Loss Prevention and Deterrence
The key to successful retailing is putting a desired product in the hands of your customer. Any other approach limits sales and customer satisfaction. This basic premise of retailing is especially true for expensive, high demand products such as newly released video games, computer software and DVD entertainment.
It is paradoxical that, after investing millions in warehousing, distribution and electronic order systems for the timely delivery of new releases to their stores, retailers hide these same products in a back room or in a locked display case. Why? The problem that stops many retailers from aggressively building sales and customer satisfaction is shoplifting.
 
Rather than proactively deal with theft, many retailers elect to “merchandise” products behind glass cases or display a single empty package on a shelf in the vain hope that customers will search for a clerk to make a purchase. In truth, these loss prevention “solutions” actually result in lost sales. In 1999, Twice Magazine published an article noting that statistically, if a product is under glass or requires assistance to purchase, it can cause a reduction in sales of 40%.
Recognizing the inherent shortcomings of such loss prevention methods, a growing number of retailers have adopted a merchandising approach commonly referred to as “Live Sale”. The “Live Sale” concept employs two interrelated and complimentary components. One component is an Electronic Article Surveillance (EAS) system offered by such organizations as Sensormatic or Checkpoint. The other is a transparent security package commonly referred to as a “Keeper” or Security Case.
The key ingredient for developing the best recipe for “Live Sale” success is knowing which type of Security Case to use for a particular application. In the media industry, a new merchandising trend has developed over the past two years. This trend recognizes that certain titles including newly released video games such as PlayStation2, X-Box and Game Cube have significant “street value” and are primary risks for theft if left unattended on a retailer’s shelf. New video game titles are often priced at $50-$60 (US) and offer valuable profits and quick sales.
Retailers such as Toys-R-Us, Comp USA, Best Buy, and Hastings have been quick to seize the “Live Sale” concept by employing clear polycarbonate security cases, which protect the contents from removal by the customer while still allowing an unhindered view of the product enclosed. As an added benefit, these durable cases clearly display the enclosed EAS tag, which signifies that the merchant is protecting his inventory in more than one manner. This “double defense” not only provides these chains with a high threshold of inventory security but also ensures the purchaser that they are obtaining a product that has not been tampered with in any way.
These clear polycarbonate security cases are proven “Loss Prevention Solutions” when armed with an active EAS tag. Although the initial investment for these cases can be high, the long-term payback of increased sales, reduced theft, self-service customer satisfaction and dependable reuse are significant. As example, an Emplast polycarbonate security case costing $1.60 (US), will usually provide a retailer with durability for at least one hundred inventory turns. With this type of dependability, the average cost for employing a polycarbonate security case for the loss prevention of a $50-$60 (US) video game title averages out to be only one to two cents per sale. Of additional advantage to retailers is the single key synergy offered by security providers such as Emplast. One key, secured by a steel chain to the check out register, will easily open any security case offered by Emplast.
It is little wonder that the aforementioned chains have expanded their use of clear polycarbonate security cases to include the “Live Sale” merchandising of expensive Cellular Phones, Game Boy Systems, Flash Memory Media, MP3 Players and a wide range of software titles. These chains and others are building market share at the expense of their competitors who have elected to keep expensive and highly saleable inventory under glass or in a back room and out of the reach of their customers.
A more recent development in “Live Sale” merchandising involves the utilization of a recyclable polypropylene security frame and an active EAS. This combination is quickly gaining acceptance as an ideal theft deterrent solution tag for lesser-priced merchandise. With the advent of lower priced DVD media retailing in the $9.99-$19.99 range, retailers such Wal-Mart, Toys-R-Us, BJ’s Wholesale Club and Costco are rapidly adopting these sell-through security packages.
Molded of transparent copolymer polypropylene, these disposable security frames also incorporate an EAS tag, which is deactivated at the time of purchase. At home, the consumer can easily remove the security frame using a standard scissors. With DVD’s having lower retail prices and as such a reduced quotient of potential loss, retailers can employ a single use polypropylene security device which offers solid theft deterrence while adding only $0.20-$0.25 (US) to the cost of the product.
By combining an appropriate mix of polycarbonate and polypropylene security cases with a proven EAS system, retailers across the globe can achieve the best of both worlds, increased sales and significant reductions in shoplifting.
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