If you manage a retail store, you know full well how devastating shoplifting can be to your bottom line. According to a 2020 National Retail Security Survey, shrink was at an all-time high with costs to retailers hovering around $61.7 billion. As we ride through the COVID wave, shoplifting continues to rise, as the unemployment rate has been impacted by the virus and people are more desperate for goods but have thinner bank accounts.
There are several steps retail stores can take to protect their inventory from theft. From being more aware of at-risk items to training your staff to recognize the signs of shoplifters, to publicizing the consequences of stealing to installing cameras and signage, there are a number of things retail managers can do to reduce theft. However, these action items only have a small impact on a much bigger problem. However, according to the National Retail Federation, when stores invest with companies that offer RFID tags, and implement the technology within the store, theft is reduced between 55% and 75%. This article will cover the ways in which RFID tags help reduce shrink and enable retail organizations to hit their growth goals.
RFID Tags can Rob Thieves of Any Incentive
What are the chances that a shoplifter would try to take damaged goods? Slim to none, no doubt. When retail stores invest in RFID tags with visible, build-in ink that explodes when the tag is tampered with, a visual deterrence is established with a strong benefit denial. When RFID tags with ink are used like the INKGUARD by CONTROLTEK, the chance of theft is dramatically reduced, especially when the products are apparel or items that aren’t boxed. RFID tags without an ink deterrent feature reduce shoplifting by up to 75%, and with the ink feature that percentage goes up with much significance.
The Mere Sight of RFID Tags Discourages Shoplifters
We already talked about how RFID tags with ink reduce shoplifting, but the tags in of themselves are a huge deterrence. The majority of experienced shoplifters, and those who are just getting their feet wet, will leave a store if RFID tags are used, and go find a competitor that hasn’t invested in the retail security option. The only way to remove RFID tags without damaging the merchandise they are protecting is with special tools that are only available to store employees. When using these tools, RFID tags can easily and quickly be removed and attached, but without the tools removing them is virtually impossible. For shoplifters, the trouble simply isn’t worth the risk or their time.
RFID Tags Create Audible Deterrence
When you invest in RFID tags, you will also have an RFID reader at the entrance / exit point of the store. Some shops will place the reader a short distance from the door, while others will place them directly at the door. When products are attempted to be smuggled out, radio frequencies are sent to the RFID reader creating an alarm and announcing the theft attempt to store employees and other shoppers. Some retail stores even post signage letting shoplifters know that alarms will sound in the event of a theft attempt. The science and technology behind RFID tags are enough to reduce shoplifting.
RFID Tags and Inventory Control Reduce Theft
Unfortunately, retail stores take hits caused by the very people they employ. According to a 2019 study by Hiscox, 42& of inventory loss in America is caused by employee theft. The study also found that in organizations with less than 500 employees, 7 out of 10 workers will commit internal theft.
When stores use RFID for inventory control managers are able to integrate solutions that enable tighter inventory management giving them fast, real-time data with a 99% accuracy overview. Based on how your RFID inventory control solution is set up, losses can be notated at specific times and in various stages in your internal processes to help expose red flags.
When RFID technology is used within inventory management, employees know that stealing goods is by no means an easy task, and the chance of getting caught is significantly higher. Keep in mind that RFID tags are better than barcodes when it comes to tracking inventory, and when employees recognize that you have upgraded your tracking technology to include an anti-theft agenda, you will see losses drop by leaps and bounds.
RFID Tags for Retail Stores Offer Multiple, Clear Benefits
The benefits are crystal clear: RFID tags for retail stores work in numerous ways to reduce shoplifting, as well as internal theft. In fact, the standard investment almost always pays off within the first year of implementation. From visual to audible deterrents, down to the imposing reputation that RFID tags carry in the eyes of shoplifters, there is no better solution that can be put in place to protect your bottom line and help you achieve your growth goals.
Call CONTROLTEK for RFID Tags and Reader Solutions Today
CONTROLTEK has a national reputation for offering the best RFID security solutions in a cost-effective manner, with customizations that will meet the needs of every retail store. Our experts are standing by to take your call and show you the best possible RFID solution that will protect your inventory and nurture business growth.