Why Loss Prevention Technology Is Necessary For Store Design
Retail reduction is the main profit killer responsible for the demise of most of the world’s retail businesses. Depreciation is almost three times the average retailer’s profit margin, therefore it is very important that the industry employs every tool needed to minimize the impact of depreciation. The use of technology has proven to be an effective tool for shrinkage.
As shoplifters and dishonest employees get smarter, it is incumbent upon retailers to employ effective control measures. There are two control measures, that when used effectively, can minimise retail shrinkage: the right policies and procedures and loss prevention (lp) technology.
The most effective way of using lp technology to increase profit is by designing the technology into the store design blueprint. Failure to design lp technology into the store design blueprint has been responsible for the ineffectiveness of most retail lp technologies.
The Most Commonly Used Retail Loss Prevention Technologies
There is a wide variety of retail loss prevention technologies available, the most common of which is CCTV. CCTV can be integrated into almost all such technologies to enhance their effectiveness.
The most commonly used retail lp technologies are:
• Point of Sale (POS)
• Exception Based Reporting System (EBR)
• Radio Frequency Identification (RFID)
• Electronic Articles Surveillance (EAS)
How to Incorporate Loss Prevention Technology in Your Retail Store Design Blueprint:
The use of technology after a retail store has been designed will not produce the desired outcome, technology must be incorporated into the store design blueprint in order to make it effective.
In order to achieve this you will need to do the following:
• Take into account your target market.
• Identify the level of protection required.
• Specify the purpose of the technology.
• Consult lp department.
Steps for Incorporating LP Technology into Your Store Design Blueprint:
Follow the steps below when planning your retail store design blueprint.
1. Decide on your target market: this will enable you to establish the level of security required.
2. Consultant the loss prevention department (if your organisation has one) to solicit their input into the design as they will be aware of the various areas that need protecting
3. Hire the services of a loss prevention consultant (if your organisation does not have a loss prevention department)
4. Determine the functionality of each chosen lp technology prior to investment. Every technology must serve a purpose within your store.
5. Ensure you employ a multi-facetted approach that incorporates a combination of CCTV, Point of Sale (POS), Exceptional Based Reporting System (EBR), Radio Frequency Identification (RFID) and Electronic Articles Surveillance (EAS).