Security against shoplifting and organised crime has always been a major concern by retailers all over the world. According to the Global Retail Theft Barometer(GRTB) 2013-14, “shoplifting and organized retail crime cost retailers $70.3 billion in 2013 (39% of total shrinkage).” India had been topping the Global Retail Theft Barometer survey for 2 years. According to the Barometer, shrinkage rates declined across regions, except
Asia Pacific, which witnessed a 1.68% growth
Footwear is one of the highest contributors to above average shrink levels in the apparel market. In fact, the 2013-14 Global Retail Theft Barometer reported shrink in footwear has risen year over year to 0.99% globally – especially affecting retailers with open-end merchandising.
Here are some statistics from the barometer targeting Asia Pacific regions:
There are several retail security systems in the market but very few of them target footwear. Retailers have come up with solutions like displaying only 1 shoe and keeping the other in storage. But it isn't a really effective option:
Thieves beat security in New York shoe stores by stealing left sneaker from one store... and then right sneaker from another store
Retailers need some solution that serves the purpose of security without hindering a shopping experience for the customers.
The various systems of security used by retailers in Asia Pacific, according to GRTB are:
EAS or Electronical Article Surveillance is a technological method for preventing shoplifting.
It usually involves three components:
- Electronic Antenna
- Deactivator or Detacher
- Electronic Tag
Special tags and labels are fixed to merchandise or books. These tags or labels are removed or "deactivated" by the clerks when the item is properly bought or checked out. At the exits of the store, a detection system sounds an alarm or otherwise alerts the staff when it senses active tags are passing by.
Expert shoplifters have learned to break open these tags that led to the retailers opting for source tagging which is the process of embedding an EAS label into a product's primary packaging or into the product itself at the point of manufacture. Since my problem area focuses on Multi-brand stores, this solution won't possible work as the products come into place by different manufacturers.
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What next: Assessment Matrix of the shortlisted problems.
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Sources:
1. Global Retail Theft Barometer 2013-14 | Ernie Deyle, The Smart Cube
2. J.R. Roberts Security Strategies | J.R. Roberts
3. Shoplifters love shoes | Sandra Halliday / November 5, 2015
5. The future of Electronic Article Surveillance | David Ivins/ September 17, 2015
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