Month: September 2020

pre-holiday-checklist-loss- prevention-header

The pre-holiday checklist for EAS loss prevention

This year retailers could be forgiven if the holidays were the furthest thing from their mind, but in 12 short weeks, it will officially be Christmas.

Although holiday shopping may look a little different to years gone by, like any other year the lead-up is likely to result in increased foot traffic and increased shoplifting.

So as retailers order products and ready to stock their shelves now is also the time to turn their attention to the electronic article surveillance system protecting their products to ensure it’s ready for the retail rush.

Here is our pre-holiday checklist for EAS.

EAS antenna and infrastructure

Like any piece of technology, the EAS antenna that guards the store requires regular servicing. Now’s the time to ensure the system is working as it should, that false alarms are minimised, and your staff know how to use the system properly.

It could be time to call in the technician if your antenna is regularly sounding false alarms (the sensitivity might be too high) or the system is failing to identify tags in its vicinity.

Meanwhile, as part of general store operations, staff should perform a daily test of the system based on the manufacturer’s instructions prior to opening the retail outlet each morning.

In addition, EAS antenna has an exclusion zone of around three feet around them. This zone should be kept free of displays, products, and even metal or foil decorations to eliminate false alarms. Ensure staff are educated about this.

Checklist

  • Have your EAS antenna serviced to ensure it is working properly
  • Train staff on the daily procedure of testing the system in accordance with the manufacturer’s instructions
  • Consider whether you need additional EAS infrastructure such as a system that guards the changeroom against tag tampering.

Security tags

security-tags - pre-holiday-checklist-loss-prevention
Featured product: Shell Ink Tag

In the lead-up to the holiday season, retailers should ensure they order sufficient security tags to protect the increased inventory that is held during the holiday shopping period.

This is also a good time to consider whether the strength of your security tags is adequate. Tags come in different locking strengths that range from standard to superlock, hyperlock and multipolar.

If your store is a frequent target of shoplifting, or tags are found on the floor or in the change room, it’s time to upgrade the tag strength.

Similarly, the pinheads that attach the tag to an item are available in different sizes and shapes. The larger the pinhead, the less likely it is to be forced through an item for the tag to be removed.

Meanwhile, additional strategies like benefit denial ink tags can mitigate the potential for shoplifters to tamper with tags

Checklist

  • Order any additional tags that will be required
  • Upgrade tags to at least superlock strength to mitigate tampering
  • Order larger pinheads to minimise tampering and tag removal
  • Ensure you have the right tag for the right product – there are tags designed for specific items like eyewear, golf clubs, footwear etc
  • Consider whether an additional layer of security may be required in the form of ink dye pinheads

Security labels

security-labels- pre-holiday-checklist-loss-prevention
Featured product: Sensormatic (APX) Advanced Performance Xtreme Labels

With more products passing through your retail outlet, additional security labels will be required to protect high-volume products or items that aren’t suited to tags.

Checklist

  • Consider what type of products need protection, and whether you want labels with barcodes included, or wish to print on them yourself
  • Order a sufficient number of labels
  • Train staff on the positioning of labels – they should be positioned near the barcode for ease of deactivation at the point of sale

Deactivators and detachers

security-tags-deactivator
Featured product: XT Lock Detacher, Above Counter

Labels require deactivating, while tags need to be detached. Retailers should ensure there is a sufficient number of tag detachers for all staff manning the Point of Sale, while the label deactivators need to be positioned correctly for swift transactions.

Meanwhile, detachers should be protected to ensure they are not the target of theft.

Checklist

  • Check deactivators are working correctly
  • Ensure detachers are suited to the strength of tag being used
  • Order any additional detachers and deactivators
  • Secure detachers at the POS

Staff training

Staff should be properly trained in the use of the EAS system and the positioning of labels and tags. With additional staff likely to be employed prior to the holidays, that makes now the time to look at your training procedures and ensure EAS is covered.

