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Valentine’s retail spending near record high Page 3

Valentine’s Day is tipped to be more important to people than ever this year, with the National Retail Federation expecting $21.8 billion will be injected into the retail economy as over half of all US adults celebrate the date.

That expenditure is down on last year’s record high given the ongoing pandemic, but still, consumers remain committed to marking the occasion, with 73 percent noting it is important to do so given the current state of affairs.

Here’s an insight into what the latest NRF survey found…

Spending per person

This year 52 percent of US adults plan on celebrating Valentine’s Day, each spending on average $164.76. That’s significantly lower than before the pandemic hit when Valentine’s spending reached an all-time high of $196.31 per person.

The NRF notes much of that reduction can be attributed to people staying home to celebrate rather than dining out.

Three-quarters of survey respondents said the pandemic had impacted their holiday plans and only 24 percent will gift their loved one with an evening out. This is the lowest number in the survey’s history.

Instead, 41 percent will plan a special dinner and celebrate at home.

“There is no question the pandemic has disrupted many aspects of Americans’ daily interactions and activities,” said NRF President and CEO Matthew Shay.

“However, there remains a special significance around Valentine’s Day, and consumers are committed to celebrating friends and loved ones, even if that means having to alter those traditional holiday celebrations.”

Items to be purchased

Items to be purchased

Dining out might be down, but traditional gifts like candy, greeting cards, and gift cards are actually up on 2019.

This year it is expected:

  • 54 percent of consumers celebrating Valentine’s Day will buy candy, compared to 52 percent last year.
  • 44 percent will buy greeting cards, compared to 43 percent last year.
  • 36 percent will buy flowers, compared to 37 percent last year.
  • 24 percent will spend on an evening out, compared to 34 percent last year.
  • 21 percent will purchase a gift card, compared to 19 percent last year.
  • 20 percent will buy clothing, the same as last year.
  • 18 percent will buy jewelry, compared to 21 percent last year.
  • 12 percent will spend on ‘other’, compared to 11 percent last year.

Who people are buying for

With people planning to spend less on going out, spending on significant others is expected to see the biggest drop in 2021, and is down $13 on last year.

Social distancing is also impacting the event, with people planning to spend less on teachers, classmates, and their work colleagues.

This year, consumers plan to spend an average of $10.77 on their children’s classmates and teachers (down from $14.45 last year), and an average of $8.47 on colleagues, (down from $12.96 in 2020).

Where they are purchasing

Where they are purchasing

Online is currently the favored destination for Valentine’s Day gift purchases, with 39 percent of shoppers saying they would visit an online destination in search of gifts.

That’s followed by department stores (29 percent), discount stores (28 percent), and local small businesses and specialty stores tied (17 percent).

In heartening news for small business owners, the NRF notes this year is the first time consumers listed small businesses as a top-five shopping destination since the question was added to the survey in 2015.

Spending down but still high

This year’s total spending might be down, and gifts like dining out might be greatly reduced, but Prosper Insights Executive Vice President of Strategy Phil Rist said retailers should take heart in the predicted expenditure.

“Consumers still feel it’s important to spoil their loved ones in light of the pandemic,” he noted.

“This year’s total and average spending figures are near record highs, as the second-highest in the survey’s history.”

For more insight into the current trends in retail see here, or view our range of theft prevention measures designed to protect the retail bottom line here.

The biggest advancements in retail loss prevention Page 3

For as long as shops have been around, so has retail loss, but the fight against theft and error has also enjoyed some innovations and new weapons along the way.

Some of these tools make monitoring the store environment easier, others involve tracking products, and most have only been created in the last 100 years.

So, with that in mind, here are the biggest advancements in retail loss prevention…

CCTV

Photo by: PR Newswire

Closed-circuit television hasn’t just changed retail security, it’s altered the whole world. First invented during WWII in 1942, the technology has since evolved to become digital and smart, allowing footage to be stored in the Cloud.

In the process, it allows retailers a bird’s eye view of what’s going on in-store, including enabling loss prevention professionals to catch thieves in the act of shoplifting or employee theft.

The presence of CCTV has also become a crime deterrent, stopping employees or shoplifters from committing a crime in the first place.

The security tag

The security tag
Featured product: BossTag Super Detection Tag

Attached to products and able to trigger an alarm if an item is being stolen from a store, security tags are arguably the biggest innovation in loss prevention.

