shape this year and are willing to spend more as a result.

The survey of 7782 adult shoppers found on average they intended to spend $1047.83 each, which is four per cent more than the $1007.24 spent on celebrating the festive season in 2018.

“Consumers are in good financial shape and willing to spend a little more on gifts for the special people in their lives this holiday season,” NRF President and CEO Matthew Shay said.

“Retailers are fully prepared to meet the needs of holiday shoppers looking for that perfect mix of sales, quality and selection.”

Across the sectors

Gifts will comprise most of the expenditure, with survey respondents indicating they will spend on average $658.55 on presents.

A further $227.26 will be spent on non-gift holiday items such as candy and food, decorations, greeting cards and flowers; while other non-gift items that take advantage of the deals and promotions will add another $162.02 to the tally.

Across the ages

Customers aged between 35 and 44 will dig the deepest this year, spending on average $1,158.63 each, but younger shoppers will also drive the increased spending trend.

The survey notes, in addition to buying gifts for immediate family, younger shoppers will also extend their generosity to their circle of friends and co-workers.

More than half of shoppers between the ages of 25 and 34 (52 per cent) plan to purchase gifts for co-workers, and 82 per cent of those between 18 and 24 plan to purchase gifts for their friends.

The gifts they’ll buy

When it comes to exactly what shoppers are looking to buy as presents, gift cards top the list for the 13^th year in a row.

The survey found:

59 percent of those surveyed indicated they would buy gift cards
52 will seek clothing and accessories as a present
35 per cent will purchase books/movies/music/video games
29 per cent will shop for electronics as a gift,
24 per cent will seek out home décor
23 per cent will buy jewelry
21 per cent will give personal care or beauty items
18 per cent will opt for gifts of sporting goods
17 per cent will purchase home improvement items

Where they will shop

This year the online realm ranks as the prime place people will start their shopping journey, with 56 per cent of survey respondents saying they will shop online.

Of those, 92 per cent plan to take advantage of free shipping, 48 per cent will use buy online, pick-up in-store (BOPIS) or ship to store services, and 16 per cent plan to use same-day delivery, which has doubled since 2015.

Many will also accompany those online purchases with shopping in-store.

53 per cent plan to visit a department store
51 per cent will go to discount stores
44 per cent will go to grocery stores
34 per cent will go to clothing and accessory stores
23 per cent will each go to electronics stores and local small businesses

The NRF also notes many shoppers will start purchasing well in advance of Christmas. Over a third (39 per cent) have already started buying before November, 43 per cent are waiting until at least November and 18 per cent are waiting until December.

What they’re looking for

Sales and discounts rank as the main factor many holiday shoppers are looking for.

Over two-thirds (70 per cent) of shoppers say sales and discounts are the main reason they will choose a retailer, 59 per cent will opt to shop in specific store due to its quality merchandise, 57 per cent will be looking for a range of merchandise, 46 per cent will pick a retailer based on free shipping and shipping promotions, and for 44 per cent convenient location will be a deciding factor.

A festive season ahead

The peak retail season officially kicks off this week courtesy of Black Friday and Cyber Monday sales.

The NRF has previously tipped this festive season will be a bumper period for retailers. They estimate holiday retail sales in November and December will be up by between 3.8 per cent and 4.2 per cent in 2018 for a total of between $727.9 billion and $730.7 billion.

10/24/1909/20/24

Top tips on protecting apparel from theft

When it comes to shoplifting, apparel specialist retailers are among the most targeted verticals in US retail, currently ranking second only to pharmacies when it comes to theft.

What’s more the trend has risen in recent years, with dishonest employees and shoplifting the major contributors to apparel loss.

So, if you’re a retailer selling fashion or its associated accessories, how do you best protect items against theft?

The cold hard facts

Apparel retailers outrank nearly all other verticals when it comes to loss, with an annual shrink rate of 1.98 per cent of sales.

That’s just behind of pharmacies at 2.25 per cent, but ahead of electronics retailers (1.9 per cent), department stores (1.8 per cent), supermarkets (1.35 per cent), traditional toys and games (1.31 per cent), discounters (1.28 per cent), and sports goods retailers (1.21 per cent).

