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Mentor, OH--Retailers in the US and UK are facing a theft crisis, according to new research by Avery Dennison. 64% of large retailers state that theft has reached a critical point. Additionally, 42% say theft is a greater concern now than a year ago.

[Image via istockphoto.com]

The study, which surveyed 300 senior retail leaders from brands with over 200 stores, shows theft as the top business challenge, surpassing issues like optimizing omnichannel operations (27%), rising operating costs (27%), improving staff efficiencies (26%), and customer retention (24%).

Many retailers are increasing their anti-theft and loss-prevention budgets. Over half allocate 3% to 4% of their IT budget to theft detection and prevention, while nearly a quarter allocate 5% to 6%. However, 33% feel the resources are still insufficient.

Retailers are using various measures to tackle theft, including RFID tags, body-worn cameras, and facial recognition technology. Security guards were cited as the most effective measure, followed by facial recognition technology and RFID tags.

Looking ahead, 76% of retailers are either using RFID or plan to adopt it within the next 24 months. Additionally, 38% plan to deploy AI-enabled cameras, and 37% intend to introduce facial recognition technology.

Francisco Melo, President of the Solutions Group at Avery Dennison, highlighted the need for a data-led approach to loss prevention. He noted that shrinkage also includes supply chain waste, misplaced inventory, human error, and fraud. He also highlighted the importance of advanced track-and-trace technologies like RFID for proactive loss prevention.

Read more in this report by Avery Dennison.