MEDIA RELEASE PR37953
Report Reveals Areas Where Retailers Can Reduce Theft and Improve Store Efficiencies
BANGALORE, Jan. 27 /PRNewswire-Asia-AsiaNet/ --
Better Business Intelligence, More Accurate Inventory Tracking and More Creative Uses of Existing
Technologies Are Key to Improving Profits
A new study, sponsored in part by ADT and its Sensormatic Retail Solutions group, reveals the need for
retailers to focus on technology solutions that enhance their current operational goals and combat theft without
adding labor costs. "Loss Prevention 2010: Retailers Battling Shrink in Tough Times," found that during these
challenging economic times, retailers face increased pressure to identify better business intelligence, improve
inventory accuracy, and embrace more innovative uses of existing investments as a means to improve
profitability and conserve working capital.
Retailers are focused on getting the most value from their existing investments in both high and low-tech
tools without having to add people to review detailed data, according to Paula Rosenblum, an analyst and
Managing Partner for Retail Systems Research (RSR) and co-author of the report.
The on-line survey of 83 small to large multi-national retailers was conducted by RSR in the fall of 2009.
Retailers identified their top three sources of shrink as employee theft of merchandise, shoplifting and
employee theft of cash.
Over the past year, RSR reports that 44 percent of retailers have experienced a rise in theft, likely due to
challenging economic conditions. Findings indicate that top retail performers - those whose sales growth
outpaced the three percent industry average - place an even higher priority on Loss Prevention (LP): 78
percent report an increase in year-over-year LP's priority, vs. 43 percent of underperformers.
"Given the challenging conditions retailers will face in the near future, any technology enhancements must
help to reduce labor costs while delivering better business intelligence," said Rosenblum. "Tools such as
Video Surveillance, Returns and Void Management, Exception Analysis Reporting and Cash Management are
crucial for retailers to be more profitable. Retailers are also paying more attention to managing their item level
perpetual inventory systems to gain better insight into lost sales."
Among the more detailed findings:
-- Retailers report employee theft of cash has increased from 32 to 45
percent of total losses. This appears related to challenging economic
conditions and has prompted retailers to recognize the need for better
business intelligence to analyze results, rather than more staff to
examine report details.
-- When it comes to roadblocks impeding retailers from progressing in
their loss prevention efforts, 86 percent say they are challenged for
capital, 41 percent lack staff to review LP and audit data (compared to
29 percent in 2008) and 36 percent have extremely inaccurate inventory
systems unable to quantify areas of loss.
-- Retailers identified top technology solutions that help them overcome
organizational inefficiencies including:
-- 63 percent cited better business intelligence to analyze all their
data.
-- 40 percent cited more accurate inventory tracking to identify the
items being stolen.
-- 39 percent cited more creative uses of existing technologies.
The report further identified areas where retailers have seen a more direct effect from the economy, most
importantly, a faster rise in external theft versus internal:
-- Individual customer theft of merchandise (28% increase)
-- Organized gangs stealing merchandise (25% increase)
-- Employee theft of cash (19% increase)
Additional study findings reveal top retail performers use business intelligence tools more frequently such as
exception analysis reporting at 68 percent and returns/void management at 65 percent. To enhance the value
of existing investments without adding staff to review detailed data, 31 percent of respondents report using
inventory tracking systems.
"The information revealed in the research indicates the methods of retail theft are shifting. As a result, loss
prevention tools must adapt to those changes," according to Kelvin Lam, Vice President of Retail and Security
Products, ADT Security, Asia Pacific. "In a tough economy, resourceful retailers are looking beyond traditional
tagging and stand-alone surveillance to include software based analytic tools, integration and better inventory
management systems," said Lam.
A free copy of the 24-page report can be obtained at:
About ADT Security Services
ADT Security Services, a Tyco International company, is the world's largest provider of electronic security
services to more than seven million commercial, government and residential customers worldwide. ADT's total
security solutions include intrusion, fire protection, closed circuit television, access control, critical condition
monitoring, electronic article surveillance, radio frequency identification (RFID) and integrated systems. ADT's
About the Sensormatic Retail Solutions Portfolio
The industry-leading Sensormatic Retail Solutions portfolio offers vital loss prevention and operational
improvement technologies and solutions. Backed by more than 1,500 patents, the Sensormatic solutions
portfolio is sold through ADT and authorized business partners around the world. From the front of the store
through the entire retail supply chain, Sensormatic solutions help keep losses lower -- and profits higher.
Today, over 80 percent of world's top 200 retailers that use EAS rely on Sensormatic solutions, which include
EAS, source-tagging, data analytics and in-store, item-level intelligence applications. Sensormatic forward-
thinking solutions also include dual EAS-RFID technology that provides item-level security and visibility in an
About Retail Systems Research
Retail Systems Research ("RSR") is the only research company run by retailers for the retail industry. RSR
provides insight into business and technology challenges facing the retail industry ecosystem, and thought
leadership and advice on navigating these challenges for specific companies and the industry at large. For
Media Contact:
ADT Security
Shee Liang Mey
Manager, Communications, Asia Pacific
Tel: +65-6389-8241
Email: lmshee@tycoint.com
SOURCE: ADT Security Services
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