For as long as shops have been around, so has retail loss, but the fight against theft and error has also enjoyed some innovations and new weapons along the way.

Some of these tools make monitoring the store environment easier, others involve tracking products, and most have only been created in the last 100 years.

So, with that in mind, here are the biggest advancements in retail loss prevention…

CCTV

Closed-circuit television hasn’t just changed retail security, it’s altered the whole world. First invented during WWII in 1942, the technology has since evolved to become digital and smart, allowing footage to be stored in the Cloud.

In the process, it allows retailers a bird’s eye view of what’s going on in-store, including enabling loss prevention professionals to catch thieves in the act of shoplifting or employee theft.

The presence of CCTV has also become a crime deterrent, stopping employees or shoplifters from committing a crime in the first place.

The security tag

Attached to products and able to trigger an alarm if an item is being stolen from a store, security tags are arguably the biggest innovation in loss prevention.

The humble security tag had its beginnings in 1964, and from the ‘70s onwards swiftly became the go-to method of protecting stock at a product-based level.

By the 1980s, adhesive security labels were added to the loss prevention arsenal, but in the years since there have been a host of further developments in both tag and label technology.

Security tags are now harder to detach, more reliable, and are available in a variety of strengths along with designs for specific purposes.

Meanwhile, security labels have also evolved. They now feature a smaller footprint, greater detection and also come in different types that are suited to a wide variety of high-volume products.

RFID

Officially invented in 1983, RFID (or radio frequency identification) has come to revolutionize both supply chain accuracy and inventory counting in retail.

But this nifty technology first found its footing in a variety of other fields. RFID tags are used for tracking shipping containers, they are found in passports, and are also used for microchipping pets.

Basically, the technology involves small chips that can collect and store data – a lot of data.

In retail, RFID tags can contain information like size, color, SKU and location. They can be applied at the point of manufacture or instore, allowing retailers to trace products right through the supply chain and onto the shop floor.

In the process, they facilitate swift inventory reconciliation and boast incredible accuracy. In fact, RFID has been found to offer 99.9 percent supply chain accuracy, compared to traditional barcode accuracy that sits around 31 percent.

mPOS

Mobile Point of Sale might not be viewed as a loss prevention tool, but it’s role in improved order accuracy, stock counting, and inventory reconciliation is undeniable.

mPOS made its way onto the scene shortly after the arrival of mobile tablets in about 2010. And since then, it’s transformed the way retailers manage their business.

mPOS allows retail management instant access into the workings of their business from anywhere, allowing them to see sales, stock at hand, staff who are working at the time, and more.

This provides a level of transparency that is critical in the loss prevention fight.

Smart keys

Smart keys are a fairly recent innovation, but they allow retailers to better secure their stock, while also improving the customer experience and efficiency.

Basically, a smart key is one that can be programmed to open one or multiple locks, depending on the staff member’s level of access.

In the process they can track what cabinet or locked display has been accessed by a staff member, thereby preventing employee theft.

They save the time and hassle of finding the right key to fit a lock, while also offering an insight into critical retail analytics.

You can learn more about effective loss prevention strategies, including combatting employee theft, shoplifting, and Organized Retail Crime here.

The US retail sector may have experienced a bumper festive season, but as many in the industry attest modern retail is a landscape that can rapidly shift.

That means many store owners will be looking to use all the tools available to gain a competitive edge and consolidate their position over the months ahead.

If you’re looking to navigate the changing landscape of retail, here are three big questions every retailer should ask themselves.

Is it frictionless?

A frictionless purchasing journey is one of the major differentiators between retailers on the cutting edge of modern retail and those languishing in the past.

So, what exactly is frictionless and how is it employed? Frictionless describes the entire purchasing journey. It’s a customer experience that eliminates barriers to buying at every touchpoint along the way.

Frictionless retail encompasses both an online and instore focus, seeing the two different types of interactions with a brand seamlessly intersect.

Strategies that accommodate frictionless retail include:

• Omnichannel
• Buy online pick-up instore (BOPIS)
• Mobile Point of Sale to reduce time spent in the queue
• Scan and Go
• Curb-side pickup and delivery
• Streamlined returns

Retail Customer Experience notes the customer’s definition of frictionless continues to evolve.

“…they’ve also become a lot less patient when they encounter what they perceive as friction…consumers from all generational groups expect great service and an ideal shopping experience, regardless of where they are in their shopping journey.