The humble security tag had its beginnings in 1964, and from the ‘70s onwards swiftly became the go-to method of protecting stock at a product-based level.

By the 1980s, adhesive security labels were added to the loss prevention arsenal, but in the years since there have been a host of further developments in both tag and label technology.

Security tags are now harder to detach, more reliable, and are available in a variety of strengths along with designs for specific purposes.

Meanwhile, security labels have also evolved. They now feature a smaller footprint, greater detection and also come in different types that are suited to a wide variety of high-volume products.

RFID

Officially invented in 1983, RFID (or radio frequency identification) has come to revolutionize both supply chain accuracy and inventory counting in retail.

But this nifty technology first found its footing in a variety of other fields. RFID tags are used for tracking shipping containers, they are found in passports, and are also used for microchipping pets.

Basically, the technology involves small chips that can collect and store data – a lot of data.

In retail, RFID tags can contain information like size, color, SKU and location. They can be applied at the point of manufacture or instore, allowing retailers to trace products right through the supply chain and onto the shop floor.

In the process, they facilitate swift inventory reconciliation and boast incredible accuracy. In fact, RFID has been found to offer 99.9 percent supply chain accuracy, compared to traditional barcode accuracy that sits around 31 percent.

mPOS

Retail mPOS InVue
Featured product: InVue NE360C mPOS Center

Mobile Point of Sale might not be viewed as a loss prevention tool, but it’s role in improved order accuracy, stock counting, and inventory reconciliation is undeniable.

mPOS made its way onto the scene shortly after the arrival of mobile tablets in about 2010. And since then, it’s transformed the way retailers manage their business.

mPOS allows retail management instant access into the workings of their business from anywhere, allowing them to see sales, stock at hand, staff who are working at the time, and more.

This provides a level of transparency that is critical in the loss prevention fight.

Smart keys

Smart keys are a fairly recent innovation, but they allow retailers to better secure their stock, while also improving the customer experience and efficiency.

Basically, a smart key is one that can be programmed to open one or multiple locks, depending on the staff member’s level of access.

In the process they can track what cabinet or locked display has been accessed by a staff member, thereby preventing employee theft.

They save the time and hassle of finding the right key to fit a lock, while also offering an insight into critical retail analytics.

You can learn more about effective loss prevention strategies, including combatting employee theft, shoplifting, and Organized Retail Crime here.

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Five takeaways from Retail’s Big Show – Chapter 1 Page 3

The National Retail Federation has just concluded the first instalment of Retail’s Big Show for 2021, and this year the event looked very different to years gone by.

Held virtually, the show was divided into two ‘chapters’, with the first held in January and the second to commence in June.

Despite its online venue, the event packed all the punch of previous years with a specific focus on the immediate needs facing retailers today and featured curated sessions, networking programmes and a virtual expo.

With its focus on moving forward together as an industry, here are five takeaways from Chapter 1 of Retail’s Big Show.

The future pulled forward

In a session on ‘Technologies Shaping the Store of 2025’, panellists noted the pandemic had “pulled the future forward”, accelerating adoption of e-commerce.

However, consumers still want curation, personal guidance and authentic connection, regardless of how they shop.

“In the world of commerce, the things we thought we would see in 2030 are now things that we’re seeing today,” Shopify director of product, retail, Arpan Podduturi, explained.

Meanwhile, head of global retail operations at Allbirds, Travis Boyce, noted the role of bricks and mortar was transforming into a hub where shoppers could fulfil needs like buying online and returning in store or engage in events as retail and communities begin to open back up.

It’s all about the show

Photo by: PR Newswire

Luxury retailer Saks Fifth Avenue was among the stores represented in a chat focused on re-imagining retail, with CEO Marc Metrick also agreeing the events of2020 had provided an accelerant for change.

However, he also added that in the case of luxury bricks and mortar retail physical stores continue to be important.

“For luxury, especially, it’s the theatre: People want to see the show,” he said, and since Saks reopened its stores, they have been performing only slightly below 2019 levels.

Better catering to the product cycle

Another thing Saks observed in 2020 was that in the future they could better cater to the product cycle.

For example, their seasonal ranges usually arrive almost six months prior to the season beginning and then the shop needs to push the product. In 2020, stores were closed in the early half of the year and then reopened in May.

