Total losses worth over US$ 107 billion, i.e. around 1.36% of turnover, were incurred by retailers around the globe in 2010. According to a current survey carried out by the Centre for Retail Research (CRR) in Nottingham, 42.4% of these losses are accounted for by shoplifting and organised crime. Merchandise worth over US $ 45 billion “disappears” from retail establishments in this way. The second most important cause of losses is attributed to “pilfering” by retailers’ own staff. Losses amounting to about US $ 37.8 billion (35.3%) are attributed to staff fraudulence. The remaining losses (22.3 %) must be attributed to retailers’ in-house house error, theft and organisational shortcomings at suppliers or logistics service providers.  

For its study entitled “Global Retail Theft Barometer 2010” the CRR surveyed more than 1,100 retail companies with just under 240,000 outlets and shops in 42 countries. This global cross-section naturally implies marked variations between countries. India (2.72 %), Morocco (1.64 %) and Brazil (1.64 %) posted the highest losses – while Taiwan (0.87 %), Hong Kong (0.91 %) and Austria (0.97 %) posted the lowest.  

With inventory differences standing at 1.12% German retailers are also below average. These differences in German retail enterprises total approximately Euro 3.9 billion annually, according to a current survey conducted by the EHI Retail Institute. Causing increasing problems here are “organised” shoplifters – who steal to order in professionally organised gangs causing high-value losses with each crime committed. Likewise, the increasing willingness of perpetrators to use violence is a major cause for concern among retailers.                          

The good news is that like in Germany inventory differences have dropped slightly worldwide – in 2009 the global rate stood at 1.44%. Nevertheless, this drop is largely the result of the heavy increases in retail spending on security technology. 2010 saw retail companies spend US$ 26.8 billion on loss prevention and fighting crime worldwide. This corresponds to 0.34% of total retail sales. “Despite retail success in fighting crime and losses the problem will be here to stay,” says Professor Joshua Bamfield, Head of the Nottingham Institute and author of the study. This applies to specific sectors and product groups in particular: The automotive parts and DIY segments post the highest inventory differences (1.81 %) followed by fashion and apparel (1.72 %) as well as cosmetics and perfumes (1.70 %). Small, high-value items are a particular focus for shoplifters here.          

Since retail will continue investing above-average sums in security and anti-theft equipment the relevant ranges on show at EuroShop 2011 are likely to meet with avid interest. From 26 February to 2 March the global No. 1 trade fair for investment goods for retail and its partners will presents in its segment EuroCIS the latest developments in security technology – from mechanical and electronic article surveillance (EAS) and a variety of access controls and CCTV to automated cash handling systems. Larger retail enterprises, in particular, focus on holistic solutions here. Summing up his observations Ulrich Spaan, board member of the Cologne-based EHI Retail Institute says: “Integrated logistics, merchandise information and security systems are increasingly gaining ground – ensuring greater security, transparency and efficiency across the entire value chain.”

As is the case for all types of special security needs EuroShop 2011 will once again also provide a comprehensive information platform for the automation of cash handling. Trade fair visitors will be able to look forward to a wealth of solutions for cash transaction handling. Manufacturers such as Cashguard, ScanCoin, Glory and Wincor Nixdorf will be introducing new, even higher performing automatic cash handling systems, both for the back office and Point of Sale. These systems are always “aware” of the exact quantity of cash on hand, change is returned automatically without errors and operator changeover is possible any time without the need for interim cashing up thereby shortening final cashing-up time substantially. However, what is really decisive here is the high security benefit of these systems: they minimise both the risk of theft and misappropriation by staff; furthermore, they provide permanent counterfeit money identification. One idea likely to be of particular interest to retail trade visitors here is Wincor Nixdorf’s “Cash Circle Management” solution. This Paderborn-based IT service provider pursues the approach of a consistently automated, closed-cash loop where employees no longer have any contact with cash and when in transit cash is handled by retail outlets, banks and security transit companies in smart, contact-free cartridges. 