“If brands don’t deliver, consumers will take their business elsewhere. In fact, 76 per cent of consumers surveyed only give brands two to three chances before they stop shopping with them, and 43 per cent cite a poor experience as their top reason to leave a brand behind for good. Simply put, consumers who encounter friction will run the other way fast, and second chances don’t come easily.”

Is it convenient?

According to the latest Consumer View Report by the US National Retail Federation, convenience now ranks as the third most important factor in all purchasing decisions in modern retail.

The report further found an astounding 97 per cent of shoppers noted they had backed out of a purchase because it was inconvenient to them.

Convenience is about catering to a time-poor consumer by enabling them to access items online, find them quickly instore, have them delivered if they wish and pay for them using the method they chose.

The NRF study found, in online retail, 38 per cent of people indicated convenience matters most in the research phase. That was followed by post-purchase (23 per cent), then right before the purchase (20 per cent), and finally at the checkout (18 per cent).

In stores, convenience matters most at the checkout (40 per cent), right before making a purchase (25 per cent), post-purchase (18 per cent), and then in the research phase (16 per cent).

So how do you offer convenience? Well like frictionless retail it’s all about making the experience easy for the customer.

Convenience initiatives include:

• Omnichannel options
• BOPIS
• Curb-side delivery and pickup
• Self-checkouts or scan and go

Does it resonate?

One of the major emerging trends of recent years is the concept of the conscious consumer who expects their chosen brands and products to resonate with their ethical, sustainable and/or environmental values.

In 2018, research firm Nielsen noted half of all Americans would change their consumption habits if they felt it could reduce their impact on the environment.

Labelling it ‘the year of the conscious consumer’, they found the trend was reflected in Baby Boomers, Millennials and Gen X alike. That said, technology-savvy Millennials, were more adamant in their push.

Neilson’s research noted 83 per cent of Millennials (aged 21-34) said it was extremely important to them that companies implement programs to improve the environment, compared to 66 per cent of Gen X and 62 per cent of Baby Boomers.

What’s more:

• Millennials are twice as likely (75 per cent vs 34 per cent) than Baby Boomers to say they are definitely or probably changing their habits to reduce their impact on the environment.
• They’re also more willing to pay more for products that contain environmentally friendly or sustainable ingredients (90 per cent vs 61 per cent), organic/natural ingredients (86 per cent vs 59 per cent), or products that have social responsibility claims (80 per cent vs 48 per cent).

So how do retailers ensure their ethos and products resonate with a conscious consumer?

Well, there are four common ways:

• Transparency and authenticity
• Through ethical sourcing and manufacturing
• By taking a stand on issues that matter to consumers
• Good treatment of staff and suppliers
• Initiatives like recycling that minimise waste and environmental harm

The final word

The customer expectation might be changing, with new criteria added to an ever-growing list of boxes a retailer must tick. But those who recognise the shift and are at the forefront of the response, position themselves best reap the rewards of customer recognition, loyalty and purchasing.

What is live commerce?

Live commerce is a combination of online retail, e-commerce and video live streaming. It allows retailers to showcase products in real time, answer questions and take immediate orders online.

Its popularity has been driven by markets like China where the world’s largest e-commerce platform Taobao connects retailers and producers with consumers, using a standalone app and live streaming features.

Wowza notes the trend promises to transform retail in a similar way to the advent of e-commerce 20 years ago.

In the case of live commerce, “this convergence of video and shopping helps improve engagement, close the gap between customer and product, drive sales, and — in cases where bidding is involved — increase the average sales price”.

Enter ShopShops

In 2017, a new take on this trend was presented in the US. Pioneered by Parsons graduate Liyia Lu, who had grown up in China and the US, it was known as ShopShops and its aim was to connect Chinese consumers with American retailers using live streaming.

The idea sees ShopShops prearrange then host events at retail outlets. Armed with smartphones ShopShops hosts spend time instore asking questions and trying items on or testing them out.

As the National Retail Federation explains: “All of this is live-streamed to consumers in China. They send questions to the host: Does it come in other colors? Can we see that in a different shade? Would you ask her to lean a little closer to the camera?

“And they buy things, right there on the spot. ShopShops accepts payment, collects their commission, packages the product and mails it to the purchaser in China. It’s sort of like American e-commerce, except it’s interactive and there are no returns.”

Each session can potentially draw 30,000-40,000 Chinese viewers and potential customers. In the interim, it not only allows global and interactive retail but also enables merchants to test products in new markets prior to release.

ShopShops explains the concept has three key components: hosts who manage the Livestream events, acting as stylist, fit model and translator to the viewers; stores which have the opportunity to host two-hour live events and open their doors to thousands of global customers; and viewers who tune into the Livestream events to shop the world from the palm of their hands..

