how different retail verticals use security tags and labels

How different retail verticals use security tags and labels

Depending on which retail vertical you work in, your security needs will differ, with some verticals relying solely on security labels as their EAS strategy of choice, while others employ security tags.

Selecting the right option comes down to a whole host of factors, including the type of product, the volume of stock sold, its value and its potential for theft.

So, let’s stroll through the aisles of each retail vertical and look at how they use security tags and labels.

Grocery stores

Grocery stores

When it comes to protecting grocery items against theft, retailers predominantly use security labels, but they may vary in type.

That’s because different labels are available for different types of products. For example, meat products require a specific label that can be housed within the packaging and is suited to a consumable product.

Meanwhile standard RF labels, which are flat and easy to apply, are then used for other non-perishable products which might be prone to theft.

That said, a grocery retailer may turn their attention to different strategies to protect highly sought-after products such as baby formula, razors, and liquor.

Tins of baby formula are often protected using a purpose-designed hard tag that fits around the tin, razors can be protected using stop locks, and liquor would be protected using a label unless it was a high-value product, which may then have a bottle top security tag fitted.

Department stores

department store

Due to the variety of different items available in a department store, their EAS strategy is likely to encompass both security tags and security labels.

Clothing in a department store would be protected by security tags, handbags and sports shoes would generally have tags with lanyards fitted, while high-value toys and electronics might be protected using keepers or alarmed spider wraps.

Fashion sunglasses would be protected by either labels or a purpose designed optical tag depending on its value.

Meanwhile, high volume, lower value products like perfumes, cosmetics, crockery, and books would be fitted with security labels.

Hardware

Hardware store security

Like department stores, hardware retailers tend to use both a combination of tags and labels.

For example, high value items like boxed tools may use alarmed spider wraps, while keepers might be used for smaller high value products like drill bits.

High-volume products such as hose fittings, boxes of nails and screws would then have labels affixed.

Fashion retailers

Fashion retailers - product security

Fashion retailers predominantly use security tags, which are fitted to each item of clothing.

Smaller products like budget sunglasses would then have labels affixed, high value fashion sunglasses would employ optical tags, while handbags and sports shoes would be protected using a tag with lanyard.

Drug stores

drug store - product security

Drug stores tend to utilize labels of the AM variety. These labels have a slightly raised profile compared to their RF counterpart but are better suited to products with a high foil/metal content.

Bookstores

Bookstores tend to use RF labels, which offer a flat profile.

Electronics

Electronics store - product security

Electronics retailers usually employ a range of EAS strategies depending on the type of product, its size, sales volume and potential for theft.

For example, big brand high-value cell phones are often available for consumer interaction as part of a secure display, while the actual boxed product is protected in a locked cabinet.

Cheaper cell phones might be secured in a keeper or protected with a label inside the packaging.

Large electronic items generally can’t be stolen without attracting attention, so a label would be used, while electronic accessories are protected with AM labels and keepers.

Other boxed electronics might be protected using a spider wrap and alarmed tag.

Discount stores

Discount stores tend to use labels due to the value and high volume of the items sold, with RF the preferred type due to their flat profile and ease of application.

For more information on selecting the right security tag or label for your store, see here or contact us directly to discuss your tag and security label needs.

Retail trends COVID-19

Retail trends accelerated by COVID-19

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.

coronavirus panic purchasing

Retail sector responds to coronavirus panic purchasing

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.

Is your loss prevention up to pat for peak retail season

Is your loss prevention up to par for peak retail season?

With just weeks to go until the retail industry enters peak season, now is the perfect time to assess whether your shop security and loss prevention strategies are up to par.

Year in, year our statistics indicate peak season, which extends from Black Friday right through the Christmas, is a prime time for retail theft.

So where should your attention lie?

Security tags

If Electronic Article Surveillance (EAS) is one of your loss prevention strategies (and we would argue it should be) now is the time to consider whether it could benefit from an upgrade in terms of tag strength, tag types, large pinheads, and even benefit denial additions like ink-dye pins.

EAS is renowned as one of the most effective ways of protecting items against theft, but like all areas of loss prevention, it benefits from an assessment now and then.

Super-strength tags are the minimum recommended strength as they require a higher-powered magnet to open them.

Meanwhile, larger pin-heads can help thwart tampering attempts, ink-dye pins add an extra layer of security, and even tag shapes like alligator tags or clamshell tags make it harder for shoplifters to illicitly remove tags from items.

Security labels

When it comes to low-value, high-volume items, these should be protected using security labels. Now is the time to make sure the right label is being used for the right product and that they are applied in a position that is easy to deactivate quickly at the Point of Sale.

Store layout

Is your loss prevention up to par for peak retail season?

Store layout plays a critical role in theft prevention, with research indicating stores which are well-lit, and have a clear line of sight for staff to see all areas of the floor are less prone to theft.

Undertake an audit of your retail outlet, seeking out dark areas or hidden places which make it more likely for shoplifters to attempt a theft.

Meanwhile, options like lockable displays and cabinets can help boost security of frequently targeted high-value items, and the fitting room should also be factored in as an area at risk.

