07/30/2009/20/24

More than apparel protection – The other uses for security tags

When it comes to electronic article surveillance, people most often associate security tags with protecting clothing from theft.

And it’s true, in the past, apparel protection was indeed a popular use for security tags.

But over the years the design and technology of security tags has extended to encompass far more than just clothing, and now they can be applied to bottle tops, eyewear, electronics, fashion accessories and so much more.

So, let’s look to the other uses for security tags and how they’ve come to protect far more than apparel.

A little history

When it comes to electronic article surveillance, people most often associate security tags with protecting clothing from theft.

And it’s true, in the past, apparel protection was indeed a popular use for security tags.

So, let’s look to the other uses for security tags and how they’ve come to protect far more than apparel.

Popular option for apparel

The simple design of security tags makes them a natural loss prevention strategy for apparel. Each tag features a transmitter which communicates with an antenna at the entryway of the store.

The tag is affixed to clothing via a pin that passes through the item and locks into the transmitter housing.

Easy to attach, the system provides a simple and effective option for protecting clothing. Tags can also be quickly removed at the point of sale using a specialised detacher and then re-used.

Over the years, however, innovation and design refinements have enabled the security tag to protect far more than just clothing.

Lanyards and cables

The addition of lanyards and cables allows security tags to be affixed to products including fashion accessories, handbags, and even shoes.

This simple fixture sees the cable lock into the tag where the transmitter is housed and offers a wealth of flexibility in terms of products it can be applied to.

Importantly, the lanyard or cable removes the need for a pin to pass through a product, making this method ideal for high-value products made of materials like leather.

Liquor bottles and eyewear

In addition to hard tags, lanyards and cables, security tags have also been developed for specific purposes.

These include tags which protect liquor, eyewear, and even baby formula from theft.

For example, liquor bottle tags affix to the cap of a bottle and stop the product being stolen or consumed in-store, while optical tags grip firmly onto the arm of eyewear, but are small enough not to interfere with the customer experience of the product.

Spider wraps

Another innovation of the security tag is the spider wrap, which sees expandable cables wrap around a product then lock into a tag. The tag sounds an alarm when a product is being removed from a store or when the cables are tampered with.

Security labels

Meanwhile, EAS has also evolved to include security labels, which are often used for low value, high volume products.

These work on the same principle as security tags, but are deactivated, rather than detached at the point of sale, and are used to protect products like books, CDs, pharmaceuticals and more.

For more information on finding the right tag or label to suit your loss prevention needs, see here, or contact our team directly for further advice.

07/22/2009/20/24

Retail shrink hits a $61.7 billion high

Retail shrink has hit an all-time high, with the 2020 National Retail Security Survey noting it cost the sector $61.7 billion in 2019, up from $50.6 billion the year prior, and accounting for 1.62 per cent of the retail industry’s bottom line.

This year’s report by the National Retail Federation found shrink continues to be a major issue for the nation’s retailers, with the sector challenged by risks that extend from cybercriminals to shoplifters return fraud and more.

Here’s an insight into the latest findings…

Shrink rate rising

This industry’s high shrink value is driven by an increase in the average shrink rate, with more and more retailers recording a shrink rate above 3 per cent. The report found in 2019:

2 per cent of retailers reported a shrink rate of 3 per cent or higher
(compared to just 10.9 per cent in 2018)

1 per cent reported a shrink rate between 2 per cent and 2.99 per cent
(compared to 14.5 per cent in 2018)

2 per cent reported a shrink rate between 1.5 per cent and 1.99 per cent
(compared to 10.9 per cent in 2018)

6 per cent reported a shrink rate between 1.25 per cent and 1.49 per cent
(compared to 10.9 per cent in 2018)

7 per cent reported a shrink rate between 1 per cent and 1.24 per cent
(compared to 3.4 per cent in 2018)

7 per cent reported a shrink rate between 0.5 per cent and 0.99 per cent
(compared to 21.8 per cent in 2018)

6 per cent reported a shrink rate of 0.49 per cent and below
(compared to 27.3 per cent in 2018)

Extrapolated out, that means retailers’ average shrink rate has now increased to 1.62 per cent from 1.38 per cent in 2018 and is now the highest percentage of all time.

“Between an increase in incidents and new ways to steal, shrink is at an all-time high,” NRF Vice President for Research Development and Industry Analysis Mark Mathews said.

