Draeger’s Sees 20-Fold ROI on Loss Prevention Technology

Community-based independent Draeger's Markets has improved profit margins and realized an ROI of more than 20 times its initial investment in a loss prevention solution it installed last year in each of its locations.

The San Francisco-based grocer is using the Hawkeye solution from Camden, N.J.-based Agilence, which it deployed in the second quarter of 2009 to reduce shrink at the point of sale. “There’s a famous business axiom that says you cannot measure what you do not know,” said Richard Draeger, president and CEO for Draeger’s Markets. “Agilence enables us to see the margin-robbing activities that were once unknown to us, and gives us a way to track and measure the effectiveness of the correction. It all boils down to the positive impact to margin.”

Agilence’s patented POS Video Auditing Software, Hawkeye, pulls data directly from the point-of-sale system and synchronizes it with video in real-time. The data for each individual item scan and key punch is perfectly linked to its associated video image. The instantly visible video for each suspect line-item enables retailers to view 50 times more transactions per day, allowing them to detect issues immediately and before they cause considerable shrink, according to Agilence.

“Our unique ability to synchronize point-of-sale data with corresponding video enables retailers like Draeger’s to identify operational, promotional, and fraudulent shrink activities that directly affect bottom lines,” said Derek Rodner, VP of product strategy at Agilence, Inc. “As a result, retailers see a substantial ROI within only a few months. In less than a year, we also helped Draeger’s correct problems in the supply chain that ultimately create margin gaps at the POS.”