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Loss Prevention and Shrink Control in Retail

The most important driver for the physical retail security market is the need of retailers to safeguard their property, staff and customers. Retailers also use physical security as a deterrent to prevent shoplifting and crime. Loss prevention and security issues are continuously gaining more importance. Retailers also view loss prevention as an essential management tool. Even though retailers spend significant sums of money on physical security solutions, they have still not been able to control the rising trend in shrinkage.  
Retail shrinkage increases with increasing retail sales. Retailers are willing to hike their investments in video surveillance and integrated systems.
Electronic Article Surveillance (EAS) antennas, labels, and tags were the most popular solutions for loss prevention, used by 73% of retailers. Spider wraps and security pods/containers, advanced inventory control tactics, secure cable devices are also widely used. Using a mix of loss prevention solutions - EAS, fixtures, CCTV, manual screening - is the best preventive maintenance of loss prevention.
 
Retailers prefer vendors who are able to grow with their needs and provide innovative and effective solutions. Since the type of products, size of stores, location and operating patterns vary, the preference is for flexible and unique solutions.
 
The physical security market for the retail vertical is highly competitive. Retailers are restrained by their budgets and favor security vendors who offer cost-effective products, while being responsive to their needs.
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$ 189 million were spent in Russia on security systems in Retail segment in 2016. For instance X5 Retail Group, Russia's largest food retailer in terms of sales, is planning to spend more than 340 million rubles on security systems next year. Usual spendings for 1 supermarket is about 2 million rubles to security systems implementation, and more than 100 million rubles for each hypermarket.
 
Vyacheslav Mikhaylovsky, 
Head of Security at METRO Cash&Carry in Russia
"We mostly purchase foreign equipment for our facilities. The domestic products account for only 15-20% of all security systems related expenditures. For instance, we recently switched to the Russian producer in the sphere of anti-theft systems. These systems turned out to be cheaper and to react much faster to our needs relating to maintenance. When it comes to video cameras procurement though, we continue to focus on foreign brands. Today’s market still offers no domestic high-quality video cameras to meet all of our integration requirements. In future, the technologies able to replace human resources in terms of protection shall be in demand: face detection, automated decision-making, modern ACS. These security systems segments still have no real alternative other than foreign vendors". 
 
Most of the traditional security shows do not focus on loss prevention techniques and solutions that are applicable to Retail vertical. Trade shows and loss prevention conferences specific to the retail vertical have not been organized in Russia yet. That is why Retail Cluster at TB Forum powered by Intersec attracts thousands of Retail Loss Prevention and Shrink Control professionals from Russia and overseas every year.
 
If you are willing to know where to meet people in charge of implementing and purchasing security systems for Retail and demonstrate the advantages of your equipment and solutions, submit your proposal to participate at TB Forum powered by Intersec 2017.
 

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Inshakova-200.jpgFor evaluating opportunities please contact:
Olga Inshakova
Show Director TB Forum powered by Intersec,
Business Development
Groteck Business Media
Find me on LinkedIn

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Topics: TB Forum Industry Specialization