It’s also above the general average for the retail industry as a whole, which sits at 1.97 per cent loss. Meanwhile, the most recent statistics also indicate the trend is rising, with dishonest employees followed by shoplifting accounting for the majority of shrink.

In fact, apparel is one of the verticals where employee theft is the prime cause of loss, contributing to 44 per cent of shrink, while shoplifting accounts for 41 per cent. Vendor fraud adds another four per cent, while administrative error contributes 12 per cent.

Commonly stolen apparel items

In terms of what’s stolen in the apparel sector, footwear ranks as the number one item in the US, ahead of sports-related clothing, fashion accessories, sunglasses, and jewelry.

To help protect these items, here’s a rundown of the most effective product-based security measures available.

Protecting apparel, jewelry and accessories

By far the most prevalent and effective way of preventing apparel theft is by using Electronic Article Surveillance comprising antenna, hard security tags, and labels.

Meanwhile, there are specific attachment methods and even purpose-designed tags to accommodate a number of frequently stolen apparel items.

Footwear

Both is the US and globally, footwear is the number one stolen fashion item.

Protecting footwear involves the use of hard tags, but the way in which they are attached varies depending on the materials used in the product.

Hard tags with pins are suitable for shoes made of fabric, like sneakers, while leather shoes are better protected using tags with lanyards or cables so the pin does not have to go through the product.

In discount shoe stores, labels may be employed as an alternative to hard tags.

Sports-related clothing and general apparel

Sports-related and general apparel is best protected using hard security tags.

As a high-value and popular item, sports-related clothing should have fashion security tags affixed in a position that does not interfere with the look or customer experience of the product and allows the tag to be easily removed at the point of sale.

As a tip, opt for Superlock tags as a minimum with any magnetic strength beyond that (like Hyperlock or Multipolar) offering additional security and consider adding benefit denial strategies like ink-dye tags for increased security

Fashion accessories

The method of protecting fashion accessories varies depending on the value and type of product involved.

Low-value, high volume products like hair accessories and boxed items can be protected using labels, while high-value items like handbags are best protected using hard tags, but the way they are affixed to the product differs depending on the materials involved.

Fabric handbags can be protected using a fashion tag where the pin goes through the product, but in the case of leather or hard handbags, tags should be affixed using a lanyard or cable.

Sunglasses

Due to their shape, size, and differing values, sunglasses are also protected using varying methods.

Low-value, high volume items can be protected using labels, while mid to high-value items are better suited to purpose-designed optical tags, or alternatively can be secured in locked glass cabinets.

Jewelry

Again, the preferred method protecting jewelry depends on the value of the item and the volume sold.

Discount jewelry can be protected using labels, mid to high-value jewelry can be protected using carefully positioned lanyards and tags, while high-value items are best secured in locked lass cabinets which require staff access.

Don’t forget the fitting room

It comes as no surprise that the fitting room is a prime place for apparel theft to occur. That means, in addition to employing EAS at the store entryway, retailers should consider new innovations like the Fitting Room Guard.

This technology allows retailers to be notified when tags are being tampered with, while still maintaining customer privacy, and should be a particular priority in retail outlets where sports apparel is sold.

You can learn more about the EAS solutions available for apparel retailers here.

10/21/1909/20/24

No tricks, all treats for retail this Halloween

If estimates are anything to go by, retailers should be far from spooked by Halloween 2019, with consumers tipped to spend near-record amounts celebrating the October 31 event.

According to the National Retail Federation’s (NRF) annual survey, shoppers intend to spend $86.27 each on costumes, candy and Halloween decorations, injecting an estimated $8.8 billion into the retail economy.

Here’s an insight into where that shopping’s likely to occur and how it compares to previous years.

Third highest value on record

This year, Halloween will kick off what is expected to be a bumper retail holiday season. The 2019 event is predicted to deliver the third largest expenditure in 15 years, with shoppers spending an estimated $8.8 billion in total.

