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Retail trends COVID-19

Retail trends accelerated by COVID-19 Page 7

A surge in touchless self-checkout, contactless payments and of course online retail are among the trends emerging in retail as the US sector grapples with swift change in the wake of COVID-19.

These are just one of the ways the sector is radically transforming, with experts predicting there will be further changes ahead as the retail industry evolves, pivots and adapts to become more resilient.

Here’s a snapshot of just some of the trends being accelerated in retail by COVID-19.

Touchless checkout

According to a recent survey by Shenkel, US consumers are rapidly embracing touchless self-checkouts as two-thirds of customers look to change their shopping habits in the midst of COVID-19.

Their findings indicate 87 per cent of shoppers say they would prefer to shop in stores with touchless or robust self-checkout options while more than two-thirds of consumers are now using self-checkout, touchless self-checkout or frictionless micro-markets to pay for groceries.

The findings further note:

  • Exactly half of consumers are aware of touchless self-checkout options, where items are automatically scanned and recognized without needing to touch a pad or screen to enter their names.
  • Self-checkout options remain popular with nearly 75 per cent of shoppers using self-checkout to pay for groceries frequently.

Contactless payments

Retail trends COVID-19

US consumers have traditionally been distrustful of contactless payments but that’s quickly changing during COVID-19 and the increased hygiene concerns associated with cash payments and pin pads.

According to the Futurist Group contactless payment features are now considered a necessity by 38 per cent of American consumers, a jump of 8 per cent since the COVID-19 outbreak started.

Importantly this data was sourced early in the COVID-19 outbreak on March 3 but could be an indicator contactless card usage is set to spike in the US as a result of the Coronavirus outbreak.

“What it found was that, before Covid-19 began its spread, three in 10 US adults (30 per cent) reported that contactless card payments were something they needed, while a larger share of 41 per cent said they didn’t need the feature,” creditcards.com reports.

“But data from March 3 indicates a jump to 38 per cent indicating that contactless payment is a necessity to them, eclipsing those who say they don’t need it, at 33 per cent. This represents a 26 per cent increase in the number of U.S. consumers who said they require a contactless feature.”

Online retail

Online retail was already primed to boom between 2020 and 2023, with Visual Capitalist noting it was set to become worth $6.3 trillion in the next three years.

There’s no doubt COVID-19 has accelerated that trend, with Essential Retail noting in March, e-commerce transaction volumes increased by 74 per cent.

“The rise in e-commerce sales has been particularly profound in products related to staying indoors,” they reflected.

“Compared to March 2019, transaction volumes increased by 97 per cent for home products and furnishings, 136 per cent for DIY products, 163 per cent for garden essentials, 26.6 per cent for electronics, 29.7 per cent for jewellery, and 18.6 per cent for Telco.

“Additionally, there was a 97 per cent increase in online gaming. Categories which saw a decline in transaction volume in this period included ticketing by 60 per cent, travel by 44 per cent, and online dating by 8.9 per cent.”

Meanwhile, it’s tipped the e-commerce trend will continue long beyond the quarantine of COVID-19.

“Long term, we and others in the industry predict that the shift in consumer behaviour – opting for online purchases – is likely to outlast the crisis,” Essential Retail stated.

US consumers altering their spending

US consumers altering their spending Page 7

The headlines might be grim but it’s not bad news for all retailers, with some set to see a surge in spending as consumers respond to the threat of COVID-19.

The latest data indicates a shift in consumer spending, with essential items like groceries on the rise, while anecdotal evidence from elsewhere globally indicates other sectors may also be in for an uptick.

Here’s how US consumers are altering their spending and the sectors which might see a rise in sales.

Altered spending

According to recent research from GfK, 85 per cent of US consumers indicate they will alter their spending habits in response to increasing concern over COVID-19.

Conducted between March 17 and 18, the representative survey found coronavirus will have both significant short and long-term effects on brand affinity and consumer purchases in the US.

The shopping-related adjustments that consumers expect to make include:

  • Preparing food more often
  • Shopping during non-peak hours
  • Doing more online shopping
  • Postponing or cancelling personal service appointments

“Over the next few weeks, consumers say they plan to spend more on ‘essentials’ such as cleaning products, canned goods, and bottled water – and less on apparel, toys, and other ‘optional’ items,” the survey found.

“But COVID-19 may also have long-term impacts for some brands. Roughly three quarters (73 per cent) of those surveyed say that the way companies conduct themselves during the crisis will impact whether they do business with those brands or retailers in the future.”

