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.
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艾利丹尼森公司（纽约证券交易所代码：AVY）是一家全球性的材料科学和数字识别解决方案公司。我们致力于开创无限可能“Making Possible™” 的产品和解决方案，助力推动所服务行业的发展 ，以优化人力和供应链效率，减少浪费，促进可持续发展、循环性和透明度，更好地连接品牌与消费者。
我们设计开发标签及功能材料、射频识别（RFID）inlay 和吊牌、融合现实与数字世界的软件应用程序，以及提升品牌包装 、传递或展示信息以改善客户体验的各种产品和解决方案。我们服务于全球多个行业，包括家居和个人护理、服装、综合零售、电子商务、物流、食品和杂货、制药和汽车等，在50多个国家雇佣约35,000名员工，2024年公布的销售额为88亿美元。了解更多信息，请访问 www.averydennison.com。