That’s down slightly on last year’s $9 billion in spending, and also slightly less than the record of $9.1 billion set in 2017, with 68 per cent of people planning to mark the occasion this year.

“Spending hasn’t changed much over the past few years, but we are seeing a noticeable increase in consumers whose Halloween purchases are inspired by their friends, neighbors and even celebrities on social media,” NRF President and CEO Matthew Shay said.

“Retailers expect to have another strong Halloween season and have stocked up on candy, decorations and the season’s most popular costumes.”

What people will buy

Candy, decorations and costumes will comprise the lion’s share of purchases.

95 per cent of people plan to purchase candy, spending $25.37 each and $2.6 billion in total
72 per cent plan to buy decorations, spending $26.03 each and $2.7 billion in total
67 per cent plan to buy costumes, spending $31.05 each and $3.2 billion in total
Greeting cards will also be popular, with consumers spending $3.82 each and $390 million in total

Meanwhile, 69 per cent will celebrate the event by handing out candy, 49 per cent will decorate their homes, 47 per cent will dress in a costume, 44 per cent will carve a pumpkin, 32 per cent will throw or attend a party, 29 per cent will take children trick-or-treating, 22 per cent will visit a haunted house, and 17 per cent will dress their pets in a costume.

Where people find inspiration

When it comes to finding inspiration for their Halloween decorations and costumes, most people head online, with social media the tool of choice for new and interesting ideas.

Over a third (35 per cent) of shoppers will search online first, with 18 per cent of those checking Pinterest for fresh ideas. Youtube and Instagram are the next most popular channels, with 14 per cent of people citing each of these as a place for inspiration.

Retail outlets also rank in the search for something exciting, with 28 per cent of survey respondents saying they will browse stores for inspiration, while a further 20 per cent will seek ideas from family and friends.

How people shop for Halloween

Online might be popular when it comes to seeking ideas, but real-world retail remains the prime place that people will buy their Halloween items.

42 per cent of shoppers will go to a discount store
36 per cent of shoppers will head to a specialty Halloween or costume store
25 per cent will shop online
25 per cent will go to a grocery store and
23 per cent will visit a department store.

A precursor to a bumper holiday

Halloween is the precursor to the holiday season for 2019, which runs from November 1 to December 31.

The NRF also predicts sales will be strong across this major shopping period of the year. This year they tip retail sales will increase between 3.8 percent and 4.2 percent compared to 2018, resulting in an anticipated $727.9 billion to $730.7 billion windfall for the retail sector over the coming months.

You can read more about the NRF’s holiday season predictions here, and find ways to protect your store against holiday theft here.

10/16/1909/20/24

The buying power of Gen Z

The latest Consumer View report by the National Retail Federation has illustrated just how much influence Gen Z has in household purchasing decisions, with teens and pre-teens often involved in both the research and purchase of both their own and household products.

For retailers, it means their marketing efforts and customer service are not only now directed at the primary income earner in the home, but also a younger generation keen to embrace the consumer ethos.

Here’s an insight into the NRF survey and the buying power of Gen Z.

The NRF report

Each quarter the NRF checks in with consumers to understand shopper sentiment. This Fall, their focus was Generation Z – the incoming generation of shoppers who were born after 1995.

The NRF notes although many of this generation are still in their teens or pre-teens, already they hold increasing sway when it comes to the products their parents purchase on their behalf and also for the household.

Meanwhile, many are coming of an age where they have disposable income of their own.

“Gen Z is responsible for a fundamental shift in the way families shop, the NRF reports. “This is having an impact on the retail industry.”

The influence of Gen Z

According to the NRF findings, nearly 9 in 10 parents say their children influence at least some of their purchasing decisions.

The report found:

Gen Z influences 47 per cent of purchases made on their behalf
Gen Z influences 46 per cent of purchases made for a household
Over 4 in 5 parents say they involve their children in purchases more than their own parents did with them.

