Retail 2019 - Security Tags

Technology making major inroads into the retail experience

Kyle Hall — Tue, 10 Sep 2019 01:07:34 +0000

Most shoppers believe technology is improving their retail experience, and it is in the product search and decision-making process that consumers value innovation most.

These are the findings of the latest Consumer View Report from the National Retail Federation, who note while technology is making major inroads into the retail experience, there is still room for improvement in terms of awareness and delivery.

Here’s an insight into what the NRF found.

The robot in the room – Summer 2019 Consumer View Report

In early September, the NRF released their Summer 2019 Consumer View Report. Entitled ‘The Robot in the Room’ the quarterly report takes a deep dive into how shoppers feel about and use the technology currently available in retail.

The report notes more than three in five shoppers believe technology and innovation has improved the retail experience, but this varies across the channels available.

They found:

80 per cent of shoppers felt technology had improved their experience online
66 per cent believed it had improved their experience in-store
63 per cent felt it improved their experience on mobile

Eliminating the guess work

When it comes to where consumers value technology most, the majority felt innovation added real value in product search and selection and could be utilized to take the frustration out of the pre-purchase process.

The report found the following top three priorities:

55 per cent of shoppers wanted to know whether a product was in-store or available, and 52 per cent felt it was very important that brands or retailers have these technologies and innovations.

49 per cent wanted assistance comparing products prices or reviews, and 42 per cent felt these technologies were very important.

47 per cent wanted it to be easier to find a product or location, with 41 per cent viewing this technology as important.

Checkout experience

When it came to purchasing methods, most consumers were aware of new technologies like self-checkouts, mobile payments, and buy online, pick up in store (BOPIS) and many shoppers have embraced retail solutions that simplify the checkout experience.

Self-checkout – 62 per cent of consumers are aware of the self-checkout, 89 per cent of those who are aware have tried it and 63 per cent were satisfied.

Mobile payment – 59 per cent of consumers are aware of mobile payment. Of those, 57 per cent have tried it and 69 per cent are satisfied.

BOPIS – 56 per cent of consumers are aware of buy online pickup in store. Of those, 71 per cent have tried it and 67 per cent were satisfied with the process.

Beyond the basics

Beyond the basics of product search and selection, consumers are also now more aware of new technologies available like voice assistants, smart fitting rooms, and social shopping.

Although they may be aware, many are yet to experience this technology, but those who have used it report a generally positive response.

Voice assistants – 43 per cent of shoppers are aware of voice assistants. Of those 64 per cent have tried them and are interested in doing so again.

Social shopping – 34 per cent of shoppers are aware of social shopping, with 78 per cent having tried it and interested in using it again.

In-app store navigation – 56 per cent of shoppers have heard of in-app store navigation. Of those, 89 per cent have tried it and would do so again.

Visual search – 27 per cent are aware of virtual search, and of those, 86 per cent have tried it and would do so again.

Virtual reality – 21 per cent of consumers have heard of virtual reality. Of those 82 per cent have tried it and would be interested in using it again.

Augmented reality – On a similar noted, 1 have also heard of augmented reality, while 86 per cent have tried it and are interested in using it again.

Virtual fit – 19 per cent of shoppers have heard of virtual fi. Of those who are aware, 83 per cent have used it and are interested in trying it again.

Smart dressing room – Just 15 per cent of shoppers have heard of smart dressing rooms, and 88 per cent of them have tried it and would do so again.

The final word

Although consumers are now more aware of technology and its role in the retail experience, its value at present lies in simplifying and streamlining the shopping process.

“Roughly half of consumers are very interested in solutions that take the uncertainty out of shopping — whether that’s knowing that an item is in stock or getting accurate information on prices and reviews,” the NRF report noted.

“And ability to address these needs is already shaping consumers’ decisions on the brands and retailers they shop. These more tactical needs currently outweigh the interest in more personalized or engaging experiences. That is not to say that personalization or retail-tainment is not a differentiating factor for shoppers, but retailers first have to deliver on the basics.”

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Big retail names making a comeback

Kyle Hall — Thu, 25 Jul 2019 04:09:22 +0000

The US retail industry is abuzz this week with news Toys ‘R’ Us is set to make a comeback after last year becoming one of the most high-profile collapses seen in the retail sector.

News reports indicate two locations are set to open in Texas and New Jersey in November with the further hope they may open 10 stores by 2020.

And Toys ‘R’ Us aren’t the only ones rising from the retail ashes. Here’s an insight into big retail names making a comeback.

Toys ‘R’ Us Story 2

Toys ‘R’ Us was seen as one of the greatest victims of the modern retail age. The retail giant filed for bankruptcy in 2017, with 740 stores closing last year. But now the retailer is set to open again under a smaller store format.

CBS News explains the return of the toy seller will be managed as a joint venture between tech retailer b8ta and Tru Kids, a company founded in January to manage the Toys ‘R ‘Us brand after the retail chain’s liquidation last year in bankruptcy court.

The first stores will open at Galleria Mall in Houston, Texas and Westfield Garden State Plaza in Paramus, New Jersey and their aim is to also foster online sales.

Other big brands back in town

As Loss Prevention Media notes, Toys ‘R’ Us isn’t the only retailer seeking to survive a near brush with obsolescence.

They note Radio Shack is now also back in business after partnering with Hobby Town USA. Radio Shack filed for bankruptcy in 2015 after store closures began almost a decade prior. And like Toys ‘R’ Us their resurgence has hinged on reinvention, with the brand rolling out Radio Shack “express” store.

“Radio Shack dealerships had re-opened around 500 stores as of 2018,” LPM explains.

The retail mall

Meanwhile, what was once the mainstay of US retail is also rumored to be rising again, with the retail mall back on developer’s agendas.

In March, Hudson Yards opened to the public in New York delivering one-million-square-foot of retail, with 100 stores across seven levels.

In New Jersey, the American Dream Meadowland mega-mall has also confirmed an opening date of October 25. Once open to the public it will feature more than 400 retailers in a complex comprising 45 per cent retail and 55 per cent entertainment. A mammoth food court, rollercoasters, waterpark and snow park will be among the attractions.

In the interim, CNBC noted in January US mall vacancy rates had backed off from a seven-year high, and were now holding steady.

Part of a renaissance

The resurgence of once declining retailers is part of what GlobalData Retail managing director Neil Saunders believes is a national trend.

“The American retail sector is enjoying a renaissance,” he told the Real Deal. “Sentiment is upbeat and spending fairly carefree.”

An opinion piece in the Financial Times agrees, with writer Brooke Masters noting many recipients of the FT ‘Bold in Business Awards’ this year were retailers who were seizing opportunity amidst adversity.

“There is some hope that we may be seeing that kind of resurgence today,” she reflected.

‘The winners impressed us with how they have responded to everything from supply chain challenges to environmental degradation.

“These companies serve as a reminder that when change hits hard, well-run, well-positioned businesses are the ones that benefit.

“Retailers can prosper when they offer shoppers a real reason to buy there.”

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Top takeaways from NRF Protect

Kyle Hall — Mon, 17 Jun 2019 06:23:51 +0000

The National Retail Federation’s annual loss protection conference has concluded in California, with over 2500 visitors and retail representatives attending NRF Protect from June 11-13.

Considered one of the biggest events on the annual loss prevention calendar, this year’s conference looked at the most recent loss statistics along with a focus on Organized Retail Crime and an increased emphasis on cybersecurity.

Here are some of the key takeaways from the 2019 event…

Latest retail theft figures

Professor Robert Hanson of Northern Michigan University, and Asset Protection & Safety VP Dan Faketty of Southeastern Grocers took a walk through the latest National Retail Security Survey findings, noting the 28th annual survey revealed retail loss in the US now totalled 1.38 per cent of sales or $50.6 billion.

Within those figures there were “new threats and emerging areas of concern”, the pair reflected.

These included:

Identifying the cause of shrink

Combatting internal theft through mobile POS fraud

Combatting external theft through mobile POS fraud

Understanding the technology criminals use

In terms of employee theft, they explained the average dollar loss per incident had remained stead for the past four years, equating to $1264 in 2018.

Meanwhile, each shoplifting incident resulted in an average loss of $546.67.

When it came to robberies, the average loss per incident was $2885.15, which was a 65 per cent decline on 2015.

You can read more about the full findings of this report here.

Organized retail crime

In a panel discussion featuring security specialists and law enforcement professionals, attention turned to Organized Retail Crime (ORC).

They noted three in four retailers had seen a rise in ORC in the past year, with more than one third of those who had seen an increase noting it was significant. Almost half of retailers experiencing ORC also said they believed gangs were exhibiting more aggression.

The cybersecurity issue

Cybersecurity expert and CEO of LMG Security and BrightWise Training, Sherri Davidoff, explained the changing landscape of cyber threats and the risk it posed to retailers.

She noted a lack of security allowed customers and vendors to fall victim to hacking, resulting in retailers losing both money and their reputation.

In a bid to thwart hacking, retailers should ensure they have:

Phishing protection, including user training and technical controls

Strong authentication, including two-factor authentication and long passwords

Patch management

Proactive threat hunting

Outreach and education

Insider risk

Gap Inc Director Nathan Niese, and Petco Loss Prevention Manager Tina Ayo looked at insider risk in the digital age, noting there were three potential types of threats when it came to cybersecurity and the enemy within:

The negligent employee

The exploited employee

The malicious insider

Privilege, misuse and error by insiders account for 30 per cent of breaches, they explained. Combatting the problem came down to creating both a “physical firewall” and technology to protect against threat.

In terms of a physical firewall, retailers should look at:

Risk and compliance

Leveraged resources

Monitoring, incident response and reporting

Training education and awareness

Package theft and pickup fraud

In a rising era of internet shopping and home delivery, attention also turned to the growing incidents of package theft.

Bust Buy representatives Lisa Brock and Jim Behrend explained 30 per cent of Americans had experienced package theft, with the average value per item equaling $140.

They reflected the issue presented a unique challenge but ways of reducing the problem included documentation, and new technology.

Meanwhile, combating pickup fraud involved identity authentication at the time of sale and pickup, with new technologies allowing new identification methods.

In terms of shipping from store, the biggest challenge was issues like label fraud and theft, they reflected. And here, auditing, restricted access to the warehouse, strategic store set-up and reporting could all play a role in reducing loss.

Identify gaps in your processes and policies, they urged retailers. Also align all channels, including eCommerce, customer care, retail, supply channel, legal and real estate, while focusing on reporting.

The self-checkout

Technology offers the potential to save in labor costs, and one such innovation is the self-checkout, loss prevention researched Mike Giblin, and loss prevention professional Laura Lasko noted in their presentation.

First introduced in 1992, the self-checkout is now present in 59 per cent of stores. But it also poses a risk for retail shrink, accounting for approximately 21.7 per cent of loss.

Addressing the problem involved using attentive self-checkout attendants to oversee the area, they stated. These attendants should be trained in all areas of self-checkout misuse including failing to scan items, improper weighing, and incomplete payments.

“Enough self-checkout attendants should be scheduled to help monitor the area during busier hours. Attendants should avoid standing at the podium and regularly interact with customers,” they said.

Meanwhile, reporting also played a critical role in self-checkout loss.

NRF Protect is held annually and features a focus on cyber and digital crime, risk management, talent and culture, theft and fraud, and workplace violence.

Photo Source: NRF Protect 2019

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Retail shrink cost US retailers $50.6 billion in 2018

Kyle Hall — Tue, 11 Jun 2019 00:53:13 +0000

Retail shrink cost US retailers $50.6 billion last year, according to the National Retail Federation (NRF) which released its latest security survey last week.

While the figure represents a value rise on the year prior, the NRF notes the shrink rate is actually holding steady at 1.38 per cent and the increase in the monetary figure is also representative of an increase in sales.

