Study: Retail leaders say theft has hit 'crisis point'
A large number of retailer leaders believe theft continues to remain on the rise and are taking steps to combat it.
Almost two-thirds (64%) of large retailers in the United Kingdom and the United States agree that the impact of theft has reached a “crisis point,” according to research commissioned by Avery Dennison and conducted by Opinion Matters. Forty-two percent of the 300 senior retail leaders representing brands with more than 200 stores who were surveyed believe that theft is more of a concern today than it was twelve months ago.
In response, retailer leaders said they are fighting back with a combination of anti-theft and loss prevention measures. Over half (53%) say 3% to 4% of their total IT budget is allocated to retail theft detection and prevention, while almost a quarter (23%) are allocating 5% to 6% of their total IT spend. For 57% of the retail leaders surveyed, these budgets equate to an increase in spend over the last two years, but a third (33%) still believe the resources allocated are insufficient.
Respondents listed security guards (27%) as the most effective measure deployed to date followed by facial recognition technology (23%), and RFID tags (21%). Looking ahead, 76% of retail leaders said they are using RFID or plan to begin doing so within the next 24 months. Over a third (38%) plan to deploy AI enabled cameras, while 37% will introduce facial recognition technology within the same period.
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“While theft remains a significant concern, shrinkage extends further to include supply chain waste, misplaced inventory, human error and even fraud,” said Francisco Melo, president of solutions group at Avery Dennison. “The impact is substantial. To protect profits and create improved store environments, it is imperative that retailers take a data-led approach to loss prevention. Leveraging advanced track and trace technologies such as RFID, with real-time analytics, will help to turn loss prevention into a proactive operation rather than a reactive one.”