When it comes to how that influence is exercised and what aspect of purchasing is affected:

52 per cent of parents said it influences the brands they consider
48 per cent noted it influenced the product features they viewed as important
41 per cent indicated it affected the specific retailers they consider purchasing from

Gen Z and the purchasing journey

The report also noted Gen Z is involved in all stages of the purchasing journey, but it is in the early phases that their input is most often sought by parents and valued most.

Almost three-quarters of parents (72 per cent) typically involve Gen Z in the researching phase; 51 per cent involve them directly before purchase when checking things like availability; 26 per cent when placing an order or at the checkout; and 12 per cent when making a review or return.

Where Gen Z has the most sway

Not all products or purchases attract Gen Z interest or influence, with clothes, outings, toys and food purchases the most likely areas where they will have an input.

Meanwhile, it’s not just their parent’s money they are spending. The report notes Gen Z is also keen to use their hard-earned cash on the items they love, with entertainment purchases such as apps, books/music and toys/games among their favoured items.

Products that Gen Z is most likely to have purchasing input into, or purchase themselves are:

Toys and games – 92 per cent
Clothes and shoes – 91 per cent
Food and drink – 88 per cent
Dining out – 87 per cent
Events and outings – 85 per cent
Books and music- 85 per cent
Electronics – 81 per cent
Personal care – 81 per cent
Travel – 79 per cent
Apps – 78 per cent
Sports equipment – 78 per cent
Digital streaming – 74 per cent

The retail takeaway

No longer is the influence of children in the purchasing journey and decision making simply ‘pester power’. Parents are actively involving their children in all areas of the retail process.

Meanwhile, Generation Z is beginning to enter consumerism armed with their own income and that’s set to increase in the coming years.

For retailers, it means this generation of household influencers needs to be considered in both the marketing of products and the customer journey, as the NRF explains:

“The increasing influence children have on family spending will have a direct impact on the ever-evolving retail landscape. Retailers have the opportunity to tap into this behaviour and support all-inclusive family shopping.”

10/15/1909/20/24

Loss prevention and its role in BOPIS

If there’s one emerging trend that truly bridges the gap between bricks and mortar and online retail, it is Buy Online Pick Up In Store (BOPIS).

Also known as Click and Collect, BOPIS has emerged as one of the best ways that traditional retailers can embrace the digital world, offering customers a seamless experience that ticks the boxes of convenience, speed and service while luring consumers into a physical store.

Meanwhile for retailers, a key element to any successful BOPIS offering is accurate inventory and stock counting, which is where loss prevention and BOPIS inevitably intersect.

Here’s an insight into loss prevention and its role in BOPIS.

The rise and rise of BOPIS

As Total Retail recently explained, for years bricks and mortar retailers had been scrambling to find ways to combat the online threat, and one of the most successful strategies that has emerged is BOPIS.

It’s a feature that allows consumers to shop online from the comfort of their home, and then harness the convenience of picking up the product they buy at their nearest brand outlet.

For the retailer, BOPIS offers a number of benefits:

It saves shipping time and cost
It makes use of the retail real estate at its disposal
It lures customers into a physical outlet, where there’s a good chance they will buy additional items

And it’s a trend that is incredibly popular with consumers due its ease, convenience and near instant gratification.

Earlier this year a Total Retail stated over 68 per cent of US shoppers had made more than one click and collect purchase, while a further 50 per cent said they’ve actually decided where to buy a product online based on whether they can pick it up in-store.

Meanwhile, Retail Dive notes 85 per cent of shoppers make additional in-store purchases while visiting stores to pick up what they already had bought online, with 15 per cent saying they engage in that practice “somewhat frequently”.

The retail challenge

In an increasingly competitive retail world, BOPIS is a highly valuable tool for traditional retailers. But it’s not one without its challenges. The success of BOPIS relies on stock accuracy, as research group IHL recently explained.

“Consumers first will look to the online systems to see if the inventory is in stock,” IHL notes.

“If the quantities are there, they will secure those items for pickup rather than ‘hope’ it arrives for shipping.”

However, IHL goes on to highlight that most retailers can be off by as much as 25 per cent on their store inventory counts.

