08 Jun 2007


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Retail shrinkage: BT launches loss prevention system

Crime

technology

Source : BT
BT today announced the launch of a Loss Prevention solution to help combat shrinkage, the industry-wide problem of stock loss from crime or wastage that costs UK retailers billions of pounds every year.

By integrating video surveillance images with point-of-sale (PoS) transaction data, the new offering is designed to enable retailers to pinpoint - and capture - evidence of circumstances leading to stock loss.

The BT Loss Prevention technology, which leverages BT Redcare’s expertise in digital CCTV network storage, has been introduced particularly to help retailers address the issue of staff-oriented shrinkage.

According to the European Retail Theft Barometer, staff theft, along with staff assisted theft, is the second most common form of shrinkage (38 per cent of all cases), closely behind customer theft (43.3 per cent). In 2006, it cost the retail sector £1.49 billion.

Internal errors, such as staff till mistakes or procedural errors, account for a further 14.3 per cent.

Although 80 per cent of retailers already have CCTV and all have PoS systems, few currently integrate these existing technologies to identify and manage shrinkage more effectively.

The BT Loss Prevention solution enables retailers to utilise their existing IT infrastructure by connecting these systems across a modern IP network.

Using complex software that can analyse data from multiple systems, the new solution links video footage from CCTV cameras with till transaction details to provide exception alerts, which are reports designed to highlight unusual behaviour.

This will allow retailers to track incidents and gather vital evidence in a timely and cost efficient manner. Retailers can set up the system to deliver reports against a series of ‘rules’, for example: specific high value items showing on the CCTV but not on the till data; or cancelled transactions and item returns shown on the till data where CCTV shows no customer or manager present.

As well as arming retailers with the data to take decisive action on employee theft and fraud, the solution will also highlight staff training requirements and potential areas that require attention such as queue monitoring, service issues, merchandise presentation or stock levels.

Gary Sharp, retail sector general manager, BT Global Services UK, said: “Retailers are recognising that reducing shrinkage is a profit growth strategy; it needn’t just be accepted as a cost of doing business. At a time when competition in the sector is fiercer than ever and there’s renewed pressure to reduce efficiencies, it’s starting to creep up the boardroom agenda.

“Utilising our combined technology expertise across the business, from BT Redcare’s security capabilities to our unrivalled networking expertise, and in-depth knowledge of the retail environment, we’re able to offer real-time management of shrinkage at store level. We’re committed to delivering technologies that can help retailers to achieve cost savings and protect profit margins and, ultimately, this new system will help retailers to accelerate their business performance.”

The Loss Prevention system is the first in a series of new technologies that BT plans to deliver to retailers this year to address the issue of stock loss. Future offerings in the series will comprise bespoke technology and application bundles that will further aid the tracking of goods on the move from warehouse to store to final sale by giving retailers real-time stock visibility and control throughout the supply chain.

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Anonymous	11 Jun 2007 11:23:45
This is not a new solution. Checkpoint Systems have hasd this in place for a while now at many retailers across Europe.