So how is this panning out in the retail sphere now?

What’s up, what’s down

US consumers altering their spending

As people spend more time at home and less time socializing with friends at restaurants and cafes, grocery sales have seen a natural upswing.

Statista notes between March 16 and 17, grocery purchases surged 14 per cent, along with non-food child products to keep the children occupied (up 4 per cent), in-home entertainment (up 3 per cent) and household supplies (up 1 per cent).

On the flipside, the same period saw a lot of spending reduced across a range of sectors.

Snack purchases were down 7 per cent, books and magazines fell 10 per cent, personal care products dropped 11 per cent, tobacco products were down 14 per cent, takeaway dipped by 22 per cent, alcohol reduced 23 per cent, pet care services slumped 35 per cent, and consumer electronics fell by 36 per cent.

But as this was in the relatively early stages of the US COVID-19 response, these figures could soon change.

What’s happening elsewhere?

In Australia, for example, where residents have been urged to stay home for the past three weeks, surprising products saw an upswing in sales.

After an initial focus on health products, groceries and home necessities, alcohol sales started to rise, and products like home appliances including toasters, bread makers and coffee machines began to attract increased interest along with home office supplies.

Then came entertainment-based products like audio visual technology, toys and games for children, books, fitness products like dumbbells, gym equipment and activewear, and even intimate apparel.

Will this happen in the US?

Early indicators show the US may follow a similar trend when it comes to purchasing behaviour, with a surprising list of items dominating online shopping searches.

Statista reports more and more consumers are searching for products which they had no previous interest in.

These include:

  • Dumbbells – up 725 per cent
  • Vitamin C Gummies – up 532 per cent
  • Powdered milk – up 516 per cent
  • Bidets – up 379 per cent
  • Bread makers – up 364 per cent
  • External monitors – up 160 per cent
  • Freeze dried food – up 131 per cent
  • Mouse for laptop – up 85 per cent

Retail happening online

US consumers altering their spending

Whether the rise in searches will translate to retail sales remains to be seen. However, one thing is clear, online purchasing has increased rapidly.

A recent study of e-commerce purchasing by Adobe Analytics found protection products like hand sanitizer, face masks, gloves and antibacterial sprays have seen an 817 per cent increase.

Cold, cough and flu products have also increased 198 per cent, while online purchases of pain relievers increased 152 per cent.

Household staples are also being bought over the internet, with toilet paper purchasing up 182 per cent, canned goods up 69 per cent and shelf stable products like rice and oatmeal have risen 58 per cent.

“Right now, as consumers increasingly use digital methods to prepare for a possible emergency, retailers need to ensure smooth, frictionless, and fast experiences on their eCommerce websites and mobile applications,” Adobe Analytics reflects.

“Meeting your customers’ needs and expectations at a time like this is imperative: it could either make or break your brand.”

Six ways retailers can pivot in the time of COVID-19

Six ways retailers can pivot in the time of COVID-19 Page 7

It wasn’t expected, it certainly couldn’t be planned for, but now retailers are being forced to not just think outside the box, but totally build a new one in the wake of the economic fallout from COVID-19.

So, what are the top tips when it comes to rethinking your bricks and mortar business model as social distancing sees traditional retail grind to a near complete standstill?

Here’s a quick guide to strategies available for retailers to pivot in the time of COVID-19.

A diversified offering

What are the key things people are seeking right now?  In most cases it’s essential items. That’s seeing some businesses up the ante and switch up their product lines.

For example, florists are now delivering packages of essential food and household items, while alcohol distillers are making hand sanitizer. Some clothing brands have also turned their attention to making and retailing face masks.

They’re diversifying their offering to cater to what’s in demand.

Online is critical

Prior to COVID-19, online were certainly important to have. Now they’re absolutely critical.

With more people spending time indoors, this is particularly the case for retailers who offer products like homewares, and DIY items.

People are looking to occupy their time and items like these along with games, puzzles, kids’ educational tools, and tech hardware help keep them busy.

Meanwhile, essential items are also sought online. This includes online ordering of medications and food.

Six ways retailers can pivot in the time of COVID-19

Be transparent

Whether it’s on social media, your website or via your email marketing, be open and transparent about what you’re doing as a retailer.

This includes strategies you are embracing to protect staff health and employment, initiatives that have been put in place to better service your consumer, and how your business is being impacted.

When people understand what you’re doing they’re more than likely to support you and assist.

Be interesting

People currently have a lot of time on their hands, and some welcome a distraction. This is the time to help out with how-tos and guides.