“Most are playing a game with safety stock. Yet more than ever before, research online and BOPIS transactions are exposing even more out-of-stock issues for retailers.

“The average retailer is losing the equivalent of 3.4 per cent of same store sales due to out-of-stocks, and in apparel it is as much as 9 per cent of same store sales, a problem that is up 55 per cent worldwide since 2015.”

The out of stock/loss prevention link

In addition to costing retailers time and money, shoplifting and employee theft are two areas that contribute to inaccurate stock counting.

A retailer believes an item is available, advertises it as such online, only to find it’s missing and unaccounted for due to theft.

In the era of BOPIS this impacts a retailer in a couple of different ways:

They have to source the item from another outlet quickly, incurring additional cost
They have to inform the consumer it’s not available, damaging the customer experience

Meanwhile, traditional walk-in customers are impacted as well, due to unplanned shortage of items.

So, what should retailers do?

Ensuring stock accuracy

Like loss prevention itself, ensuring stock accuracy is a multi-faceted game.

Retailers need to ensure their stock is accurately counted in the first place, mitigate the risk of theft through improved loss prevention, and also maintain the integrity of stock counting through accurate and real-time tools such as RFID inventory counting.

And with retail peak season pending, now is the time to focus on both loss prevention and accuracy. IHL notes stock accuracy could be the very factor that separates the winners from the loses this shopping season.

“Customers come to stores because they need the products right now or need more information or expertise about the product,” they state.

“Those that leverage technologies like RFID and computer vision for inventory at the store are expecting sales increases that at up to 3x that of retailers that don’t. They realize that consumers simple won’t tolerate out-of-stocks any more with the age of the Amazon and Walmart marketplaces.

“So, it won’t be the shiny marketing campaign or catching lightning in a bottle that will separate the winners and losers. Being in-stock and the ability to execute on fulfillment that will separate the holiday leaders this year.”

10/10/1909/20/24

How shoplifting has changed

Retail theft might not be new. In fact, it’s been around as long as there have been traders selling their wares. But despite shoplifting being as old as the idea of retail itself, like all things it’s subject to trends and change.

In the past decade retailers have arguably been grappling with this change at a faster rate than ever before as the online world and technology deliver new challenges in the battle against shoplifting.

Here’s an insight into how shoplifting has changed and how loss prevention is responding to mitigate an evolving threat…

The savvy shoplifter

Undoubtedly, the internet has delivered huge convenience. It’s brought us streamed entertainment, online shopping, and access to wealth of information at our fingertips.

In the fight against shoplifting, it’s also delivered an unexpected challenge. Where once a would-be thief might need some time to learn the ticks of the trade, now the top tips on shoplifting are just a Google search away.

Those with a desire for a five-fingered discount can simply search the latest techniques to thwart sub-standard security, they can even source tools of the trade on the net, and once they have the pilfered product in their hands, they can readily sell it online.

The rise of organized retail crime

Easy online selling is just one of the factors behind the rise of Organized Retail Crime (ORC), and it’s among the greatest challenges in retail today.

Late last year a study by the National Retail Federation found ORC was at an all-time high, affecting 92 per cent of retailers and costing them $777,877 per $1 billion in sales.

Defined by the NRF as “the large-scale theft of retail merchandise with the intent to resell the merchandise for financial gain”, the survey noted ORC contributes to the growing impact of shoplifting, which US retailers state is their top source of inventory shrink.

This latest survey found ORC losses over the previous 12 months had risen seven per cent on the year prior, while shoplifting accounted for 35.7 per cent of all retail loss in total.

Return fraud

Coupled with easy online selling of stolen goods, are new and innovative ways that shoplifters can make money on their crime.

One of the emerging trends over recent years is return fraud, which sees stolen items taken back to the store and then exchanged for either money or a gift card.

In an age where the customer experience is at the heart of the retail mission, return fraud allows shoplifters to exploit lenient returns policies where a receipt or proof of purchase may not be required.

