10 things shoplifters target during holiday season - header

10 things shoplifters target during holiday season Page 3

The upcoming holiday period might be known as the ‘season of giving’, but make no mistake there’s a fair bit of taking as well, with shoplifters seizing on some of the busiest shopping days of the retail year to target products for theft.

So which products are commonly stolen, and how can retailers best protect these items from theft?

Here’s our guide to 10 things shoplifters target during the holiday season and the loss prevention strategies that can assist.

Holiday season 2020

This year’s holiday season is expected to be different from the norm, with consumers remaining cautious about social distancing in the wake of Covid-19.

The National Retail Federation notes that means making predictions about forecast holiday shopping trends and spending is more challenging than normal, but an uptick in spending and retail foot traffic is expected.

With that welcome rise in traffic comes the increased risk of shoplifting. In previous years data has indicated almost half of all US retail theft (46 per cent) occurs in winter, while the Global Retail Theft Barometer notes 81 per cent of that is during the holiday period.

Who is shoplifting?

Who is shoplifting

The combination of busy stores, busy staff, and additional products on display means the holiday retail period attracts both opportunistic shoplifters and those involved in Organized Retail Crime.

Importantly, this theft can be easier for the perpetrator to justify because they either feel it’s an item they need or because stores appear to be making a profit and the sale won’t be missed.

Together, this means retailers need to be on their game in the lead-up to the holiday shopping period, which spans the six weeks prior to Christmas.

So, here’s is a list of the most commonly stolen items and the best protection methods.

Top 10 stolen items

1. Electronics accessories

Whether it’s the latest earbuds, chargers, or a phone case, electronics accessories are frequently targeted due to their small size and appeal as a Christmas present.

They also tend to be sold and displayed in high volumes in stores where the sales associate’s watchful gaze is more likely to be guarding the high-value electronics they come with.

Protecting electronics accessories

Electronics accessories can be protected in a number of ways, including security labels, stop locks, or lockable displays which showcase the accessory behind glass. They can also be secured to the electronic gadget they come with as part of an engaging display.

 

2. Leather clothing

Frequently shoplifted leather clothing ranges from jackets to footwear and caps, but these items are often sought after due to their appeal as both a present and their high resale value on the black market.

Protecting leather clothing

Leather clothing is best protected using EAS security tags with a lanyard or cable that secures the tag to the product. The lanyard or cable avoids the need for the tag pin to pass through the item.

 

3. Electronics

Electronics, like cell phones, tablets, laptops and gaming devices, consistently rank on most consumer’s gift list, while their resale value is also high. That means they are targeted by both organized crime rings and opportunistic shoplifters.

Protecting electronics

The challenge with electronics such as smartphones is that legitimate customers often seek to engage with them prior to purchase. These items are best protected through lockable displays where the device is tethered to a countertop, while additional stock is secured in locked cabinets or drawers.

 

4. Accessories

Spanning a whole gamut of products – from sunglasses to costume jewellery, scarves and more- accessories tend to be easy to steal because of their size and the volume of items on display.

Protecting accessories

The loss prevention method used depends on the type of accessory. Sunglasses can be protected using optical tags, jewelry is protected by a lockable display for high-value items and security labels for low-value products, while scarves might best be protected using clothing security tags.

 

5. Winter clothing

When it comes to shoplifting, winter clothing is frequently stolen by concealing it underneath other garments. That said, it is one of the easiest items to protect.

Protecting winter clothing

Fashion security tags should be deployed on all winter clothing, while retailers should also turn their attention to security in the fitting room, utilising additional EAS tools like the Apparel Guard.

 

6. Meat and seafood

Meat and seafood are of course celebratory food staples throughout the holiday period, and they can be a target of theft by opportune shoplifters looking to save money where possible.

Protecting meat and seafood

Purpose designed food grade tags are available for packaged meats and seafood, while CCTV can assist, along with positioning these items where staff can oversee them.

 

7. Liquor

Liquor is a common target throughout the year, but the festive nature of the holiday season sees theft of alcohol spike.

Protecting Liquor

Top shelf liquor should be protected with purpose-designed liquor security tags, while high volume liquor can be protected by labels.

 

8. Perfume and cologne

Small, often valuable and a popular present, perfumes and cologne are also frequently stolen items, while their resale value also makes them a target for organized crime.