For fashion retailers this is especially pertinent. Guides on getting the look, what’s in, work from home wardrobes and more, could be topics of interest.

Communicate, communicate, communicate

It’s not business as usual by any means, but it is important to communicate that retail is still indeed in business. The offering might be different, the delivery might be altered, but communication is key to ensuring your customers know where you’re at.

Six ways retailers can pivot in the time of COVID-19

Reach out to your community

Help your community and they will help you. This may not be the time to spruik the latest online sale, but it is the moment to reach out and assist those in need.

When a brand shows its altruistic side, it’s far more likely to reap results in terms of loyal and raving fans. Long after this immediate crisis is over, these are the people who will have your back.

Set up for the comeback

Although there’s no doubting things in retail are tough, one unique benefit that is coming out of the current situation is that all industries are being forced to rethink their strategies, embrace technology and look at the systems and procedures within their business.

This hiatus offers an opportunity to look at retail business efficiency and spend time setting up for the comeback.

When COVID-19 ends, and it will, there will be a palpable sense of relief driving consumerism in the immediate aftermath.

That will bring its own opportunity. In the interim, the aim of the game is to remain relevant, cater to consumer’s current needs and be flexible and transparent where required.

If you’re looking for further resources about retail at this time, including Government relief and industry guidance, the National Retail Federation has a dedicated page of COVID-19 resources.

Global retailer list

Walmart tops the global retailer list Page 7

US retailer Walmart has topped the 50 global retailer list, with Amazon ranking second and Costco placing fifth, while Walgreens, Home Depot, McDonald’s, Lowe’s and TJX also feature in the top 30.

Compiled by the National Retail Federation (NRF), the rankings see retailers assessed on criteria including international direct selling capabilities, the size of the company’s international retail sales franchise sales, and marketplace sales and sourcing alliances.

So which US retailers made the grade and how did they achieve success?

Walmart – Ranked No 1

Walmart - Global retailer list
  • Business foundations: Mass/hyper
  • Total worldwide stores: 11,361
  • Stores outside the US: 5,993
  • Countries of first-party operation: 27

With total global revenue of $510.33 billion, Walmart continues to seriously outperform all its nearest rivals, retaining the top position on the global retailers list.

The NRF notes it will likely hold this position in the immediate future due to its comfortable lead over nearest competitor Amazon.

“As we think about ‘Who will be?’ it seems certain that Amazon and Walmart will be two of the retailers that remain on the top of these rankings for many years to come. Will a third or fourth retailer join this battle for the top position?” the NRF asks.

Amazon – Ranked No 2

Amazon - Global retailer list
  • Business foundations: E-commerce
  • Total worldwide stores: 472
  • Stores outside the US: 7
  • Countries of first-party operation: 18

Amazon continues to hold firm in second position with global revenue of $232.88 billion.

The NRF notes that position is largely due to a number of factors including their expansion into Singapore, Turkey, Australia, India and Brazil.

“In each of these countries two things have happened soon after Amazon’s investment,” the NRF reflects.

“One, Alibaba has attempted to match or even outpace Amazon’s investment with acquisitions and investments of its own. Two, the local press has declared that consumers are not ‘catching on’ to the Amazon way of shopping.

“Despite these obstacles, Amazon is a retailer with a treasure chest of options available with one of the world’s highest market capitalizations, a hot domestic economy in the United States where consumers have most certainly ‘caught on’ to the Amazon way of shopping, and strong momentum coming from big and healthy countries such as Germany and Japan.”

Costco – Ranked No 5

Costco - Global retailer list
  • Business foundations: Club
  • Total worldwide stores: 782
  • Stores outside the US: 239
  • Countries of first-party operation: 12

The NRF explains Costco continues to quietly surprise international retail experts.

“First, it makes consumers pay a membership fee to enter its warehouses. Second, consumers who shop at Costco routinely state that the pack sizes they purchase are ‘too big’.

“Third, Costco moves slowly, opening just one or two international locations each year, especially compared with other retailers around them that open hundreds of stores at a time.

“Fourth, Costco has resisted making wholesale investments in e-commerce, so far preferring to sell additional services online rather than core merchandise.”

