Checkpoint Hard Tags – A Profitable Investment
According to the 2014-2015 Global Retail Theft Barometer report, total retail shortage globally was approximately 123.39 billion dollars. North American reported shortage for the year was approximately 36.79 billion dollars. For stores that specialize in clothing and accessories the shrinkage percent was the second highest category, at 1.98% following only behind pharmacies/drugstores at a whopping 2.25% shrinkage rate. Within the Apparel and Fashion Accessories category, the most stolen items were footwear, sports-related clothing and fashion accessories. Employee theft and shoplifting are estimated to have been the cause of 85% of the shrinkage for Apparel Specialist Retailers and of this amount it was almost evenly divided between shoplifting and dishonest employees. There are steps apparel retailers can take to stop shoplifting and prevent some employee theft from draining profits from their business. One of the most effective steps is to install an electronic article surveillance system and then use the Checkpoint mini hard tag on merchandise.
The electronic article surveillance system (EAS) will include an antenna system that alarms when merchandise protected with EAS tags or Checkpoint hard tags is carried within the range of the antennas. The system also includes deactivation pads that deactivate EAS tags and removal devices to take Checkpoint hard tags off of merchandise when it is purchased. Training is also provided so store managers and personnel know how to test the system and respond to EAS alarms appropriately in order to prevent a theft.
Why do I suggest using the Checkpoint mini hard tag, especially if a clothing retailer is just starting to use an electronic article surveillance system? There are a number of Checkpoint hard tags a retailer can choose from to protect softlines products, but the mini tag provides flexibility to tag not only clothing but accessories too. The mini hard tag can be pinned directly to a piece of clothing providing both a visual deterrent to prevent shoplifting and alarm protection if someone tried to exit with a garment that still had the tag on it. This Checkpoint tag can be pinned to clothing accessories, such as ties, scarves, gloves, hats and even belts so the store is not limited in what it can protect. The same can be done with purses and handbags. The Checkpoint mini hard tag makes it simple to select one protective device to secure a wide range of products and eliminates the need to have multiple checkpoint hard tags being used in one store.
For a clothing store that is already using electronic article surveillance products, but has reduced the amount of items being tagged due to cost reduction efforts, let me point out another fact from the Global Retail Theft Barometer. In 2014-2015, for stores that participated in the prior year survey, clothing retailers reduced spending on loss prevention measures, including EAS technology, by .15 percentage points. Shrinkage rates in these stores increased 1.68 percentage points! It may be possible that in some instances stores were using too many different EAS tags, or they may have been attempting to save payroll by reducing the number of sku’s being tagged so tagging did not take as long. I have two suggestions that can help achieve either objective. First, using the mini tag would eliminate some of the need for employing a variety of Checkpoint tags, while still being able to tag nearly all clothing lines carried in the store. The alternative to save payroll would be to look into apparel source tagging options offered by Checkpoint. These options give the store the protection of EAS tagging but the actual tagging of merchandise is done elsewhere, no additional payroll is spent in the store!
Don’t allow theft to shrink your profits. Invest in electronic article surveillance and Checkpoint hard tags to keep your merchandise in the store and available for sale. If you have an EAS system and are looking for new ways to save payroll without degrading clothing security, find out more about source tagging from Checkpoint.
Get more information on Checkpoint hard tags, contact us or call 1.770.426.0547 today.