“Loss prevention experts are facing unprecedented challenges from individual shoplifters to organized gangs to highly skilled cybercriminals. Retailers are responding with both traditional methods and the latest technology, but this is an ongoing challenge that can only be won with the support of lawmakers and law enforcement.”

Shoplifting on the rise

After a slight dip in 2018, last year shoplifting began to rise again, but it was nowhere near the highs of previous years.

In 2019, retailers reported an average of 688.8 apprehensions, 417.5 prosecutions and 389.7 civil demands. This compared to an average of 509.4 apprehensions in 2018, 369.7 prosecutions, and 369.8 civil demands. In 2015, however, there was an average of 3,322.7 apprehensions, 1,934.6 prosecutions, and 2,201.4 civil demands.

Meanwhile, the average dollar loss per incident declined sharply to $270.6 compared to $546.67 per incident in 2018.

“Also declining is the percentage of those with an average dollar loss that exceeds $1,000, after spiking to nearly 15 per cent in last year’s survey,” the report notes.

“The 4.3 per cent of retailers who experienced a four-figure loss is about on par with the rate in FY 2015. Almost four in 10 retailers had an average loss of less than $125, and about two-thirds had losses of less than $300.”

Dishonest employees

Dishonest employees also showed signs of increasing in number compared to 2018, but again there were far fewer than years like 2015.

In 2019, retailers reported on average 560 apprehensions of dishonest employees, 558.6 terminations, 156 prosecutions, and 283.4 civil demands. This compared to 322.6 apprehensions in 2018, 335 apprehensions, 91.3 prosecutions, and 159.8 civil demands.

In 2015, however, there were on average 865.3 apprehensions of dishonest employees, 552.7 terminations, 158.3 prosecutions, and 241.5 civil demands.

The average dollar loss per dishonest employee was $1,139.32, which is down slightly from FY2018 when it equalled $1,264.10.

Areas of concern

Outlining where their loss prevention priority lies, many retailers reported increased concern over issues like return fraud, cyber-crime and organized retail crime.

The report found in the past five years:

29 per cent of retailers viewed e-commerce crime as much more of a priority

5 per cent saw organized retail crime as much more of priority

5 per cent viewed data breaches as much more of a priority

3 per cent had been increasingly focussed on internal theft

3 per cent viewed return fraud as much more of a priority

About the report

The NRF National Retail Security Survey is now in its 29^th year and can be viewed in full here.

Meanwhile, you can learn more about strategies to minimize shoplifting and loss here or speak with our team directly for the latest advice on using retail security tags to mitigate theft.

07/17/2009/20/24

The five layers of loss prevention

Whether your store is combating shoplifting, employee theft or miscellaneous loss in the supply chain and administration, preventing retail shrink always involves a multi-pronged approach.

By looking at this approach as layered, a retail outlet can mitigate theft, address errors and then identify areas which need greater attention.

So, working our way from the product level to the greater retail outlet, here’s an insight into the five layers of loss prevention.

Layer 1 – Product protection

Shoplifting consistently accounts for the greatest volume of retail loss, and the best way to mitigate this theft is at a product-based level.

That’s where strategies like electronic article surveillance (encompassing security tags, labels and antenna) and other strategies like lockable displays come in, as they protect individual items which are likely to be prone to theft.

The balance here has to be carefully navigated, treading a fine line between security and an appealing environment. That means products should be protected appropriately, using the right label or tag for the job, and the right type of lockable displays that still encourage customer interaction.

Meanwhile, EAS isn’t just something retailers can set and forget. Every now and then the system should be assessed to ensure the right strength tags are in use and are being correctly applied.

Layer 2 – Display and layout

The five layers of retail loss prevention

The physical layout and lighting of a store, along with how a retailer displays items plays a role in how successfully thieves can circumvent security and even how likely a retail outlet is to be targeted for theft.

Stores should be well-lit to eliminate dark, discreet places, have a line of sight from the POS across the floor, and be kept neat and tidy.

A tidy, organized retail outlet helps staff better monitor stock, while this line of sight from the POS helps them keep a watchful eye on the floor.

Layer 3 – Staff and training

Solid hiring procedures and consistent staff training work to reduce both shoplifting and employee theft. All staff should be screened prior to induction and should then be trained consistently in what to watch out for when it comes to shoplifting.

Even simple customer service protocols like meeting and greeting customers have been shown to reduce instances of theft, while staff who are valued and respected are far less likely to steal from an employer.

