Retail Trend

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A bumper retail year ahead, NRF predicts Page 2

The National Retail Federation has released its retail sales predictions for 2021 and, based on the results of last year combined with a vaccine rollout, it’s more optimistic than expected.

In 2021, the NRF anticipates retail sales will grow between 6.5 percent and 8.2 percent to more than $4.33 trillion as more individuals get vaccinated and the economy reopens.

So, let’s recap their findings and look to the year ahead.

The tally for 2020

Despite a year tarnished by political upheaval and a deadly global pandemic, early results show retail sales in 2020 performed better than expected.

The NRF notes throughout the year retail sales grew 6.7 percent in 2019 to $4.06 trillion, nearly doubling the NRF’s forecast of at least 3.5 per cent growth.

They explain their initial prediction did not account for the impact of a global pandemic and the figure was well beyond the 3.9 percent growth enjoyed in 2019.

“Online and other non-store sales, which are included in the total figure, skyrocketed to 21.9 percent at $969.4 billion as consumers shifted to e-commerce,” they continued.

It’s important to note these numbers exclude automobile dealers, gasoline stations and restaurants, the latter of which were hit particularly hard last year due to shutdowns across the country.

The holiday sales surge

The holiday sales surge

Meanwhile, it was the holiday period that accounted for much of the retail sector’s sales surge.

“The 2020 November-December holiday season accounted for nearly one-fifth (19.4 percent) of overall annual retail sales,” the NRF remarked.

“Retail sales during this period grew an unexpectedly high 8 percent to $787.1 billion. Non-store and other online sales represented $206.9 billion of total holiday sales, up 22.6 percent over the year before.”

The forecast for 2021

With a better-than-expected 2020 under its belt, the NRF says retail sales are predicted to continue to surge in 2021.

Due to the vaccine rollout and increased consumer confidence, the NRF currently predicts:

  • retail sales will total between $4.33 trillion and $4.4 trillion.
  • Online sales, which are included in the total, are expected to grow between 18 percent and 23 percent to between $1.14 trillion and $1.19 trillion.

Increased employment is also tipped to contribute to the predicted surge, with the NRF expecting the overall economy will gain between 220,000 and 300,000 jobs per month in 2021, depending on the pace of the overall economy in the second and third quarters.

“Despite the economy’s stalled momentum at the end of last year, NRF forecasts real GDP growth between 4.5 percent and 5.0 percent,” they noted.

Optimism and relief

Optimism and relief

NRF President and CEO Matthew Shay welcomed the positive forecast, noting a range of factors contributed to the expected retail growth.

“Despite the continuing health and economic challenges COVID-19 presents, we are very optimistic that healthy consumer fundamentals, pent-up demand and widespread distribution of the vaccine will generate increased economic growth, retail sales and consumer spending,” Mr Shay said.

“From the outset of the pandemic, retailers have gone above and beyond even the most conservative safety guidelines to protect and serve their associates and consumers alike.

“Retailers are increasingly engaged in working with federal, state and local health officials to distribute and administer the vaccine. This partnership has been key to our economic health throughout the pandemic and will continue this year.”

Meanwhile, NRF Chief Economist Jack Kleinhenz said the vaccine rollout could see the economy accelerate at the fastest rate in more than 20 years.

“Our principal assumption is that the vaccination will be effective and permits accelerated growth during the mid-year. The economy is expected to see its fastest growth in over two decades.”

Mr Kleinhenz further noted this year marks the second year of savings, record-high stock valuations, increased home prices, enhanced government support and record low-interest rates, which are all contributing factors towards the economy and consumer spending behavior.

For more information on the retail trends of 2021, see here, or view our range of security tags and labels to secure your store in advance of the expected surge here.

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Five loss prevention challenges for 2021 Page 2

With retail beginning to settle back into its new normal and consumer spending on the increase, attention is turning to getting back to business and boosting the bottom line.

The key to protecting that bottom line is loss prevention, but with a new landscape come new challenges.

Here are five loss prevention challenges the retail sector will be looking to address throughout 2021.

Control versus convenience

Featured products: Shell Tag and Boss Labels AM

An increased focus on omnichannel and strategies like buy online pickup in-store (BOPIS) means control of stock and products now has to be carefully weighed against consumer convenience.

That makes visibility key when it comes to inventory control.

Improved inventory visibility might include:

  • Item tracking via RFID.
  • A focus on loss prevention such as electronic article surveillance to reduce out-of-stock events.
  • Improved data and analytics for accurate insight into stock levels.