Checklist

  • Ensure EAS is covered as part of staff induction
  • Management staff should know how to test the antenna system daily
  • Do staff know what to do when an alarm sounds?
  • Can they identify a real alarm versus tag pollution?
  • Are they abreast of the product exclusion zone around the EAS antenna?
  • Have you trained them in the positioning of tags and labels?

After a challenging year for the retail sector, the holiday season is an opportunity for retailers to regain some financial ground. As part of this, they should be ensuring their loss prevention is up to par to protect their store against theft.

As EAS is an integral tool in mitigating shoplifting, now is the time to crosscheck it is working as it should, that all the required tags and labels are available and that staff are properly trained in the system’s use.

history-of-the-retail-security-label

The fascinating history of the retail security label

Retail security labels – they’re so simple and commonplace, you could probably make it through a lifetime without giving them a second thought.

But dive a little deeper into their history and the innovations which led to their popularity in retail, and there’s so much more to the humble security label than meets the eye.

From the invention of general labels to the innovation of tiny transmitters, here’s a quick insight into the fascinating history of security labels.

General label beginnings

General labels officially owe their origins to the 1700s when they first popped up on medical containers in the form of handmade paper that was printed on using a wooden press, and was then glued to bottles.

The trend quickly caught on elsewhere including the winemaking world, where every respectable winemaker began rolling them out as a way to differentiate their brand.

Fast forward to the end of the century and a couple of innovations made the label-making process a little easier – the paper machine and lithography.

By the mid-1850s color was widely employed and labels were being utilised as a way to draw the customer’s eye.

Self-adhesive labels

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One of the biggest innovations in the label-making world was the creation of self-adhesive varieties. First invented by R Stanton Avery (of Avery label fame) in 1932, they allowed people to quickly attach labels to all manner of products.

Although a popular concept, self-adhesive labels weren’t adopted on a mass scale until about the 1960s when advances in the type of adhesives allowed them to be secured to different types of materials.

Then in the 1980s, the arrival of the laser printer made custom printing more affordable, so labels began rolling out anywhere and everywhere – from baggage tags to offices.

Security labels

First invented in the 1980s, security labels owe their genesis to both adhesive label technology and improvements in Electronic Article Surveillance.

Like EAS tags, security labels house transmitters that remain in contact with an antenna at the entryway to a store. When an item with a label attached comes too close to that antenna, an alarm sounds, alerting staff that theft might be taking place.

The key innovation that spurred on the invention of security labels was the creation of transmitters which were small enough to be accommodated within a sticker.

The second key component was that this transmitter needed to ‘break’ on contact with a deactivator, rather than requiring the label to be removed.

This in itself is a fascinating story of invention and innovation, with three of the leading EAS companies at the time all racing to release the first sticker in the mid-1980s.

Ultimately, they each delivered stickers based on the different EAS frequencies of Radio Frequency, Acousto Magnetic and Electromagnetic, and their invention revolutionised retail loss prevention.

Security labels allowed retailers to quickly and cost-effectively affix secure high-volume products that were not suited to tags, such as perfumes, pharmaceuticals, hardware, DVDs, books and so much more.

Security labels also allowed for source tagging where a product supplier would affix the security label at the point of manufacture, rather than the retailer utilising labour in-store.

Improvements since

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In the years since their invention, security labels have developed to accommodate the changing needs of retail.

Now they extend to:

  • Barcode labels – which accommodate a barcode and EAS transmitter in one single label, thereby improving store efficiency and speeding up the checkout process
  • Food grade labels – which can be affixed to commonly stolen consumable products like meat, yet meet stringent food and hygiene standards.
  • RFID labels – which allow products to be tracked from the point of manufacture and throughout the supply chain right through to the shop floor.

Along the way they’ve also embraced stronger adhesives, become smaller, more accurate, and one of the most widely adopted loss prevention strategies in retail.

So yes, they’re simple, they’re commonplace and they’re an obvious solution to an age-old shoplifting problem, but the history of security labels is fascinating indeed.

