Sensormatic RFID Solutions Bring Clear Sightline into $1.2 Trillion Shrink Problem

Expanded line of smarter loss prevention helps retailers gain new insights into key areas of impact

Johnson Controls today announced that Sensormatic Solutions, its leading global retail solutions portfolio, has expanded its innovative line of RFID-based shrink visibility solutions, providing actionable data to help retailers reduce loss and better manage shrink. Leveraging RFID technology for smarter loss prevention, Sensormatic shrink visibility integrates multiple technologies to meet the unique needs of each individual retailer—while helping decrease shrink based on the source and location of loss.

These new Sensormatic RFID-based electronic article surveillance (EAS) systems reveal item-level insights into stolen merchandise to help retailers react effectively to loss conditions. Electronic product code (EPC) information is captured through connected IoT devices to deliver real-time data, resulting in improved inventory accuracy and actionable analytics.

Retailers worldwide are challenged by the real price tag of total retail loss – a staggering $1.2 trillion problem. Not only must retailers combat almost $100 billion annually in total losses from shrink, but also nearly $1.1 trillion from inventory distortion (a combination of out-of-stocks and overstocks), which equates to 7.3% of global retail sales from stock distortion.

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While shrink significantly impacts a retailer’s bottom line, inventory distortion causes a lack of visibility into timely and accurate inventory across a seamless unified commerce environment. Without RFID-based technology, retailers lack confidence in their ability to promise available, on-hand stock, thus driving higher operational costs for online sales and store fulfillment needs.

Shrink visibility takes loss prevention to the next level with an innovative portfolio of Sensormatic RFID-based EAS detection systems, which include: discreet door mounted, overhead to blend into any store environment, and traditional pedestals. The combination of trusted Sensormatic hardware and analytics gives retailers unprecedented item-level shrink visibility to impact key areas of the store, including fitting rooms, transition areas, stockroom and receiving, points of sale (POS), store exits and the sales floor, to help:

  • Track and manage retail shrink from all sources along the supply chain in real time.
  • Get clear sightline into causes of shrink by understanding which, when and how many items exit without a valid sales transaction.
  • Differentiate between actual store shrink and other forms of inventory distortion.
  • Proactively prevent shrink and inventory distortion by optimizing staffing during times of spiked theft, integrating video capture for forensic analysis of loss events and rapidly replenishing stolen goods with real-time item-level reports of missing items.
  • Capture EPC quality data in real time enabling predictive, analytics-based strategy and response—at the exit, in receiving and on the selling floor

“Second generation use cases support the relevance of RFID for loss prevention,” said Brent Brown, vice president and general manager, Global Inventory Intelligence, Sensormatic Solutions. “Whether for forensic investigations, the ability to replenish merchandise faster, or the intelligent alarming capabilities for high-theft events caused by organized retail crime rings, our smart systems are uniquely designed for retailers seeking to leverage advanced loss prevention use cases with RIFD technology.”

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