80% of US retailers plan to use RFID for theft prevention

In today's Retail Industry, retailers are facing unprecedented challenges as theft rates continue to rise. According to a report funded by Avery Dennison, retailers' concerns about retail shrinkage have reached a peak in recent years. In response to this crisis, retailers have adopted various advanced technologies, especially RFID (radio frequency identification) technology, in order to reduce theft rates and optimize inventory management.

The report pointed out that the amount of stolen goods in retail in the United States in 2023 has soared to $112 billion from $94 billion a year ago, which reveals the dire situation of retail theft cases across the country. Retail leaders generally believe that theft has become more common and worrying, and as many as 64% of respondents said that retail theft has reached a crisis point. In the face of this challenge, 57% of respondents have increased their budgets to combat theft, and more than half of the respondents have invested 3% to 4% of their total IT budget in anti-theft measures.

Among the many anti-theft technologies, RFID technology stands out because of its unique advantages. According to statistics, 76% of large retailers have deployed or plan to use RFID technology in the next two years. RFID tags can not only uniquely identify goods and provide precision in inventory management, but more importantly, they can also be installed at Store exits to detect the loss of unpurchased goods by reading RFID tags. The application of this technology enables retailers to detect and deal with theft incidents in a timely manner, greatly reducing the theft rate.

The report recommends a hybrid approach to address retail theft, combining RFID technology, digital system data, video surveillance, facial recognition and other technical means. This hybrid solution not only provides more comprehensive monitoring and data analysis, but also enables retailers to more accurately locate theft and effectively combat and prevent theft through cooperation with law enforcement and prosecutors.

In the work of anti-theft, the active participation of employees is also crucial. RFID technology reduces the need for manual inventory checks and product searches, allowing employees to focus more on customer service, improving work efficiency and customer satisfaction. At the same time, retailers should also establish close cooperative relationships with the community and the police to jointly build an anti-theft defense line. For example, some retailers equip the front door of the store with security guards and RFID handheld scanners to quickly identify unpurchased goods through handheld devices, thereby effectively intercepting theft.

Macy's is one of the successful cases of RFID technology application. The company began to introduce an RFID-based exit detection system in 2016, unlocking new data on daily loss events by reading RFID tags and correlating them with video timestamps. This data provides valuable insights for management, allowing them to more accurately understand the occurrence of theft incidents and take effective preventive measures. This innovative move by Macy's has set a new benchmark for theft prevention in the retail industry.