Achieving Shoplifting Deterrence

Safer. Smarter. Tyco.TM

Achieving
Shoplifting
Deterrence

Creating an active Dressing Room
deterrent is critical to
building an effective EXIT
loss prevention
program.

How Environmental PerceivedN E E D need for an item L I T T LLowErisk ofR IgettingS Kcaught.
Conditions Can Ththeeft
Promote Theft Triangle

When shoplifters enter a store, the OPPORTUNITY
setting helps determine their behavior.
Immediately, they assess the pros and Easy access to item
cons by scanning the physical environment
and judging its appeal as a theft target
before deciding to take action. The offender
weighs reward/opportunity versus risk,
and then decides whether or not to steal.
Experts agree that all three components,
known as the Theft Triangle, must be in
place for shoplifting to occur: 1) perceived
need for an item, 2) a low risk of getting
caught, and 3) access to the item. To truly
impact loss prevention efforts, it is not
enough to prevent crime; retailers want
to deter attempts to commit a crime. An
effective way to do this is to influence an
offender’s perception of the crime situation
– to increase awareness of risk, decrease a
sense of product accessibility, or to reduce
criminal motivation. Therefore, creating an
active deterrent – one that can coexist in a
store environment welcoming to shoppers
- is critical to building an effective loss
prevention program.

/ 2 / Achieving Shoplifting Deterrence

EAS Technology and tag is exiting the store, minimizing or EAS sensors that cannot be decoupled
Deterrence eliminating ancillary alarms for long from the items. Fragrances, over the
term program reliability and ensuring a counter medications, and wines and
Deterrence is achieved when a potential welcoming store environment. Reliable spirits are often packaged in foils or
thief decides not to shoplift because the label deactivation and detectors that can contain fluids that can detune or “turn
calculated risk is too great. Long considered filter out tags in the area (but not exiting off” some frequencies of EAS labels
a staple in the fight against external losses, the store) help manage ancillary alarms or tags. Likewise, delicate fabrics,
Electronic Article Surveillance (EAS) – and keep employee confidence, sporting goods and women’s pumps
systems can provide an excellent active customer satisfaction and system can be difficult to protect if the right
deterrent against shoplifting. However, deterrence high. tags or labels are not available. In
for EAS systems to provide long-term creating deterrence against shoplifting,
protection and return on investment, // EAS tags and labels - EAS systems it is important that the technology can
several key elements must be in place: only work when anti-shoplifting labels protect the most highly pilfered items,
or tags are applied to merchandise. while ensuring that shoppers can pick
// System detection rate - This is Retailers may invest in the high- up items or try them on. Retailers can
measured by the number of times the performing EAS systems, only to use the following security sensors to
system accurately senses an active EAS experience poor detection rates if the help deter theft for:
tag or label that enters the detection labels or tags are not of similar quality
field. Shoplifters quickly identify stores and performance as counterfeit and // Apparel - hard tag or sewn-on labels
with low performing EAS systems, as substandard offerings could comprise
they pose little risk. EAS systems that the whole system. Labels are an // Broad Range of Categories - labels
can deliver 95%+ detection rates have effective deterrent and can be applied embedded in packaging
a high deterrence value. Systems must to a variety of different merchandise
reliably detect EAS sensors in non- categories. Also, they can be applied // Consistent EAS tagging – Proper
cooperative environments across the or embedded directly into product or tagging is a critical element in creating
detection zone – high detection rate; packaging at the source of manufacture, an environment that discourages
quality labels and tags. making them less prone to tampering shoplifting. Tags need to be consistently
or removal. High-performing labels will applied to the right merchandise. Also,
// False alarms - Excessive false be capable of detection even within the tags should not cover important product
or phantom alarms decrease the center area of the pedestals, a difficult information, and they should be difficult
effectiveness of EAS technology by and vulnerable area to protect. Labels to remove. Maintaining an effective
eroding employee confidence in the with detection rates greater than 90% EAS tagging program requires attention
technology. Store associates eventually offer the best level of merchandise and management. Source tagging
ignore alerts when they occur, reducing protection. continues to be the most popular way
system deterrence. Excessive false to ensure consistent and effective EAS
alarms can also interfere with a store’s // EAS sensors that cannot be detached tagging.
shopping experience. EAS systems from protected merchandise - Many
should only alarm when an active commonly stolen products can be
difficult to protect with some EAS
labels or tags. Deterrence against
shoplifting can only be achieved if
highly stolen merchandise can be
effectively protected with the right

Achieving Shoplifting Deterrence / 3 /

Source Tagging:
Key to Long-Term
EAS Effectiveness

An integral part of any EAS deployment
is a robust, comprehensive, and efficient
tagging program. Source tagging is the
process of applying EAS labels or tags
at the point of manufacturing. It allows
merchandise to arrive at the store already
protected against theft and be placed
immediately on the selling floor. It frees
sales associates to service their customers,
rather than tagging goods. Centralizing
label application results in consistent
tagging that is more effective and efficient
for shrink reduction efforts.