Despite this, Costco reported a most recent global revenue of $149.35 billion

Honourable mentions

Global retailer list
  • Walgreens Boots Alliance (No 11) – Drugstore, revenue $115.99 billion, 13,882 stores worldwide, 4605 stores outside the US.
  • Home Depot (No 15) – Home improvement, revenue $108.20 billion, 2287 stores worldwide, 306 stores outside the US
  • McDonald’s (No 23) – Quick service retail, revenue $26.53 billion, 37,855 stores worldwide, 23,941 stores outside the US
  • Lowe’s (No 25) – Home improvement, revenue $67.20 billion, 2015 stores worldwide, 292 stores outside the US
  • TJX (No 30) – Discount fashion retailer, revenue $38.97 billion, 4306 stores worldwide, 1163 stores outside the US
  • Best Buy (No 33) – Electronics, revenue $42.88 billion, 1238 stores worldwide, 212 stores outside the US
  • Starbucks (No 36) – Quick service retail, revenue $26.51 billion, 31,795 stores worldwide, 16,607 stores outside the US
  • eBay (No 38) – E-Commerce, revenue $10.75 billion, 0 stores worldwide
  • Gap (No 45) – Fashion, revenue $16.58 billion, 3666 stores worldwide, 1028 stores outside the US

coronavirus panic purchasing

Retail sector responds to coronavirus panic purchasing Page 7

With the country now declared in a national emergency, the US retail sector has been swamped by a wave of coronavirus panic purchasing.

Like countries all over the globe, American consumers have been stockpiling everyday items including toilet paper, hand sanitizer, rice and pasta, prompting many retailers to implement buying quotas while dealing with irate clientele.

Late last week that prompted the National Retail Federation and Retail Industry Leaders Association to implore customers to purchase responsibly, while some non-essential retailers have closed their doors and grocery retailers are working around the clock to restock essential supplies.

So, what should retailers consider when it comes to panic buying.

Why the panic?

According to psychologists speaking to CNBC last week, panic buying is a form of retail therapy, where consumers purchase items in a bid to manage their emotional state.

“It’s about ‘taking back control’ in a world where you feel out of control,” one psychologist noted.

Meanwhile, another reflected stress also played a further role.

“When people are stressed their reason is hampered, so they look at what other people are doing. If others are stockpiling it leads you to engage in the same behavior,” he said.

“People see photos of empty shelves and regardless of whether it’s rational it sends a signal to them that it’s the thing to do.”

In the interim, the situation is stretching the retail sector in terms of product availability, customer service, and logistics.

A plea to be reasonable

coronavirus panic purchasing

Late last week the rush on panic buying prompted the NRF and RILA to release a statement pleading with shoppers to resist the urge to hoard ad stockpile.

“Retailers – particularly grocery providers – are working with manufacturers, suppliers and government agencies to make certain essential products and services remain readily available to customers. Retail supply chains remain strong and retail employees are working around the clock to meet consumer demand,” National Retail Federation President and CEO Matthew Shay and Retail Industry Leaders Association President Brian Dodge said.

“If you don’t need an item in the next two weeks, leave it for someone who does. Hoarding and stockpiling creates unnecessary gaps between the time that someone who truly needs a product can find it back on retailers’ shelves. This is particularly important for our most vulnerable neighbors – the elderly and those who are struggling with other health issues.

“We know this is a challenging time for everyone. But by partnering against fear and doubt, shopping responsibly and following important instructions on how we can help stop the spread of this virus, we will successfully face this challenge. Together.”

Industry responds

As the NRF recently noted, the retail sector is at the coalface of coronavirus response, and as a result they are calling on the government for guidance and support.

“Retail is serving on the front lines of an effective response to this crisis – providing drive-up COVID-19 testing, e-commerce home delivery, curbside pick-up and providing other essential services. These are just a few of the examples how retailers serve American communities in this time of extraordinary need,” the NRF stated.

“NRF believes that retail business owners are in the best position to determine whether their individual stores should remain open or close.

“Retailers also intend to fully comply with government instructions. However, clarity and certainty is needed so that businesses may plan appropriately and consumers remain confident in their availability to access groceries, home and auto supplies, pet services, farm and agriculture equipment and livestock feed, and basic home health needs for children, adults and pets.”

In the event that stores are asked to close, the NRF is also calling on governments to give as much advance warning as possible, while clearly defining the difference between essential and non-essential services.

“Sudden or total closures of retail businesses can lead to increased panic by the public. This will lead to consumers overwhelming stores, eliminating on-site supplies and exhausting staff,” the NRF said.

“If closures are warranted, the government must provide as much notice and detail as possible directly to retailers so that supply chains can be adjusted to meet sudden increase in demand both before and after closure.”

A comprehensive list of resources for retailers regarding COVID-19 is available at the NRF website, while information about protecting your store from theft is available here.