“When the customers arrived, guess what was in the stores? Summer product,” Mr Metrick said.

“It had been on the floors since February, but this was the first time they’d seen it. We didn’t have to push it or promote it. It just sold, because we were meeting the customer’s needs.”

The significance of sustainability

A session involving IKEA and H&M representatives looked at whether sustainable purchasing habits changed as a result of 2020.

After years of an increasing shift to more socially and environmentally aware purchasing, the customer’s commitment to ethical retailing was not impacted by COVID-19, both retailers noted.

However, their budget tended to be smaller and the product focus changed to align with the new normal. They also explained that Gen-Z continued to lead the socially conscious push and had a huge demand for information about products.

“Having grown up as digital natives they understand — maybe better than any preceding generation — how to access information,” H&M US sustainability manager Abigail Kammerzell noted.

“And they’re really demanding about it. They want to know where our clothing is made and out of what, what the social implications of that are, and what’s the responsibility of the consumer once they’re done with it.

“On top of that, Gen Z has definite expectations about what a business is: It’s not just here to provide an item, it’s also here to improve the society and community in which it operates.”

All round excellence

It’s not enough for a retailer to excel in one area, they need to be excellent all-rounders. That was the message from Wayfair CEO Niraj Shah, who noted what “you’re not good at limits your growth and being great in other areas doesn’t make up for it”.

As an online retailer focussed on furniture, Mr Shah explained for his company that involved a focus on both merchandising and logistics.

But most importantly it involved intimately understanding exactly what a customer needs, and then drawing on tools like technology to meet those requirements.

Lowe’s CEO Marvin Ellison agreed, explaining the true role of technology was to deliver a better customer experience.

“As we look to the future, we ask one single question: What is in the best interest of our customers?

“The most effective technology is a technology that no one sees. All the customer knows is that the transaction was easy. All the associates and supply people know is that the system works well.

“And that,” Mr Ellison said, “is what good innovation looks like.”

The first chapter of Retail’s Big Show ran over various dates from January 12 while the second chapter will commence in June. Further information about the event is available at the National Retail Federation.

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Retailers celebrate holiday spending surge Page 3

US retailers are celebrating after a holiday sales surge that defied expectations.

The latest data from the National Retail Federation indicates sales during the November-December holiday season grew 8.3 per cent over the same period in 2019 to $789.4 billion, despite the tough conditions of Covid-19.

Here’s an insight into the spending trends that drove that unexpected sales increase.

Well above previous years

Prior to the holiday period, forecasters had been cautious in their expectations for the season of giving, noting tough economic conditions and the year of Covid could have a major impact on sales.

Consumers defied these expectations, however, with the NRF noting they kicked up a gear in December, most likely as a result of government stimulus.

“There was a massive boost to most consumer wallets this season,” NRF Chief Economist Jack Kleinhenz said.

“Consumers were able to splurge on holiday gifts because of increased money in their bank accounts from the stimulus payments they received earlier in the year and the money they saved by not travelling, dining out or attending entertainment events. Some families are still struggling, as are some retail sectors.

“But the promise of a new round of stimulus checks after a deal was struck before Christmas helped increase consumer confidence.

“Consumers were also encouraged by the news of COVID-19 vaccines becoming available, which helped offset concerns about increased infection rates and state restrictions on activity.”

As a result, spending surged to 8.3 per cent above the same period in 2019 and was more than double the 3.5 percent average holiday increase over the previous five years, including 2019’s 4 per cent gain.

An online emphasis

An online emphasis

As expected, much of the holiday season spend transferred online, with online retail increasing 23 per cent to $209 billion.

However, there was also a spike in purchasing in the third and fourth week of December after it was too late to expect delivery of online purchases by Christmas.

The NRF noted consumers worked around this by taking advantage of services like Buy Online Pick-up In-Store (BOPIS) and via quick in-and-out trips to physical retailers.

What people were buying

Some retail verticals performed better than others throughout the holiday season, with sectors like home improvement performing particularly well.

The NRF noted winners and losers of the spending surge were:

  • Building materials and garden supply stores, up 19 per cent
  • Sporting goods stores, up 15.2 per cent
  • Grocery and beverage stores, up 9.6 per cent
  • Health and personal care stores, up 5.4 per cent
  • Furniture and home furnishings stores, up 2.2 per cent
  • General merchandise stores, down 0.1 per cent
  • Electronics and appliance stores, down 14.4 per cent
  • Clothing and clothing accessory stores, down 14.9 per cent

The takeaway

The takeaway

The NRF explained despite unprecedented challenges in the holiday season of 2020, both consumers and retailers demonstrated “incredible resilience”.