You can view our comprehensive range of retail security labels here.

Shoppers seek to return to physical retail

Shoppers seek to return to physical retail

A new study has revealed more than two-thirds of US shoppers are ready to return to the real-world retail environment, but nervousness remains in the wake of Covid-19.

The ‘September 2020 Shopper Sentiment’ survey by Mood Media indicates 68 per cent of US customers now feel either somewhat or very comfortable about entering physical stores, while 60 per cent say they have already returned to non-essential stores.

So how can retailers better accommodate consumers’ willingness to return to retail?

The general sentiment

US confidence in returning to real-world retail is slightly lower than the global average. While two-thirds of the 2000 US survey respondents indicate they’re ready to get back to the physical store, globally that figure is 71 per cent, while 67 per cent globally say they’ve already returned, compared to 60 per cent in the US.

Meanwhile, a sense of nervousness remains. Sixty per cent of US consumers hold fears they might catch the virus while shopping, compared to 49 per cent globally.

Security measures like plastic screens, sanitization, cashless shopping, and face mask protocols have been found to ease these concerns extensively. Eighty per cent of customers globally say these measures increase their confidence in the retail environment, with mask-wearing the strategy that alleviates their fears most.

Shopping habits shifted

Shopping habits - Click and collect signage

While consumers might be returning to physical stores, their shopping habits have shifted, the survey notes. More and more consumers have become ‘mission shoppers’ who are keen to get in and out of the retail environment as quickly as possible.

In fact, 31 per cent of shoppers globally indicate they now spend less time and money in-store, while only three per cent indicate the time and cash they spend has increased.

And their perception of the customer experience has also changed.

“…of those who’ve shopped in a physical store since the pandemic hit, 65 per cent of US shoppers describe the Customer Experience as ‘not the same’, and 23 per cent describe it as so different that they’ll try to avoid returning soon,” the report explains.

So, what does this mean for US retail in the future?

Where to from here

Commenting on the survey, Mood Media Global Chief Marketing Officer, Scott Moore noted 49 per cent of shoppers globally continued to value real-world retail, specifically because of the ability to touch, feel and test products.

But opportunity now lies in the customer experience, he reflected.

“Those of us in the physical retail business must continue to think through every aspect, every step, of the Customer Experience and find ways to mitigate fear and assure safety along the way.

“We must take steps to help shoppers relax and help temper what they describe as a general nervousness. We must become their safety advocates,” he said.

Strategies he notes retailers can embrace include:

Signage and education

Whether its digital or physical signage, messaging assists by educating the customer about the steps taken by a brand to maintain a clean environment.

“We must ensure that shoppers actually see those cleaning practices taking place and see all employees taking shoppers’ concerns seriously,” he said.

Contacless Chekout - physical retail

Curbside pick-up and touchless checkouts

As part of recognising consumer concerns, strategies like curb-side pickup and touchless checkouts help eliminate the physical contact of retail and alleviate fears.

“If, for now, consumers want a more efficient in-and-out experience, let’s make sure we provide it to them. We can worry about ways to slow things down to encourage greater browsing and longer dwell times once we’re on the other side of this thing,” he noted.

“For now we must find ways to guide them to what they need faster, ways to get them through the payment process faster, ways to increase their comfort levels shopping in – and returning to – our places of business.”

Moments of joy

Mr Moore also suggested retailers should find ways to lighten the mood and embrace “small moments of joy” – through initiatives like soothing in-store music playlists or ensuring stores small crisp and clean.

“Sensorial elements still matter, perhaps more than ever,” he explained.

“We must explore opportunities for small “moments of joy” that make the shopping experience – and the shoppers’ spirits – a bit brighter. In our efforts to sterilize floors and surfaces, which are absolutely important, let’s be careful that the shopping experience itself doesn’t become sterile along the way.”