Truth is inventory accuracy has always been a major factor in loss prevention, with human error, fraud, and theft all undermining a store’s ability to keep track of its stock.

As trends like BOPIS and omnichannel are set to stay, this accuracy and control are now more important than ever.

Customer interaction

Customer interaction

With retail foot traffic still lower than in years gone by, bricks and mortar is looking to play to its strength of allowing customers to touch, try, feel and interact with products.

Again, this requires a fine balance of allowing customers access to products while also ensuring these items are protected against theft.

Meanwhile, enticing displays are becoming a priority as retailers seek to find more ways to lure potential customers into their outlets.

So how can you protect products, while still guarding them against shoplifting and theft?

Loss prevention methods include:

  • Product-based security measures including security tags and labels.
  • Good store layout.
  • Staff education and training.

Supply chain accountability

Securing the supply chain continues to be key to mitigating retail loss. This has become increasingly important in the past 12 months due to the shipment and manufacturing delays that have occurred over the past year.

The upshot is, store management now requires greater supply chain accountability to ensure the products that are on order are traced and ticked off when they arrive.

Tools like RFID, which offers 99.9 percent supply chain accuracy can assist.

Remote insight

Remote insight

With remote working still very much on the agenda and travel fairly limited, remote insight into a store’s operation including its sales, revenue and loss is a continuing priority for store management.

That’s where tools like mPOS, cloud-based analytics, and inventory tracking methods like RFID are coming into play, allowing retail management remote insight into the operation of one outlet or a chain of stores.

Staff safety

Between protests, riots, and health fears, staff safety remains a major priority for all retailers. Although necessary, safety focus does have an impact on loss prevention, with staff often at the frontline when it comes to identifying loss and theft.

As a result, loss prevention tools and technology will play an increasingly important role in the fight against shoplifting, theft, and miscellaneous loss.

To learn more about trends shaping the retail landscape in 2021, see here. Alternatively, you can order your security tags and labels directly here.

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Employing EAS best practice to reduce theft Page 2

Electronic Article Surveillance remains one of the most effective and popular tools in the fight against retail theft.

Employing security tags, security labels, and antenna that monitor the tags, it is renowned as the most comprehensive way to protect stock at a product-based level, reducing eternal theft by between 60 and 80 per cent.

But like any loss prevention tool, EAS effectiveness is impacted by the way it’s deployed and how well staff is trained in using the system.

With that in mind, here’s a quick guide on EAS best practices to reduce theft…

The right tag or label

The right tag or label
Featured products: Shell Tag and Boss Labels AM

For retailers drawing on the power of EAS, it’s critical they select the right security tag or the correct security label for the product they’re looking to protect.

These days security tags and labels are available in both AM and RF frequencies, while tags come in different shapes, sizes, and magnetic strengths.

You can gain a full insight into selecting the right security tags for your store here and learn more about the different types of labels and their uses here.

But to put it briefly:

  • Apparel is best protected using clothing tags with a minimum superlock strength.
  • Accessories like handbags and sports shoes are generally protected with security tags that attach via lanyard or cable.
  • High-volume, low-value items like perfumes are best protected with labels.
  • Specialist tags are available for products including golf clubs, liquor, eyewear, and baby formula.

Position matters

Where the security tag or label is positioned on a product matters for a whole host of reasons.

Uniform positioning allows a store to be more visually appealing, while consistent positioning also assists with tag removal and label deactivation at the Point of Sale.

Security tags

Security tags

Featured product: Pencil Tag

Security tags should be positioned so as not to interfere with the customer’s experience of a product.

At the same time, tags should also be situated in place which is obvious enough to deter theft and ensure anyone attempting to pull them off will cause significant damage to a product, rendering it useless.

Security labels and stickers

security labels

Featured products: Boss Labels AM and 30×30″ RF Labels

The ideal position for a security label is near the barcode. This position allows for quick deactivation and maximum efficiency at the Point of Sale.

When it comes to best practices, retailers should have a store guide and policies regarding the tag and label positioning to ensure consistency throughout a retail outlet.

Easy label deactivation and tag detachment

While labels are deactivated using a deactivator that breaks a circuit within the label, security tags need to be detached using a tag detacher.

Security tag detachers and label deactivators are best positioned at the Point of Sale, allowing for easy tag removal and label deactivation.

Tag detachers can be built into the countertop or affixed to it, while deactivators can be mounted to the counter, concealed beneath it, or incorporated into barcode scanning equipment.

