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Security Solutions: Eliminating Retail Shrinkage
Fidelity Services Group is acutely aware of the impact of shrinkage on retailers and underscores the necessity of prioritising customer-centric preventive solutions. As the retail landscape gears up for the bustling Black Friday and festive season, Charnel Hattingh, Head of Marketing and Communications at Fidelity Services Group, emphasises the heightened significance of loss prevention during this peak period.
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Hattingh elucidates that Sensormatic, currently servicing over 5,000 domestic and cross-border stores, safeguards an impressive inventory exceeding 41 million items adorned with Sensormatic tags. South African retailers confront various challenges, including economic volatility, evolving consumer behaviour, heightened competition, supply chain disruptions, regulatory shifts, and the imperative to adapt to digital transformation. Security concerns, shoplifting, organised retail crime, employee pilferage, and burglary collectively erode profitability and operational efficiency. Consequently, implementing effective loss prevention measures and security strategies is pivotal for today’s retailers.
Drawing from their extensive experience assisting retailers in curbing shrinkage, Fidelity discerns that many retailers tend to fixate on external theft, allocating substantial portions of their budgets to chase this issue. Hattingh stresses that whether the theft is internal or external, eliminating the opportunity is the key to preventing shrinkage. Theft occurs because an opportunity exists; when retailers inadvertently facilitate theft through lax controls, they foster a culture of theft. If employees steal from their employer, it’s often due to a permissive environment.
According to the Global Theft Barometer, certain products, such as razor blades, cosmetics, baby formula, and alcohol, are particularly susceptible to malicious shrinkage. The ‘CRAVED’ acronym elucidates why thieves are drawn to these products: they are Concealable, Removable, Available, Valuable, Enjoyable, and Disposable.
However, Hattingh cautions against viewing loss prevention solely through the lens of shoplifting. Retailers should adopt a holistic perspective, identifying root problems instead of hastily attributing losses solely to shoplifting. Emphasising compliance and comprehensive solutions, Hattingh stresses that the customer should always be the foremost consideration in designing and recommending loss prevention strategies. Striking the right balance is crucial; overly intrusive security measures can alienate loyal customers while attempting to deter shoplifters.
In preparation for the festive season, Hattingh highlights key aspects of electronic article surveillance that retailers should emphasise:
Regular Testing and Calibration: Essential for minimising false alarms and enhancing detection accuracy.
Strategic Tagging: Placing security tags strategically on high-value, popular, or frequently targeted items.
Fidelity has witnessed significant growth in the liquor retail sector, especially with the Sensormatic product. Bottle tags, in particular, have seen a surge in demand due to their effectiveness in theft deterrence, shrinkage reduction, staffing efficiency, data insights, inventory management, operational efficiency, and versatile applications.
Hattingh also underscores the growing popularity of Radio Frequency Identification (RFID) technology in retail. RFID tags enable efficient inventory management, improved supply chain visibility, and seamless customer experiences. Retailers increasingly use RFID tags for real-time inventory tracking, automated checkout processes, and personalised marketing efforts.
Moreover, retailers embrace contactless payment options, including QR codes, to offer seamless and secure checkout experiences. As customers continue to favour the convenience and security of contactless payments, the local retail landscape is poised for notable transformations. With an increasing emphasis on digital engagement, convenience, and omnichannel strategies, retailers are expected to invest more in e-commerce platforms and personalised customer experiences.
Source: Retail shrinkage: The right security solution removes the opportunity
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Security Solutions: Eliminating Retail Shrinkage
