Does Retail Theft Prevention Work In A Store With Self-Checkout?


Retail Theft Prevention – 3                                                                                      WC Blog 725
Sensormatic Tags – 4
Does Retail Theft Prevention Work In A Store With Self-Checkout? 
     I have often wondered what kind of retail theft prevention measures are taken for stores that set up self-checkout machines in their stores. I have used them myself (and I have gotten rather annoyed with them at times) but as a Loss Prevention professional I have been curious about whether stores see an increase in theft when they are used. I came across an article in d-ddaily.com, “Self Checkout in Retail – Measuring the Loss New Report Reveals the Extent of Losses from Self-Checkout and Identifies Practical Ways to Manage it”. The story validates my concern that self-checkout poses a risk of increased shortage for stores. The report states, “Stores using Scan-and-Go technologies could see an increase of between .7 and 10.4 basis points of additional loss for every one percent of sales processed. In the study the average utilization rate for Scan-and-Go was 2.8% of sales value, suggesting additional stock losses of between .01% and .29% of sales value.” I have been unsuccessful in that I have not been able to find any information that demonstrates self-checkout machines improve sales. Because of this I believe the sole purpose of the self-checkout is to save on payroll. Add four machines at one point of sale and reduce your cashiers by three. It sounds good at first but what happens when that cashier starts getting pulled in all directions? The opportunity for theft increases. You also have the problem of merchandise with Sensormatic tags on them that need to be removed but the customer does not know it. Self-Checkout machines may not be all they have been cracked up to be for a number of reasons.

     When a store uses Sensormatic tags to protect their products from theft it requires a detachment tool be maintained at the point of sale. These tools should be secured to the counter to prevent theft and should only be within the grasp of an employee. If customers are permitted access of any sort to a removal device they will eventually be stolen. Shoplifters love to get hold of this equipment because it gives them the ability to enter other stores that use the same retail theft prevention devices and remove their tags with impunity.  This means that stores with self-checkout machines have to put up signage directing patrons with hard tagged items to use regular cashier lanes. I don’t know how you feel about being redirected but I don’t like being in a line and then having to move. It is not good customer service to send people from one lane to another because of merchandise cannot be processed at a point of sale.

     Aside from the irritating aspect of having not being able to take merchandise with Sensormatic tags through a self-checkout machine there is the theft concern. I have gone through the self-checkout at one big box retailer with one associate managing eight registers. I have observed the one cashier tied up helping one customer for almost five minutes oblivious to the activity at other registers (that’s right the red light at my register was flashing as I was waiting for this cashier to finish). It would have been very easy for any of the other customers to load up shopping bags and stroll out of the store without paying. The bagging area does not require a customer to leave bags on the bagging stand after they are filled. Put them back in the shopping cart and it would be easy to have a partner fill the bags with more merchandise already in the cart.

     It is also important to not lose sight of the potential loss of business self-checkouts may cause. According to a Forbes article, Dec. 6, 2016 by Bryan Pearson, “Making Self-Checkout Work: Learning From Albertsons”, the writer points out the potential for customers leaving stores due to these point of sale machines. “Reduced interactions with a store employee could easily result in an eroded sense of personal connection with the retailer or brand. This gets to emotion. Without it, it’s much easier to move one’s business elsewhere.”

     Losing sales from a lost personal connection and an increase in shortage because of a self-checkout process doesn’t make sense. Use retail theft prevention measures which include Sensormatic tags AND more customer service assistance on the salesfloor and you will improve sales and reduce theft. As your employees engage shoppers and help them there will be an increase in the dollars per transaction. THAT is how you increase sales and improve profits.
Get more information on retail theft prevention, contact us or call 1.770.426.0547

I have often wondered what kind of retail theft prevention measures are taken for stores that set up self-checkout machines in their stores. I have used them myself (and I have gotten rather annoyed with them at times) but as a Loss Prevention professional I have been curious about whether stores see an increase in theft when they are used. I came across an article in d-ddaily.com, “Self Checkout in Retail – Measuring the Loss New Report Reveals the Extent of Losses from Self-Checkout and Identifies Practical Ways to Manage it”. The story validates my concern that self-checkout poses a risk of increased shortage for stores. The report states, “Stores using Scan-and-Go technologies could see an increase of between .7 and 10.4 basis points of additional loss for every one percent of sales processed. In the study the average utilization rate for Scan-and-Go was 2.8% of sales value, suggesting additional stock losses of between .01% and .29% of sales value.” I have been unsuccessful in that I have not been able to find any information that demonstrates self-checkout machines improve sales. Because of this I believe the sole purpose of the self-checkout is to save on payroll. Add four machines at one point of sale and reduce your cashiers by three. It sounds good at first but what happens when that cashier starts getting pulled in all directions? The opportunity for theft increases. You also have the problem of merchandise with Sensormatic tags on them that need to be removed but the customer does not know it. Self-Checkout machines may not be all they have been cracked up to be for a number of reasons.
     

When a store uses Sensormatic tags to protect their products from theft it requires a detachment tool be maintained at the point of sale. These tools should be secured to the counter to prevent theft and should only be within the grasp of an employee. If customers are permitted access of any sort to a removal device they will eventually be stolen. Shoplifters love to get hold of this equipment because it gives them the ability to enter other stores that use the same retail theft prevention devices and remove their tags with impunity.  This means that stores with self-checkout machines have to put up signage directing patrons with hard tagged items to use regular cashier lanes. I don’t know how you feel about being redirected but I don’t like being in a line and then having to move. It is not good customer service to send people from one lane to another because of merchandise cannot be processed at a point of sale.
     

Aside from the irritating aspect of having not being able to take merchandise with Sensormatic tags through a self-checkout machine there is the theft concern. I have gone through the self-checkout at one big box retailer with one associate managing eight registers. I have observed the one cashier tied up helping one customer for almost five minutes oblivious to the activity at other registers (that’s right the red light at my register was flashing as I was waiting for this cashier to finish). It would have been very easy for any of the other customers to load up shopping bags and stroll out of the store without paying. The bagging area does not require a customer to leave bags on the bagging stand after they are filled. Put them back in the shopping cart and it would be easy to have a partner fill the bags with more merchandise already in the cart.
     

It is also important to not lose sight of the potential loss of business self-checkouts may cause. According to a Forbes article, Dec. 6, 2016 by Bryan Pearson, “Making Self-Checkout Work: Learning From Albertsons”, the writer points out the potential for customers leaving stores due to these point of sale machines. “Reduced interactions with a store employee could easily result in an eroded sense of personal connection with the retailer or brand. This gets to emotion. Without it, it’s much easier to move one’s business elsewhere.”
     

Losing sales from a lost personal connection and an increase in shortage because of a self-checkout process doesn’t make sense. Use retail theft prevention measures which include Sensormatic tags AND more customer service assistance on the salesfloor and you will improve sales and reduce theft. As your employees engage shoppers and help them there will be an increase in the dollars per transaction. THAT is how you increase sales and improve profits.

 

Get more information on retail theft prevention, contact us or call 1.770.426.0547