The future of open merchandising – Sell More, Lose Less

Inventory Management Consultants (IMCo) develops intelligent loss prevention solutions that reduce opportunistic theft as well as stop organized retail crime.

The subject of shoplifting is as old as the retail store itself. Current figures from the global shrinkage study of the US companies Checkpoint Systems and The Smart Cube assume a sum of 123.39 billion US dollars is caused worldwide by goods shrinkage (shoplifting, dishonest employees, theft by suppliers, booking errors). According to the Global Retail Theft Barometer, global shrinkage rose from 0.94 percent in the previous year to 1.42 percent of global sales.

Theft in the stationary trade: Organized gangs are on the rise

Striking is the dramatic increase in heavy shoplifting in recent years. The individual thief is no longer the problem, but more and more retailers are victims of organized gang theft. Whereas in the past decades Organized Retail Crime (ORC) has been a major problem in the US, today this phenomenon is seriously increasing in Europe as well.
Criminal statistics here are setting a new dimension, with a 40 per cent increase in foreign suspects, most of them from Eastern and South Eastern Europe.

According to a survey from the US National Retail Federation (NRF), organized retail crime is on the rise.100% of retailers in the US say they have been a victim in the previous 12 months, 83% said ORC activity had increased in the past year. These organized gangs are mainly stealing hot products. Current figures published by the German EHI Retail Institute and Global Retail Theft Barometer show that the focus is on perfumes, cosmetics, razor blades, tobacco, spirits and tools.

Organized Retail Crime (ORC) is an established part of the US retail marketplace, because stolen goods flow back into the procurement channels. Retailers, who supposedly buy cheap residual items of branded goods are fueling the cycle by purchasing products that may well have already been on their own store shelves and stolen. The ORC-system operates through wholesalers, who bring stolen products back into the supply chain. In addition to the traditional focus on shoplifting, retailers should therefore take a closer look at their wholesalers and the delivered goods. This high demand on stolen goods empowers Organized Retail Crime to provide stolen goods in increasingly quantities.

Deterrence directly at the shelf with IMCo

During a detailed 5-month loss prevention study in 27 stores at a leading European retailer, the retail experts, IMCo, carried out extensive offender interviews together with the police. This way IMCo got valuable insights not only into the motivational structures and offender behaviour but also new findings on the perception of retail loss prevention measures used to date.
Important result: Even professional offenders are extremely risk-adverse. If they are unsettled during the active stealing process, they will most likely stop their action and leave the store.

The challenge is therefore to develop systems that keep an open customer-friendly shopping experience whilst also integrating effective loss prevention measures right here.
Based on this empirical knowledge IMCo developed loss prevention systems that reduce opportunistic theft as well as organized retail crime.

Part of these new solutions is the intelligent IMCo Shelf that detects theft and immediately sets off an alarm at the shelf. This way suspects can be addressed by store staff in a service-oriented manner. Optionally video surveillance or PA systems can be integrated. New figures show that stock losses are reduced by 88% and sales rise by up to 14 % with the IMCo solution. The patented system stimulates sales thanks to the open shopper-friendly presentation yet also effectively stops professional theft. Thousands of successful IMCo installations featuring its solutions are running at major retailers worldwide.

You can find the IMCo experts at the EuroShop in Hall 3 with Oechsle Dispay Systems at the joint stand A 75-A 76.

IMCO Inventory Management Consultants e.K.

IMCo is manufacturer of innovative intelligent retail loss prevention solutions that help to sell more and lose less. With installations at major retailers worldwide, IMCo is now one of the leading producers of intelligent systems that stop theft while maintaining an open shopper friendly presentation. With the IMCo solutions that stop organized retail crime directly at the shelf, fast, measurable results are achieved. The company was founded 2000 in Germany and distributes its solutions through its worldwide partner network.

IMCo
Inventory Management
Consultants e.K.

Theodor-Heuss-Platz 8
D-14052 Berlin, Germany
Tel: +49 (0)30-33 00 81 72
Fax: +49 (0)30-33 00 81 74
info@imco-berlin.de
www.imco-berlin.de

Press Contact
Exordium Media & Consult GmbH
Katy Roggatz
Gross-Berliner Damm 73b
12487 Berlin
katy.roggatz@exordium.de

This release was published on openPR.