Retailers should ensure these detachers and deactivators are easily accessible to staff, and there are enough to service all Points of Sale.

Meanwhile, deactivators should be checked to ensure they are powered and working each day as part of a store’s opening protocols.

Minimize false alarms

Minimize false alarms

If your store experiences false EAS alarms, it desensitizes staff to the real risk of an item being shoplifted.

In order to minimize false alarms:

  • Your EAS antenna system should be tested daily.
  • Staff should be made aware of the ‘no-tag’ zone (between the antenna and a 6ft region around it).
  • Staff should be educated on tag pollution.
  • Staff should be trained in tag detaching and label deactivation.

You can read more about minimizing false EAS alarms here.

Understand the clues

If you find items are being shoplifted even with an EAS system in place, there are generally clues to areas that need improvement.

For example, if you find tags removed and discarded in store, it indicates one or a couple of the following:

  • Insufficient magnetic strength.
  • Incorrect tag type for the product being protected.
  • Inadequate tag pin size.

We have a helpful further guide to troubleshooting tag security here

The final word

EAS remains one of the most effective security tools in the fight against retail theft. But like anything, it can benefit from honing and improving over time.

If you’re looking to improve your EAS system, you can view our range of security tags here, and labels here.

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Six ways to stop shoplifting at the Point of Sale Page 2

The point of sale is a key weapon in the fight against shoplifting. As the place where transactions are made and staff are based, it provides the central location to not only identify retail loss but to actively combat it.

With that in mind here are six ways to stop shoplifting using the point of sale.

Location, location

The point of sale is among the most important focal points of any retail outlet, and its location alone can help combat theft.

The POS should be positioned so staff have a clear line of sight across the shop floor. In larger outlets, registers should be near the door to ensure customers coming in and out are observed in a welcoming manner.

Meanwhile, self-service registers should fall under the watchful gaze of a dedicated attendant.

Analytics and insight

Analytics and insight

A great asset of the modern-day Point of Sale is that it reveals a wealth of data relating to loss prevention.

For example, it can tell management when a store is most likely to be busy, which staff member handled what transactions, and what items are meant to be in stock, but cannot actually be located on the shop floor.

It also reveals information about returns and refunds.

Together this paints a picture of where your retail loss is occurring, providing clues as to whether that’s due to employee theft, fraudulent returns, or shoplifting of specific items.

Gift cards and returns

On that note, the Point of Sale is where transactions including refunds, exchanges and gift card redemptions most commonly occur. And each of these transactions offers the potential for retail theft involving fraud.

Service staff at the register should be well trained in what to look out for when it comes to fraudulent returns and gift cards, along with being made aware of a store’s policies relating to returns without receipts.

EAS strategy

EAS strategy
Featured products: Pencil Tag with Pin and Mini Tag.

The Point of Sale is integral to loss prevention strategies like electronic article surveillance. After all, this is the site where the security labels and security tags which protect individual products against theft are deactivated or detached.

Staff at the POS are also likely to be among those responding to any EAS alarms.

That means detachers and deactivators should be readily accessible at the Point of Sale, allowing staff to quickly remove tags or deactivate labels as they complete a sales transaction.

Meanwhile, POS staff should also be educated on how EAS works, including proper deactivation and detachment techniques to avoid false alarms and what to do in the advent of an actual alarm.

Identifying suspicious behavior

As the central location that customers attend to make a purchase or an inquiry, the Point of Sale is also among the places in a store where suspicious activity can be quickly identified.

For example, organized gangs of shoplifters will often seek to distract staff at the POS while items are stolen.

It’s also a central position to observe consumer behavior looking for the key signs of shoplifting.

High value stock

High value stock

Best loss prevention practice indicates high-value stock should be positioned within view or reach of the Point of Sale.

In smaller retailers, this might mean high-value stock is positioned behind the counter, or a display model is available but actual merchandise is locked in a drawer or glass cabinet, accessed by POS staff.

The final word

The role of the Point of Sale in loss prevention is just one factor that retailers should consider when It comes to combatting shoplifting, theft, and organized retail crime.

The right positioning of the POS, the right insight from its analytics, and the right training of POS staff ensure this key feature of all stores can be used to great effect to help reduce shoplifting and theft.

For more tips on loss prevention see here, or view our range of security tags and security labels.

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Valentine’s retail spending near record high Page 2

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 2

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 2

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.

holiday-spending-surge

Retailers celebrate holiday spending surge Page 2

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.

retail-trends-that-will-translate-into-2021

The retail trends that will translate into 2021 Page 2

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 2

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.