The NRF recently found:

3 per cent of retailers had experienced returns of shoplifted/ stolen merchandise
6 per cent had encountered employee return fraud and/or collusion with external sources
1 per cent had experienced returns of merchandise purchased on fraudulent or stolen tender
5 per cent had encountered returns made by ORC groups
3 per cent had experienced wardrobing (i.e. returns of used, non-defective merchandise)

“In all, survey respondents expect that about 11 per cent of annual sales will be returned and 8.2 per cent of those returns are fraudulent,” the survey authors explained.

The loss prevention response

Shoplifting may be evolving, but so too are the tools available to retailers to mitigate theft.

From facial recognition to improved electronic article surveillance (EAS), RFID, and CCTV, retailers now have more insight and theft prevention measures at their disposal than at any time in the past.

The key message is that, like the shoplifters that they are looking to counter, retailers need to stay abreast of the latest trends, use the best strategies available and constantly audit and improve the tools they use.

You can learn more about improving your EAS and the best practices available here.

10/08/1909/20/24

NRF predicts ‘strong’ holiday season ahead

The National Retail Federation has released an optimistic forecast for the holiday season ahead, with their annual predictions indicating retail sales will increase between 3.8 percent and 4.2 percent compared to 2018.

Should their estimates prove correct, it will see a $727.9 billion to $730.7 billion windfall for the retail sector over the coming months.

Here’s an insight into what the NRF expects will occur in retail over the winter holiday sales period.

Greater than average sales activity

This year shoppers are expected to dig deeper into their pockets than usual between November 1 and December 31, with the NRF predicting growth of 3.8 to 4.2 per cent.

This compares to average growth of 3.7 per cent over the past five years and comes on the back of a poor performance in 2018, when the government shutdown, increased interest rates and initial discussion of tariffs saw growth of only 2.1 per cent.

The NRF notes this year’s improved outlook indicates consumers are enjoying better financial conditions. However, their predictions are tempered by consumer uncertainty over trade issues, interest rates, global risk factors, and political rhetoric.

“The US economy is continuing to grow, and consumer spending is still the primary engine behind that growth,” NRF President and CEO Matthew Shay said.

“Consumers are in good financial shape and retailers expect a strong holiday season. However, confidence could be eroded by the continued deterioration of these and other variables.”

Ultimately, increased spending could result in an additional $26.7 to $29.5 billion in the retail industry’s coffers compared to last year.

In 2018, the holiday season delivered $701.2 billion in spending, compared to an expected $727.9 to 730.7 billion in 2019.

Higher growth for online retailers

The online retail sector is expected to enjoy a boost far above the average increased sales activity, with the NRF predicting online and other non-store sales will increase by 11 to 14 per cent.

This would see online enjoy a $162.6 billion to $166.9 billion slice of the retail pie, up from $146.5 billion last year.

Mr Shay noted online sales would represent approximately 20 per cent of the holiday season forecast, with online purchasing spiking in the lead-up to Christmas from standard average percentages of just 10 per cent of all retail sales.

Holiday hiring

Hiring is expected to vary compared to 2018, with the NRF predicting between 530,000 and 590,000 temporary workers will be employed, compared to 554,000 in 2018.

However, NRF Chief Economist Jack Kleinhenz noted those figures differ from previous years, with many more retailers directing their labor force to warehousing and order fulfillment, which are sectors experiencing high growth.

Winners and losers

In a media call regarding the season’s predictions, Mr Shay also addressed the issue of winners and losers for the peak retail period ahead.

He noted retailers likely to enjoy the best results included those who had invested in strategies like:

Consumer engagement
Convenience
Easy shipping
Supply chain efficiencies
Order fulfillment
The blending of the physical and the digital in a seamless and frictionless way such as buy online, pick up instore
The instore experience

The popularity factor

Meanwhile, Mr Shay noted some verticals also tended to prove more popular than others throughout the festive season.

“Consumers find the following categories enormously popular: they go to discount stores, they go to department stores, they go to electronics stores, they go to apparel stores. They’re buying gift cards, they’re buying electronics and they’re buying toys. So, there’s a wide variety of categories and segments that are going to be heavily trafficked this year.”

