In-store spend on loss prevention has increased by 77 per cent in the last year, according to an industry survey. Published by Retail Knowledge and sponsored for the second consecutive year by WIS International, an inventory and data collection services company, the survey covers the systems, processes and strategies of UK retailers. The survey covers retail transactions accounting for some 32pc of all UK retail sales online and offline through 34,950 stores across the UK.
The store prevention spend has increased dramatically from last year when it was 0.6pc of sales, to 1.06pc this year, according to the survey; its authors suggest that’s underlining the need for more resources.
Steve Simmonds from WIS stresses the importance of in-store fraud prevention: “Detecting, preventing and managing fraud is a full time vocation and getting the people, processes and technology right to beat fraud is crucial. The increase spend shows just how the industry is recognising the importance of in-store fraud prevention and of course, it is impossible to know what shrinkage would be costing without all the loss prevention and fraud protection now in place.”
The retailers interviewed had reduced expectations of the importance of online sales to their businesses. Last year expectations were for an increase from 20pc now to 52pc in the next three years. However, now retailers are predicting online sales contributing just 29.57pc of sales; perhaps due to the resurgence in importance of offline sites with the advent of more consumer-engaged sales strategies such as mobile point of sale (POS).
About the survey
Retail Knowledge, who commissioned the survey, are owners of the Retail Risk conference series in London, Leicester and Dublin, and launched in Cape Town, Dubai, Oslo, Amsterdam, New York, Dallas, Singapore and Melbourne with further shows being added in the near future.