Good training and procedure like inventory counting and stock reconciliation also help to reduce instances of administrative error while identifying any issues in the supply chain.

Layer 4 – Surveillance

Surveillance, including CCTV and the appointment of loss prevention professionals, helps protect a retail outlet at a store-based level. This level of loss prevention deters would-be thieves from committing a crime and also helps identify shoplifting or theft that’s occurring.

Importantly, it can also be useful in identifying trends, including areas of a store which might be more prone to shoplifting and people acting suspiciously prior to a possible theft.

Layer 5 – Analytics

Analytics like traffic counting, inventory management, staff rosters, and sales records paint a detailed picture of what’s going on within a store.

These can then be used to identify times when a theft is most likely to occur, products which most frequently go missing, or shifts when cash registers fall short or excessive returns are made.

This data is critical in determining where loss prevention strategies need to be tightened up within a store.

Then retailers can work back through the levels of loss prevention to further protect their store.

For further tips on improving your retail security, see here, or go directly to our security labels and security tags to protect your store at a product-based level.

07/06/2009/20/24

America’s top retailers revealed

The National Retail Federation has released its annual list of the nation’s top 100 retailers, noting those who were dominant before Covid-19 are more dominant now, while those who were struggling continue to grow weaker.

So, who made the top 10 in terms of US retailers, and more importantly what are they doing right in an era of unprecedented change?

No 1 Walmart

After topping the global retailers’ list in March, it comes as little surprise that Walmart continues to outperform all the competition nationally.

The NRF stated if any retailer were to come out of the COVID-19 crisis with an enhanced reputation, “it could be Walmart, with its variety of store formats and a robust digital commerce business already in place prior to the pandemic”.

“Walmart’s total US sales rose at least 10 per cent once the coronavirus began to spread. Even as foot traffic began to drop in stores, Walmart’s shoppers were spending 16.5 per cent more on each trip or order. Online sales soared 74 per cent in the first quarter,” the NRF noted.

“The company invested heavily in keeping its stores and ecommerce business open, and says it spent about $900 million to cover such things as pay hikes for warehouse workers, bonuses for stores associates and hiring approximately 235,000 new employees for its stores.

“Money was also spent disinfecting stores, equipping associates with gloves and masks, and testing associates for the virus and antibodies.”

No 2- Amazon

With its unparalleled commitment to e-commerce, Amazon was ideally positioned to weather the Covid-19 storm, and this year that saw them leapfrog Kroger to assume second position on the Top 100 list.

“Shoppers helped push up Amazon’s revenues 26 per cent in the first quarter of this year,” the NRF explained.

“Those same shoppers also rated Amazon highest when asked which food retailer they had the “most favorable” opinion of, with regard to its response to Covid-19. Amazon finished ahead of Costco, Walmart, Publix and Kroger in the poll, conducted in early May by consumer market research firm Magid.”

No 3 – Kroger

Grocery retailer Kroger had the unique advantage of being one of the essential retailers that were not required to shut down during Covid-19. But still it played this advantage to maximum effect, harnessing the power of online sales, hiring a supplementary workforce of 100,000 and performing well under pressure.

The NRF explains in late May, they also launched further initiatives including “tele nutrition” services.

“Operated by Kroger Health, the service builds on the company’s “food as medicine” platform, offering virtual consultations with nutritionists, support and plans for individuals and families, and management of food-related health coverage.”

No 4 – Costco

With its loyal legion of followers, Costco also made an expected appearance in the top 10, settling in at fourth position.

In addition to improving customer service, Costco widened its offering this year through the acquisition of a furniture deliverer and installer. This is seen as a way for them to better embrace e-commerce in the period ahead.

No 5 – Walgreens

In fifth position is Walgreens who managed to ward off e-commerce pressure and a tightened bottom line due to declining non-prescription sales.

Meanwhile, this US retailer is quietly expanding its international reach after acquiring Switzerland-based Boots Alliance in 2014.

No 6 – HomeDepot

With more and more people focused on the home front, Home Depot was another well-positioned retailer at the outset of Covid-19.

As a result, their revenues increased 7.1 per cent in the first fiscal quarter of the year. That bottom line was later impacted by increased staffing costs and bonus pay to employees working through the pandemic.

No 7 – CVS

The NRF notes CVS experienced strong sales in recent months due to a model that has seen them pick up other pharmaceutical outlets.