When normal returns

Finally, the survey explored the question of when shoppers believe their habits will return to normal, with 51 per cent of consumers globally predicting their shopping habits will return to normal by or before mid-2021, and half of these (25.5 per cent) expecting a return to normalcy by the end of 2020.

On the flip side, a small but significant 10 per cent of respondents indicated their shopping habits will never return to what they were pre-pandemic.

“The good news is that we will get past this. While consumers in our survey have differing views on precisely how quickly they think their shopping habits will return to a sense of ‘normal’, the overwhelming majority of shoppers believe we will get there,” Mr Moore said.

“The opportunity to step up and elevate the Customer Experience now can create a lifetime of customer loyalty. For ourselves and for our customers, may we all rise to the occasion.”

stop retail loss

It’s time to stop the retail loss

Right about now the retail world is grappling with a range of issues. There’s the ongoing challenge of Covid-19, evolving technology, and changing consumer habits. All of these have the potential to impact the retail bottom line.

However, unlike the above issues which by and large are beyond retailer’s control, one area where retailers can guard their profits and protect the bottom line is via loss prevention.  And the reality is there’s never been a better time to stop the loss.

The four areas of loss

Estimated to wipe on average 1.62 per cent from every retailers’ bottom line, loss (or shrink) comes from four main areas:

  • Shoplifting
  • Employee theft
  • Supplier fraud
  • Administrative error and miscellaneous loss

The good news is all of these areas can be monitored and strategically targeted to improve that all-important bottom line.

So, let’s dive right in, looking at where your loss might be occurring…

Shoplifting

Estimated to account for between 30 and 40 per cent of all retail loss, shoplifting is the first suspect to consider when tackling retail loss.

Last year US retailers again reported a rise in shoplifting, with its increase an ongoing trend.

Targeting shoplifting

Targeting shoplifting involves a multi-pronged approach.

It includes:

  • Product level protection like security tags and electronic article surveillance
  • Storewide protection like CCTV, security guards, and burglar alarms
  • Store design, with a focus on good lighting, and store visibility from the Point of Sale
  • Staff training to identify the signs of shoplifting and a customer service ethos that encourages staff interaction with consumers

Employee theft

Employee theft continues to rank as the second most common reason for loss in-store, with one in 50 employees stealing from their employer in 2019.

Targeting employee theft

Employee theft is managed through clear policies and procedures, a positive workplace culture and stringent hiring practices.

This involves:

  • Screening all potential employees and seeking out references
  • Education on the repercussions and impacts of employee theft
  • mPOS software that requires each staff member to individually log into the Point of Sale
  • Management supervision
  • A workplace culture where employees feel valued for what they do

Supplier fraud

retail loss - supplier fraud

Although far less common than either shoplifting or employee theft, supplier fraud can and does play a role in retail loss.

Targeting supplier fraud

Protecting your store against supplier fraud comes down to implementing the right systems and procedures to immediately identify any loss.

This extends to:

  • Inventory reconciliation
  • RFID tagging at the point of manufacture to track stock
  • Clear systems and procedures on stock delivery

Administrative error and miscellaneous loss

Like supplier fraud, administrative error and miscellaneous loss is far less common than theft-related shrink, but even simple mistakes can impact the bottom line.

Targeting admin error and miscellaneous loss

The trouble with administrative error and miscellaneous loss is that it can be harder to identify than other causes of shrink. That said, combatting it often corresponds with good store management.

This includes:

  • Regular stock taking using tools like RFID
  • The cross-checking and reconciliation of orders
  • Clear policies and procedures for handling stock, storing it, and putting it on display
  • Security tools like lockable cabinets and drawers
  • Clear assignment of roles and responsibilities in store

There’s never been a better time

With 2020 serving up some tough operating conditions for retailers across the USA, there’s never been a better time to tighten up a store’s loss prevention strategies, and the benefits of doing so could be significant.

Last year, retail loss cost the sector a jaw dropping $61.7 billion and right about now, that’s a profit no retailer can afford to lose.

You can learn more about our range of security tags here, and browse our security labels here.