Mr Shay also confirmed the holiday season appeared to be evolving, with consumers shopping both earlier and later.

He explained value-conscious consumers were often seeking bargains earlier, and retailers were looking to assist to capture market share.

Meanwhile, at the other end of the spectrum, improved order fulfilment and fast shipping times mean some purchasers are leaving their shopping until the very last minute.

“It’s getting interesting at both ends of that barbell with shopping occurring both further out and later.”

You can read the NRF’s predictions in full here, or view the security strategies to protect your store over peak season here.

10/03/1909/20/24

Eliminating opportunity in the fight against retail theft

Whether it’s at the self-checkout, a snatch and grab or simply stashing an item under their clothing, shoplifting is always a crime of opportunity.

That opportunity might be spur of the moment, or it might be maximized with pre-planning, but make no mistake, when it comes to every single element of loss prevention, eliminating opportunity is the aim of the game.

Here’s an insight into how retailers eliminate opportunity in the fight against retail theft…

Know your weakness

It’s important to note, in any retail outlet shoplifting is only part of the loss prevention picture. This year, the National Retail Federation found shoplifting accounted for 35.7 per cent of the industry’s $46.8 billion loss, while employee theft equaled 33.2 per cent, administrative and paperwork error accounted for 18.8 per cent, and vendor fraud totaled 5.8 per cent.

That means retailers should take a good hard look at their outlet to examine exactly where and when all opportunities for loss might arise.

Know your loss

Most retail outlets have an area of weakness and the analytics and reporting of retail offer an insight into where that is.

Analytics and reporting help identify trends, such as when an item is out of stock despite being listed as available in the inventory (this indicates items may be subject to theft).

It might also identify more loss occurs when specific staff members are on duty, which hints at the fact better loss prevention training is required, customer service protocols should be reviewed or in the worst case, theft is occurring at the hands of these staff.

Analytics may also reveal loss occurs at specific times, like opening, closing or holiday trading (indicating staff are distracted, perhaps more staff are required, or procedures need to be reviewed).

Analytics and reporting can also reveal that loss is occurring in the supply chain, or perhaps items are not accounted for properly due to paperwork and error.

Eliminating opportunity

Once you know your potential areas of weakness and also your actual areas of loss, reducing loss comes down to eliminating opportunity.

This often involves a multi-faceted strategy that includes the elements of:

Customer service

Research consistently reveals good customer service plays a definite role in reducing shoplifting. Good customer service sees staff meet and greet consumers and being attentive to their needs in store.

Staff training

Staff play a critical role in identifying and preventing many areas of loss. They should be trained in the suspicious behaviour of shoplifting, given clear instructions on what to do if they suspect an act is occurring, and valued for their role within the retail outlet.

Staff should also be educated on repercussions of employee theft, screened prior to employment, and encouraged to be part of the loss prevention discussion.

Store design

From lighting to layout, good store design eliminates areas where a potential theft might take place. It ensures each area of an outlet feels visible. Design also assists with both customer service and inventory by keeping an outlet neat, tidy and organized to ensure products can be found by the customer and accounted for by staff.

Product protection

Whether a product is high-value or high-volume and low-value, it should be individually protected against theft using Electronic Article Surveillance or suitably secured displays.

EAS would see security tags attached to products like apparel, accessories and electronics, while labels would be affixes to lower value items, like non perishable groceries and pharmaceuticals.

Meanwhile, high-value items such as electronic devices and their accessories might be protected using secure displays where the device is locked to a display table or bench and alarmed.

Alternatively, or additionally, some high-value stock might be secured in lockable cabinets which staff assist the interested customer in accessing.

Store protection

As a further level of security, a retail outlet might opt for overall store protection such as CCTV and loss prevention personnel.

This type of security monitors the entire outlet rather than individual products and identifies acts of theft or assists in dealing with them at the time or afterwards.

Store policy

All security measures should be backed up by store policies which can help mitigate theft.

This will include subjects like return and gift card policy, how shoplifters are dealt with, how employee theft is handled and the steps a staff member should take to report suspicious behaviour from customers or other employees.

