Research commissioned by Avery Dennison has shown almost 42% of retailers believe theft is more of a concern today than it was 12 months ago.
The research collates the views of 300 senior retail leaders in the UK and US representing brands with 200+ stores.
When asked to list their top five business challenges, the most cited responses were addressing the impact of theft (36%), optimising omnichannel (27%), increased operating costs (27%), improving staff efficiencies (26%), and retaining customers (24%).
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.
To tackle the surge, retailers are deploying many high-tech and low-tech measures, including RFID tags, worn body technology, and facial recognition technology.
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.”