Protecting perfume and cologne

High-value perfumes are generally secured in lockable glass cabinets with only testers on display. Lower value, high volume fragrances are best protected with security labels.

 

9. Children’s toys

It’s hardly surprising to find children’s toys on the shoplifting hit list at Christmas, but protection strategies vary depending on their size, shape and value.

Protecting children’s toys

High value boxed toys can be protected by spider wraps and tags, lower value items are protected with labels, while plush toys of high value can be secured using apparel tags.

 

10. Chocolate

Like liquor, meat and seafood, chocolate is a staple of the festive season and it’s frequently shoplifted as a result.

Protecting chocolate

As chocolate is considered a grocery item of high volume, labels are the loss prevention method of choice.

 

You can order your security tags to protect frequently stolen items this holiday season here, and security labels here.

Meanwhile, our holiday loss prevention checklist is available here.

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How to create customer appeal and maintain security Page 3

As the end of a tough year draws to close, retail is looking to capitalize and convert the foot traffic that will inevitably begin to venture back into the real-world environment as part of the holiday shopping season ahead.

With this year likely to see fewer visits per customer and less time spent instore due to the lingering threat of Covid-19, making every visit count will be one of the major priorities for the retail sector in the upcoming period.

Which begs the question of how can retailers create true customer appeal for their storefront while also maintaining security?

Loss prevention in the right places

Protecting a store against shoplifting, organized retail crime, and employee theft is all about ensuring the right security in the right places, and often that involves a multi-layered approach.

Items should be protected at a product-based level through tools such as electronic article surveillance including security tags and labels, while the whole store should be guarded by CCTV, staff training, good layout, and perhaps even loss prevention personnel.

The key here is to maintain a balance that treads a fine line between protecting products and the retail outlet while still enticing customers in.

That means the right security in the right places, and it involves factoring in the level of security that a reasonable customer would expect to find in a particular store.

In department stores and electronics outlets for example, you might expect to see a security guard at the door. In your average apparel outlet, that could prove overkill and actually deter patrons from entering.

In some stores where theft is a persistent problem, obvious CCTV might be required to deter shoplifting, but in others, the approach to surveillance would need to be more subtle.

Meanwhile, there are additional security options that allow you to protect products without a display of obvious security.

Subtle yet secure

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Recent innovations in the world of electronic article surveillance (EAS) allow the antennas that guard the store to be concealed within the doorway, under the floor, or even overhead.

In boutique stores, upmarket retailers and even department stores, this seamless entryway helps create a warm, welcoming environment which entices the customer in.

Rather than being evident and obvious, the entryway is kept clear and can be designed to really cater to the customer experience.

In the interim, concealed EAS still allows labels and tags to be monitored, protecting products against shoplifting and theft.

In addition, there are also new EAS tools available for the fitting room. These notify staff when a tag is being tampered with in the private environment of the change room, or when a product is being concealed beneath the patron’s clothing or in booster bags.

The right tag or security label for the right job

As effective as security tags and labels are at protecting products, there is such a thing as security overkill, where the tag or label is too cumbersome, large or distracting to effectively protect the product and instead deters customers from actually interacting with it.

That’s why it’s important to source the right security label or tag for the job at hand.

As a quick rule of thumb:

  • Apparel is best protected by tags which should be positioned so as not to interfere when customers try on clothing
  • High-value accessories like handbags and brand label sports shoes are best protected with cables or lanyards and tags
  • High-value eyewear and sunglasses should be protected by specific optical tags
  • High volume, low-value products like pharmaceuticals, books, DVDs, games and perfumes are best protected by labels, as are non-perishable groceries and small hardware products.

The above is just a brief guide, however, and you can learn more about selecting the right tag or label for the job at hand here.

Cabinets and displays

For commonly targeted items including electronics like tablets, computers, and cell phones, secure displays are the ideal choice.

These displays allow the item to be accessible to the consumer, yet protect the product against theft. They also help entice the customer in to experience the product and allow for interaction, playing to the ‘touch, feel and experience’ strength of real-world retail.

Meanwhile, additional products can be secured in lockable cabinets or glass displays, but the key here is to ensure they can quickly be accessed by staff to serve the customer.

Smart keys which can be allocated to a staff member and programmed to open multiple cabinets in their section are recommended to streamline this process.

The final word

Loss prevention is always a balance, but this year creating an appealing retail environment matters more than ever before.

You can order your security tags and labels with is directly, or see our holiday security checklist here.

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The pre-holiday checklist for EAS loss prevention Page 3

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

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

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

Here is our pre-holiday checklist for EAS.

EAS antenna and infrastructure

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

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

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

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

Checklist

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

Security tags

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Featured product: Shell Ink Tag

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

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

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

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

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

Checklist

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

Security labels

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

Checklist

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

Deactivators and detachers

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

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

Checklist

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

Staff training

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

Checklist

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

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

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

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The fascinating history of the retail security label Page 3

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

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

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

General label beginnings

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

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

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

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

Self-adhesive labels

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

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

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

Security labels

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

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

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

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

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

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

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

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

Improvements since

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

Now they extend to:

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

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

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

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

stop retail loss

It’s time to stop the retail loss Page 3

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

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

The four areas of loss

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

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

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

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

Shoplifting

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

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

Targeting shoplifting

Targeting shoplifting involves a multi-pronged approach.

It includes:

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

Employee theft

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

Targeting employee theft

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

This involves:

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

Supplier fraud

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

Targeting supplier fraud

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

This extends to:

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

Administrative error and miscellaneous loss

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

Targeting admin error and miscellaneous loss

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

This includes:

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

There’s never been a better time

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

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

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

aggressive customers - Tackling the increase in aggressive customers

Tackling the increase in aggressive customers Page 3

There’s little doubt Covid-19 has resulted in rising tension levels and increased stress at every level of society, but few industries have borne the brunt quite so much as retail.

Since the pandemic first began, retail staff have been forced to cope with panic buying, increased hygiene concerns, a rise in shoplifting and theft, and recent heightened racial tensions.

So how can retailers handle aggressive customers and what strategies should they put in place?

Society on edge

In many ways 2020 has served up the perfect storm for the retail sector. As Covid-19 became a daily headline, products were in high demand. Panic buying became the norm as people became increasingly stressed about their health, general hygiene, their finances, and their lifestyle.

Overnight the retail sector was turned on its head, being asked to implement social distancing restrictions and rules on mask wearing at the same time as serving customers who were desperate to secure the products they needed.

As Business Insider noted earlier this year, it saw cashiers effectively become police, overseeing customers who were becoming frustrated and turning their wrath towards staff.

“In 30 plus years of studying retail and crisis situations, we have never seen a situation of customers being so rude to hourly employees,” Larry Barton, a professor of crisis management and public safety at the University of Central Florida, told the publication.

So how can retail manage the issue of aggressive customers at a time when stress levels continue to remain high?

Clear communication

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Whether it’s policy on mask wearing or rules on acceptable customer behaviour, nipping aggression in the bud starts with clear communication from the retailer.

What do you expect from your customer in-store? And what happens if they fail to adhere to these guidelines?

Often this clear communication starts with simple strategies like signage that indicate the store policy on mask wearing, social distancing guidelines, and also points out that rude behaviour will not be tolerated.

It can also extend to further initiatives. For example, in Australia, a new campaign has rolled out where grocery staff wear badges reminding patrons that staff members are also mothers, daughters, fathers and sons.

Entitled the ‘No-one deserves a serve’ campaign, it’s specifically designed to remind customers there’s a real person with real feelings currently serving them.

Effective training

Diffusing tense situations is an art and often one retail staff are unprepared for. In 2013, a research report by the University of British Columbia noted employees who expect to encounter rude customers at work react far less strongly than employees who normally enjoy good customer relations, but who face unexpected rudeness.

That makes training paramount, with staff given education on techniques like:

  • Staying calm
  • Not taking the situation personally
  • Active listening
  • Conflict resolution
  • Problem solving
  • Assertion

Increased security

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In high-stress times like the present there is also a role for increased security in-store, and this can take on a variety of forms.

For example, security guards can assist with ensuring customers meet their obligations in terms of behaviour and policy, while CCTV can act as a deterrent to problematic behaviour.

Critically retailers should also be implementing available technology to address activities like shoplifting, which often goes hand in hand with aggressive behaviour.

In fact, many loss prevention strategies overlap with the techniques used to mitigate aggression.

