EAS and Organized Crime

The reports about shoplifting and employee theft play an important role in how retail stores deal with this crime. Recent surveys about organized crime show that almost 90% of those surveyed indicated that they have been a victim of ORC. Even when retail stores spend thousands of dollars investing in security and surveillance equipment, shoplifting and employee theft are a major problem for these stores. It should not surprise us then, that retail stores marked up their prices to cover some of the loses they suffer from shoplifting and shrinkage. Organized crime, shoplifting by single individuals, and employee theft are problems that as a society we deal with every day.

To read more about this topic follow the links below.

Fighting Organized Retail Crime with the Power of Information

Organized Retail Crime (ORC) deals with professional shoplifters, crime networks, cargo theft, Internet crimes, and other organized criminal activities that occur in the retail setting. These highly organized, often mobile and sometimes complex groups and their hierarchies provide a tremendous threat to the retail industry and to the global economy. The primary objective of these professional crime rings is to target retailers across a geographical area or cyber network, stealing from these organizations for the purpose of turning products into financial gain, rather than for personal use.

The dramatic growth of ORC incidents cost the retail industry more than $30 billion each year. However, these incidents also carry a devastating impact that dramatically affects our society as a whole. In addition to tremendous financial losses, these events frequently serve as gateway crimes to other illicit activities; with the illegal income from the expanding theft and resale of stolen retail goods benefiting those engaged in other forms of criminal activity such as drug trafficking, violent crimes, gang activity, and even terrorism.

Where Next for EAS? Reflections on Current and Future Developments

Marketing textbooks tell us that every product, brand, and technology has a life cycle. First, there is the launch and introduction, then a period of strong growth, then a period of maturity, and then of course, a period of decline.

The textbooks point to two decline-management strategies that are within the control of those who presently own the product, brand, or technology.

First, the product, brand, or technology can be reinvented to appeal to a new target market by better responding to new trends and needs. Olay, Lucozade, and Burberry are three examples of mature brands and products that were reinvented with great success. In the case of Lucozade, sales of this fizzy tonic drink tripled through the introduction of smaller bottles and new advertising campaigns that repositioned the brand as an energy drink used by sports stars.

The second approach is for organizations to recognize that if they don’t embrace and manage the decline, their competitors will. So in these organizations, they have a deliberate plan to create and launch new superior products and technologies that push the existing product into decline. Apple and its iPhone product is a great example. To defend its market share and stay ahead of its competitors, the company continually updates its products with new superior versions: 4 was better than 3, 5 was better than 4, 6 was better than 5, and so forth. Another example would be Gillette, where the decline of two-blade razors was triggered by the launch of three blades. More recently, three-blade razors have been put into an accelerated decline by the launch of five blades. This approach to product life cycle management has helped Gillette remain the most popular razor brand in the world.

Unexpectedly Exposed: Who’s watching you in dressing rooms?

EVANSVILLE, IN (WFIE) –

If you’ve ever dragged a heap of clothes into a dressing room, only to have none of it fit – you know what a battle shopping can be.

But we’re learning, there’s a different kind of battle raging in dressing rooms across the Tri-State.  This one pits your expectation of privacy against retailer’s rights to protect themselves against shoplifters.

We’re talking about cameras in dressing rooms.

There’s an entire industry built on keeping an eye on you in stores.  Closed Circuit TV cameras retailer Mike Haldas tells 14NEWS, his Florida based company has sold CCTV Camera equipment to stores in 50 states and 85 countries, and you’d be hard pressed to find a retailer in America that doesn’t have some sort of surveillance.

They’re trying to combat theft.  If they can do that, a new National Retail Federation Survey shows they could potentially stop a lot of what’s called “shrinkage,” inventory lost to fraud, theft, or waste.  It says stores lost $1 out of every $100 of inventory to shrinkage last year.

Stores want to know: Are people stuffing clothes into their bags to steal them?  Are they switching stickers in the dressing rooms?  Those things add up to losses.  Cameras would be a good way to find that out.

“They’re placed everywhere in the store.  Obviously they want to deter people from stealing things to begin with,” Haldas said.