Bottle cap tag

Spotlight on the bottle cap tag Page 7

Security tags come in a range of sizes and shapes, with some designed to accommodate specific purposes and products. One such security tag is the bottle cap tag.

Designed to guard against the shoplifting and theft of liquor, bottle cap tags are available in a series of sizes to accommodate both RF and AM electronic article surveillance systems.

Here’s how they work and the benefits they offer.

Some facts about liquor theft

According to the most recent Global Retail Theft Barometer, wines and spirits rank as the most commonly stolen items in the US food and beverage vertical.

And in many ways the reason for their pilfering popularity is obvious. Not only are wines and spirits sought after for personal consumption, but high-end brands also command a high resale value.

That makes liquor a target for casual shoplifters stealing out of addiction, opportunistic juvenile thieves stealing for the thrill and also organized retail crime, who steal to re-sell the items.

The Global Retail Theft Barometer also explains spirits and wines are relatively easy to conceal, making them a natural target for shoplifting and theft.

In North America, that’s resulted in a spike in liquor thefts in recent years, especially in Canada where liquor theft has been labelled an epidemic in areas like Winnipeg and Alberta.

CBC news recently reported robberies at liquor stores in Winnipeg had been spiking for more than a year, “with thieves boldly swarming the aisles and filling backpacks and other bags with armloads of bottles before walking past staff, who have been warned not to intervene out of fear of attacks”.

“At times, staff have been threatened with weapons, including knives and pepper spray. In other cases, thieves have picked up bottles and used them as weapons, too”.

And it’s not just north of the Canadian border where an increase in thefts is occurring.

On March 2, sheriffs in Baton Rouge, Louisiana put out a call for public assistance after a couple went on a shoplifting spree, stealing liquor from multiple retailers throughout the capital area.

And that’s where targeted loss prevention strategies like bottle cap tags come into their own.

What is a bottle cap tag?

Bottle cap tag

Suited to a range of bottle sizes, bottle cap tags fit over the cap of the liquor or wine bottle and lock into position. They can only be removed with a specialist magnetic detacher.

Each tag is also fitted with a receiver that will alarm when in the proximity of the store’s electronic article surveillance (EAS) during an attempted theft.

Together, these two strategies ensure the bottle cannot be opened for the contents to be consumed instore, while any attempted theft of the bottle will cause an alarm to sound.

Bottlecap tags are available to suit both AM (acousto magnetic) and RF (radio frequency) EAS systems, making them compatible with existing EAS systems that are likely to be on the premises.

They are available in both small and large sizes to suit wine and spirits including top-shelf liquors, champagnes and standard wine bottle openings.

Advantages

Easy to fit and reusable, bottle cap tags offer a host of benefits, including:

  • Eliminating alcohol consumption instore
  • Activating an alarm during a theft
  • Easy to apply
  • Reusable
  • Available for RF or AM EAS systems
  • Available in a range of sizes
  • Easy to remove at the Point of Sale
  • Act as a deterrent to liquor theft
  • Available in bulk
  • Cost effective to implement

You can order the Bottle Cap tag here.

Modern retail

The big questions for modern retail Page 7

The US retail sector may have experienced a bumper festive season, but as many in the industry attest modern retail is a landscape that can rapidly shift.

That means many store owners will be looking to use all the tools available to gain a competitive edge and consolidate their position over the months ahead.

If you’re looking to navigate the changing landscape of retail, here are three big questions every retailer should ask themselves.

Is it frictionless?

A frictionless purchasing journey is one of the major differentiators between retailers on the cutting edge of modern retail and those languishing in the past.

So, what exactly is frictionless and how is it employed? Frictionless describes the entire purchasing journey. It’s a customer experience that eliminates barriers to buying at every touchpoint along the way.

Frictionless retail encompasses both an online and instore focus, seeing the two different types of interactions with a brand seamlessly intersect.

Strategies that accommodate frictionless retail include:

Retail Customer Experience notes the customer’s definition of frictionless continues to evolve.

“…they’ve also become a lot less patient when they encounter what they perceive as friction…consumers from all generational groups expect great service and an ideal shopping experience, regardless of where they are in their shopping journey.

“If brands don’t deliver, consumers will take their business elsewhere. In fact, 76 per cent of consumers surveyed only give brands two to three chances before they stop shopping with them, and 43 per cent cite a poor experience as their top reason to leave a brand behind for good. Simply put, consumers who encounter friction will run the other way fast, and second chances don’t come easily.”

Is it convenient?

