Majority of Food Retailers Are in ‘Theft Crisis’ Mode
It’s no secret that retail theft has become a major issue for grocers in recent years, and solutions company Avery Dennison is taking a closer look at how industry executives are currently looking at the issue. According to new research from the company, 65% of food retailers in the United States and United Kingdom say the impact of theft has reached a crisis point, with 38% of respondents saying theft is a bigger concern today than it was 12 months ago.
Avery Dennison surveyed 300 senior retail leaders representing brands with more than 200 stores, and for food retailers, addressing the impact of theft was found to be the leading business concern. Other pressing concerns included optimizing omnichannel, improving staff efficiencies, minimizing supply chain disruptions and addressing talent shortages, respectively.
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Grocers are still in the process of boosting their response to theft, with 55% reporting that 3% to 4% of their total IT budget is allocated to retail theft detection and prevention. Half of the retailers surveyed said those budgets include an increase in spend over the last two years. However, 27% believe those allocated resources are insufficient.
“While theft remains a significant concern, shrinkage extends further to include supply chain waste, misplaced inventory, human error and even fraud,” said Francisco Melo, president, Solutions Group at Avery Dennison. “The impact is substantial.”
Continued Melo: “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 to turn loss prevention into a proactive operation rather than a reactive one.”
Indeed, facial recognition technology was said to be the most effective measure deployed to date among food retailers, followed by security guards, license plate recognition technology and RFID tags, respectively.
As for the future, 77% of respondents said they have either deployed RFID tags or plan to in the next two years, while 42% will deploy AI-enabled cameras and 36% plan to introduce facial recognition technology during that time.