“Faced with the rising transmission of the virus, state restrictions on retailers and heightened political and economic uncertainty, consumers chose to spend on gifts that lifted the spirits of their families and friends and provided a sense of normalcy given the challenging year,” NRF President and CEO Matthew Shay stated.

Future optimism

Now as America looks to a new government and a new year ahead, the National Retail Federation is expressing cautious optimism.

“We believe President-elect Biden’s stimulus proposal, with direct payments to families and individuals, further aid for small businesses and tools to keep businesses open, will keep the economy growing,” Mr Shay said.

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No slowdown in Organized Retail Crime Page 3

Organized Retail Crime (ORC) continues to be a major problem for the retail sector, with the latest survey from the National Retail Federation finding losses increased in 2020 and perpetrator aggression was also higher than the year prior.

Released in mid-December, the Organized Retail Crime Survey 2020 found Organized Retail Crime cost retailers an average of $719,548 per $1 billion in sales, which was up from $703,320 in 2019. Meanwhile, many retailers have changed or are looking to change their store policies as a result.

Here’s an insight into what the annual ORC survey revealed.

Organized Retail Crime continuing to rise

Last year marked the fifth consecutive year that retailers reported Organized Retail Crime had topped $700,000 per billion in sales.

In 2020, they noted the figure was on average $719,548, which was an increase of over $16 million in 2019 and significantly greater than in 2015 when the figure was just $453,940.

In fact, three in four retailers said ORC had increased in the past year with almost a third noting that increase was significant, and many attributed the rise to changes in legislation that raised the threshold of what constitutes a felony.

Retail response

Retail response

In response to the increased threat, the report most retailers were turning their attention to theft prevention.

In the past 12 months:

  • 33 per cent of retailers surveyed had changed their return policy, while 19 per cent intended to
  • 29 per cent had changed their Point of Sale policy, while 16 per cent intended to
  • 20 per cent had altered their trespass policy, while 7 per cent intended to
  • 14 per cent had changed their employee screening policy, while 14 per cent intended to

Meanwhile, 61 per cent of retailers noted their company was now prioritising Organized Retail Crime more than they did five years ago, 52 per cent said their company was allocating additional technology resources to address risk, and 36 per cent said their company was increasing its annual loss prevention budget.

More aggression

The majority of retailers also reported Organized Retail Crime involved more violence in 2020 than it did in 2019.

Almost a third of respondents (31 per cent) said perpetrators were much more aggressive, 26 per cent said they were somewhat more aggressive, 41 per cent reported the aggression was the same as the year prior and just two per cent said perpetrators were less aggressive.

Top items stolen

Top items stolen

When it came to the products commonly targeted by perpetrators of retail crime, the report found designer clothes well and truly topped the list, accounting for 34 per cent of thefts.

Designer clothes were followed by:

  • Laundry detergent (21 per cent)
  • Designer handbags (16 per cent)
  • Deodorant (15 per cent)
  • Laptops/tablets (13 per cent)
  • High-end liquor (13 per cent)
  • Allergy medication (13 per cent)
  • Pain relievers (13 per cent)
  • Infant formula (13 per cent)
  • Denim pants (11 per cent)
  • Cigarettes (10 per cent)
  • Contraceptives (10 per cent)
  • Teeth whitening strips (10 per cent)
  • Cell phones (8 per cent)
  • Energy drinks (7 per cent)
  • High-end vacuums (5 per cent)
  • High-end appliances (5 per cent)

Should these items then be located or recovered, they were most likely found on other websites (59 per cent), in pawnshops (20 per cent), in check cashing stores (6 per cent), or at other venues (9 per cent).

About the survey

The NRF Organized Retail Crime Survey 2020 involved 61 anonymous retailers and was conducted between February and April 2020. Survey authors note it took place during the Covid-19 shutdowns and may reflect that uncertainty.

The full NRF report is available here, while retailers can gain further insight into strategies to mitigate ORC here.

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The retail trends that will translate into 2021 Page 3

2020 proved a watershed year for the US retail sector, with brands required to quickly pivot and adapt in the face a global pandemic and the Black Lives Matter social movement.

As a result, a raft of changes were introduced, including contactless retail, and an upswing in online ordering and curbside pickup, while retailers were also called on to stand up and deliver on social values.

So, as we exit 2020, what are the retail trends that will translate into 2021?

Protecting the bottom line

Protecting the bottom line has been paramount in 2020, and this will continue into the coming year. Despite some rallying in recent times, US consumer confidence hit a four-month low in December and the road ahead looks equally rocky.

For retailers that means they need to protect the bottom line with a clear understanding of their numbers, and solid policies and future plans.

Part of securing that bottom line is about protecting a retail outlet against loss. In 2020, US retail loss hit an all-time high, costing the sector an astounding $61.7 billion with profits literally walking out the door due to shoplifters, employee theft, human error, and miscellaneous loss.

Now is the time for retailers to plug that leak, taking a good hard look at their loss prevention strategies and how to improve them.

Contactless and convenient

Contactless and convenient

Customer convenience has been key to the retail sector surviving and, in some instances thriving, in 2020. After all, this was the year that saw Buy Online Pick Up Instore (BOPIS) and online retail enjoy a major upswing in adoption.

The year ahead will see the demand for convenience continue, with the customer expecting to effortlessly navigate between the real-world and online retail environments.

Meanwhile, contactless retail will remain a priority, with stores continuing to implement strategies like contactless payments, contactless delivery, and contactless curbside pickup.

Communication critical

Communication has been critical throughout 2020 in a year when the Covid landscape kept changing.

In fact Forbes recently noted consumers actually trusted the information from the business more than they trusted their own government in the US over the course of the year.

This communication will continue to be an expectation. The bar has been raised, customers rewarded business for their efforts and now they will settle for nothing less than a credible, consistent two-way conversation using the medium that best suits them.

Social values imperative

Social values imperative

This was also a year when retailers were judged by their social values, how well they communicated them and then how effectively they matched their actions with their brand promise.

Earlier this year, Harvard Business Review explained Covid had put business’ social values to the test like never before, and many consumers looked to the corporate world to see how they handled both customers and staff during the pandemic.

Meanwhile, Forbes noted 71 per cent of consumers said they would lose trust in a brand forever if they were perceived to be putting profit before people.

In the coming year, that trend will undoubtedly continue, with consumers placing increased pressure on brands to align their social values with their image and take action that supports that commitment.

Empowering staff

The human factor continues to be real-world retail’s greatest asset with staff at the frontline of the retail experience.

These valued members of the retail team need to be empowered to do their job efficiently and effectively with tools that allow them to tap into the knowledge and offer superior customer service.

Among the tools available to assist are things like mobile Point of Sale, along with creative product displays and little things like smart keys which enable them to be more efficient.

Together, these allow staff to better cater to their customer at a time when it’s never been more important to go above and beyond the customer expectation.

You can find out more about how the retail landscape is changing, and how we can assist with protecting your bottom line here. Or you can shop directly for security tags here, and security labels here.

random-versus-planned-shoplifting

Random versus planned shoplifting Page 3

There’s a big difference between an opportune shoplifter who steals on a whim and those with more sinister intentions who utilize meticulous planning.

But regardless of intention, theft is a crime that costs the retail sector dearly, and right at the moment retailers are in the thick of peak shoplifting season.

So, what’s the difference between random versus planned shoplifting, and how should retailers approach each.

Random shoplifting

Random shoplifting is a crime of opportunity. The opportunity to steal something presents, the shoplifter takes advantage of the situation.

Combatting this type of crime therefore involves eliminating that opportunity as much as possible.

So what exactly do we mean?

Random shoplifter profile

A random shoplifter might steal for a buzz, perhaps out of necessity, or even out of compulsion. They might also steal as an act of retribution for poor service or because they’re a generally loyal shopper who feels entitled. But they rarely enter a store with a targeted plan.

Instead, a lack of security, staff inattention, or poor store layout offers them the chance to steal goods unnoticed.

The items might vary in value, but tend to be smaller and easier to conceal, and combatting the random shoplifter involves a broad-brush approach to general loss prevention best practice.

