RetailT
threat of shoplifting or the associated risk issues. So in stores that had high shrink but the traffic was comparatively low, for example, we can make better decisions around those and ones that don’t have high shrink but are high risk, where the traffic data supports that.” Montez said he worked with IT to ‘unlock’
RetailNext features around exception reporting and video analytics that were needed for loss prevention purposes. But, rather he called attention to a “change in mindsets within the company” as an additional side effect of harnessing the loss prevention benefits of its IT-based supply chain and store investments. “The biggest thing was sharing the data and
statistical analysis we’d gathered once the systems were ready with the store managers,” he explained. “We had people talking to our store managers for the first time about shrink using actual analytical data. “It means not just saying ‘make sure you greet
every customer at the door,’ as an example of a typical loss prevention philosophy. It means being able to say [to the store manager]: ‘Hey, yesterday we noticed you had 300 customers that came into the store and – as we looked at the video analysis – we noticed that, out of those 300, you only greeted 150.’ “It makes a big a difference when you have the
data at your fingertips to do that. We also started to learn a lot about the behavioural patterns of our cashiers and what procedural rules they were following, in terms of checking for ID or the right security features on cards. So, as we improved behavioural standards, we also helped to improve our levels of fraud.” This led to demand from store
echnology
managers for access to the same information. “They wanted to get their fingertips on this data,” said Montez. “So that gave us a whole new focus on how we were using RetailNext in our company, by giving them access to their own data and helping them manage their business on their own.” Montez conceded that there were some specific
loss prevention demands not already met by the existing store IT infrastructure. “We needed to add a few more cameras into some of the stores,” he said. “We had to realign certain cameras so that they we have a very good view of the cash registers and of the salesfloor in certain areas. We also learned over time we could grow the use of RetailNext with more high-tech IP [internet protocol] based Axis cameras, which enabled us to have fewer cameras but cover more of the store. “From a sales standpoint, we’ve greatly improved our conversion rates. With shrink, not many retail companies today can say they are on a reduction rate. And we’re great advocates of RFID. But RetailNext, combined with the IT elements we have to help us reduce shrink, is a great advantage for us simply because the awareness is there. “We give the managers the tools to run their
business and we have the loss prevention capabilities we need at a corporate level.” The retailer is not resting on its laurels, but has several plans to develop the LP benefits of its IT systems. “Mobile PoS is a big one,” concluded Montez. “The flexibility of having the right cameras and analytics is going to be instrumental in supporting that. So the customer transaction can take place on any part of the salesfloor.”
©American Apparel
www.retailtechnology.co.uk Autumn 2014 23
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