Prepared by : Sudhir Mehrotra
Retail Shrinkage Shrinkage is a part of the business no one likes to talk about. However, shrinkage plays a huge part in every retailer's business. Retail shrinkage is the portion of your inventory that gets lost or stolen. Your shrinkage rate is expressed as a percentage based on the value of lost inventory divided by sales during the same period. Keeping your shrinkage rate low is critical to success in business.
Indian retail has highest rate of shrinkage As per a study by “Global Retail Theft Barometer”, retail shrinkage in India continues to rank the world’s highest at 2.7%. Indian retail lost Rs 9,295.9 crore to shoplifting and theft during the one year period ending June, The annual survey was conducted by the Centre for Retail Research in Nottingham, UK. In India, 47.3% of retail shrinkage was due to shoplifting and 26.4% due to employee theft. The highest rate of shrinkage was seen in apparels. As per the study, the lowest rate of shrinkage was witnessed in Taiwan, at 0.87% of retail sales, whereas the average rate in the Asia-Pacific region was 1.16%.
The key drivers Unemployment claims during a recession is associated with an increase in shoplifting. Shoplifting tends to rise amid high inflation as goods are priced out of consumers’ reach. Theft by the employee working in the retail outlet. Persons between the ages of 15 and 24 represented the highest share in Shoplifting to fulfill there goal.
Spot the Shoplifter Wears bulky, heavy clothing during warm weather. Takes several items into dressing room and only leaves with one item. Seems nervous and possibly picks up random items with no interest. Frequently enters store and never makes a purchase. Enters dressing room with merchandise and exits with none. Spends more time watching the sales clerk than actually shopping. Large group entering the store at one time. A member of the group causes a disturbance to distract sales staff.
Retail Shrinkage Prevention Usage of cctv to have close watch on customers. Checking of staff. Security staff at the entrance of the gate. Customer baggage check by security staff Issue of token for the baggage. Installation of EAS system
EAS system technology Electronic article surveillance (EAS) is a technological method for the prevention of shoplifting from the retail stores or pilferage of books from libraries. Special tags are fixed to merchandise or books. These tags 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. For high-value goods that are to be manipulated by the patrons, wired alarm clips may be used instead of tags.
Types of EAS system Acousto-magnetic systems. Radio-frequency systems. Video surveillance systems Magnetic systems
Radio frequency system includes: ANTENNA HARDTAGS DETACHER Radio-frequency systems.
ANTENNA The characteristics of the system ANTENNA: Plug-n-play installation Sturdy tubular pedestal design Built-in audio and visual alarms Tags-to-close notification Compatible with all 8.2Mhz using multiple pedestals Designed for easy installation and operation
Hard tags(EAS) Hard tags are made with best-in- class design practices for exceptional detection performance, durability, ease-of-use, appearance, and defeat resistance. Hard tags are available in a variety of styles for use in protecting apparel of all types from delicate lingerie to coats and hats, as well as hard goods such as sports equipment, hardware, electronics, and others.
Detacher Retail security offers various ranges of detachers applied for the reusable tags. Easily installed in cash counter or other necessary places, these are easy to use, very durable and reliable. Characteristics. Sturdy and durable Easy to use and reliable Mounting options Detacher Locker options help prevent unauthorized unlocks.