Shrinkage continues to be most vital threat to this segment globally. In the global retail industry, where average net margins are just 3%, losing nearly $160 billion annually, or 2% of the industry’s $8 trillion in total annual sales, is a significant problem. The reason is Shrinkage- the amount of a retailer’s net margin by waste, theft, and product spoilage.
Retail shrinkage is the portion of your inventory that gets lost or stolen. Keeping your shrinkage rate low is critical to success in business.
1.1 Challenges and Solutions
- Today, theft and loss pose the following multi-dimensional threats for retailers:
- Increasing and costlier shrinkage losses
- Inability to easily pass on or absorb these financial losses
- Increasing legal risk for inept crime and loss control efforts
- An unending supply of savvy, adaptive criminals
Additionally, numerous alternative shopping formats, such as e-commerce, catalogs, and home shopping networks, are now vying for consumers’ attention, thus challenging the traditional retail store format to remain relevant and profitable in this technological age.
|Challenges||General Solution||Benefits||CP PLUS Solution|
|Securing Parking lot||-Vehicle and License plate recognition. – Video monitoring of the vehicle.||Better security and preventive measures can be ensure upon suspicion.||HLC/WDR cameras with inbuilt Analytics.
|To manage POS transactions||HD Images with integrated POS can help identify offenders.||Better visibility of POS transactions, which may help to minimize false claims and billing.||IP MP cameras
|Real-time monitoring with alerts.||Intelligent alarm System with more reliability||Effective and real-time monitoring||NVMS Software with inbuilt analytics,
|Reliable alarm system may increase actual response time|
|Shelf is empty and store manager is clueless||Sending alerts when a shelf gets empty. IP cameras in intelligent systems can spot empty shelves – and alert appropriate staff to get them restocked.||Non-stop availability in the shelves and impression that items are always available.||IP Solution, Voptimus Pro|
|Optimize staff deployment||Footfall counting system can ensure proper deployment to cater to the customers.||Proper staff utilization||IP Camera with integrated people counting solution, vOptimus Pro, IVS boxes|
|I will be away for few days. Yet, store will open||Remote accessibility on your smartphone
|Safety of your store in your absence. Employees will be working properly ensuring no work suffers.||IP Cameras, KVMS PRO|
1.2 Location for Security Cameras in Retail
Though every retail outlet is different in terms of its size and merchandise layout, yet each has an exit and entrance, cash register station, and sales floor. Placing security cameras near high-trafficked and unguarded areas within your store will help reduce the number of retail crimes. At the same time, properly installed retail security systems ensure that shoplifting and employee theft will be recorded on camera.
Entrances and Exits: Mount retail security cameras directly above or near your store’s entrance(s) and exit(s) to monitor the flow of customers and employees. This location provides a clear view of each person coming in and out your storefront. With high quality IP video, you can recognize and identify faces to save as evidence if needed.
Cash Register: The cash register is an extremely sensitive area and should be monitored at all times. Dishonest employees will steal directly from the cash register, and as a business owner with a never-ending list of responsibilities, you can’t always be there to make certain that all sales for the day have been accounted for. Retail security cameras should be mounted above the register to monitor and observe all activity taking place at the register, including transactions, refunds, and money counting. To catch employees who you suspect are sweet-hearting, install cameras directly above the scanner.
Sales Floor: Always outfit your sales floor with at least one security camera. Depending on the size of your business, you may need a considerable number of security cameras to cover the space. Poorly lit aisles or areas that are difficult to see should also be monitored by cameras. Shoplifters tend to migrate towards store locations that lack sufficient customer service or have less visibility.
Warehouse: Thieves often access store warehouses to steal inventory and/or cargo. Millions of worth of cargo items get stolen from warehouses, loading trucks, and docks. You can install security cameras up on beams, drop ceilings, or main ceilings to oversee the inventory. Parking Lot: If your store has its own parking lot, install a video surveillance system to cover this specific area. Vehicle break-ins are common in store parking lots for employees and customers. Installing network video cameras in your parking lot makes license plate recognition possible, which is extremely helpful in cases where a perpetrator has fled the scene in his or her vehicle.