Five months ago, they acquired Target’s pharmacies, then more recently purchased pharmacy operations in 110 supermarkets owned by Schnucks.

No 8 – Target

In many ways Target nailed its retail offering during Covid-19 by carefully thinking through what products consumers would need and when they would need them.

“Early in March it earmarked about $500 million to be used through July 1 on extra pay for workers and higher operating costs during the crisis,” the NRF explains.

“The company was ready when groceries and cleaning supplies went flying off the shelves early in the crisis. Then Target re-loaded and had beauty products, home goods and similar merchandise fully stocked when stimulus checks arrived.”

No 9 – Lowes

Lowes was another beneficiary of changed circumstances due to people staying home.

Like HomeDepot, it was considered an essential retailer and stayed open throughout the Covid-19 lockdowns. In addition, Lowe’s implemented curbside pickup to expand its e-commerce abilities, and digital sales increased 80 per cent

As a result, Lowe’s beat expectations on both revenues and earnings in this year’s first quarter.

No 10 – Albertsons Companies

As the largest North American supermarket chain after Kroger, Alberstons Companies was also well-positioned to ride the wave of Covid-19, and upped the ante with a focus on online ordering.

Their brand encompasses Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, and Carrs.

You can see the full list of the NRF’s Top 100 retailers here.

07/01/2009/20/24

Five things you need to know about security tag pins

When most people consider the highly-successful loss prevention strategy that is security tags, their mind turns to technology. After all these are the nifty little loss prevention tools that actively alert retail staff to a theft while it’s occurring.

While the tag may accommodate the tech side of things, one critical component of any security tag is the pin. This essential element of a security tag locks the tag to a product and has a major impact on whether your tag can be illicitly removed.

So without further ado let’s look at five things you need to know about security tag pins.

What are security tag pins?

Security tags comprise three important elements

The actual tag – which houses a transmitter that remains in constant contact with an EAS antenna. (This is the element that causes an alarm to sound when an item is leaving the store during a theft.)

The lock – which is also housed in the tag (these come in different magnetic strengths. SuperLock is considered the minimum strength required)

The pin – which essentially comprises a pin head and pin shaft. The pin head sits on one side of product, and the pin shaft passes through the item before locking securely into the magnetic lock of the security tag. The pin and tag can then only be separated using a detacher, so in a nutshell, the pin’s job is to secure a tag to an item.

So here’s what you need to consider…

Pinhead size

5 things you need to know about security tag pins

Pins are available with different pinhead sizes which range from small to large. The larger the pinhead size the harder it is to force through a product without causing significant damage.

Pro tip: if your retail outlet is finding complete tags including pinheads on the floor or secreted in the change room, it is likely due to a small pinhead being forced through a product.

Pinhead shape

Just as pinheads come in different sizes they also come in different shapes. The most secure sizes and shapes are those which directly correspond with the size and shape of the security tag. In addition, round tags and corresponding pinheads offer less surface area so are harder to prise apart.

Pro tip: If your retail outlet finds tags and pinheads illicitly removed but separated, chances are it’s because:

a) the magnetic lock isn’t strong enough and you need to upgrade to SuperLock, HyperLock or Multi-polar, or

b) shoplifters are managing to prise these apart due to the shape and surface area of the pinhead in relation to the tag.

Pin texture

Pinheads also come with either smooth shafts or grooved shafts, and in this case the product you’re protecting may impact the option you choose.

For example, sheer fabrics or products like bras may snag on grooved pin shafts, but on heavier fabrics the grooves assist with securing the pin into the locking mechanism.

Pro tip: There are usually three grooves on grooved pins to ensure you can lock the pin into the tag at a suitable position.

Pin length

Although they don’t vary greatly, pins are also available in different lengths including 15mm, 16mm and 17mm.

Pro tip: Longer pinheads are good for bulky materials like denim as that extra length may be beneficial.

Ink pinheads

In addition to different shapes, sizes and lengths, pins are also available with benefit denial features like ink dye. These are designed to stop shoplifters attempting to remove a tag and they work by releasing ink into a product if the tag is tampered with.

Effectively this ruins the product, so trying to remove the tag and then steal an item denies shoplifters any benefit.

Pro tip: If tag tampering is a major issue in your store and larger pinheads or corresponding shapes aren’t enough to deter thieves from attempting to remove a tag, ink tags can be beneficial.

You can shop our comprehensive range of security tag pins here.

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Month: July 2020