industry focus
Germany invests more in anti-theft technologies
Shop theft in Germany has reached such a level that retailers are investing in more technology and innovative ways of protecting stock, according to research from Cologne-based EuroHandelinstitut (EHI).
The EHI study suggests that theft in German stores results in a total inventory discrepancy of around €3.9 billion. According to the researchers, €2.1 billion of this is loss carried out by shoplifting customers, €900 million is attributable to employees, while suppliers are responsible for €300 million. Organisational mistakes, such as compliance issues and incorrect price tags, account for €600 million.
Altogether, 104 retailers with a total revenue of €64 billion and with nearly 18,000 stores (with an average individual sales area of about 1,200 square metres) took part in the study “Inventory Differences 2014”.
According to the study, the German retail sector invests more than €1 billion every year in security technologies and personnel and in a new training course, “Retail Security Staff “ where future store detectives and guards are now being directly educated about shoplifters’ growing professionalism and disposition to violence.
According to EHI, the level of theft equates to each German citizen statistically stealing about €26 worth of goods per year, according to the National Association for Shoplifting Prevention.
The study identifies small, valuable items that are especially coveted by shoplifters including food, perfume, cosmetics, razor blades, spirits and tobacco products. In the clothing sector, brand-name goods and accessories are targeted. In the electronics sector, storage media, console games, smart phones and LED lights top the list of stolen goods.
“Shoplifting rates are still at a very high level, although retail has undertaken a lot in terms of organisation, technology and personnel in order to limit theft,” said Frank Horst, leader of the department for inventory differences and security at EHI.
“Honest customers end up paying for losses incurred by shoplifting, since inventory discrepancies and security are – just like all other costs – reflected in the purchase price. In order to discourage dishonest customers and employees from stealing, retail is investing €1 billion per year in security technology and personnel. The most important measure is video surveillance,” he said.
According to the EHI, 93 per cent of retailers surveyed employ CCTV to prevent and investigate external (customer) theft. 68 per cent also wish to use this to prevent internal (employee) theft. Many companies stated that they hope to use video surveillance more extensively in the future within the limits of data protection law. EAS (electronic article surveillance) will also be expanded – and not only in the clothing sector.
Today, other sectors are also catching up, according to retail expert Thomas Roeb from the Bonn- Rhein-Sieg University of Applied Sciences. Roeb says that high-scale food items will be also equipped with small sensors in the future, thus making a purloined Champagne bottle or unpaid truffle pastries emit a loud warning signal at the store exit.