Combatting random shoplifting

Combatting random shoplifting

Eliminating opportunity involves:

  • Good store layout with clear lines of sight from the POS to the floor and sufficient lighting
  • A well-organized store, without clutter
  • Attention to the fitting room
  • Attentive staff who utilize meet and greet protocols, and are educated regarding shoplifter behaviour
  • Clear policies and procedures regarding apprehension and prosecution of shoplifters
  • Overall store security such as obvious CCTV and security personnel
  • Product-based security including electronic article surveillance, security tags, and security labels
  • Good inventory reconciliation

Planned shoplifting

Planned shoplifting is a slightly different beast. In this case, a retailer is specifically targeted due to the type of products it has available, with thieves taking advantage of any weakness in security.

That means it’s also a crime of opportunity, but the retail response has to be a lot more considered.

Planned shoplifter profile

The shoplifter who plans will generally be stealing for financial gain, targeting products that command a high re-sale value. That makes items like electronics particularly vulnerable, along with designer fashion products, pharmaceuticals, perfume, and high-end liquor.

Planned shoplifting is often associated with Organized Retail Crime, and can encompass groups who actively distract retail staff, snatch and grab events, and complex methods of thwarting a store’s security systems.

In fact, an astounding 97 per cent of retailers say they were impacted by Organized Retail Crime (ORC) in 2019, losing over $700k per $1 billion in sales.

This type of planned activity is often prefaced by staking out a retail outlet for security systems and casing the store for the products available.

These are some of the warning signs staff should be aware of, but actively combatting the threat involves many of the strategies above along with more targeted security measures.

Combatting planned shoplifting

Combatting planned shoplifting

Preventing planned shoplifting is a lot more targeted than combatting opportune theft. It involves knowing what’s likely to be sought after by thieves and protecting it accordingly.

Ways to combat planned shoplifting include all the methods outlined above, plus:

  • Lockable displays for high-value items like electronics and perfumes
  • Tethers and alarms on electronic display items
  • The right security tags of at least SuperLock magnetic strength on fashion apparel
  • Security tags with cables or lanyards for fashion accessories
  • Bottle top tags for high-end liquor
  • Additional EAS security for the fitting room such as Apparel Guard

 

You can view our range of security tags here, or revisit our information on shoplifting signs and behavior here.

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2020 holiday shopping data shows festive spirit alive and well Page 3

The holiday shopping season is now well underway and data indicates the festive spirit is alive and well, with an estimated 186.4 million consumers taking advantage of the Thanksgiving Holiday weekend to shop in-store and online this year.

According to the latest National Retail Federation and Prosper Insights survey, this figure is only slightly below the peak of 2019, and well and truly up on the shopper numbers seen in both 2017 and 2018.

The NRF notes it marks a heartening end to a turbulent year. So, here’s an insight into what this year’s Thanksgiving Weekend survey found.

Willing to spend

Despite a tough year which was dominated by the doom and gloom of Covid-19, consumers are proving willing and able to spend as the festive season gears up for 2020.

The NRF data indicates 186.4 million customers embraced the Thanksgiving Weekend, which ran from Black Friday through to Cyber Monday.

The figure was less than last year when 189.6 million shoppers took advantage of holiday sales, but an increase on both 2017 and 2018 when 174.6 million and 165.8 million respectively hit the shops in search of a bargain.

The dollar amount per shopper was also down slightly compared to 2019. This year shoppers spent $311.75 on holiday-related purchases such as gifts or decorations, down from last year’s total of $361.90 but comparable to 2018’s $313.29.

Of that amount, nearly three-quarters ($224.48) was spent directly on gifts.

Online proves popular

As expected, online retail proved particularly popular after a year where social distancing became the norm. This was particularly the case on Black Friday and Saturday.

The NRF survey noted Black Friday online retail surged 8 per cent, surpassing the 100 million mark for the first time, while the number of online Saturday shoppers grew even more, up 17 per cent compared with last year.

Across the weekend, online-only shoppers increased by 44 per cent for the entire period for a total of 95.7 million. The surge in online activity came at the expense of bricks and mortar, but retailers had anticipated that shift.

“As expected, in-store shopping was down given both the state of the pandemic as well as the number of retailers who opted to close on Thanksgiving Day,” the NRF explained.

“With consumer traffic moving to online channels, the number of in-store shoppers on Thanksgiving Day dropped by 55 per cent from last year and those on Black Friday dropped by 37 per cent.”

