INDUSTRY SOURCES REPORT THAT RETAILERS LOSE FROM
$50 TO $200 TO "PUSH-OUT-THEFT" PER DAY, PER LOCATION
The Company
A food and drug retailer in North America operating over 1,000 stores.
Challenge
At many "hot" locations, the retailer was experiencing push-out related theft with losses estimated at $500 to $2,000 per week per store. This type of theft ranges from individuals stealing a few items to what is classified as organized crime because the perpetrators work in groups and target several retailers in one area often in one day or evening. Shrink caused by push-out theft is significantly impacting the retailer's bottom line.
Solution - Carttronics Push-Out Prevention System™ (POPS™)
POPS is based on Carttronics' proprietary RF transmitter system, new RF digital programmable locking casters, and Carttronics' patent-pending RSN or Retail Solutions Network. POPS prevents customers from leaving with a cart unless they have gone through and paid at the register. Carttronics' RSN electronically records push-out-events for comparison with video records, and simultaneously monitors the status and health of the POPS system to provide real-time remote system management via a web connection and maximum ROI on the POPS system investment.
Trial
POPS was installed for a twelve week trial at one of the retailer's problem stores which was experiencing significant shrink, due in large part to push-out theft. The goal of the trial was: 1. To reduce the big losses caused by push-out theft by preventing thieves from leaving the store with carts full of product and 2. To justify the ROI of the POPS program by recording and documenting each push-out event including the total dollar amount of product that were recovered in thwarted theft attempts.
Results
• During the first day of the trial two push-out thefts were stopped and recorded. Value of the goods recovered was nearly $400.
• After the first week, eleven push-out thefts were halted by POPS totaling more than $1,200.
• It is worth noting that in 40% of all push-out attempts at this location, the would be thieves were blocked from stealing and also converted to paying customers by purchasing some or all of the merchandise in their cart. These events represented a double win, as the losses were prevented and revenues were simultaneously boosted.
• The projected rate of savings due to push out prevention is $100,000 per year for the store. (and this # does not include projected sales revenue added by the push-out events that were converted into sales).
• The rate of push-out attempts began to drop from initial install date to the end of the trial. It was determined by the LP professionals that an awareness factor came into play as push-out thieves began to steer clear of this store with POPS in favor of stealing from other stores in the area that did not have a push-out preventative program in place.
• There were positive employee comments received about being able to do something about the scourge of push-out theft.
• The data taken at this store location indicated that the POPS program would pay for itself within a few months, clearly making a positive case for the ROI.
• The trial was so successful with the immediate stop of push-out theft, the retailer decided to install POPS in another store when the trial was only two weeks old.
ROI CASE STUDY #2 - CART RETENTION
LOST SHOPPING CARTS INCREASE RETAILER COSTS AND THE PRICES
CONSUMERS PAY - AND CONTRIBUTE TO LITTER IN MANY COMMUNITIES
The Company
One of the largest grocery retailers in the UK, operating nearly 500 supermarkets. The food retailer posted sales of over $12 billion for 2006.
Challenge
At a number of supermarket locations, the retailer experienced high levels of shopping trolley loss (a cart is known as trolley in the UK). These carts are either stolen or left abandoned by shoppers in nearby communities. The loss of carts results in higher costs for the retailer, which routinely had to replace fifty carts in an eight-week period at this store. The loss of carts also negatively impacted customer service because wayward carts were not available for customer use. Abandoned carts often become litter in the neighborhoods, creating a negative image in the surrounding community. Local municipalities instituted "good neighbor" laws forcing retailers to be responsible for wayward trolleys and fining them for trolleys found off site.
Solution
Carttronics CAPS® (Cart Anti-theft Protection System). CAPS is Carttronics proprietary electronic system that stops the removal of shopping carts from retail sites.
Trial
CAPS was tested for an eight-week period at the problem store, which had historically experienced significant trolley losses. The goal of the trial was to reduce the trolley loss at the store by 80%-90%, from 25 per month to less than four per month. In addition, management wanted to reduce or eliminate the hours and vehicle hire time for off site cart retrieval.
Results
• The trolley loss rate over the eight-week trial period was reduced by 90%, from an average of 50 during the control period to a total of 5 during the trial period.
• The loss of 5 trolleys during the trial period was 37.5% better than the established target of 8 carts for the trial.
• The store reported that trolleys were always available for customers outside entrance to store.
• No carts with CAPS were found on rounds off site. Off site collection was carried out for all 8 weeks of trial. No trolleys at all were found to be off site after fourth week.
• More than 80 carts that had been lost prior to the trial were brought back into the system during the weeks after the installation. CAPS were fitted to the reclaimed carts, and they have remained on site, eliminating the need for cart retrieval sweeps.
• Positive customer comments were regularly received about availability/choice of carts when shopping.
• Positive local resident feedback about elimination of abandoned carts in the neighborhood.
• The store's customer count increased during the trial.
