Interview • 28.05.2010
Interview Shoplifting: “The potential threat remains high“
Investments to prevent theft pay off, but they need to be proportionate to losses. What counts is Return on Investment (ROI).
This is why Marco Lange, Retail Sales Director for ADT Sensormatic in Ratingen, does not have a panacea in the fight against thieves. In an interview he explains, why anti-theft protection is a complex task, how technology and trained personnel complement each other and how the new outsourcing-offer from ADT was received by the EuroCIS trade fair visitors.
Commerce in Germany spends over one billion Euros per year in the fight against shoplifting. Nonetheless more than four billion Euros in merchandise gets stolen. Is this money wrongly invested?
Obviously not. Compared to previous years, overall we notice a slight decrease in inventory differences in the entire German retail industry. This trend however does not present a reason to neglect investments in preventive- and security measures. The potential threat of shoplifting and employee offenses remains high – a statement that is backed up particularly by assessments from retail businesses and crime rate trends. It is therefore essential – of course while observing the legal regulations and personal rights of customers and employees- to specifically and sensibly employ surveillance- and control measures.
Are there differences between large chain stores and small speciality retailers?
Basically, the problem is the same: declining profits due to internal and external losses. Experience over the past years shows, that the type of theft is different. In talking with our customers, we discovered that petty theft at smaller speciality retailers and employee offenses or organized crime theft at larger stores, represent the main problem.
Anti-theft protection is a complex task. What are the critical issues?
For a retailer, the sale is always a priority; the security system should not interrupt day-to-day business. Other important issues are legal guidelines – for example the compliance with data protection laws. The investment should also be in a positive proportion to the inventory difference. It is all about how the systems can be used once they are installed– for prevention or for tracking. How can employee attention concerning retail security be raised and maintained?
At the EuroCIS you introduced the “Gold-Service“, an outsourcing-offer for store security. What were the visitor’s reactions?
Reactions were positive throughout, which afterward also led to great talks with retailers which had some concrete projects in mind. Data protection was critically questioned, but ADT can also point to compliance with the required standards.
Who would you like to reach with this offer?
With our Gold-Service, we want to address every large chain store, that today already uses video surveillance and would like to better apply live monitoring surveillance, tracking or evidence protection. Our outsourcing –offer also tries to appeal to all retailers, who want to invest less money in hardware or prefer to outsource the entire service.
Electronic article surveillance using RFID could be a milestone, but are the financial and technical costs too high?
Looking at the present conditions and all industry branches, this is certainly true. Basically, electronic article surveillance through RFID even in more favorable future investments has disadvantages when compared to our patented ”Ultra Max” electronic article surveillance technology. If small retailers are OK with the limited tampering safety RFID provides, then this could be a fitting option for them. RFID for improving logistic- and sales processes, combined with electronic article surveillance, will become more interesting in the future. Today, many vertical textile retailers see a positive Return on Investment.
Technical upgrades cost a lot of money. Would it not be better to invest in your own staff by training them in seminars on the tricks thieves use?
One always includes the other. Aside from technical solutions, ADT of course also offers training courses on theft prevention. Together with the retail association for the German Federal State of Baden-Württemberg, we already conduct such seminars. We also created a supporting flyer for retailers and its employees. It always depends on feasible ROI calculation, regardless of whether it concerns the use of technology, more staff or other measurable training successes.
How can you protect yourself from dishonest employees?
It is best to only hire honest employees. Just joking. According to the study “Inventory discrepancies 2009“ by the EHI (RPI= retail prices index), around 900 million Euros of loss are attributed to staff. All these technologies help to prevent employee theft. In addition, ADT, among other things, offers software based solutions for POS monitoring. However, most important is regular employee training and active integration of staff in inventory loss prevention measures. This is also a very important opportunity for retailers to protect their investments.
Interview by René Schellbach -
iXtenso.com
channels: article surveillance