These include:

  • Staff education
  • Good store layout
  • Stellar customer service
  • Clear policy and signage
  • Product protection (such as EAS security tags and labels)
  • Storewide security like CCTV and loss prevention personnel

You can learn more about strategies to improve the security of your store here

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Loss prevention at the Point of Sale Page 3

As the place where transactions take place, the Point of Sale is a pivotal to loss prevention. Not only is it the station where staff cast a watchful gaze over the floor, it’s also the potential site of employee theft and consumer fraud.

Here’s a guide to improving loss prevention at the Point of Sale.

Central positioning

The Point of Sale requires careful positioning to ensure it is accessible to customers looking to make a transaction and is also centrally located to allow staff to monitor the floor and additional areas such as changerooms.

For staff, it should be spacious enough to accommodate the tools they need, such as a register, cash drawer and barcode scanner, and should be easy to exit and enter, while still indicating this is an arena for employees only.

Easy exit and entry ensure staff can come out from behind the POS to assist customers when required.

Mobile POS

Mobile Point of Sale assists with both customer service and loss prevention. It allows staff to move freely on the floor, while still making sales, and cutting customer time spent in the queue.

Meanwhile, mobile POS can also assist with loss prevention because it ensures staff can be where they need to be, meeting and greeting clientele while facilitating sales.

Software to measure and manage

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The POS is key to measuring exactly where loss in-store is occurring. Sales reports and inventory software can help identify trends such as items that are missing, along with peak periods which might be more prone to theft.

This software can also assist in identifying employee theft and customer fraud, by highlighting trends in gift card sales, returns and exchanges, and offering information about who is on duty at that time.

CCTV

CCTV that monitors both the store and the Point of Sale serves to reduce both shoplifting and staff theft. When CCTV is obvious and clearly labelled it acts as a deterrent, while also serving to identify perpetrators.

Staff training

Staff training is imperative to reducing loss throughout a retail outlet, and much of this training relates to the Point of Sale.

Store policies and procedures set parameters for exchanges and returns, while also fostering secure cash management skills, accountability, good customer service, and employee expectations.

These in turn help minimize miscellaneous loss, shoplifting and employee theft.

EAS handling

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The Point of Sale is inextricably linked with loss prevention strategies like electronic article surveillance. For example, the POS should have a line of sight to EAS antenna so staff can quickly be alerted to an alarm and see exactly what’s occurring.

Meanwhile, the POS is the place where security labels are deactivated, and security tags are removed.

Store management should ensure there are sufficient detachers for tags available, so staff can seamlessly remove tags at the POS as part of the sales transaction.

These detachers should also be secured so they are not the target of theft, while it’s important to note accurate and consistent tag detaching helps mitigate false EAS alarms.

When it comes to label deactivators, these should be positioned with the barcode scanner, so the transaction is registered, and the label is deactivated in one maneuver. This reduces time spent at the POS while also improving EAS accuracy.

You can learn more about strategies to improve loss prevention in store here, or contact our friendly staff to order your security tags and labels here.

smarter loss prevention

Five simple steps for smarter loss prevention Page 3

These days retailers have a wealth of tools available to them when it comes to understanding where loss is occurring and how it can be combatted.

But while the tools and data abound, how do you best employ them? What are the small steps you need to take to make the giant leap towards securing your bottom line?

Well, that’s a $61.7 billion question the retail sector frequently asks. So, here are the steps to smarter loss prevention.

Measure to manage

In order to understand your loss, you need to measure it. That means understanding whether you are losing products in the supply chain, via shoplifting, through internal theft, or due to error.

Tools that tell you this information include stock takes, inventory reconciliation on delivery, Point of Sale data, and more, but the reality is retailers are gathering data every minute of every day.

From sales reports to inventory counting, this data paints a picture, but there’s also more to look for than just what’s going missing.

This includes gathering information about when your store is busiest and therefore more likely to be prone to theft, who’s on duty during that time, when products might be more likely to go missing, or the types of products that are more prone to loss.

Traffic counting can assist with this as can tools such as RFID inventory counting, which enables retailers to accurately count inventory within a matter of minutes.

Together, this data paints a picture of the leaks that need to be plugged.

