CDX SECURITY ANALYSE THE RISK to RETAIL IN THE UNITED KINGDOM.
The increasing risk of loss and theft has seen become more important to the retail industry as margins shrink, the retail sector continued to struggle, with the latest figures showing sales in June fell by 0.5 per cent against the same month in 2016.
“Retailers’ top risks show their eyes are wide open to the new wave of emerging and evolving risks - retailers this year are most concerned about ‘security breaches’.”
- Jennifer Valdivia, partner in BDO’s consumer business practice
Inventory shrink cost the retail industry billions of pounds in 2016, the effect of which could be curbed by implementing retail security officers and state-of-the-art CCTV systems. As businesses are increasing their budget for cyber security attacks, they should also increase their budget for physical security at the same rate.
Retailers are reacting to the trend of managing shrinkage and are upping their security in light of the heightened risk to ‘bricks and mortar’ stores. River Island for example, have reduce theft by 60 per cent in its largest UK store on Oxford Street in London by implementing updated security tags.
Apparel retailers bucked the broader trends in the industry, as shoplifting and employee theft were much higher than the industry average at 41% and 35.5%, respectively. Shoplifting remains the top source of retail shrink, surpassing theft by employees.
The worsening retail shrink is part of a bigger picture that illustrates how traditional retailers are struggling. More than 1,000 brick-and-mortar stores shut down in one week in 2017. At a time when consumers are spending more online and less at brick-and-mortar stores, traditional retailers can ill afford growing retail shrink. Every last pound is being squeezed.
With the regular emergence of new, widely-available security threats, merchants should never assume that their networks or environments are secure. The above steps can help retailers de-sensitize information before it enters their environment to ensure that a compromise of their systems does not also result in a data breach of their customer’s payment information. With this layered security approach, merchants can continue “business as usual” with a significantly reduced level of risk.
CDX understands the importance of loss prevention in the retail sector, which is why all CDX Retail Officers undergo shrinkage training before being deployed to a site. For professional and dedicated retail security and state of the art Emergency Store Detective Response visit cdxsec.com/retail-security