It’s not uncommon for retailers to feel like they are operating in the dark, especially when it comes to analysing and addressing the root causes of shrink. Shrink and organised retail crime (ORC) remain a persistent issue in many markets, and the challenge of deterring theft without jeopardising the customer experience or assistant safety looms larger than ever. To make matters even more challenging, retailers today need more than just vigilance – they need a unified, data-driven approach to protect their stores, merchandise, customers and employees from ORC and other forms of shrink.

Fortunately, there are trusted solutions that make successfully adopting such a data-driven approach easier than ever.

When gathered and analysed through the right suite of connected solutions, data from your stores’ tagged merchandise, RFID exit systems and video feeds can reveal never-before-seen insights into the ‘who, what, where and when’ behind shrink events. These insights, otherwise known as ‘shrink visibility’, are the linchpin in an effective loss prevention (LP) strategy built around a connected estate of interoperable solutions.

We’ll show you everything you need to achieve shrink visibility and highlight the ways you can transform this new view into targeted strategies to prevent future theft.

What makes data — and data alone — insufficient? The answer boils down to how shrink visibility itself is achieved.

In order to unlock an item-level view into your physical stock, you first need to activate it digitally. This can be achieved by attaching tags or labels to your products that feature Radio Frequency Identification (RFID). This frequency allows compatible Electronic Article Surveillance (EAS) systems to detect RFID technology so that products can be logged, monitored and analysed by cloud-based AI, such as Sensormatic Solutions’ Shrink Analyzer, to reveal the ‘who, what, where and when’ insights you need in order to evolve your LP strategy.

Through the stock visibility made possible by RFID merchandise tags and labels, retailers can now leverage AI-enabled analytic tools to identify the root causes of shrink. By synthesising data from your stores’ RFID sensors, video feeds, transaction logs and other retail operations, you will have the pool of information you need in order to:

• Generate exception-based reporting at the exit
• Identify collusion at the point of sale
• Gather insights across the supply chain
• Pinpoint where shrink is really occurring

Where do you really experience shrink? Is it internal, external, administrative or derived from something else? Which factors within your control contributed to each loss event last month? Once you have data analysis from the various systems in your stores, you will be able to uncover the root causes behind theft that you need to address.

‘The value of this new visibility into processes that were once in the dark cannot be overstated,’ said Jamie Kress, NA sales leader for inventory intelligence at Sensormatic Solutions. ‘Understanding the scale and root causes of shrink and how to mitigate it are now all within reach for retailers. It’s a truly game-changing development.’

Not only can shrink analytics help you to identify your weak points faster, they can help you to settle on the right LP solution just as quickly. By analysing the same data points from across the store, retailers can now measure the impact of a given LP tactic in near-real time and make ad hoc adjustments to achieve optimal effectiveness. Accuracy enabled by trusted and clean shrink data leads to better LP strategic decisions with precision at store level to individualise local needs.

In order to truly harness these next-gen capabilities, you will need more than just one solution. The best results come from creating a connected ecosystem of tools working together to deliver meaningful results. After all, ORC groups are working within their own cooperating networks, so you will need to take an equally holistic approach to deterring them.

Follow these steps to build a unified, data-driven LP approach across the company:

• Step 1: Tag It’s the tech that makes the whole thing tick. If you haven’t done so already, start attaching RFID-enabled tags and labels to your merchandise. RFID is the name of the technology embedded on these tags and labels that makes it possible to view your stock – right down to item level – digitally.
• Step 2: Track An EAS system is nothing new – but in order to step up your shrink-fighting strategy, you need to make sure your EAS system is up to date and compatible with RFID technology. This is because in order to view RFID-tagged products in your inventory, you will need a modern EAS system that can speak the language.
• Step 3: Target Once your products are tagged with RFID technology and connected to an RFID-based EAS system, you can start gathering insights into shrink across your stores. This is where solutions such as Shrink Analyzer come into play. Now that you are able to easily see which items went missing, from where – and at what time – you will be able to make meaningful adjustments to your LP strategy in order to prevent those same vulnerabilities from being exploited again.

“‘RFID is key to getting the most out of loss prevention through shrink visibility,’ said Eric York, RFID business analyst at Sensormatic Solutions. ‘We’re seeing retailers begin to expand RFID to more product categories after witnessing the benefits made to shrink reduction. In some cases, the data analysis they received through tools like Shrink Analyzer revealed at-risk items they never would have identified otherwise.’

In today’s challenging retail environment, tackling ORC and other sources of shrink requires shifting from a reactive LP strategy to a proactive one. To do so, you’ll need enhanced LP capabilities to gather and convert store data into never-before-seen insights into the ‘who, what, where and when’ behind shrink.

By activating a connected estate of tools and solutions across your company, an advanced ecosystem incorporating everything from RFID to AI-enabled end analysis, you will put in place the repetitive processes required to spot and address loss events, and prevent them from plaguing your stores.

To explore the solutions available to help you combat ORC and shrink across your stores, schedule a demo with a Sensormatic Solutions expert today.