Clothing Security Is Affordable And Will Add Profit To Your Bottom Line
I want to address the problem of clothing security, how big an issue it is and how stores can prevent shoplifting. This issue is important to me because I have spent almost 28 years in the retail industry and about 19 of those years were in Retail Loss Prevention. I saw the problems shoplifting caused in a big box retail store and know that the issue is amplified for smaller retailers. While a 1% inventory shrinkage is a drain on stores that may do 30 or 40 million in sales a year, that same 1% is shortage for a store that does a million in sales is $10,000. That may not even sound like a lot until you consider that the profit margin of a specialty clothing retailer ranges from 4% to 13% with average net margins at just below 8% according to quora.com in an article titled, “What is the average profit margin earned by apparel retailers (brick and mortar and e-commerce/online retailers) and/or distributors?” As a source of information they referenced an article from Forbes in 2017. That means the average profit margin dollars for a clothing retailer with sales of a million dollars a year would be $80,000. This may not sound too bad to some people. But consider this, according to score.org, citing a Gallup poll it was found that 39% of business owners said they work over 60 hours a week. My admiration for the risk-takers who are investing time, money and sweat in their small businesses is tremendous. I detest those criminals who steal, whether it is a spontaneous decision, a theft for a perceived need or an organized theft ring. I am not the only one who gets his hackles up over shoplifting. The CEO and founder of Loss Prevention Systems Inc., Bill Bregar does as well. He has developed his company to assist stores in preventing shortage due to theft and fraud encouraging the use of anti-theft devices such as clothing security tags.
You may be one of those small business owners who is thinking to yourself that you could use some help in reducing your losses and adding money back to your bottom line. The problem you have is that you have no idea how clothing security tags work or even where to begin to start to address the issues. Not to worry, I am going to give you the information you need to get a better handle on what anti-theft systems and devices are. When I am discussing retail anti-theft systems for clothing security (as well as other merchandise) I am talking about an electronic article surveillance (EAS) system. The system operates using radio frequency (rf) waves transmitted by clothing security tags and received by EAS Pedestals. The tags are pinned to clothing and are built so that they are nearly indestructible and cannot be removed without the use of a special detachment key. If a shoplifter walks into the area of a pedestal (located near the doors of a store) the pedestal picks up the rf signal from the tag and blasts out a loud screeching alarm and flashes built in lights. Store employees approach the customer who activated the alarm and complete receipt checks and recover unpaid merchandise from the offender. The wonderful thing about clothing security tags and EAS pedestals is that just the presence of them in a store deters most shoplifters. Criminals do not tend to want to attract attention so they go to places where they are less likely to do something to get noticed like activate alarms.
At this point I have your interest but I know what you are thinking, “There is NO WAY you could afford a retail anti-theft system even if I knew it would reduce my inventory shrink”. “Remember that $80,000 a year profit margin you mentioned?” That would be a good argument except Bill Bregar took that into consideration knowing the struggles small and medium business owners face. Visit the Loss Prevention Systems Inc. website and checkout the free Loss Prevention ROI Calculator he has available so store owners can see that not only can they afford an electronic article surveillance system the system actually pays for itself over time.
I have been in retail a long time and I have first-hand experience watching shoplifters struggle to try to defeat clothing security in stores. I have seen the frustration when a tag could not be forced off of a pair of jeans. I have seen the shock on the face of a woman who stuffed a box full of clothes protected with clothing security tags and the pedestal alarmed when she tried to walk out of the store.
Retail anti-theft devices work. There is no getting around it. If you want to run a more profitable store let Loss Prevention Systems Inc. help you get started with a clothing security strategy that works.
Clothing Security is importing and we can help you with it. Call 1.866.914.2567 and let’s talk.