The holiday spirit

After a tough year, consumers have welcomed the opportunity for a little light-hearted celebration, with the survey indicating, given the pandemic, 51 per cent of shoppers say they are more interested in holiday decorations and seasonal items.

Meanwhile, the majority of holiday shoppers (55 per cent) said recent developments around COVID-19 cases had no impact on their holiday spending plans this year.

They are also eager to support small businesses, with 77 per cent indicating they are more interested in doing so this year.

Top purchases

Top purchases

Clothing proved the big-ticket item of the Thanksgiving Holiday weekend, with 52 per cent of those surveyed indicating they had purchased apparel.

Toys were the next most popular item (32 per cent), followed by books/music/movies/video games (29 per cent), gift cards/certificates (29 per cent), and electronics (27 per cent).

Meanwhile, shopping destinations included department stores (visited by 40 per cent of those surveyed), grocery stores (39 per cent), clothing stores (33 per cent), and electronics stores (31 per cent).

Retailers prepared

This year, the NRF predicted peak shopping period would commence early and retailers were more than prepared.

“Retailers have been planning for the season by ensuring that their stores are safe, their associates are trained, the inventory is stocked, and the online experience is seamless,” NRF President and CEO Matthew Shay said.

“Many things have changed since the onset of the pandemic, but the commitment by retailers to meet the consumer where, when and how they shop at the prices they want to pay never changes.”

And the positive end to a turbulent year looks set to continue for the retail sector. While shoppers started ticking off their to-do lists earlier in 2020, many still have items to fulfil.

The survey found holiday consumers have about half of their shopping left to do and 91 per cent expect they will continue to see great deals throughout the rest of the season.

For more information on the holiday shopping season for 2020, see here. Or order your last minute retail security tags here and labels here.

combatting liquor theft-header (1)

‘tis the season to be jolly – combatting liquor theft Page 3

Over the coming weeks, US liquor sales will spike to their highest level of the year, with alcoholic beverages tipped to be an essential purchase on many people’s holiday shopping list.

But with that spike in sales comes an inevitable uptick in theft, making now the time that retailers should be looking to secure their liquor against shoplifting.

Here’s a guide to combatting liquor theft during a season when alcohol sales are set to be merry indeed.

Holiday season alcohol demand

Each year statistics indicate a marked rise in alcohol sales throughout December, with figures indicating they are at least a third higher than the lowest point of the year. And the market is only increasing.

In December 2017 for example, Statista noted liquor sales peaked at $6.284 billion, compared to their lowest point in January when sales were just $3.74 billion.

It was a similar story in 2018 and 2019.

  • In 2018, beer, wine and spirit sales topped $6.442 billion, compared to $3.991 billion in January
  • In 2019, beer, wine and spirit sales topped $6.63 billion, compared to $4.134 billion in January

This year, December sales could even be higher, with Covid-19 seeing a rise in liquor demand and sales reaching $6.421 billion by July.

Demand sees spike in liquor theft

Demand sees spike in liquor theft

As legitimate sales of liquor increase so too does liquor theft, with December renowned as a peak season for shoplifting.

In fact, liquor ranks among the top 10 stolen items across the US over the holiday season as foot traffic increases and sales associates cope with increased demand.

So how can retailers protect their liquor over the busy period ahead?

Liquor theft prevention

Shoplifters target liquor for a variety of reasons. In some cases, it’s simple opportune pilfering. This category of opportune thieves often includes teens who steal alcohol almost as a rite of passage and people who may already be under the influence and harness their decreased inhibitions to have a further drink ‘on the house’.

These types of thieves usually go after lower value items that are easy to access.

Other thieves are more strategic in their product selection, targeting high-value liquor that can be resold at a greater price. This sees liquor amongst the prime targets for organized retail crime (ORC).

But regardless of the reason or strategy behind it, alcohol theft costs retailers a significant sum, contributing to $61.7 billion in retail shrink across all retail verticals in 2019 alone.

Liquor security tags

Liquor security tags
Featured product: Liquor Security Tags

Designed specifically to protect wines and spirits, liquor security tags are amongst the latest innovations in Electronic Article Surveillance.

The caps are designed to fit over the bottle top, can only be removed at the Point of Sale, and ensure an alarm sounds if a thief tries to steal wine or spirits.

