The Fight Against Retail Crime
Zac Blocker, Director of Sales, Scorpion Security Products
Inventory shrink costs retailers over $50 billion dollars a year in the US alone, according to a report released by the National Retail Federation (NRF)—That’s billions, with a B! As this number continues to grow, so does the overall problem at hand, theft. The days of retailers being concerned about an individual shoplifting a baseball cap or candy bar are long gone. The rise of retail crime is far more serious, and has many retailers actively looking for answers. When you break it down, retailers, on average, are losing $139 million dollars every day—This is a staggering number and says a lot about how the risk landscape is changing. The impact of shrinkage on the retail industry continues to be quite sizable. Due to technology, innovations, and increased cost per item—retailers are experiencing massive losses that have a detrimental ripple effect, per theft event.
In an article written on Retail Dive, Bob Moraca- NRF Vice President for Loss Prevention spells it out: “We are seeing dramatic changes in the risks faced by retailers… As criminals find new ways to steal, loss prevention teams are finding new ways to stop them. Increasingly, this is a battle focused on technology.” Among the top threats retailers are facing, organized crime (ORC) is seen as the largest threat and is also where companies are keeping their focus for loss prevention and asset protection efforts. Over the last twelve months, 91.6% of retailers have been a victim of ORC gangs, and of this number, electronics retailers were among the most targeted. At Scorpion, retailers constantly ask us: How can I keep my retail store secure? How can I stop theft? What security is necessary to keep my store safe? What measures must be taken to protect my people and my products? At Scorpion we are proud to stand side by side with our customers, and create strategic action plans to STOP retail crime. In addition to the security products and services we offer—we’ve also outlined a few items that we believe can help your business take a preventative stance against retail crime:
- Knock Customer Service Out of the Park: Good customer service is one of those things that never goes out of style—By approaching customers, greeting them, offering assistance and making eye contact, it can often help deter dishonest activities. Afterall, a perp’s worst enemy is an attentive store associate.
- Keep an Organized Storefront: Studies have shown that a store with dirty floors, unpleasant odors, dirty shopping carts and unclean bathrooms directly impact negative shopping decisions. On the flip side of this, studies also show that good housekeeping practices have a positive impact on shopping behavior—Clean and well-organized aisles/shopping areas can often deter the dishonest shoppers.
- Focus on Good Merchandising Practices: According to an article on LPM, one of the most effective and proactive tools for retailers is strong merchandising. The belief is that when retailers effectively use store fixtures and displays to showcase their products, it will increase merchandise sales, drawing in the green shoppers and reducing opportunities for the red shoppers as it becomes difficult to conceal dishonest activities.
- Couple #3 with Good Security: The combination of good merchandising practices and security can have a powerful impact on theft prevention. Taking the proper steps to ensure that your products and people are secure is crucial—And can often be challenging for the retailer. As Bob Moraca stated above, “Increasingly, this is a battle focused on technology.” Retailers are going to rely on innovation to help fuel the fight against retail crime. Scorpion Security Products prides itself on offering the market highly secure merchandising solutions so that there is never a trade off between aesthetics and consumer engagement.
Simply said, retail shrink continues to increase, as does the growth of organized retail crime. In addition to loss prevention technology and innovation, there are simple steps that retailers can take towards combatting shrink including, enhancing their customer service, keeping a clean, organized storefront and focusing on good merchandising practices. Scorpion is playing a significant role in the fight against retail crime and is always looking for ways to help customers achieve the perfect balance of consumer engagement and aesthetics when it comes to security. We understand the retail security landscape and how its evolving—If you’re looking for a way to secure your products and your people, you’ve come to the right place, let a member of our experienced team show you that security doesn’t mean a compromise in merchandising or customer experience. Reduce shrink and manageable steps to help limit theft and other retail crimes—Start today!
About Scorpion: Scorpion Security Products, Inc. was founded in 2008 by CEO, Pete Gulick. We are a leader in the retail security industry, specializing in display security for handheld electronic devices. Our mission is to provide our customers with the highest level of consumer engagement while maintaining maximum security.
Scorpion Security Products
Director of Marketing