The three major challenges which from discussions with technology companies and retailers have been elevated as the highest USA priorities for loss prevention are active shooter, safety, and organized retail crime. Locking up merchandise to reduce shrink reduces revenue and increasingly drives consumers to alternate retail models. Five takeaways about the consumer from Walmart, other retailers after a big week of earnings. Apple in the Smartphone Market: Win Where it Matters.
81% reported an increase in retail shrink in 2022. Total apprehensions increased 45.6% and total recovery dollars from these apprehensions increased 70.5% in 2022. Shoplifter apprehensions and recovery dollars from those apprehensions increased significantly in 2022, up 50.9% and 90.5% respectively. Retail sales have fallen steeper in San Francisco than any other county in California. USA GDP growth slowed to a modest 1.1% annual rate from the average 3% in the previous two quarters.
Top five USA grocery chains are Walmart, Amazon, Costco, Kroger, and Target. Due to crime, Giant Foods is now limiting self-checkout kiosks to 20 items per customer and closing at 10 PM in some stores. Around 40% of all working hours could be impacted by AI large language models such as ChatGPT-4. With AI 50% of organizations believe it will result in job growth and 25% think it will create job losses.
Within five days of its release to the public in November 2022, ChatGPT had amassed a user base of over a million people. The top 5 tech driven strategies for retailers for the next 18 months are improving network and IT security (28%), new payment tech / capabilities (27%), advanced analytic tools and capabilities (25%). The retail sector in Australia and New Zealand lost about $4.3 billion a year through theft, a 28 per cent increase on four years ago when the last study was done.
Kevin's perspective on his career, surprises, asset protection & its evolution, data analytics, his work at LPRC, working across boundaries, integration, and the future of loss prevention.
Due to inflation, the UK English Breakfast was up an astounding 22% in February. Worldwide retailer returns have grown from $643 billion in 2015 to an amazing $1.8 trillion in 2022. Women’s dresses purchased online have a return rate as high as 90%. For the United States, the top three products with highest inflation are eggs at over 55%, butter and margarine at nearly 27%, and airfare at 26.5%. Retailers are relying on loss prevention tech to curb shoplifting.
RILA AP Conference amazing turnout! Open House at our Labs a great success! Happiest countries, Roe v. Wade leak and potential protests, ORC data for 2021, Apple lawsuit over NFC use, and increased digitization of retail. Global retailers had $88 billion in ad revenue and in 2023 it will reach $101 billion. LP can have a major role in growing ad revenue. Amazon had 76.9% of the total retail media spend in 2022. Big opportunity for Walmart.
Potential Trump indictment, new Chat GPT 4 & its capabilities. The 2023 retail forecast is for 6.9% sales growth. Store IT spend is expected to increase by 4.0%, store counts up 3.5% in 2023 and 3.7% more store remodels. Topping the list of IT priorities is Personalizing the Customer Experience. Inventory visibility was a close second. America’s biggest companies say retail crime is an epidemic, but just big of a problem is it?
ICSC Summit for Organized and Violent Crime. AI in retail including text to video and generative video AI, and USA banking issues. Major retailers such as Macy's, Target, and TJX report higher shrink in WSJ article. New York City Mayor Eric Adams said some store customers who wear masks are more likely trying not to get caught shoplifting than stopping the spread of COVID. USA consumers spent $14 billion while drunk.
Predictions from Chief Economist of Deloitte Global on what to expect in 2023. The top 10 retailers represent 34% of the total revenue of all top 250 global retailers. Apparel was fastest growing sector with highest profit margin at 9.8%. Amazon closing 8 Amazon Go stores. For 2022, retail violence incidents were up 17% and alarmingly fatalities were also up 17%. Parking lots at 53% had the highest fatalities.
Quantum computing breakthrough, ChatGPT in Bing gets a little crazy on Valentine’s Day. More Chinese spy balloons. Walmart & Home Depot results forecast USA economy. In 2022, the problem of inventory distortion worldwide totaled an astounding $1.993 trillion. Retailers already using RFID in 2022, 83% had higher sales growth and 80% had higher profits.
More unidentified objects shot down over US and Canada. US government was tracking ballon from take off, and train derailments. Thank Henry VIII for Valentine holiday. 67% of Americans said they plan to spend either the same or more in 2023 as they did last year on retail purchases. More than 1 million guns were stolen from private owners from 2017 to 2021. Number of suspected ghost guns recovered by law enforcement agencies & sent to ATF for tracing increased by 1,083% from 2017 to 2021.
Amazon currently has 44 Amazon Fresh locations and 28 Amazon Go stores in the U.S. The company also took a $720 million impairment charge in the fourth quarter related to property, equipment, and operating leases at its physical stores. The common places for mass attacks were businesses, including restaurants and retail. 96% of the attackers in the study were male. 72% of the attackers experienced a financial stressor some time before the attack.
David answers questions about NRF priorities, 2023 LP predictions, Big Show takeaways, NRF LP Council, value of industry groups, retail violence trends, and the increased importance of retail loss prevention.
The top 5 technologies for 2023. In “2023, AI shifts from singles and doubles to home runs. The buzzwords that abounded at NRF 2023 include of course AI, plus lots of variations of everything being smarter, more intelligent, connected, and moving to real time. Eight in 10 retailers surveyed report that the violence and aggression associated with ORC incidents.