Automatic technology will, however, have to compete with cashless, and, hence, even safer payment formats which use NFC (Near Field Communication). If mobile telephony providers had their way smartphones equipped with NFC chips would become the key payment tools of the future. In China, Korea or the Philippines, for example, millions of shoppers already use their mobile phones for payment transactions. In Europe initial tests have also been run at Galeries Lafayette in Berlin, for example. At EuroShop the firm ValuePhone will be launching a mobile-phone compatible software platform that transforms the cellphone into a both mobile and safe way of carrying money.            

In retail biometric security systems have not yet been very widespread – unlike in security-critical areas such as research institutes and airports. In the long run this technology will also succeed in retail. “Across industries 30% to 40% of all IT infrastructure projects are put out for tender with optional biometric systems even today,“ says Peter Weinzierl, Head of Siemens Biometric Center in the Austrian city of Graz. At EuroShop 2011 biometric identification technologies such as fingerprint and vein identification will be presented. In retail these can be used for payment but also for manipulation-proof access control. One large chain store is currently testing this technology in its department for high-quality jewellery – employees can only open the jewellery showcases assigned to them using a scanner that has stored their individual hand vein structure. 

Trade visitors can also look forward to surveillance technologies showcased at the fair. Further developments in digital video technology, in particular improved data storage and evaluation functions, make systems more user-friendly and offer an array of new applications. Here again for many retailers integration into an integral security concept is in focus: CCTV is an important add-on for other security systems such as burglary and fire alarms – providing video images and thereby an early warning system on site. Even more important here are integral applications actually used in-store: Linking CCTV with electronic article surveillance makes for event-driven recording/filming of any crimes as they are being committed. Video sensors react here to events in specified zones of the room and supply targeted evidence.

Since open video surveillance is generally admitted in publicly accessible areas (depending on country-specific data protection legislation) this technology will also gain further ground in retail. All the more so as it provides more than just security. “With the help of smart video analysis shoppers can be observed, frequency measured, itineraries studied and structures analysed with a view to optimising store manning over individual outlets,” explains Roland Feil, Director Sales at Dallmeier, referring to other applications.          

A focal theme in terms of security at EuroShop is EAS – Electronic Article Surveillance. According to a study carried out by the Centre for Retail Research, some 38% of retailers now use this option to protect their goods against shoplifting. Dirk Endlich, Manager Germany at Checkpoint Systems, explains: “All major retailers today depend on security solutions that protect their goods against shoplifters while offering honest shoppers an improved product and shopping experience at the same time.” Nevertheless, there is backlog in demand: the CCR study found that in fact just under one third of the top-50 shoplifted items are so far not being security tagged. 

EAS systems are now very sophisticated and highly reliable in practical operation. The recognition rates of the antenna systems are increasing while required label size is decreasing. According to Ulrich Spaan it is “becoming increasingly difficult for shoplifters to smuggle secured merchandise past the antennas.” And for EAS the same principle applies: electronic article surveillance is developing from a prevention-only tool into an integral technology that seamlessly blends with a holistic security system. To this end data from different security systems is rationally linked and evaluated so that processes can be made more secure and organisational shortcomings can be detected more easily. Alarms triggered by EAS in conjunction with event-controlled camera recording, check-out antennas with integrated shopper counting systems and check-out data analysis linked to security tag deactivation are just some of the examples here. 

Particularly exciting though in the EuroCIS segment of EuroShop will be solutions for the use of RFID technology in the area of loss prevention. 

This technology is becoming more and more attractive for retail companies because the cost of RFID tags is coming down making it more and more affordable. Major retailers such as Walmart, Marks & Spencer, Gerry Weber and Charles Vögele are now using article-based RFID applications in their stores; due to the resulting higher quantities now being used these labels are now cheaper to produce. Depending on quantity the cost of RFID labels today is “under 10%”, according to Dirk Endlich of Checkpoint Systems.

RFID in-store and supply chain solutions allow retailers to manage their stocks quickly almost in real time, to ensure they rarely run out of stock and minimise inventory differences. Today’s consistent switchover from electronic article surveillance to smart RFID technology is therefore one of the core issues at EuroShop. “It will be key to perfectly integrate RFID technology into actual retail processes through extensive testing,” recommends Endlich. 

[www.euroshop.de]