Month: June 2021

Google shows faith in physical retail-header

Google shows faith in physical retail

A recent announcement by tech giant Google shows faith in the strength of bricks and mortar retail, with the company unveiling plans to open its first physical shopfront in the United States.

Due to open to the public this summer, the store will be located in Chelsea, New York, and comes after a turbulent year of shutdowns that heavily impacted retail in the United States.

Yet, as the tech company notes, physical retail is all about the customer experience and they believe a retail outlet will offer significant benefits when it comes to showcasing their products and services.

Immersion, advice and experience

Immersion, advice, and experience are set to be the key features of the new Google retail outlet, with the company explaining the store will provide a place for customers to browse and buy an extensive line-up of products made by the company.

From Nest products to Fitbits and Pixel phones, the full line-up of Google tech will be on offer.

“Throughout the store, visitors will be able to experience how our products and services work together in a variety of immersive ways, which we’re excited to share more about when the doors open,” Google explained.

Customers will be able to interact with these products, buy them directly or purchase them online and pick up instore.

Staff will also be on hand to help visitors get the most out of their device, whether that’s through troubleshooting, screen repairs, or assistance with installation.

“It doesn’t matter whether you’re a long time Pixel user, are curious about our Nest displays or want to participate in one of the how-to workshops we’ll offer throughout the year — our team will be able to provide you with help that’s specific and personalised to your needs,” Google said.

A commitment to New York

A commitment to New York

Google explained Chelsea, New York had been chosen as the location as this is where Google’s urban campus of more than 11,000 employees is situated.

“Google has been in New York for the last 20 years, and we view the store as a natural extension of our long-time commitment to the city,” they said.

“The new Google Store is an important next step in our hardware journey of providing the most helpful experience of Google, wherever and whenever people need it.

“We look forward to meeting many of our customers and hearing their feedback on the store, so we can continue to explore and experiment with the possibilities of a physical retail space and build upon the experience.”

The takeaways for retailers

Google’s foray into physical retail offers some positive takeaways for retailers.

It shows one of the largest companies in the world is keen to embrace the strengths of bricks and mortar, in the knowledge customers want to touch, feel, and experience products prior to making a purchase.

It also follows the lead of other tech-cos like Apple who have set up experiential retail stores across the globe.

Personalisation is key to Google’s approach, along with offering the knowledge and wisdom of the Google staff who are on hand to guide people through their purchasing decisions and equipment set-up.

And one thing is for sure, if a major company like Google has faith in physical retail and the concept of the customer experience it bodes well for the future of retail.

You can read more about emerging trends in retail here. Or if you’re looking to protect your store against theft, see our security tags and security labels.

Where is your retail theft occurring

Where is your retail theft occurring?

As US retail gears up and gets back to business, theft prevention is set to again become a major priority.

Although statistics indicate theft events were down throughout 2020 due to store closures, of the events that did occur, the value of the amount stolen was higher, and stores deemed essential actually experienced a shoplifting increase.

Which begs the question, where is your retail theft occurring?

Because once you know where your risk is, you can devise the best strategies to mitigate loss.

The four major types of retail theft

When it comes to analysing retail theft, there are four major areas to look at shoplifting, employee theft, fraud, and organized retail crime (ORC).

Each has an impact on retail’s bottom line, with the current statistics available here.

However, to put it plainly, theft is part of a wider retail loss problem that cost the industry $61.7 billion in 2019 or 1.62 per cent of retail’s annual bottom line.

Shoplifting

Shoplifting is often the theft issue that gets the most attention, and there’s good reason this is the case.

Shoplifting continues to be the number one cause of retail loss, with both amateurs and professional thieves contributing to the problem.

On the flipside, shoplifting is also one of the easiest problems to address, but it is imperative to have a multi-pronged approach that protects the store overall and items at a product-based level.

The top shoplifting prevention strategies include:

  • Good store layout and lighting.
  • Staff education and training.
  • CCTV.
  • Loss prevention staff

Employee theft

Employee theft

Employee theft is a bit of a hidden epidemic, but the reality is each incident of employee theft costs a retailer more than general shoplifting.

That’s because employee theft often takes longer to identify and can take the form of false returns, gift card fraud, skimming or false reconciliation of inventory.

In fact, the 33rd Annual Retail Theft Survey by Jack L Hayes International found each incident involving a dishonest employee averaged $1219.61, which was up 3.8 per cent in 2020.

The top employee theft prevention strategies include:

  • Screening of all prospective employees.
  • Staff training.
  • A good work environment with fair remuneration.
  • Staff monitoring through CCTV and POS analytics.

Fraud

Fraud is becoming an increasing problem in retail theft, with perpetrators becoming more elaborate in their scams.

Some of the most common ways that fraud is committed to involve return fraud, credit card fraud, and gift card fraud.

Meanwhile, fraud is also an issue behind the scenes in terms of supplier fraud.

The best ways to mitigate the risk of fraud include:

  • Returns and gift card policies and procedures.
  • Staff training.
  • POS analytics.
  • Payment’s security.
  • Inventory reconciliation upon receipt of goods.

Organized retail crime

Organized retail crime

One of the biggest scourges of the modern retail landscape is organized retail crime, which sees a group of thieves deliberately target a retailer to steal items in volume.

Organized retail crime is incredibly costly to retailers. The National Retail Federation notes Organized Retail Crime cost retailers an average of $719,548 per $1 billion in sales in 2020.

Perhaps more concerning is that organized retail crime is often accompanied by violence, with the NRF’s Organized Retail Crime Survey 2020 finding the majority of retailers reported thefts involved more violence in 2020 than they did in 2019.

Combatting organized retail crime involves:

  • Training staff to identify the suspicious behaviour that can indicate an organized retail crime event is about to take place.
  • Storewide security such as CCTV and loss prevention personnel.
  • Electronic Article Surveillance.
  • Secure cabinets and lockable drawers.
  • Good store layout that prevents easy smash and grab events

The final word

In the coming months, retailers will be looking to make up for the lost ground of 2020, and that means the focus should return to theft prevention.

After all, increased foot traffic equals an increased risk of shoplifting, employee theft, fraud and organized retail crime.

You can find more resources for protecting your store against each here.