They also prevent alcohol from being consumed in the store, are available to suit both RF and AM EAS systems, and offer a universal fit to suit varying bottle neck shapes and sizes.

As an added benefit, the caps are available in bulk, are reusable and easy for store assistants to remove and attach. They also offer an affordable way to protect products while still allowing the consumer to access, touch, feel and examine them.

Locked cabinets

When it comes to top-shelf liquor many retailers opt to secure their products behind glass.

Glass cabinets allow the consumer to see the product but not touch it. It enables the staff to keep the items under their control but can cost time when it comes to access. Meanwhile, the locks need to be impervious to picking.

That’s where innovations like smart locks and smart keys come in. They allow retail staff to quickly access all relevant cabinets using a single programmed key.

These keys can also track which staff member has accessed what cabinet, allowing retailers to also mitigate employee theft.

Security labels

For high-volume, low-value liquor, beer and wine, security labels are a popular alternative. Labels come in a range of sizes, are available for both RF and AM EAS systems and can even have the barcode printed on them to save time at the Point of Sale.

CCTV

CCTV and video surveillance are excellent loss prevention strategies for monitoring an entire store and can be a tool that deters thieves from committing an act of theft

However, CCTV often detects a crime and identifies a criminal after the incidence has occurred, leaving the matter in the hands of police rather than avoiding a theft.

You can learn more about liquor bottle security tags here or browse our range of security labels here.

biggest-loss-prevention-mistakes-retailers-make

The biggest loss prevention mistakes retailers make Page 3

Battling retail loss is an ongoing challenge for retailers. With the cost of that loss currently at $61.7 billion in the US, the stakes have never been higher.

However, many retailers struggle to either understand where their loss is occurring or do not have sufficient strategies in place to address it. So let’s look at the five biggest loss prevention mistakes retailers make.

Not knowing their numbers

You cannot manage what you do not measure, so it’s imperative retailers understand exactly where loss is occurring and when it is most likely to happen.

Loss can be attributed to a number of factors in-store, including malicious threats like shoplifting and employee theft. It can also come down to non-malicious problems like human error. Loss may also occur in the supply chain, or via e-commerce.

Only when a retailer delves into the big picture of where their store’s weaknesses lie, are they able to develop the right strategies to combat that loss.

Failing to get back to basics

Not investing in loss prevention

Although some of the tactics involved in shoplifting, theft and fraud may have changed, the battle remains the same.

For retailer’s, it’s about getting back to basics and protecting their store, their products, and their bottom line.

Individual items should be protected at a product-based level, using tools like electronic article surveillance, security tags, and security labels.

The store should be protected via CCTV or perhaps security personnel. It should also be protected with policies and procedures that help eliminate theft and inadvertent loss.

Not involving staff in the fight

Staff are the first line of defence when it comes to minimizing loss at all levels in-store, and they should be actively involved in the fight.

Again, that comes down to systems, procedures and also staff training. Staff should be fully abreast of best practice for returns and gift cards. They should be screened during the employment process to help minimize employee theft, and then trained regarding the signs of shoplifting.

They should be aware of stock reconciliation procedures and inventory counting that help identify both in-store loss and loss in the supply chain.

Most importantly, they should be fully cognizant of how loss impacts them personally as employees, affecting the retail bottom line and therefore putting their employment at risk.

Underestimating their opponent

Underestimating their opponent

Contrary to popular belief, shoplifters do not fit one single profile. They come from all walks of life, all age brackets and all demographics.

The methods they use to shoplift also vary, ranging from concealment of small items to complex pre-planned thefts involving groups.

The mistake many retailers make is to believe they can easily spot a shoplifter and to assume theft will not happen to them.

On average, each retailer takes a 1.62 per cent hit to the bottom line due to retail loss, with shoplifting the primary suspect.

Not investing in loss prevention

To fight loss in store, retailers need to invest in loss prevention, and this is an ongoing investment where technology and tools need to be regularly updated.

The reality is, what worked five or 10 years ago may no longer suffice in terms of security. The internet means thieves are now more savvy, and have a wealth of information at their fingertips.

For retailers, combatting this evolving threat requires them to consistently evaluate their loss prevention measures and upgrade them where required, looking at new and improved ways to mitigate potential loss.

For more information about the latest loss prevention strategies and tools, see here. Or head directly to our catalogue or state-of-the-art security tags and security labels.