Set KPIs

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Once you know what’s actually occurring in terms of loss, a retailer should say Key Performance Indicators (KPIs) to really get specific about combatting shrink.

These KPIs assist by helping you home in further on what’s happening in a bid to find the right tools to address it.

Loss prevention KPIs might include:

  • EAS alarms by hour
  • EAS alarms by traffic
  • The tag deactivation success rate (as in how often staff fail to detach a tag or deactivate a label)
  • Organized retail crime events
  • Inventory inaccuracies
  • Staff access to cabinets and displays versus loss
  • Gift card and return activity per staff member
  • And more

Set policies

In a bid to meet these KPIs, systems and procedures should be employed in-store. These will encompass areas like what to look for in terms of shoplifting, return and gift card policies, customer service procedures, stock counting routines etc.

They will also extend to EAS system checks and appropriate application and deactivation of EAS security tags and labels.

All these policies and procedures help establish an accountable expectation in-store that works to eliminate human error. They also serve to set an expectation for staff behaviour when it comes to reducing loss.

Deploy technology

Loss prevention technology continually evolves and improves, meaning there are now more effective tools available than ever before when it comes to mitigating loss.

EAS is an obvious example here as one of the most popular theft prevention methods, and like all technology, it requires regular upgrades.

Retailers should revisit their EAS systems on a regular basis to determine whether stronger tags might be required, whether additional tools like EAS in the fitting room needs to be employed, or whether the right tag or label is being used for the right product.

Other tools that can assist include RFID, which enables a store to track product location and information in real-time, higher resolution CCTV to identify thieves, mobile POS with detailed analytics, and smart keys which are allocated to specific staff members allowing retailers to track who opens cabinets and drawers.

Rinse and repeat

Once a retailer has worked through each of these steps, the circle begins again in a bid to further combat loss.

Any loss still occurring should be measured, new KPIs should be set, fresh systems introduced, and further technology deployed to assist.

The reality is loss prevention is a constant work in progress which evolves over time. The retailers with the best success at mitigating loss consistently revise their approach. They regularly upgrade operations in response to a changing landscape and appreciate that what worked one year ago may need improvement the next.

You can learn more about our range of security tags here, or labels here. Meanwhile, further information about reducing theft and loss instore is available here.

The other uses for security tags

More than apparel protection – The other uses for security tags Page 3

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

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

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

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

A little history

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

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

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

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

Popular option for apparel

Security tags for apparel

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

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

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

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

Lanyards and cables

Lanyard security tags for accessories

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

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

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

Liquor bottles and eyewear

Optical and liquor security tags

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

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

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

Spider wraps

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

Security labels

Security labels

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

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

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

Retail shrink hits a $61.7 billion high

Retail shrink hits a $61.7 billion high Page 3

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

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

Here’s an insight into the latest findings…

Shrink rate rising

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

  • 2 per cent of retailers reported a shrink rate of 3 per cent or higher
    (compared to just 10.9 per cent in 2018)
  • 1 per cent reported a shrink rate between 2 per cent and 2.99 per cent
    (compared to 14.5 per cent in 2018)
  • 2 per cent reported a shrink rate between 1.5 per cent and 1.99 per cent
    (compared to 10.9 per cent in 2018)
  • 6 per cent reported a shrink rate between 1.25 per cent and 1.49 per cent
    (compared to 10.9 per cent in 2018)
  • 7 per cent reported a shrink rate between 1 per cent and 1.24 per cent
    (compared to 3.4 per cent in 2018)
  • 7 per cent reported a shrink rate between 0.5 per cent and 0.99 per cent
    (compared to 21.8 per cent in 2018)
  • 6 per cent reported a shrink rate of 0.49 per cent and below
    (compared to 27.3 per cent in 2018)

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

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

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

Shoplifting on the rise

 

Shoplifting on the rise

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

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

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

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

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

 

Dishonest employees

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

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

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

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

Retail shrink - Employee stealing money from the counter

 

Areas of concern

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

The report found in the past five years:

  • 29 per cent of retailers viewed e-commerce crime as much more of a priority
  • 5 per cent saw organized retail crime as much more of priority
  • 5 per cent viewed data breaches as much more of a priority
  • 3 per cent had been increasingly focussed on internal theft
  • 3 per cent viewed return fraud as much more of a priority

 

About the report

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

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