post-pandemic - Security Tags https://www.securitytags.com Tue, 26 Apr 2022 19:55:11 +0000 en-US hourly 1 https://www.securitytags.com/wp-content/uploads/2018/10/Favicon-1-100x100.png post-pandemic - Security Tags https://www.securitytags.com 32 32 How COVID affected retail theft https://www.securitytags.com/how-covid-affected-retail-theft/?utm_source=rss&utm_medium=rss&utm_campaign=how-covid-affected-retail-theft Sun, 16 May 2021 23:47:43 +0000 https://www.securitytags.com/?p=32324

The data is in and while reported incidents of shoplifting and employee theft declined in 2020, the value of each incident increased.

According to the 33rd Annual Retail Theft Survey by Jack L Hayes International, over 184,000 shoplifters and dishonest employee were apprehended in 2020 by just 22 large retailers. In total over $81 million was recovered.

Here’s a breakdown of what the survey showed…

Fewer shoplifting incidents

With Covid lockdowns seeing much of the retail sector closed temporarily during 2020, there were fewer reported thefts.

Last year, shoplifting apprehensions were down 43.8 per cent and recovery dollars decreased 36.5 per cent.

In total, 158,158 shoplifters were apprehended by the 22 major retail chains surveyed.

Meanwhile, dishonest employee apprehensions decreased by 20.3 per cent while recovery dollars were down 17.2 per cent, and in total, 26,463 dishonest employees were apprehended.

That said, shoplifting in the retail sectors deemed ‘essential’ experienced an increase of 7.9 per cent while employee theft also rose 2.7 per cent.

Incident value increased

Incident value increased

While the number of shoplifting and theft incidents was down, the value of each event increased significantly.

In terms of total thefts, each event averaged $440.48, which was up 19.2 per cent on the year prior.

Meanwhile, shoplifting averaged $310.11, which was an increase of 13 per cent and each employee theft averaged $1,219.61 (up 3.8 per cent in 2020).

The true cost of theft

The survey also took the time to dive a little deeper into how much was lost compared to how much was recovered.

“For every $1 recovered by our surveyed companies, $33.15 was lost to retail theft. Therefore, only 2.9% of total retail theft losses resulted in recovery,” they noted.

This figure is based on the assumption that annual retail sales of the participating companies were $508 billion and the average shrink rate was 1.62 per cent of sales according to the 2020 National Retail Security Survey.

The reasons behind shoplifting increases and decreases

The reasons behind employee theft increases or decreases

Those stores which experienced a shoplifting increase cited the following reasons:

  • ORC (Organized Retail Crime) continues to be a primary factor.
  • fewer stores to choose/steal from.
  • Saw significant increase in “theft for need”.
  • Legislation increasing felony thresholds embolden thieves.
  • More ‘hit n run’/fleeing shoplifters.

Meanwhile, those that noted a decrease in incidents attributed it to the following:

  • Store closures resulted in fewer shoppers.
  • Transition to deterrence/recovery during the pandemic.
  • Closing of fitting rooms for extended periods of time.
  • Focused on better customer service.
  • Less LP/AP staff due to restructuring or transition.

The reasons behind employee theft increases or decreases

In terms of employee theft, retailers which experienced an increase attributed it to the following:

  • More focus/attention towards associate theft.
  • Improved technology/analytic tools resulted in more DE cases.
  • Fewer associates in-store created more opportunities for dishonest employees.
  • Increase in loyalty card fraud.
  • Increase in discount abuse cases.

Those who enjoyed a decrease cited the reasons listed below:

  • Store closures and furloughed associates.
  • Less focus on apprehensions and more focus on pandemic issues.
  • Better prevention with additional technology at POS.
  • Reduced travel by LP/AP staff.
  • Decrease in LP/AP staff due to restructuring or transition

You can find the full Annual Retail Theft Survey here, or see our top tips on loss prevention.