Meanwhile, they note the retail risk landscape is rapidly shifting, with new threats requiring new strategies to combat loss.

Here’s an insight into what their latest security survey found…

The report

Compiled each year, the National Retail Security Survey gathers input from loss prevention professionals based on their experiences in the year prior, as well as their current situations and future plans.

This year’s results indicate a number of new trends are emerging, with an increased focus on organized retail crime, internal theft, cyber crime, and return fraud. Meanwhile, the shrink rate remains “stubbornly steady”.

The shrink rate

The total shrink rate remains at 1.38 per cent, and the NRF explains it has lingered around this point since 2014.

“While the lack of movement in shrink rate might sound like a positive, as LP professionals are well aware, it can mean billions of dollars in losses for the industry overall,” they note.

“Perhaps even more concerning is the spike in the highest levels of shrink: 36.3 per cent of retailers reported shrink rates of 1.5 per cent or higher, up from just under a third (32.7 per cent) in FY 2017. The amount with the highest shrink rate – 3 per cent or higher – has climbed steadily from 6.6 per cent in FY 2014 to 10.9 per cent in FY 2018.”

Shoplifting apprehensions down

In positive news, shoplifting apprehensions have decreased significantly. In 2018 apprehensions, prosecutions and civil demands equaled an average of 1248.9 in total, compared to 2377 in 2017, 2190 in 2016 and an astounding 7458.7 in 2015.

However, the average dollar loss per incident remains high. In 2018, the average cost per incident was $546.67, compared to $543.28 in 2017, $798.48 in 2016, $376.80 in 2015, and $317.84 in 2014.

Emerging threats

Cybercrime, organized retail crime and return fraud are among the emerging threats retailers are now looking to target.

The report noted: “Compared with the last five years, LP leaders say they see a greater urgency in combating various methods of crime. Organized retail crime and cybercrimes in particular are more of an issue. For retailers with fewer than 500 stores, organized retail crime has become much more of a priority. For retailers with more than 500 stores, e-commerce crime has become much more of a priority.”

In terms of statistics:

Organized retail crime – 28.6 per cent of all retailers said organized retail crime was becoming much more of a priority, while 36.5 per cent noted it was becoming somewhat more of a priority

Cyber crime – 26.5 per cent of all retailers stated cyber crime was becoming much more of a priority, while 42.9 per cent noted it was becoming somewhat more of a priority

Internal theft – 25.4 per cent of all retailers stated internal crime was becoming much more of a priority, while 34.9 per cent noted it was becoming somewhat more of a priority

E-commerce crime – 17.5 per cent of all retailers stated e-commerce crime was becoming much more of a priority, while 47.6 per cent noted it was becoming somewhat more of a priority

Return fraud – 12.7 per cent of all retailers stated return fraud was becoming much more of a priority, while 38.1 per cent noted it was becoming somewhat more of a priority

Strategies to combat loss

More and more retailers are investing in technology to combat loss. This year some of the biggest increases in adoption included security tags, database screening systems, POS analytics and digital video recording.

The report found:

46 per cent of retailers now use merchandise alarms/electronic security tags – an increase of 25.4 per cent since 2018.

9 per cent of retailers now use acousto magnetic/electronic security tags – an increase of 12.7 per cent on 2018

6 per cent of retailers now use check approval database screening systems – a rise of 11.1 per cent on 2018

1 per cent of retailers now use digital video recorders – a rise of 9.5 per cent since 2018

In addition, more than six in 10 retailers indicated they had implemented point of sale analytics, either fully or in pilot phase.

“Another 25.4 per cent say they will implement this technology in 2019 or 2020,” the report noted.

“However, other LP tech tools are much further behind. Fingerprint ID at the point of sale and facial recognition – while small – are gaining in adoption over last year, when roughly 90 per cent of respondents said they had no plans to implement either technology.”

