According to business services provider Avery Dennison, new research demonstrates that 64% of large retailers in the United States and the United Kingdom feel that the impact of theft has reached a crisis point.
Versus a year ago, 42% of retail executives believe that theft is more of a concern today.
In the research commissioned by Avery Dennison, theft was identified as a leading business concern. When asked to list their top five business challenges, addressing the impact of theft was the key concern of 36% of survey respondents. Next, 27% cited optimizing omnichannel, 27% cited increased operating costs, 26% cited improving staff efficiencies, and 24% cited retaining customers.
In response to theft, many retailers are combining antitheft and loss prevention measures. 53% say 3% to 4% of their total IT budget is allocated to retail theft detection and prevention, while 23% are allocating 5% to 6% of their IT spend. For 57% of the retailers surveyed, antitheft spending increased over the past two years, but 33% still believe the resources allocated are insufficient.
Survey respondents listed security guards, at 27%, as the most effective anti-theft measures deployed to date, followed by facial recognition technology, at 23%, and RFID tags, at 21%. When asked about future plans, 76% of retailers said they are using RFID or plan to begin doing so within the next 24 months. Then, 38% plan to deploy AI-enabled cameras, while 37% will introduce facial recognition technology over the next two years.
Francisco Melo, president, Solutions Group at Avery Dennison, said in announcing the survey results, “While theft remains a significant concern, shrinkage extends further to include supply chain waste, misplaced inventory, human error and even fraud. 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.”