The success of the concept has seen ShopShops grown to encompass offices in New York, Los Angeles and Beijing. The company has more than 300 hosts, does 20 to 25 events a day, and is active around the clock except for the hours between 2am and 6am China time.

More to come

ShopShops isn’t the only US player embracing the Livestream trend. In 2019 Amazon launched Amazon Live, which allows retailers to host their own Livestream events and connect with a digital audience.

Last year also saw the launch of Shopping Party, which looks to recreate the traditional experience of shopping with friends at a shopping mall.

The virtual mall experience combines scrolling products on display, and live videos of influencers promoting each item, along with a chat box for viewers to ask questions.

In the future, Augmented Reality and Virtual Reality are expected to further amplify the trend.

For the retailers taking part, live stream offers a wealth of exciting possibilities where the lines between digital and physical become more blurred and the customer could feasibly be anywhere in the world

Each year, retail experts gaze into the crystal ball, seeking to predict the future of the sector. This year it’s no different, with a number of trends forecast to have a major impact on an industry already working through disruption and a changing customer expectation.

With that in mind, here are the top 10 retail trends which are widely predicted for 2020.

Community building

2020 will be all about the “tribe” as retailers seek to create communities which are engaged and loyal to their brand. This will be driven by experiences that extend far beyond just shopping. It will include events, pop-ups and meetups, ensuring customers spend time interacting with each other beyond the traditional brand story.

The circular economy

The conscious consumer will make their presence felt further in 2020 with sustainability and social responsibility in front of mind.

That will give rise to the circular economy, which seeks to minimise waste through the reuse of materials and the remanufacture of items.

Effectively this creates a closed system (or circular economy) that reduces a brand’s footprint, resource input and waste.

Re-commerce

In the same vein, the increasing prevalence of the conscious consumer will continue to drive an uptake in strategies such as re-commerce. Particularly prevalent in fashion retail, re-commerce sees previously used items re-sold.

The National Retail Federation explains brands like Rent The Runway helped propel this trend into the mainstream and it’s likely to grow further in 2020.

“We now have a consumer that isn’t about packing the closet full of stuff, but is trying to understand what is most meaningful to purchase, what is going to last a little bit longer, and how to sort of jettison what was already there,” the NRF reports.

Social media shift

Social media will continue to facilitate the shopping urge with buy now buttons and product information. In fact, in 2020, the lines between social media and shopping and likely to blur further, in the knowledge if its on social, it’s for sale, you just need to find it, and you can through visual search.

Payment flexibility

With the increasing adoption of digital wallets and contactless cards, payment flexibility will be paramount in 2020 and beyond. As Vend explains, cash may never be fully replaced, but customers will look for more convenient and flexible ways to purchase.

They note:

• 90 per cent of shoppers say they use multiple devices to make online purchases
• 46 per cent of smartphone owners use peer-to-peer payment apps regularly.
• 1 billion consumers worldwide are expected to use mobile wallets for payments or money transfers by 2020

Online or bricks and mortar? It’s irrelevant

As NRF president Matthew Shay explained in his holiday retail forecast this year, the concept of online versus bricks and mortar is almost irrelevant. Customers simply expect to be able to shop on the channel that’s most immediately accessible to them, and the distinction between the two means nothing.

For retailers and particularly real-world brands, that means an online offering in addition to a physical outlet is now an expectation.

Experience matters

The customer experience will continue to drive retail in 2020, and word to the wise, it needs to be frictionless. Customer experience will involve every touchpoint a consumer has with a retailer, and those who can offer something unique and meaningful will be primed to achieve success.

5G

5G mobile internet began to really make headway in 2019, but in 2020 it will roll out on a much broader scale. Set to deliver greater bandwidth for video, the Internet of Things and big data, 5G will revolutionise everything from augmented reality and immersive experiences to retail app adoption.

Extended reality

And on the note of augmented reality, there’s a new term now being deployed – extended reality, which encompasses both virtual and augmented.

When employed by retailers, it offers retailers the chance to extend the customer experience by allowing customers to virtually try things on and see products in their own environment.

It’s personal

The push for a personalised retail experience is nothing new, but will again intensify in 2020. Consumers now expect retailers to know them, understand them and reward them with unique deals and offers based on the data they supply.

The final word

In many ways, 2020 builds on trends which have progressively emerged in 2019 and even before. But unlike years gone by, retailers are primed and ready, they know what to expect, what to implement and how to meet the customer expectation to best effect.