Technology that is decreasing in use included:

Remote IP CCTV monitoring – used by 57.1 per cent of retailers but down 19.1 per cent on 2018

Theft deterrent devices like spiderwraps and keepers – used by 23.8 per cent of retailers but down 17.5 per cent on 2018

IP analytics – used by 22.2 per cent of retailers but down 9.5 per cent on 2018

The final word

The NRF security survey paints a picture of a complex loss prevention landscape. Many retailers are successfully harnessing technology to counter traditional problems like shoplifting. But even as they do new threats are emerging.

As always loss prevention remains a playing field where retailers are constantly kept on their toes, seeking new and innovative ways to combat loss.

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2019 a year of retail transition, predicts Deloitte

Kyle Hall — Wed, 20 Mar 2019 06:47:33 +0000

Deloitte has released its retail predictions for the year ahead, noting 2019 will be a year of transition for US retailers.

Following a bumper holiday season, they tip this year will again be driven by disruption and an increased consumer expectation, where retailers who clearly understand their position, potential and role in the market will be best poised to thrive.

Here’s an insight into the retail trends of 2019 and the top tips that retailers can embrace to strike a chord with an increasingly savvy consumer.

A year of transition

Deloitte explains 2018 offered a lot for US retailers to digest. The year featured trade and economic tensions, mixed retail figures, some high-profile bankruptcies, yet a record-breaking holiday season.

It also saw the consumer expectation further increase, as the digitally savvy shopper continues to embrace the idea of having it all – convenience, values that align with their own, information at their fingertips, and a more personalized retail experience.

“The next 12 to 18 months will likely see an industry in transition—an industry managing through uncertain times and placing bets on what will separate the winners from the losers. Those who can synchronize their investments to profitably empower the consumer will likely find themselves on the right side of the tipping point.”

Why do you matter?

In 2019, retailers will need to know why they matter more than ever before. In an increasingly competitive online and physical space, they will need to be “crystal clear” about their offering and position in the market.

What makes you unique? Why would the consumer pick you? What can you offer in a way no-one else can? And how do you make yourself indispensable to your target market?

These are all questions retailers need to answer and thoroughly understand in order to carve out their niche in a world filled with choice and information.

I want it all…

It’s little secret today’s consumer is more empowered than ever before. They have choice, information and insight into products at their fingertips courtesy of the online world and social media.

They also have greater expectations of the retailers servicing their needs.

“Consumers realize they can have it all. Today’s digital consumer is increasingly connected, has more access to information, and expects businesses to react to all their needs and wants instantly. Many shoppers have an increased desire for personalized services, and they are starting to think more about privacy in the wake of high-profile corporate and social data breaches,” Deloitte reflects.

So, what is it that they want?

Convenience

In a time-poor era, convenience ranks as one of the key factors that consumers seek. This was also touched on at this year’s NRF Big Show when Lee Peterson of WD Partners noted click-and-collect, along with online order fulfillment, offered major potential for bricks and mortar.

In many cases it’s easier and cheaper to ship an item from a store’s inventory than from an online distribution centre, he explained.

Deloitte’s key tip: Win consumers with convenience

“The top reason consumers shop online: convenience. Alternative fulfillment-driven offerings that are more expensive to execute can improve experience. Invest in consumer-facing convenience that moves the needle, and look for opportunities to make up margin elsewhere.”

It’s personal

Consumers now expect to be viewed as more than a number or a faceless member of the crowd. Retail is personal, with data and analytics fueling the trend.

“Retailers should leapfrog their current approach to personalization, offering more than mass customization, which involves bucketing your consumers into a limited number of segments,” Deloitte claims.

“The next phase becomes an exercise in data aggregation and activation, reducing each segment to a single individual. Retailers should refine each consumer profile based on data from all types of sources—social media, transactions, and reviews— to achieve ultra-personalization.”

The importance of values

Brand loyalty continues to play a role in retail, but is a two-pronged approach focused on loyalty rewards and offering values that align with those of the consumer.

“Outside of adapting and refreshing the loyalty program, driving consumer loyalty can require a focus on integrity and identity to create an emotional connection,” Deloitte explains.

