CCTV and video surveillance systems are useful all year but during the holidays they take on even more significance as retailers try to keep would-be shoplifters off the naughty list. During the holiday season, incidents of theft go up significantly all across the nation, resulting in loss for both businesses and consumers. And this year, shoplifter have their eyes on some specific items.
Topping the List
According to the 2016 Retail Holiday Season Global Forecast, shoplifting is responsible for 37 percent of a store’s annual shrink loss. This year, apparel, children’s toys, electronics and electronic accessories are expected to be the most stolen items this holiday season in the U.S.
Holiday Shrink Rate to Double
Most retailers book a significant amount of all margin dollars during the holiday season at one-third of the year’s retail sales registered in just three months. Retailers book around 32% of all margin dollars during the holiday season. However, the rate of margin decreases to 29% during the holiday season which is an 8% decline. According to the report, the holiday shrink rate in the US is expected to double over the prior two quarters.
Contributing Factors to Holiday Shrinkage Include Need for More Oversight
Stores are building holiday inventory earlier and earlier for popular, and high-risk items. This leads to increased shrink. Other factors include the need to hire seasonal staff who may not be trained in loss prevention techniques, as well as insufficient surveillance coverage of critical areas, such as in storage areas.
The High Cost of Crime
The 2016 retail cost lost is expected to be $132 per person, of which $50, nearly twice as much as in other calendar quarters, is incurred during the holiday season. These losses place increased pressures on retail establishments, as well as on honest consumers to whom some of the burden is passed on through higher prices.
Better Security Solutions
Preventing shrinkage is a full-time job for retail establishments and one which takes on added importance during the holiday season. One of the best ways to reduce shrinkage is to increase security controls such as implementing CCTV and video surveillance technologies. These technologies reduce incidents of internal shrinkage and shoplifting serving as a strong deterrence as well capturing acts of theft in progress.
S-Tron is an electronic Security Integrator for national and regional retail and hospitality companies specializing in loss reduction. Call us today to see what makes us different.