57% have increased budgets to combat theft problem
76% are currently using RFID or plan to begin using it within the next 24 months
MENTOR, Ohio — July 25, 2024 — New research reveals that almost two-thirds (64%) of large retailers in the UK and US agree that the impact of theft has reached a crisis point. In addition, over four-in-ten (42%) believe that theft is more of a concern today than it was twelve months ago.
The research commissioned by Avery Dennison, a global materials science and digital identification solutions company, collates the views of 300 senior retail leaders in the UK and US representing brands with 200+ stores. Theft was found to be the leading business concern. When asked to list their top five business challenges, the most cited responses were addressing the impact of theft (36%), optimizing omnichannel (27%), increased operating costs (27%), improving staff efficiencies (26%), and retaining customers (24%).
In response to these challenges, many retailers 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, however, a third (33%) still believe the resources allocated are insufficient.
Retailers have been deploying a myriad of high-tech and low-tech measures to tackle an increase in theft, in addition to security guards. From RFID tags to body-worn cameras to facial recognition technology, retailers are using a combination of solutions for a holistic approach. Respondents listed security guards (27%) as the most effective measure deployed to date followed by facial recognition technology (23%), and RFID tags (21%).
Retailers also shared their future plans, with 76% stating 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.
Francisco Melo, president, Solutions Group at Avery Dennison, says: “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.”
Department store chain Macy's is something of a pioneer when it comes to long term deployment of RFID technology. Almost a decade and a half into its RFID journey, Joe Coll, the company's VP of Asset Protection, adds: "RFID has proven a game-changer for us. It has definitively unlocked so much insight and completely changed our visibility into what is happening inside of our stores.”
Avery Dennison has launched a free digital report outlining top retail strategies for loss prevention. The report includes insights from leading experts and retailers including Macy’s, Nisa, the British Independent Retailers Association, Co-op and more.
Download The Retail Theft Crisis: Strategies to Protect Your Business report here.
Media Contacts
Jack Gibson
Global PR Manager
jack.gibson@eu.averydennison.com
Research Methodology
The research was conducted by Opinion Matters, among a sample of 300 senior leaders at bricks and mortar retailers with 200+ stores in decision-making roles responsible for Asset Protection; Loss Prevention; Profit Protection; Investigations and Security across the UK and USA. Opinion Matters abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.
About Avery Dennison
Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company that provides a wide range of branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. Our products and solutions include labeling and functional materials, radio frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and a variety of products and solutions that enhance branded packaging and carry or display information that improves the customer experience. Serving an array of industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2023 were $8.4 billion. Learn more at www.averydennison.com.