Their tip? “Consumers are spending their money in ways that align with their values and identity. Look for opportunities to unite consumers through a loyalty program by connecting on values.”

Not just innovation for innovation’s sake

In another theme that was touched on at this year’s NRF Big Show, Deloitte notes innovation should be focused on better servicing the consumer, rather than innovation for innovation’s sake.

“Retailers should start with the job to be done and understand the true values expected from the solutions. With this foundation, retailers can determine what internal and external technologies they need to fulfil their brand promise.”

You can read more about further predictions for retail in 2019 here, or gain an insight into the current state of retail outlined at this year’s NRF Big Show here.

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Five retail predictions for 2019

Kyle Hall — Tue, 22 Jan 2019 21:57:42 +0000

The customer experience will dominate retail as online shopping continues its rapid rise and the industry embraces further technology in 2019.

These are the major predictions for a retail industry already grappling with major disruption, with the retailers who understand how best to employ data, analytics and tech-enabled service best primed to enjoy a prosperous future ahead.

So, let’s take a deep dive into what’s tipped to occur in retail over the coming months, with five retail predictions for 2019.

It’s all about the experience

The “customer experience” has been the catchphrase of recent years, and 2019 shows no signs of this trend abating. However, this year that experience will become increasingly personalized.

Ragtrader notes “customer experience” is shifting to “intimate experience”, with consumers now expecting greater personalization when it comes to both offers and service.

They note 55 per cent of consumers now expect to receive personalized offers within 24 hours of making themselves known to a brand. Meanwhile, 70 per cent express frustration at impersonal shopping experiences.

In addition to better customer loyalty programs, and e-marketing, that’s seeing major bricks and mortar retailers rethinking their offering. In a bid to cater to a better informed, time-poor consumer, the lure of browsing is no longer enough.

Now, customers are increasingly attracted to an expedited in-store experience, or alternatively, the point of difference that only bricks and mortar can offer where the “touch, feel, try” elements of real-world retail are played to their strengths.

Online retail rising

It’s no surprise, but online shopping is tipped to increase further this year, with Amazon and eBay leading the charge.

Statista predicts online retail revenue will increase from $504.5 billion in 2018 to $560.7 billion this year and rise further to $700 billion by 2022.

For real-world retailers that means an omnichannel presence is imperative. Consumers may still be buying from them, but chances are they will use the store to experience a product, and research and purchase it online.

Augmented Reality

Already utilized by industry leaders like Lacoste and American Apparel, augmented reality is set to play an increasing role in the purchasing experience, allowing consumers a virtual way to understand a product.

Shopify notes Lacoste created a mobile app that customers could use to virtually try on shoes. The app also created AR experiences with window displays, in-store signage, and promotional postcards.

“More than 30,000 users engaged with 3D products while using the app. They quite literally put the shopping experience in the customers’ hands,” they explain.

“It’s a smart move, especially considering 61 per cent of consumers prefer stores that offer AR experiences — and 40 per cent of them would pay more for your product if they have the chance to experience it through AR.”

Chatbots the first point of contact

Whether it’s via a retailer’s website or social media, chatbots are now becoming commonplace as the first point of contact for answering mundane queries. This virtual, tireless customer service assistant will add more retailers to her resume in 2019.

Handling everything from inquiries about store opening hours to available stock, chatbots are working 24/7 to answer consumer questions and advance the purchasing journey.

That’s having the added benefit of allowing physical customer service personnel to better answer more detailed inquiries and complaints.

Voice-activated retail increasing

Recent research indicates one in six Americans own a smart speaker, and retail is one of its major uses.

According to OC&C Strategy Consultants, voice commerce sales reached $1.8 billion last year and they’re predicted to reach $40 billion by 2022.

Meanwhile, Google states 52 per cent of voice-activated speaker owners would like to receive information about deals, sales, and promotions from brands, and 39 per cent would like to receive options to find business information.

The roundup

This year’s predictions should come as little surprise to retailers already in the grips of a tech revolution.

In short, 2019 will see the customer expect more both online and in the real world, and technology will be the tool that delivers.

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