Loss Prevention Research Council Weekly Series - Episode 188 - EAS vs RFID, Crime in California, and Post Pandemic Review
With Dr. Read Hayes, Tony D'Onofrio, and Tom Meehan
Rethinking Hard Tag Removal: How RFID Technologies are Complementary to EAS Hard Tags
https://www.retailtouchpoints.com/features/executive-viewpoints/rethinking-hard-tag-removal-how-rfid-technologies-are-complementary-to-eas-hard-tags
Let me start this week with a new article from Retail Touch Points explaining why RFID technologies are complementary to EAS hard tags.
According to the National Retail Federation (NRF), retailers lost $112 billion due to shrink in 2022, up from nearly $94 billion in 2021. As such, electronic article surveillance (EAS) hard tags, locks, alarms and other physical or visual deterrents to theft have become an expected part of the in-person shopping experience these days.
As intelligence-led loss prevention systems that rely on radio frequency identification (RFID)-supported inventory insights to help retailers get ahead of organized retail crime become more common, retailers are considering a change in approach. The increasing availability of these systems, coupled with a desire to reduce labor costs, simplify operations and remove friction from shopper experiences, have even motivated some retailers to explore the idea of removing hard tags from their LP programs altogether.
However, early experiments with the idea have shown that eliminating hard tags could be a costly decision for retailers — and have proven that each technology in the LP toolbox has a part to play in the effort and that a customized strategy is the key to success.
Despite the promise RFID and INTELLIGENCE-LED LOSS PREVENTION programs hold, it seems the key to optimizing LP programs still lies in balancing real-time deterrents (like EAS hard tags, locks and alarms) for prevention, with analytics-based optimization and monitoring for an added capability of loss identification. After all, visual cues have a significant impact on individuals’ behavior. Research routinely shows that simply seeing security equipment makes all the difference for would-be criminals. It’s the reason that police proximity and the presence of alarms, outdoor cameras or exterior lighting all deter home burglaries. There’s evidence to show that just having a security sign can reduce the chance of a break-in by 25%.
The same is true in retail locations, where exit pedestals, signage and hard tags act as visual reminders that theft is taken seriously. After launching successful RFID tagging programs, several retailers experimented with adjustments to their physical security deployments. Nearly all of those who removed physical hardware saw shrink increase in turn:
- One retail customer that experimented with eliminating hard tags from its LP programs saw shrink more than double in test locations within one year.
- Another retailer saw shrink grow 40% to 70% in test departments in just seven weeks.
- A third retailer saw shrink increase by 40% in stores or categories where tags were removed — but not elsewhere in the store.
It is also important to note that from a labor standpoint, removing hard tags resulted in an unexpected but understandable byproduct: decreased workplace safety. Numerous retailers that tried to do away with hard tags reported the move negatively affected workers. As the number of theft events increases, so does the likelihood that associates or security will witness or become involved in an incident. LP teams shared that their associates felt less safe in the stores without tags, and many said associate requests for the redeployment of tags played a part in their decision to reverse course.
Shoppers also report that retail crime affects their shopping habits. A Civic Science survey found that 38% of shoppers who have noticed retail crimes taking place say they have decreased the frequency of their in-person shopping, and 14% say they switched retailers following the incident. Other research shows that visual deterrents can help restore feelings of safety among shoppers, with an LPRC survey finding that one-half of the customers interviewed feel safer in retail locations with visible security measures. Tagging also can be an effective alternative to locked cases for open merchandise, considering that 26% of US consumers would shop elsewhere if their local store put items under lock and key.
Assaults, robberies, shoplifting skyrocket in California as crime surges continue
https://nypost.com/2024/07/13/us-news/assaults-robberies-shoplifting-skyrocket-in-california-as-crime-surge-continues/
Switching topics let me go to the New York Post for an update on crime in California.
Violent crimes overall rose from 193,019 in 2022 to 199,838, with most of the increase from jumps in assaults and robberies. Aggravated assaults, or attacks with the “purpose of inflicting severe or aggravated bodily injury,” jumped from 128,798 in 2022 to 135,046 in 2023. Robberies, which involve the threat or use of force to take property, increased from 47,669 in 2022 to 49,177 in 2023. Vehicle theft also rose from 181,815 in 2022 to 195,853 in 2023.
The largest increase was in shoplifting, which rose 39%, from 81,955 in 2022 to 113,916 in 2023. Shoplifting reports have increased 78% since 2020, when there were 64,105 shoplifting reports. However, with an average of 96,000 shoplifting reports from 2015 to 2019, 2020 and 2021 shoplifting figures in the 60 thousand range are highly anomalous. Compared to the aforementioned post-Prop. 47 (a 2014 proposition that turned potential felonies into misdemeanors for many crimes) five-year average, shoplifting still remains 19% above historical levels.
At a more local level, there are significant disparities in shoplifting. In San Francisco County, for example, reported shoplifting declined 21% in 2023 compared to 2022, while in Los Angeles County shoplifting increased 62%. In 2022, San Francisco voters recalled District Attorney Chesa Boudin, the hand-picked successor of the county’s former district attorney, George Gascon, who became Los Angeles’ District Attorney in 2020. Boudin’s replacement in the special election, Democrat Brooke Jenkins, ran on a tough-on-crime platform and is up for a full term in November.
Just 23% of Workers Say Their Company Could Handle Another Pandemic
https://www.ehstoday.com/health/article/55125519/just-23-of-workers-say-their-company-could-handle-another-pandemic
Finally, let me end this week on an article from EHS Today, on looking at how well companies handled the pandemic from data in a recent survey from Fusion Risk Management which found workers were not pleased.
The survey found that the majority (83%) of employees say their company didn’t have a dedicated pandemic preparedness plan, 53% were not prepared, and 43% feel that their company could have better supported employees during the pandemic.
Looking ahead employees don’t see much improvement as 23% don’t think their current company could handle another pandemic. And 26% believe their company needs to improve its communication regarding health and safety measures.
However, there are some positive results from the survey. More than half (52%) of respondents said their company has implemented new policies because of the COVID-19 pandemic.
The top ways companies have changed their approach include continued remote or hybrid work options (43%), enhanced cleaning and sanitation protocols (23%), and revised sick or time-off policies (15%).
When asked about how the pandemic influenced companies in their approach to risk management respondents answered as follows:
- 43% said there was a heightened awareness of potential risk and vulnerabilities.
- 29% said the company implemented new risk management strategies or protocols.
- 38% said there was an increased emphasis on proactive risk identification and mitigation.
Interesting thoughts this week on RFID and EAS in terms of deterrence, crime in California and how prepared for the next pandemic. With that over to Tom.