Modern retail

According to the latest Consumer View Report by the US National Retail Federation, convenience now ranks as the third most important factor in all purchasing decisions in modern retail.

The report further found an astounding 97 per cent of shoppers noted they had backed out of a purchase because it was inconvenient to them.

Convenience is about catering to a time-poor consumer by enabling them to access items online, find them quickly instore, have them delivered if they wish and pay for them using the method they chose.

The NRF study found, in online retail, 38 per cent of people indicated convenience matters most in the research phase. That was followed by post-purchase (23 per cent), then right before the purchase (20 per cent), and finally at the checkout (18 per cent).

In stores, convenience matters most at the checkout (40 per cent), right before making a purchase (25 per cent), post-purchase (18 per cent), and then in the research phase (16 per cent).

So how do you offer convenience? Well like frictionless retail it’s all about making the experience easy for the customer.

Convenience initiatives include:

  • Omnichannel options
  • BOPIS
  • Curb-side delivery and pickup
  • Self-checkouts or scan and go

Does it resonate?

One of the major emerging trends of recent years is the concept of the conscious consumer who expects their chosen brands and products to resonate with their ethical, sustainable and/or environmental values.

In 2018, research firm Nielsen noted half of all Americans would change their consumption habits if they felt it could reduce their impact on the environment.

Labelling it ‘the year of the conscious consumer’, they found the trend was reflected in Baby Boomers, Millennials and Gen X alike. That said, technology-savvy Millennials, were more adamant in their push.

Neilson’s research noted 83 per cent of Millennials (aged 21-34) said it was extremely important to them that companies implement programs to improve the environment, compared to 66 per cent of Gen X and 62 per cent of Baby Boomers.

What’s more:

  • Millennials are twice as likely (75 per cent vs 34 per cent) than Baby Boomers to say they are definitely or probably changing their habits to reduce their impact on the environment.
  • They’re also more willing to pay more for products that contain environmentally friendly or sustainable ingredients (90 per cent vs 61 per cent), organic/natural ingredients (86 per cent vs 59 per cent), or products that have social responsibility claims (80 per cent vs 48 per cent).

So how do retailers ensure their ethos and products resonate with a conscious consumer?

Well, there are four common ways:

  • Transparency and authenticity
  • Through ethical sourcing and manufacturing
  • By taking a stand on issues that matter to consumers
  • Good treatment of staff and suppliers
  • Initiatives like recycling that minimise waste and environmental harm

The final word

The customer expectation might be changing, with new criteria added to an ever-growing list of boxes a retailer must tick. But those who recognise the shift and are at the forefront of the response, position themselves best reap the rewards of customer recognition, loyalty and purchasing.

High-shrink stores

The common denominators of high-shrink stores Page 7

Costing the US retail sector almost $50 Billion a year, shoplifting, high-shrink and loss is an issue familiar to all retailers. But as a recent article by Loss Prevention Magazine highlights, for some retailers it’s more familiar than others.

They note, while some sectors such as apparel, might be more attractive to shoplifters than others, often the real issue of shrink comes down to 10 common denominators instore.

Here’s an insight into what LP Magazine describes as the 10 common characteristics of high-shrink retail stores.

Poor customer service

Retail starts and ends with customer service, and a lack of emphasis on this critical arena has far-reaching impacts for a store, not least of which is the potential it offers possible thieves.

In an environment where staff are inattentive, where they fail to meet and greet customers or there aren’t enough staff available, shoplifting and theft have the opportunity to thrive.

The takeaway

Ensure your store is adequately staffed and employees are trained in welcoming customers, making eye contact and offering service assistance.

Poor store cleanliness

High-shrink stores

Often when retailers consider shrink, they fail to take a close look at the physical state of their store. Attention to store cleanliness sets the tone for the experience customers will enjoy instore and the level of customer service they will receive

The takeaway

Organised, clean retail outlets are a deterrent to theft, but also help retail staff identify when theft is occurring.

Lack of operational controls

Process and procedure ensure a retail outlet runs efficiently, with controls to mitigate mistakes and eliminate errors.

This control not only helps a store run more effectively, but it also improves the service of the staff and creates an environment where theft is less likely to occur.

The takeaway

Implement processes and procedures that guide every task within your retail outlet – from inventory counting to merchandising, store layout and customer service.

Inferior merchandising practices

Merchandising plays a similar role to store cleanliness. Proper merchandising and use of displays, cabinets, sales tables and fixtures makes an outlet more appealing to clientele. It draws customers to the areas a retailer wants by showcasing products, and therefore increases sales.

