More strategy, less technology

A quick look round any store in the UK today would show a significant presence of security systems. From item protection systems like EAS, locks, cables and limpet alarms, to CCTV, EPOS transaction monitoring, and remote monitoring, to display cabinets, dummy merchandise, barriers and turnstiles, not to mention the human presence of detectives, guards and staff awareness itself, it’s clear that technology is king. But are systems working effectively, or are retailers spending more money on controlling theft than is actually being lost?

On the eve of the new millennium, retail loss prevention strategy is due for a complete overhaul, claim experts, with many retailers just getting to grips with datamining techniques and being better informed about where stock losses are occurring. Indeed the last thing retailers need to combat theft is yet another technical solution, says Ronnie O’Callaghan, managing director of the Retail Tagging Organisation: “If retailers allow themselves to be dazzled by technology, rather than effective management procedures, they could face declining profits without solving the root causes of stockloss. Technology is only as good as the use to which it is put. How anti-theft strategies are applied is just as important.”

So how are retailers managing their loss prevention strategies? At the Walmart-owned Asda, it has been a case of marrying technology with design, as well as suiting its merchandise. Steve Storey, technical manager, security at Asda, says: “CCTV is not the most effective deterrent for product protection, although it is a good deterrent against crime and also in keeping customers and employees safe. That is important for companies like us — we have to protect employees, customers and their property. If a shopper comes to Asda, and their car is broken into they won’t come back.”

Tagging trials

Asda has had more success in product protection with EAS tagging but is speculative about where it is used Following extensive trials of tagging systems five years ago when it went into selling a branded range of clothing that proved popular with thieves, all the various types of EAS systems were tested. Initially it chose Sensormatic’s electromagnetic system which proved to be better than its RF system, but since then, Asda moved on to an acousto magnetic tagging system introduced by Sensormatic. The deciding factor lay with what Asda wanted to do design-wise in the store. With the electromagnetic system, pedestals could only be placed 1.6m apart. While with the acousto-magnetic system, pedestals could be placed 2 metres apart, better suiting the company’s design criteria.

According to Sean Bowen, security systems manager at Asda: “The way we currently design out-of-town stores is that we have done away with turnstiles at the entrance. The entrance area can now be filled with seasonal offers and used for marketing. To the untrained eye, it appears easy for customers to walk out without paying. So we look for technological solutions that would protect that area, as well as a greeter.”

One key element of this strategy has been in using trolley track — an intelligent tag fitted on the trolley, tracking its movement in and out of the store. Trolley track sounds an alarm if the trolley leaves without going to the cashier first. The system is manufactured by Secure Solutions and is used at five Asda sites. Trolley tagging is not new, however — Tesco’s first used the system about three years ago. It’s also used forcheckout management in Holland to determine average shopping times, but that is not a concept that has taken off in the UK.

EAS, on the other hand, is used on clothing, music, video and beers, wines and spirits. “We’re more concerned that full trolleys go out with bulky items like champagnes which have not been paid for. In that case the trolley is tagged because sometimes a standard EAS tag won’t work well inside a trolley,” says Bowen

“We also use EPOS exception monitoring — the difficulty in the supermarket environment is the sheer volume of transactions that go through.

EPOS exception monitoring looks at EPOS data from an investigative side rather than a sales side — we use two systems currently — a centralised system from ICL and a store based system from Secure Solutions.”

All of this fits into Asda’s loss prevention strategy. Says Storey: “It’s important to have a system in place to identify what the loss areas are and to make sure stores report every criminal event that happens. With that information we can decide where to put in security improvements.”

Not a panacea

However, many experts express doubts about EAS. Brian Weeks, managing director of Integrated Product Intelligence:“EAS is effective — but clearly systems can go wrong and prices charged for the tagging system might not reflect the benefit the retailer gets. Retailers need to measure how effective tagging has been.”

David Hutler, sales and marketing director of Securitas Guarding Services, says: “Ink tags and the like ruin clothes, and if they have not got the ability to stain clothing, all they would do is set off an alarm and you would have to hope that a guard would follow that person and apprehend them. In effect we would say that is a failure because security should be more proactive than that — alarm activators are simply a secondary form of security.”

Indeed some companies simply use guarding and CCTV to control shrinkage. Hutler praises systems used by Marks & Spencer “They simply depend on the quality of surveillance and their personnel.The systems we find of benefit are high quality CCTV cameras that can follow people around from entry to exit. If those control rooms are manned properly, the guard can prevent a theft or if the theft occurs, apprehend the thief.”

New dangers

A more recent worry for retailers is cash in transit. Crime is being displaced away from banks and building societies on to vulnerable out of town supermarkets which now operate ATM tills. According to David Hutler: “If ATMs set off an alarm, the police tend not to respond to them, unless there is confirmation that a robbery has taken place. We have mobile response teams that assist the ATM teams. The security officer in the store is an integral part of the safe movement of cash within the store,” says Hutler.