Shoplifting has long been a concern for retailers. However, as the frequency of shoplifting continues to increase, many retailers are looking for proactive measures they can implement to reduce and minimise shrinkage. In 2024, it was revealed that shoplifting had increased by a massive 37%. Data from the Office for National Statistics revealed there were 402,482 shoplifting offences in England and Wales in the year up to September 2023 - the first time the number has exceeded 400,000 since records began in 2002. In this blog, we’ll discuss the benefits of preventative methods like security tagging and how retailers can address their shrinkage concerns, with insights from our Head of Customer Success Clair Worthington. Find out how Dee Set's retail merchandising solutions can help combat shoplifting and reduce shrinkage. Did you know that by introducing security tags and labels to products, retailers can reduce theft by around 80 per cent? Security tagging for retailers is crucial for two key reasons: Less shrinkage: Studies have shown that stores with retail security tagging systems in place experience less shrinkage compared to those with no such measures, which shows the importance of setting up a quality system. Preventing retail theft: Security tags are effective as they are designed to activate an alarm when shoppers go through the store's exit without paying. This is a deterrent for thieves, as it will draw attention to them and may stop them in their tracks! Security tags are an effective measure in reducing shrinkage, though their effectiveness can be influenced by several factors: And the research backs this up - this study conducted a mixed-methods review, including keyword searches of both published and unpublished literature, hand searches of relevant journals, forward and backward citation searches, and consultations with four retailers. Out of fifty studies identified, eight provided data on how well security tags work. Five of these eight studies showed that tags helped to reduce theft, but differences in tag types and results made it hard to combine the data. Tags might reduce theft by increasing risks for thieves, reducing rewards, or by making theft harder. The effectiveness of tags varied based on the type of store, staff, customers, type of tag, product, and the level of police involvement. Implementation issues mainly involved staffing and the way the tags were used. The study shows us that using security tags in retail is complex. Different tags work in different ways depending on various factors. It's hard to say for sure how effective tags are at reducing theft, but more visible tags seem to work better than less visible ones. 'Opportunistic theft remains a challenge for retailers,' says Clair. 'Whilst security tags are a deterrent, additional preventative measures such as surveillance cameras, image recognition technology, and anti-theft devices may be an extra essential for security.' Employee theft is another notable concern, as some colleagues may find ways to bypass security measures. Additionally, there is the problem of vandalism and product damage, where thieves attempt to remove tags, often causing harm to the merchandise. Once these products are damaged, they cannot be returned to the shop floor, meaning potential losses to profit. 'Ensuring the safety of both customers and employees is a critical consideration,' Clair adds, 'especially due to the rise in violence and confrontation for grocery store staff. As a consequence of these challenges, retailers must continuously adapt and integrate various strategies to reduce the likelihood of them happening.' Thanks to various new developments in the technology sector, things like AI and machine learning are set to revolutionise security tagging and shrink reduction. These technologies have the ability to take in valuable data, which can then be used to identify patterns and detect potential threats. For instance, AI can recognise unusual shopping behaviours and alert staff in real-time, while machine learning algorithms can predict and preempt potential theft scenarios based on historical data. However, it will be important to eradicate bias from these systems where possible. 'It’s true that as technologies evolve, so do the associated risks,' says Clair. 'Retailers must continuously review their risk management protocols to navigate the shifting retail landscape. Retailers need to ensure that they are staying up to date with new technology and training staff to handle new types of threats - whilst also maintaining a flexible approach to security management.' Staff training is crucial to the effectiveness of security tagging systems, as properly trained employees will ensure the correct application and removal of security tags. Additionally, an emphasis on awareness and an effective response to alarms and the ability to distinguish between false alarms and actual thefts is a vital skill for staff to have. Correct training also sees a reduction in human error, which can be a huge contributor to security breaches, ensuring compliance and cost savings associated with stock shortages. The correct level of staff training also improves morale and confidence, leading to employees feeling valued in their role and empowered to be an active part of the security measures - ultimately leading to a more secure and efficient retail environment. It's clear that security tagging is a crucial method in the fight to combat shoplifting and reduce shrinkage. The effectiveness of security tags can also be enhanced by emerging technologies to provide a strong deterrent and accurate inventory tracking. However, their effectiveness relies on well-trained staff and robust risk management strategies. By combining our advanced technology solutions with skilled personnel, retailers can significantly reduce shrinkage and ensure a safer shopping experience for all. Due to the rise in shoplifting and organised retail crime, we worked with supermarket giant Asda to help them take proactive, innovative steps to help deter theft in their stores by trialling new theft-resistant fixtures called helix hooks. To tackle this issue, a 9-week program was launched, deploying 172,600 patented Helix Hooks in high-theft areas across over 600 Asda locations around the country. Within 3 months of completing the rollout, the results were truly impressive - the addition of helix hooks cut shrinkage significantly! Asda praised the initiative, which led to further awards and recognition for this successful project. If you’re concerned about the impact that shrinkage is having on your business or you’re looking to improve your security protocols, Dee Set can help. Our team of retail experts are experienced in the handling and setup of security tags. Let us help keep your products safe from theft so that you can focus on other pressing matters. Get in touch to see how Dee Set can help you!Why is security tagging so important for retailers?
'Security tags are particularly effective for high-value or desirable items,' says Clair. 'Many retailers will protect items that are in this category as these are the items that would be more lucrative for shoplifters to steal.'How effective are security tags in reducing shrinkage?
What are the biggest challenges retailers face with security tagging?
How will emerging technologies impact security tagging and shrink reduction?
How important is staff training in the effectiveness of security tagging systems?
Q: What preventative methods have Dee Set been involved with in the past year?