Proper merchandising also makes items easier to find for retail staff and acts as a deterrent to theft.

The takeaway

Consider the look, feel and lighting of your store including where high-value items are positioned and how they are showcased. Is the area warm and inviting, are customers drawn in and to popular products?

Disorganized storerooms

High-shrink stores

Front of house might be the focus for selling and customer service, but the storeroom and stock area is no less important when it comes to ensuring a store is organised and offers less potential for shrink. Disorganised storerooms create opportunity for employee theft but are also more prone to mistakes and miscellaneous loss.

The takeaway

Ensure your retail outlet has adequate storage, that there are guidelines for receiving inventory and storing it, and that the storeroom is kept clean and tidy.

Poor hiring

Retail staff are the frontline of customer service. They are ambassadors for a brand, and the first line of defence against theft. These staff can make or break the customer experience, they can also potentially be perpetrators of employee theft.

The takeaway

Have a hiring policy that adequately screens potential employees for previous experience and previous poor behaviour. Ensure references are checked and staff are adequately trained.

Insufficient attention to detail

It’s the little things that make a truly memorable customer experience. It’s also the little things that can lead to shrink, loss and shoplifting.

The takeaway

Look at your store with a critical eye while envisaging yourself in the position of the customer. Is the store welcoming? Is it well-lit? Is it organised, tidy, and is the merchandise positioned in an appealing way? Together these and other factors create the respect that customers should have for your store.

Disengaged employees

High-shrink stores

Employees who do not feel connected with the brand or well-treated by their employer are not only more likely to be perpetrators of theft, they are also less likely to care about a store’s shoplifting and loss.

The takeaway

Ensure staff feel part of a larger group and perhaps even a greater purpose that collectively they are trying to achieve. Offer ongoing raining, and above all treat staff with the respect and value that they should in turn have for your store and brand.

Closed minds

As Loss Prevention Magazine notes: Closed minds, close doors. Shoplifting and theft is always a crime of opportunity. It is also a battle that continually evolves.

The takeaway

Be willing to embrace new loss prevention methods, to consider your store critically and to understand shrink cannot be viewed in isolation, it is often the symptom of a greater issue.

To learn more about protecting your store against shoplifting see here, or view our range of security tags and security labels as part of Electronic Article Surveillance that can assist in reducing shoplifting by up to 80 per cent.

Hidden EAS

Hidden EAS – Could it benefit your store? Page 7

As retailers look to embrace a positive customer experience, Electronic Article Surveillance (EAS) has evolved over recent years to accommodate the trend.

Now the antenna and pedestals which are a major component of EAS can be seamlessly concealed, offering a welcome entry to a retail outlet yet still protecting valuable items instore.

Here’s the lowdown on hidden Electronic Article Surveillance and why it’s quickly gaining popularity.

What is hidden EAS?

Antennas are a key component of the loss prevention technology that is EAS. Guarding the entryway to the retail outlet, these antennas remain in constant communication with security tags and labels affixed to products.

When a tagged or labelled product comes into proximity of these antennas, an alarm sounds, alerting staff that an item could potentially be leaving the store.

Up until recently, antennas were fairly obvious, but now retailers have a choice. Improvements to EAS technology mean antenna can be concealed within the doorframe of the store, under the floor of the entryway or even overhead, allowing store design rather than security to dominate the initial experience for the customer.

So, who does hidden EAS suit and what are the options involved?

Hidden EAS options

Hidden EAS

Hidden EAS takes a number of forms. It can go under the entryway floor, be concealed within the doorframe or be positioned overhead. Some of the hidden EAS technology also accommodates emerging trends like RFID. So let’s take a closer look at each common type.

Under floor

Taking up no retail space and offering ultimate discretion, under floor EAS involves burying the EAS antenna in a concealed cavity at the doorway.

Not all stores have this available depth beneath their flooring and this may affect whether this system is suitable for you, but under floor EAS is available in brands such as FloorGuard which operates on the acousto magnetic (AM) frequency.

Overhead

If beneath the floor doesn’t suit, then further technology offers the ability to monitor and track items from overhead. iDTop by Nedap is among the leaders in this field.

This system utilises a small, square, overhead antenna that is positioned near the doorway. It is an RFID system that is compatible with coded RFID frequency tags and offers the capability to not only alert staff to theft, but also track items and assist with inventory management.

This system offers the benefit of being easy to install, it caters to both small and wide entrances and takes up no retail floor space. Its suitability may, however, be impacted by the height of your ceiling.