Embedding the EAS label in the product Primary retailer benefits of source // More saleable goods due to proper tag
packaging, commonly referred to as tagging include: application
Phase II application, is the most popular
type of source protection, according to // Increased Revenue: Merchandise // Foundation for migration to RFID-based
Tyco’s source tagging certification lab arrives properly secured against theft inventory intelligence
submissions. EAS labels inside products or and ready to display
packaging ensures important manufacturer For Loss Prevention:
information is not covered, provides // Decreased Shrink: Merchandise is
maximum security, and keeps a would- protected at point of manufacturer and // Reduced shrink from shoplifting and
be thief guessing as to what is and is not throughout the supply chain internal theft
protected against theft – ensuring that
deterrence benefits are extended to the // Enhanced Shopper Experience: // Higher tagging compliance with more
entire store. Associates spend more time servicing merchandise protected
customers then tagging merchandise
For the apparel category, retailers may in store // Strong deterrent throughout the
choose between sewn-on EAS labels or re- supply chain
circulated hard tags applied at the source. Additional benefits that extend across
Hard tags have been a reliable and trusted the retail organization: Deploying an effective source tagging
element of EAS systems for many years, so program is best approached with a solid
source application of re-usable, recirculated For Operations: business plan. The most effective and
hard tags is the most popular and fastest comprehensive programs are tailored to
growing approach for protecting apparel at // Labor savings and/or labor reallocation address a retailer’s specific loss prevention
the source. According to Tyco, the visible and operational challenges. Designing
source tag recirculation program has played // Opportunity for increased sales a source tagging program starts with
a prominent role in the retail source tagging associate productivity assessing the current situation, selecting
model, with steady year over year growth. an experienced provider, building a program
Over four billion apparel items have been // Improvement in speed to floor – to address specific goals, and finally rolling
shipped with a re-circulated visual source no more in-store tagging out the program. It also includes processes
tag over the last five years. and tools to measure results with timely
For Merchandising: dashboards and report cards, so the
program can be adjusted and fine-tuned for
// Flexibility in displaying goods - optimal success.
products out of lock up

// Less stock outs, increased
inventory turns

/ 4 / Achieving Shoplifting Deterrence

Monitoring Health and // Monitor status and health of devices to level of deterrence against professional
Effectiveness of EAS avoid unplugged deactivators at the POS thieves and Organized Retail Crime
Systems or detection systems at the exit doors (ORC) groups. Integrating video with
EAS systems can provide verification
EAS systems, like any technology, need // Understand store associates’ response and detail around an alarm event, helping
to be monitored, managed and measured. time to alarms and verify compliance with investigations, potentially identifying
Today’s EAS systems can provide in-depth to corporate Loss Prevention standard thieves, and enabling action to be taken.
actionable reporting to ensure that all operational procedures Layering loss prevention technology raises
devices are at peak working order and the risk factor for would-be thieves, and
important processes are being followed // Better manage alarms to enhance likewise increases deterrence.
– ensuring that active deterrence is shoppers experience while maximizing
maintained. Retailers need the ability the deterrent value of detection
to measure Key Performance Indicators systems
(KPIs) to effectively manage their loss
prevention program. EAS reporting can IntegratingTechnology Increases Level
identify potential problems and even of Deterrence
provide remote diagnostics, alerting the
retailer if something is wrong with any of To further enhance the value of EAS
the individual components that make up the systems, a growing number of retailers
entire program. are layering loss prevention capabilities and
integrating EAS with other technologies.
Adding anti-jammer software and foil-lined
(or booster) bag detection increases the

F U N DA M E N TA L S F O R E AS SYST E M D E T E R R E N C E

1 Systems must reliably detect EAS sensors in non-cooperative environments across the detection zone –
high detection rate; quality labels and tags

2 Solution must minimize/ eliminate ancillary alarms for long term program reliability and to ensure
welcoming store environment

3 Systems must be able to accurately distinguish between what has/ has not been paid for – includes
reliable deactivation at POS

EAS sensors that cannot be decoupled from items being protected
4 • Apparel - hard tag or sewn-on labels

• Broad Range of Categories - labels embedded in packaging

5 EAS tags and labels must be consistently applied to theft-prone merchandise

6 Active source tagging program

7 Measuring KPIs and monitoring health of EAS systems for effective program management

8 Technology integration increases level of deterrence

Achieving Shoplifting Deterrence / 5 /

Conclusion Prevention programs are optimized when
the entire system works in unison and
Shoplifting has consistently impacted the potential shoplifters are cognizant of the
retail industry, and unfortunately it will not efforts taken by the retailer to deter theft.
disappear anytime soon. According to Raising the risk of getting caught and
the 2015 National Retail Security Survey protecting merchandise while still making it
(NRSS) conducted in the United States, available to honest customers can shift the
retailers surveyed reported an average theft triangle in the favor of the retailer. The
shrinkage of 1.38%. This amounted to a combination of technology, information and
staggering $44.02 billion dollars in lost sales store personnel working together makes a
revenues to retailers. Grocery stores and loss prevention program most effective.
supermarkets reported the highest average
shrinkage, 3.23%.

Retailers can safeguard their businesses
by building an end-to-end environment
of deterrence that takes advantage of
the full arsenal of available options. Loss

/ 6 / Achieving Shoplifting Deterrence

// Notes

Achieving Shoplifting Deterrence / 7 /

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