Retailers see RFID technology as solution to theft crisis

New research released by Avery Dennison has revealed that almost two-thirds of large retailers in the UK and US agree that the impact of theft has reached a crisis point, with 21 per cent of respondents indicating RFID technology as one of the most effective measures against it.  

The research commissioned by Avery Dennison, a global materials science and digital identification solutions company, collates the views of 300 senior retail leaders in the UK and US, representing brands with over 200 stores.

When asked to list their top five business challenges, the most cited responses addressed the impact of theft (36 percent). Many retailers are fighting back with anti-theft and loss-prevention measures in response to this challenge.

Retailers have been deploying a myriad of high-tech and low-tech measures, in addition to security guards, to tackle an increase in theft. From RFID tags to body-worn cameras to facial recognition technology, retailers are using a combination of solutions for a holistic approach. Respondents listed security guards (27 percent) as the most effective measure deployed to date, followed by facial recognition technology (23 percent) and RFID tags (21 percent).

Retailers also shared their plans, with 76 percent stating they have deployed RFID tags or plan to do so in the next 24 months.

Francisco Melo, president of the Solutions Group at Avery Dennison, said: ‘While theft remains a significant concern, shrinkage extends further to include supply chain waste, misplaced inventory, human error and even fraud. The impact is substantial. To protect profits and create improved store environments, it is imperative that retailers take a data-led approach to loss prevention. Leveraging advanced track and trace technologies such as RFID, with real-time analytics, will help to turn loss prevention into a proactive operation rather than a reactive one.’

Department store chain Macy's is a pioneer in the long-term deployment of RFID technology, starting its journey almost a decade and a half ago.

Joe Coll, vice president of asset protection at Macy’s, addes: ‘RFID has proven a game-changer for us. It has definitively unlocked so much insight and completely changed our visibility into what is happening inside of our stores.’