Store policy will also outline the correct procedures for receiving goods and inventory reconciliation, assisting them to identify errors and inconsistencies in inventory that may indicate supply chain loss.

10/01/1909/20/24

How will you guard against employee theft these holidays?

Now is the time many retailers are bringing in casual staff to cater to the holiday season and pre-Christmas rush.

It’s a traditionally busy time for human resources and retail management alike. But amidst all the necessary onboarding, training and recruiting, store security should be also be at the top of every retailer’s mind as part of the hiring process.

Why? Because sadly employee theft accounts for a third of retail loss. So, as you welcome new staff to your team in time for Christmas, here’s what you need to know.

The statistics

Last year the National Retail Federation noted dishonest employees accounted for 33.2 per cent of all retail loss, costing the industry around $15 billion.

In a further report they also found each incident cost employers an average of $1264.

The high cost of individual employee theft is attributed to the fact the crime can be hard to detect and often a significant amount has been stolen by the time dishonesty is suspected.

So how do employees steal?

Employee theft methods

Employee theft can take a number of forms, but most often it involves leveraging the staff member leveraging a position of trust to their advantage.

Common methods include:

Under ringing
Where the cashier uses the Point of Sale to ring up an item at less than its listed price, collects the full amount and pockets the difference.
Product theft
This is just the straight theft of a product.
Skimming
Involving pocketing a small amount of money from the till in the hope it will go unnoticed when the till is counted at the close of day.
Sweet hearting
Sweet hearting can involve a series of strategies but sees employees fail to ring up or discount items for the benefit of friends.
Gift card theft
Typically difficult to detect, git card theft involves an employee issuing fake refunds for gift cards that they keep. It also involves handing a customer a blank gift card while they keep the loaded one.
Refunds
In this case, the cashier rings up a false refund and keeps the cash.

Can you pick a thief?

Just like general shoplifting, there is no set profile for a dishonest employee. They can be male or female, young or mature, and come from all races, religions, and backgrounds.

What does tend to unite them is motivation, which usually takes one of three forms:

Need: To support family or lifestyle
Revenge: Bitterness about their situation or anger toward management, often emotionally driven.
Thrills: The adrenaline rush brought on by the risk of getting caught (often there is no financial need to steal).

That said, there are a host of ways to deter employee theft, the most important of which is staff screening.

Staff screening

At busy retail times like pre-Christmas, screening of employees can prove more challenging, yet it is no less important.

Despite the need to staff a store adequately, all prospective team members should be interviewed, have their references checked and where possible have a criminal history check undertaken.

This helps eliminate potential staff members who may have form for dishonest practices.

Meanwhile, a host of other policies and procedures should be adopted by retailers to guard against employee theft. These include:

Culture and morale

The culture of an organization plays an important ole in whether employees will be tempted to steal from a retailer. Statistics indicate workplaces where employees feel valued, heard and adequately recompensed for their labor are less prone to theft.

General shoplifting deterrents

A retail outlet which employs best practice in loss prevention generally is also often less prone to employee theft.

That’s because proper loss prevention eliminates theft opportunity but also indicates a no tolerance approach to shoplifting and crime.

Education

Every staff member who is brought into a retail organization should be clearly educated about the repercussions of theft.

This is not only for the benefit of employees who might be tempted to steal, but also helps create an environment where others may be more willing to speak up if they feel a fellow staff member is doing something inappropriate.

This education also helps instill the knowledge that theft affects far more than the retailer and the dishonest employee. It also impacts the retail bottom line which ultimately impacts the number of staff members who can be employed and the rates of pay they receive.

Monitoring

Staff monitoring, whether via CCTV or supervision acts to deter employees from theft. Monitoring can also involve regular locker and bag checks or employing security staff to watch the entire store.

Technology

Meanwhile, there is a wealth of technology that reduces both shoplifting and internal theft. From Point of Sale reporting and analytics, to EAS security tags and labels which protect items from theft, retailers should look to and implement the technology available in advance of the pre-Christmas rush.

You can learn more about EAS security tags and labels here.

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