 Within the doorframe

Available for various size door frames, another option is to conceal your EAS within a store’s entrance, without greatly impacting the floor.

Options like SkyGuard operate using an antenna system housed inside or around the door of an entrance.

The technology works via two small receivers that are concealed within the sides of the doorway, and small cables that run around the doorframe.

What to consider

Hidden EAS

While each system offers the benefit of improved aesthetics, the physical design of your store may impact which option is right for you.

Items to consider include:

  • The frequency of your EAS tags – whether you use RF or AM.
  • The width of your doorway – some systems are limited to smaller openings, while others require the installation of further modules to attain a greater width.
  • The height of your ceiling – An overhead antenna will need to be positioned low enough to have products within the range.
  • The depth beneath your floor – If you’re looking at an underfloor system you will require the construction of a concealed 20mm cavity to house the antenna. Not all stores have this depth.
  • The look of your entrance – While they are not pedestals, some systems require the installation of panels to house the concealed antenna.

Gaining popularity

Hidden EAS is gaining popularity in an era where retail is all about the customer experience. That said, it’s not an option all retailers may wish to employ.

For some the obvious presence of antenna helps act as a deterrent to theft. For others, the physical layout of their entryway may not cater to hidden EAS.

But for retailers where the look and feel of the entryway is a major priority, hidden EAS can offer a wealth of benefits.

You can learn more about hidden EAS here, or find out range of security tags and labels that are compatible with a variety of hidden EAS systems here.

Live Commerce

The opportunity in Live Commerce Page 7

In a retail era where digital and physical are increasingly overlapping, one US startup has neatly combined both with an innovative idea that’s taking the sector by storm.

Known as ShopShops, the startup is using live commerce to reach a whole new market for American retailers while satiating the shopping needs of an enthusiastic Chinese audience.

So, what is live commerce and how are players like ShopShops changing the retail landscape?

What is live commerce?

Live commerce is a combination of online retail, e-commerce and video live streaming. It allows retailers to showcase products in real time, answer questions and take immediate orders online.

Its popularity has been driven by markets like China where the world’s largest e-commerce platform Taobao connects retailers and producers with consumers, using a standalone app and live streaming features.

Wowza notes the trend promises to transform retail in a similar way to the advent of e-commerce 20 years ago.

In the case of live commerce, “this convergence of video and shopping helps improve engagement, close the gap between customer and product, drive sales, and — in cases where bidding is involved — increase the average sales price”.

Enter ShopShops

Live Commerce

In 2017, a new take on this trend was presented in the US. Pioneered by Parsons graduate Liyia Lu, who had grown up in China and the US, it was known as ShopShops and its aim was to connect Chinese consumers with American retailers using live streaming.

The idea sees ShopShops prearrange then host events at retail outlets. Armed with smartphones ShopShops hosts spend time instore asking questions and trying items on or testing them out.

As the National Retail Federation explains: “All of this is live-streamed to consumers in China. They send questions to the host: Does it come in other colors? Can we see that in a different shade? Would you ask her to lean a little closer to the camera?

“And they buy things, right there on the spot. ShopShops accepts payment, collects their commission, packages the product and mails it to the purchaser in China. It’s sort of like American e-commerce, except it’s interactive and there are no returns.”

Each session can potentially draw 30,000-40,000 Chinese viewers and potential customers. In the interim, it not only allows global and interactive retail but also enables merchants to test products in new markets prior to release.

ShopShops explains the concept has three key components: hosts who manage the Livestream events, acting as stylist, fit model and translator to the viewers; stores which have the opportunity to host two-hour live events and open their doors to thousands of global customers; and viewers who tune into the Livestream events to shop the world from the palm of their hands..

The success of the concept has seen ShopShops grown to encompass offices in New York, Los Angeles and Beijing. The company has more than 300 hosts, does 20 to 25 events a day, and is active around the clock except for the hours between 2am and 6am China time.

More to come

ShopShops isn’t the only US player embracing the Livestream trend. In 2019 Amazon launched Amazon Live, which allows retailers to host their own Livestream events and connect with a digital audience.

Last year also saw the launch of Shopping Party, which looks to recreate the traditional experience of shopping with friends at a shopping mall.

The virtual mall experience combines scrolling products on display, and live videos of influencers promoting each item, along with a chat box for viewers to ask questions.

In the future, Augmented Reality and Virtual Reality are expected to further amplify the trend.

For the retailers taking part, live stream offers a wealth of exciting possibilities where the lines between digital and physical become more blurred and the customer could feasibly be anywhere in the world