Magazines Archives - 2008 September

Harnessing EAS technologies to stop theft and shrinkage
Story 3 - Special Feature

A store can enjoy healthy sales, run smoothly and still look good while safeguarding its inventory and shoppers’ well-being. ADT Security Services, a global security and loss-prevention specialist, offers EAS technologies for optimum deterrence against errors and theft without getting in the way. Jolene Klassen has the details.

As the retail industry evolves, retailers are increasingly finding more advanced and sophisticated technologies and solutions at their disposal to both protect the business and help optimise customers’ shopping experience. Where loss prevention is a major issue, especially in a store environment, a popular measureis the deployment of EAS (electronic article surveillance) technologies in tags, sensors, deactivators and pedestals at checkout counters and store exits to avert theft. But, before retailers get swept away by the growing slew available on the market, an understanding of these technologies is in order.

To avoid common misconceptions of EAS technologies stemming from the various terms used, it is important to understand that AM (acousto-magnetic), RF (radio frequency) and RFID (radio-frequency identification) are very different technologies which have different signal readings across the frequency spectrum.

This characteristic alone affects how deeply their signals can penetrate objects, which is a critical determinant of their effectiveness against shoplifting, as they have to go through layers of clothing or accessories to detect stolen items which pilferers tend to conceal on their persons.

One technology that has been harnessed for decades in solutions implemented across the retail industry is the AM technology, which is adopted by ADT Security Services in its Sensormatic AM-EAS systems. Measuring 58kHz on the frequency spectrum, AM technology can penetrate liquids and metallic packaging, making it more efficient in deterring shop theft.

The University of Arkansas’ study on the use of RFID in EAS systems for theft prevention in retail stores has revealed that EAS labels using AM technologies can be turned on or off many times, and are normally deactivated or removed from the merchandise at the point of sale. In contrast, labels incorporating the RF-EAS technology, which falls within the 8.2MHz-9.5MHz band, are not reusable upon deactivation or removal, rendering the labels less cost-efficient for retailers, the study noted.

RFID, which commands the highest frequency range of 800MHz-1GHz, can carry multiple bits of information.

However, even as RFID finds its place among retailers’ efforts to simplify inventory management and operations, studies have raised questions about its sensor-detection efficiency when required to penetrate liquids or metallic packaging as it operates on a high-frequencyband.

Comparative evidence from the various shoplifting scenarios throughout the study showed that EAS systems, which include RF and AM technologies, had triggered alarms at the portals more prominently than did the RFID technology.

In the findings, although RFID systems had provided optimal detection rates in a controlled scenario, the bestperformance results revealed that EAS solutions maintained a 100% detection rate throughout the test sequence, making them more efficient in addressing inventory loss and theft — issues which research has established rank high on retailers’ list of concerns. AM technology was also found to offer detection rates 1.5 times higher than RF technology is capable of.

Dr Read Hayes, lead investigator of the recent Retail EAS System Management Study, conducted by the Florida-based Loss Prevention Research Council, declared: “To be a credible deterrent to shoplifting, EAS systems must alarm. In addition, offenders must know the systems exist.” It follows that retailers ought to “inform” potential shoplifters that their stores are geared up and armed to deter theft in their outlets, yet few operators are comfortable doing so.

The message is clear: Shoplifters must be the ones feeling “threatened” rather than retailers feeling vulnerable about exposing the security systems they have implemented.

Dr Hayes also cited a separate UK study, conducted at the turn of the decade, which indicated that among the tagged products activated in a test of 189 installations, 70% of EAS alarms featured AM technology while

RF-EAS tags accounted for only 13% of the activated alarms. And this, despite there being 101 installations of the RF-EAS technology and only 87 of AM technology. Clearly, all evidence points to detection rates continuing to make all the difference in any anti-theft EAS device.

While EAS’ anti-theft capabilities safeguard the store, RFID applications provide better visibility in inventory management and the tracking of goods. Separately, each concept already bears the qualities that work well for retailers.

Used to complement each other in a retail environment, the duo become formidable, completely transforming a retail operation into a highly competent and reliable set-up with reduced inventory and bottom-line shrinkage.

Noting this trend, ADT has also incorporated item-level RFID deployments, dubbed the iREAD platform, into its Sensormatic range. Apart from reducing capital costs for retailers as a result of less hardware required, the system is easily integrated into existing environments, tracking and protecting retail store merchandise all at the same time to minimise shrinkage.

Stanley Kong, vice-president of ADT retail sales and services for Asia, stressed: “The research conducted by The University of Arkansas was important because we believe EAS and RFID are complementary technologies that can provide retailers with several approaches to preventing theft while improving operational efficiency, [according to] their needs.

“Many retailers can benefit from the dual EAS-RFID functionality while others may require a sequential, layered approach.

“Ultimately, research will help retailers develop strategies to guide their decisions [on] the most cost-effective way to deploy these technologies.”

Kong averred: “With data from top research sources confirming the Sensormatic AM technology’s outstanding performance for retail theft prevention, our EAS solutions continue to prove valuable [as a] tool to combat theft.”

The best-possible deterrent technologies against theft on the shop floor is only a step towards shrinking retail losses. For the fully-equipped store to operate to the optimum capacity of its systems, its employees also

need to be adequately trained and educated on how to react, approach and apprehend shoplifters when alarms are triggered.

As an extension of its post-sales support to clients, the company also trains retail staff to identify and handle situations with ease and confidence.

The idea is to ensure that customers will not be mishandled in the event of a security breach, while sending a warning message to would-be shoplifters that retailers are on the top of their game. And, needless to say, attention to details helps.

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