Nearly two-thirds of food retailers in the UK and US believe the impact of theft has reached a crisis point, according to a recent study.
The research, commissioned by Avery Dennison, surveyed 300 senior retail leaders in the UK and US, representing brands with over 200 stores.
Nearly four in ten (38%) participants expressed that theft is a greater concern today than it was twelve months ago.
Theft has emerged as the leading business concern among food retailers, with 35% identifying it as their top business challenge. Other challenges include optimizing omnichannel strategies (27%), improving staff efficiencies (27%), minimizing supply chain disruptions (26%), and addressing talent shortages (24%).
Addressing Challenges
To tackle these challenges, food retailers are implementing a combination of anti-theft and loss prevention measures.
More than half (55%) of retailers have allocated 3% to 4% of their total IT budget to theft detection and prevention. For 50% of the surveyed retail leaders, this represents an increase in spending over the past two years. However, over a quarter (27%) believe the resources allocated are still insufficient.
Retailers have deployed various technology-based measures, such as RFID tags, body cameras, and facial recognition technology, in addition to security guards, to combat the increase in theft. Respondents identified facial recognition technology (26.3%) as the most effective, followed by security guards (25.7%), license plate recognition technology (25.7%), and RFID tags (21.6%).
More than three-fourths (77%) of food retailers have either deployed RFID tags or plan to do so within the next 24 months. Additionally, 42% of food retailers plan to deploy AI-enabled cameras, while 36% intend to introduce facial recognition technology within the same period.
Substantial Impact
Francisco Melo, president of Solutions Group at Avery Dennison, emphasized the broader implications of theft. “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 safer store environments, it is imperative that retailers take a data-led approach to security. Leveraging advanced track and trace technologies such as RFID, with real-time analytics, will help turn loss prevention into a proactive operation rather than a reactive one,” Melo added.
Related Topics:
