Checkpoint Systems’ Alpha Division has announced the results of a study, which has found that Alpha security devices provide a drop in shrink and rise in sales of razor blades at a large US retailer.
The study was by Read Hayes, Director of the Loss Prevention Retail Council (LPRC) in the US. It assessed the effectiveness of the Alpha Keeper system in reducing shrink, increasing sales, affecting out-of-stock occurrences and gauging perception from retail customers and employees alike. The project was conducted during the latter part of 2007 in several stores of a large grocery retailer in the United States.
Keepers are clear polycarbonate cases with specialised electronics designed specifically to protect high-theft merchandise. The merchandise is kept safely inside while still allowing customers to browse the shelves and visually examine the products inside. This enables customers to make purchasing decisions much more easily on products that would otherwise be located in another area of the store, inside a locked cabinet, behind a sales desk, or require the assistance of a store employee – adding time and hassle to the customer shopping experience. Instead, customers can easily take the products in the Keepers off the shelves and they are unlocked at the cash register.
Results of the study, which involved the use of Keepers with 69 wet shaving blade and razor products, show that this method of protection significantly reduces shrink and also increase sales compared to the normal options at the control stores. In all test stores, shrink was significantly lowered, and the positive effects of this became greater as more time elapsed. Sales of the products also increased due to greater availability of products on shelves without the need for associate assistance and a decrease in out-of-stock merchandise. When factors such as costs of goods, reduced shrink, increased sales, cost of labour, cost of capital, time and out-of-stocks are measured, the study found Keepers pay for themselves in around seven months and had an internal rate of return of 139pc during the test period.
The study also found that retail customers find it easy to select and access the appropriate merchandise, and they react positively to the aesthetic design of the Keepers. On-shelf access is appreciated, so that they don’t have to seek assistance from store employees to get the product from another area of the store or unlock it from a cabinet.
Cashiers noticed more razors coming through the check-out lines due to the on-shelf availability. They stated that Keepers are easy to use and require minimal additional time to unlock and remove products. Interviewed employees and customers both affirmed: “Keeper systems are an excellent combination of security and accessibility”.
Dr Hayes said: “This is the most rigorous evaluation research in stores that supports the efficacy and effectiveness of an asset protection solution as measured by real-world ROI results we’re aware of today. Security and Loss Prevention Managers can use the study results to help justify retailers’ investments in similar security solutions for their stores.”
Larry Yeager, Vice President and General Manager, Alpha Division, added: “We were very pleased to sponsor the LPRC research. We know our product solutions have a quick ROI in terms of shrink reduction and this research confirms this fact while adding compelling evidence about their positive effect on retail sales.”
