New research reveals that almost two-thirds (64%) of large retailers in the UK and US agree that the impact of theft has reached a crisis point. In addition, over four-in-ten (42%) believe that theft is more of a concern today than it was twelve months ago.

The research commissioned by Avery Dennison, the materials science and digital identification solutions company, collates the views of 300 senior retail leaders in the UK and US representing brands with 200+ stores. Theft was found to be the leading business concern. When asked to list their top five business challenges, the most cited responses were addressing the impact of theft (36%), optimizing omnichannel (27%), increased operating costs (27%), improving staff efficiencies (26%), and retaining customers (24%).

In response to these challenges, many retailers are fighting back with a combination of anti-theft and loss prevention measures. Over half (53%) say 3% to 4% of their total IT budget is allocated to retail theft detection and prevention, while almost a quarter (23%) are allocating 5% to 6% of their total IT spend. For 57% of the retail leaders surveyed, these budgets equate to an increase in spend over the last two years, however, a third (33%) still believe the resources allocated are insufficient.

Retailers have been deploying a myriad of high-tech and low-tech measures to tackle an increase in theft, in addition to security guards. 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%) as the most effective measure deployed to date followed by facial recognition technology (23%), and RFID tags (21%).

Retailers also shared their future plans, with 76% stating they have either deployed RFID tags or plan to in the next 24 months. Over a third (38%) plan to deploy AI enabled cameras, while 37% will introduce facial recognition technology within the same period.

Francisco Melo, president, Solutions Group at Avery Dennison, says: “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 something of a pioneer when it comes to long term deployment of RFID technology. Almost a decade and a half into its RFID journey, Joe Coll, the company’s VP of Asset Protection, adds, “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.”

Avery Dennison has launched a free digital report outlining top retail strategies for loss prevention. The report includes insights from experts and retailers including Macy’s, Nisa, the British Independent Retailers Association, Co-op and more.