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A recent survey has uncovered that nearly two-thirds (64%) of major retailers in the U.K. and U.S. are experiencing what they describe as a “theft crisis.” The study, commissioned by Avery Dennison, indicates that over 40% of these retailers view theft as a more pressing issue now compared to a year ago.
The research, which gathered insights from 300 senior retail executives representing brands with over 200 stores, highlights theft as the top business concern. When asked about their top five challenges, retailers cited dealing with theft (36%), optimizing omnichannel strategies (27%), managing increased operating costs (27%), improving staff efficiencies (26%), and retaining customers (24%) as their primary issues.
Retailers are employing a range of both high-tech and low-tech solutions to combat theft. Among the methods used, security guards were identified by 27% of respondents as the most effective, followed by facial recognition technology (23%) and RFID tags (21%).
Looking ahead, 76% of retailers plan to use or are already using RFID technology within the next 24 months. Additionally, 38% intend to deploy AI-enabled cameras, and 37% plan to introduce facial recognition technology during the same period.
Francisco Melo, President of Avery Dennison’s Solutions Group, emphasized that theft concerns extend beyond mere shrinkage to include issues like supply chain waste, misplaced inventory, human error, and fraud. Melo advocates for a data-driven approach to loss prevention, suggesting that advanced technologies like RFID and real-time analytics can transform loss prevention from a reactive to a proactive strategy.
The report highlights Macy’s as a leader in long-term RFID deployment. Joe Coll, VP of Asset Protection at Macy’s, noted that RFID technology has been transformative for the company, providing unprecedented visibility and insight into store operations.
