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Prepared by :

Sudhir Mehrotra

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Retail Shrinkage

Shrinkage is a part of the businessno one likes to talk about. However,shrinkage plays a huge part in everyretailer's business.

Retail shrinkage is the portion of your inventory that gets lost or stolen. Your shrinkage rate isexpressed as a percentage based onthe value of lost inventory divided by

sales during the same period.Keeping your shrinkage rate low iscritical to success in business. 

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Indian retail has highest rate of shrinkage 

 As per a study by “Global Retail Theft Barometer”, retailshrinkage in India continues to rank the world’s highest at

2.7%. Indian retail lost Rs 9,295.9 crore to shoplifting and

theft during the one year period ending June, 2012.

The annual survey was conducted by the Centre for Retail

Research in Nottingham, UK. In India, 47.3% of retail

shrinkage was due to shoplifting and 26.4% due to employee

theft. The highest rate of shrinkage was seen in apparels.

 As per the study, the lowest rate of shrinkage was witnessed

in Taiwan, at 0.87% of retail sales, whereas the average rate

in the Asia-Pacific region was 1.16%.

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The key drivers

• Unemployment claims during a recession isassociated with an increase in shoplifting.

• Shoplifting tends to rise amid high inflation

as goods are priced out of  consumers’ 

reach.• Theft by the employee working in the retail

outlet.

• Persons between the ages of 15 and 24

represented the highest share in Shoplifting

to fulfill there goal.

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Spot the Shoplifter

• Wears bulky, heavy clothing during warm weather .

• Takes several items into dressing room and only leaves with one item.

• Seems nervous and possibly picks up random items with no interest.

• Frequently enters store and never makes a purchase.

• Enters dressing room with merchandise and exits with none.

• Spends more time watching the sales clerk than actually shopping.

• Large group entering the store at one time. A member of the group

causes a disturbance to distract sales staff. 

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Retail Shrinkage Prevention 

Usage of cctv to have close watchon customers.

Checking of staff.

Security staff at the entrance of thegate.

Customer baggage check bysecurity staff 

Issue of token for the baggage.

Installation of EAS system

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EAS system technology

Electronic article surveillance (EAS) is atechnological method for the preventionof shoplifting from the retail storesor pilferage of books from libraries. Special tagsare fixed to merchandise or books. These tagsare removed or deactivated by the clerks whenthe item is properly bought or checked out. Atthe exits of the store, a detection system soundsan alarm or otherwise alerts the staff when itsenses active tags. For high-value goods thatare to be manipulated by the patrons, wiredalarm clips may be used instead of tags.

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Types of EAS system

•Acousto-magnetic systems.

•Radio-frequency systems.

•Video surveillance systems

•Magnetic systems

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Radio frequency system includes:

ANTENNA

HARDTAGS

DETACHER

Radio-frequency systems.

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ANTENNA

The characteristics of the systemANTENNA: Plug-n-play installation Sturdy tubular pedestal design Built-in audio and visual alarms Tags-to-close notification Compatible with all 8.2Mhz using

multiple pedestals Designed for easy installation

and operation

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Hard tags(EAS)

Hard tags are made with best-in-class design practices for exceptionaldetection performance, durability,ease-of-use, appearance, and defeatresistance. Hard tags are available ina variety of styles for use inprotecting apparel of all types fromdelicate lingerie to coats and hats, aswell as hard goods such as sports

equipment, hardware, electronics,and others.

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Detacher

Retail security offers various ranges ofdetachers applied for the reusable tags.Easily installed in cash counter or othernecessary places, these are easy to use,

very durable and reliable. Characteristics .

Sturdy and durable

Easy to use and reliable

Mounting options Detacher Locker options help prevent

unauthorized unlocks.

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