Tech Solutions to Shrinkage in Retail
Industry leaders, government officials and law enforcement agencies globally are working to address an alarming growth in retail theft. The issue is being debated from Washington DC to Canberra, where criminal activity in all retail categories has motivated more shop owners to look for automated solutions that can help prevent crime.
How Xovis Sensors Help Retailers
Emerging trends in retail theft are causing global concern, particularly the practice of "skip scanning," which is costing the industry millions in losses. This rudimentary theft technique, also known as walkouts, involves customers either not scanning, under-scanning or fraudulently scanning items and then leaving the store.
Fortunately, technology-based solutions are available. Xovis sensors are increasingly being used to help retailers from Australia to Austria reduce shrinkage by managing multiple considerations. These innovations are a significant step in the fight against retail theft and industry security.
Preserving the retail experience while fighting crime
That physical retail spaces are thriving is as true as the need for, if not reinvention, at least a realignment of these spaces. Transformations are underway, with tech solutions playing a leading role. But there are still some major open questions about what the physical retail spaces of the future will look like, how they will support the consumer experience and which changes will support companies’ bottom line.
Many observers of the situation may argue that the remedy cannot be worse than the cause and that such extreme measures will, eventually, compound problems by alienating customers, but the problem is real (and really expensive) and mobilizing governments, trade groups and companies.
What is the role of sensors in limiting shrink
Physical retail spaces are complex ecosystems pulling together many systems designed to deliver or respond to the varying and often conflicting demands of many groups. The industry understands this all too well, which is why many industry leaders seek out tech solutions that can deliver synergies and solve problems at multiple touchpoints (preferably without creating new problems down the line).
Consider self-checkout or self-scanning, a tech solution that addresses labor strains, fits within broader inventory strategies and gives consumers what they want: frictionless buying without a feeling of time wasted in a queue. Knowing these areas resolve some major issues but still have some vulnerabilities in terms of loss prevention, retailers are looking for supporting systems that can help minimize shrinkage without risking other beneficial features.
Xovis sensors are already being used to support solutions designed to cut down on loss at self-scanning zones without creating new friction points for customers. Loss prevention strategies that incorporate automated technology require rich, real-time data, which is why Xovis sensors are being used with loss prevention strategies in Europe, Asia, and the Americas.
To learn more about how our solution is used to limit theft in self-scanning zones, the issue that is raising so much concern in Australia, have a look at this presentation from Swedish partner ITAB from the 2023 edition of EuroShop.
Shrinkage is as old as retail and cannot be resolved overnight, if ever. But tech that can deliver real-time analytics—anonymously, and that is important—about what is happening at both opportunity and problem zones has a great chance of winning favor among retailers prioritizing great retail experiences.
Tags: | retail | technology | shrinkage | consumer | analytics
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