These days there are new tools available to help guard the change room, with options like the ApparelGuard available, which monitor the area and alert staff to potential thefts or tag tampering.

Surveillance

In addition to product-based security like EAS, and good store layout, many retailers also protect their retail outlet at a store-based level using either CCTV and/or loss prevention (LP) personnel.

Now is the time to ensure CCTV is up to scratch in terms of image quality, recording, and vantage points.

It’s also time to consult with your LP personnel on any trends they’ve witnessed or any weak spots they believe the store may have.

Staff training

You staff are one of your biggest assets or weaknesses when it comes to theft prevention, and the difference is in staff selection and training.

If you are bringing in additional staff for peak season, ensure they are thoroughly screened, and references are checked.

All staff should also be comprehensively trained in order to offer good customer service and also to ensure they recognize the signs of shoplifting and suspicious behaviour.

Again, research indicates well-trained staff who consistently meet and greet the customer go a long way to reducing incidents of theft.

A bumper season

This year’s peak season is expected to be a positive one for retailers, with the industry anticipating a revenue increase of 28.7 per cent on 2018.

If that’s the case, it will also be extremely busy, with more traffic through retail outlets than in years gone by.

For retailers this presents a challenge of balancing high traffic and increased customer expectation with loss prevention at a time many are hoping to enjoy a serious revenue reward.

Ultimately, protecting any revenue boost comes down to the loss prevention strategies retailers implement now to ensure peak season isn’t marred by product theft.

You can learn more about our range of security tags including the latest theft prevention features here.

Top retail loss prevention events

Top retail loss prevention events in the US

Each year the retail industry, law enforcement agencies and researchers band together to offer a host of events designed to combat retail theft and improve loss prevention strategies throughout the United States.

From the newest products to the latest insights and technology, these conferences are designed to arm retailers with the tools and knowledge they need in the ongoing battle against retail shrink.

Here’s an insight into some of the top retail loss prevention events in the US in 2019.

MRC Vegas 2019

Run by the Merchant Risk Council and spanning four days, MRC Vegas has an eCommerce focus. This annual conference draws about 1600 people and 450 companies and is the largest global conference focused on fraud prevention, payment processing, technology, cybersecurity and financial services for eCommerce professionals.

When: March 18-22, 2019

Where: Las Vegas, NV

Website: https://www.merchantriskcouncil.org/events

RILA Retail Asset Protection Conference

Attended by over 800 asset professionals annually, the Retail Asset Protection Conference attracts top level executives from the most progressive retailers in the world.

Those attending share and tap into the best ideas in the industry to improve organisational effectiveness and examine where the industry is heading in the future.

The conference program is developed by RILA’s Asset Protection Steering Committee – a cohort of retail experts from the most recognized brands in world.

When: May 5-8, 2019

Where: Orlando, FL

Website: https://www.rila.org/protection/Pages/AssetProtectionHome.aspx

Retail Innovation Conference

With a focus on the future, the Retail Innovation Conference looks at changes within the retail industry and where it’s going.

Last year’s conference grew by 40 per cent with some of the biggest names in the retail industry attending. It sees retail professionals share ideas, innovation, technology and tactics through keynote speeches, workshops and panels.

The conference also offers actionable takeaways and insight from renowned retail analysts.

When: May 6-9, 2019

Where: New York City, NY

Website: https://retailinnovationconference.com/

NRF Protect

Renowned as the retail industry’s premier loss prevention event, NRF Protect attracts over 2500 attendees each year to witness 90 speakers, tap the knowledge of 200 exhibitors and meet representatives of over 300 brands.

This is arguably the biggest retail loss prevention of the year and covers everything from cyber and digital crime to risk management, talent and culture, theft and fraud, and workplace violence.

When: June 11-13, 2019

Where: Anaheim, California

Website: https://nrfprotect.nrf.com/

LPRC Impact

Hosted by the Loss Prevention Research Council, LPRC Impact focuses on research to help retailers assess their loss prevention strategies and the impact they have on sales, crime and loss levels.

The two-day program comprises presentations, panels, and learning labs.

When: TBA

Where: TBA

Website: https://lpresearch.org/impact/

CLEAR 2019 National Conference

Hosted by the Coalition of Law Enforcement and Retail, the annual CLEAR National Conference brings together law enforcement agencies and retail corporations, with the aim of improving theft detection and loss prevention, and devising strategies to keep stores safe.

Its major focus is: “To promote and encourage municipal, county, state, and federal organizations to create and support enforcement and detection units to combat property such as but not limit to; organized retail crime, fencing of stolen property, cargo theft, identity theft and fraud, burglary, theft, and organized property crime schemes.”

2019 will mark the 10th year this conference is hosted and it also features an emphasis on legislation to target organised retail crime and general shoplifting.

When: TBA

Where TBA

Website: https://clearusa.org/index.php

TCORCA Conference

Running over two days, the TCORCA Conference features a host of topics, keynote speakers and break-out sessions that focus specifically on Organised Retail Crime and other loss prevention strategies.

The aim of the event is to offer retailers an insight into the best practices and training to more effectively target and combat organised retail crime.

When: TBA

Where: TBA

Website: https://www.tcorca.org/tcorca-conference/