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Retail beyond the pandemic – where to from here? https://www.securitytags.com/retail-beyond-the-pandemic-where-to-from-here/?utm_source=rss&utm_medium=rss&utm_campaign=retail-beyond-the-pandemic-where-to-from-here Sun, 11 Apr 2021 22:40:34 +0000 https://www.securitytags.com/?p=32256

A new report has defined five key areas bricks and mortar retailers can focus on in a bid to improve the bottom line as the COVID recovery for the retail sector increases in momentum.

Artificial Intelligence company Olvin recently released their ‘Retail Statistics, Trends, and Forecasts For 2021’, noting there is exciting opportunity for real-world retail in the years ahead, but only if they capitalise on lessons learned in 2020.

Here’s an insight into what they found…

The fallout from 2020

Olvin minced a few words when it came to outlining just how tough 2020 was on retailers.

They noted 90 per cent of consumers said their shopping habits had been impacted by COVID, while bricks and mortar shopper volume was down by a third compared to 2019 in October alone.

Of the verticals affected, fashion was among the hardest hit, with revenues in 2020 down 27 per cent to 30 per cent compared with 2019.

Still, it wasn’t all bad news.

Some areas of retail actually grew, with food and beverage sales up 8.5 per cent, general retail increasing by 7.8 per cent, and cleaning products alone seeing a spike in sales of up to 40 per cent.

Meanwhile, omnichannel retail was of course a clear winner.

“Around 15 per cent of consumers that responded to an online survey said that as of June 2020, they were using online, pickup, or in-store services more often,” Olvin reported.

“And that’s partly because of the increase in businesses that are investing in omnichannel – the use of omnichannel approaches has risen by 80 per cent since the start of 2020.

“It makes sense – retailers have to adapt, and there has probably never been a time that they have needed to adapt faster than during a global pandemic.”

The road ahead

Alibaba

The retail sector rebounded over the holiday season with record spending also extending into Valentine’s Day and Easter.

That said, Olvin notes around 40 per cent of Americans don’t expect their finances to return to normal until late 2021 or even 2022 and beyond.

Despite this, there is a widespread sense of optimism in the recovery of the economy. Forty-one per cent of people in the US said they were optimistic about the economic future.

And, as a result, 12,200 stores have revised their plans to close.

But how can retailers maximise that optimism and translate it to the opportunity ahead?

Bricks and mortar potential

Olvin said despite a tough 2020, there is hope for the future of real-world retail based on the recent resurgence in both sales and optimism.

But they note it will centre around four key trends emerging post-COVID.

A focus on the consumer

More than ever before, the customer experience will be critical in the months ahead.

“Knowing your customers might be one of the first rules of retail, but after setting up, many businesses lose sight of what their customers want…,” Olvin said.

Ethical activity

The conscious consumer has steadily been shaping retail in recent years. The period ahead sees this trend likely to strengthen.

“The increase in the amount of information that is available about companies means that consumers are also becoming increasingly conscious of the power their purchases have,” Olvin said.

“Customers are not only choosing the products they buy much more consciously, but they are also deciding which businesses they are prepared to buy from much more carefully too.”

Cost-cutting

The retail bottom line is increasingly becoming the differentiator between the stores that thrive and those who fail to survive. And shoring up this bottom line through cost-cutting is essential.

“To remain competitive, retailers are likely to be cutting their costs significantly in 2021 – and will need to do so while keeping the right balance with their ethical credentials,” Olvin noted.

Creative use of space

The traditional bricks and mortar could well be a thing of the past, with retailers reconsidering exactly how they utilise their physical real estate.

That’s seeing an increase in alternative uses of retail space, whether it’s a dispatch outlet, an immersive experience, coffee outlets, or in-store recycling facilities.

The final word

When it comes to where people intend to purchase their Easter-related items, discount stores are the most popular choice, with 43 per cent of survey respondents noting they intended to shop there.

Discount stores are followed by:

  • Department stores – 35 per cent.
  • Online – 35 per cent (the highest percentage in the survey’s history and up from 28 per cent last year).
  • Specialty stores – 23 per cent.
  • Small businesses or local stores – 23 per cent.

Meanwhile, as vaccination rates increase, celebrations are also on the rise.

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