Retailers continue to fight theft with technology solutions
There are many unfortunate circumstances that retailers deal with on a daily basis. This can be in the form of an unruly customer, errors made in financial records or inventory processes and a variety of other issues. But perhaps one of the most damaging factors to operations is retail theft. When merchandise is stolen or merchants fall victim to fraud, it can cost businesses vast amounts of money to fix these problems. Organized retail crime has been an issue facing the sector for many years, but thanks to advances in technology, companies are able to fight back and prevent these instances from occurring.
Crime comes in several forms
While the most recognized form of retail theft is when criminals swipe products from brick-and-mortar locations, there are other ways that these individuals are able to steal items. According to data from the National Retail Federation, 78 percent of businesses have fallen victim to gift card and store merchandise fraud. Seventy-two percent have experienced theft due to "eFencing," or when thieves sell stolen merchandise online. Other theft tactics included physical fencing, with 69 percent of merchants seeing stolen items being stored in warehouses by criminals, and cargo theft, with 48 percent of companies losing products and revenues through this method.
In all, the National Retail Federation estimated that businesses lose approximately $30 billion every year due to organized retail crime. This is a significant figure, and if steps are not taken to prevent and combat this theft, merchants could see their bottom lines suffer.
Technology fights back against theft
Fortunately, there are several technology solutions that companies can implement to deter thieves from stealing merchandise. Entrepreneur Magazine reported on these types of systems, one of which includes closed-circuit cameras. Installing these cameras will give retailers a way to track any thieves that attempt to swipe products from their stores. The source also suggested that merchants use alarms at their brick-and-mortar locations for when storefronts are closed but criminals try to break in.
When it comes to preventing theft online, the news source recommended that inventory tracking software be used to maintain control over the processes and procedures related to online product management. This gives companies more insight into what items are being sold and which are unaccounted for. The technology can also alert businesses as to when fraudulent transactions have taken place.
