In the fast-moving world of retail, theft and inventory shrinkage continue to plague stores of all types and sizes, with big box chains in particular feeling the effects. In the face of this significant challenge, the need for innovative solutions has never been more critical. In response to this mounting concern, IVM, a pioneer in secure smart vending solutions for a variety of industries, has begun preliminary exploration into how its robust storage, tracking, and logging systems for critical workplace tools might be adapted to the next wave of retail-focused loss prevention technologies.
Traditional responses to inventory shrinkage include increased security infrastructure and more loss prevention personnel—both of which are expensive. Other options involve cutting out high-theft business hours or even closing stores, both of which also result in lost revenue, not to mention lost jobs. As retailers scramble to mitigate theft and other forms of shrinkage, they are beginning to find that the solutions currently on the table are not cost-effective—and sometimes not effective at all.
Pursuing a Solution to an Industry-Wide Problem
In the past, IVM’s smart vending solutions, from the SmartVault to the SmartCenter, have been tailored for employee use in environments with controlled access, ensuring secure and immediate access to essential job tools and tech at all times. However, recent discussions with partners in the retail space have led to brainstorming new possibilities for adapting this technology in a customer-facing way. IVM technology could keep high-value retail items secured against theft while still being readily accessible to legitimate purchasers.
Through these informal collaborations and the ideas they sparked, a few key points have emerged:
1. Identification of a Critical Issue – All retailers are feeling increased pressure due to retail shrinkage right now.
2. Lack of Cost-Effective, Universally Applicable Solutions – There is currently an absence of one-size-fits-all shrinkage solutions in the retail industry, besides more cameras, security guards, or unreliable RFID tag-and-gate systems that require cumbersome tech infrastructure to be applied to each unit of product.
3. Persistent Nature of Theft – Analysts within the retail space largely accept that theft is unlikely to resolve itself anytime soon. With no major upturn in overall economic conditions on the horizon, it is likely this area will remain a struggle in the future.
The Future of IVM’s Retail-Oriented Loss Prevention Technologies
With these factors in mind, the beginnings of a new IVM project began to take shape. The long-term goal is to create a unique system for shelving high-value, high-shrink items behind a locked solution while still maintaining a user-friendly self-service component. If designed and deployed effectively, such a system will eliminate the need for additional layers in the customer experience, like finding an employee to unlock a display case.
Perhaps the most exciting thing about this prospect is that all the pieces of the puzzle may already exist in IVM’s current solutions, like the SmartVault and SmartLocker. They merely need to be reconfigured into a “SmartShelf” that can be accessed by a verified customer by way of a card reader, mobile device integration, or some other interface to validate legitimate purchasers and give them access to the correct product(s).
Once developed, this technology will ensure a seamless and headache-free shopping process for customers and fewer shrinkage worries for retailers. By incorporating IVM’s technology, retail operations in the near future may be able to tackle theft without compromising efficiency or incurring the massive costs associated with traditional security responses.
As retailers continue to grapple with the economic aftermath of the COVID-19 pandemic, IVM’s forward-thinking approach aligns with the industry’s shift toward leveraging technology to make workflows more cost-effective. Although any customer-facing retail technologies are still in the brainstorming phase, IVM’s solutions appear well-positioned to play a pivotal role in reshaping the narrative of retail security.
