The recent survey by the Brazilian Association of Loss Prevention (Abrappe) pointed out a concerning fact in the country: the growth of losses in retail. The average index in 2023 reached the historic mark of 1.57%, which in monetary terms represents around R$ 35 billion (in 2022 it was 1.48%), considering retail sales. A fable in reais that, if placed in the ranking of the fastest-growing companies in the country by revenue, would be among the top 100, as indicated by Econodata. In other words, it's a lot of money going down the drain, often almost uncontrollably, from retail networks.
As a consolation, it's good to remember that the same Abrappe research indicates that, among the participating retailers in the study, 95.83% maintain a loss prevention area. A sign that the culture of loss prevention is indeed gaining ground in corporations, even if slowly. But fortunately, the index has been high lately (above 90% at least), which certainly does not happen among small and even medium-sized companies.
Having a dedicated loss prevention area in the company is essential for several reasons that directly impact the retailer's financial and operational health. She is responsible, for example, for reducing financial losses, protecting inventories, improving operational efficiency, reducing operational costs, ensuring the safety of employees and customers, and enhancing the brand's reputation. In summary, a well-structured loss prevention area not only protects the store's assets but also contributes to a more efficient, secure, and profitable operation.
But in the last ten years, retail losses have undergone significant evolution, driven by changes in both consumer behavior and the technology available for loss prevention and management. Here are some of the main transformations observed
- Technological advancements: Technology has played a crucial role in transforming losses in retail. More sophisticated surveillance systems, such as high-definition cameras and AI-based video analysis, enable more effective store monitoring, identification of suspicious behaviors, and theft prevention.
- RFID and inventory management: The adoption of technologies like RFID (Radio Frequency Identification) has become more common in retail, enabling more accurate and efficient inventory management. This not only reduces losses due to inventory errors but also improves product availability for customers.
- Security system integration: There has been a growing trend in integrating different security systems, such as cameras, alarms, sensors, and access controls. This integrated approach not only improves incident detection but also optimizes security event response.
- Data analysis and artificial intelligence: The ability to analyze large volumes of transaction data, customer behaviors, and purchase patterns has enabled retailers to better identify risk areas and implement more effective loss prevention strategies. AI algorithms are also used to predict potential threats and fraud.
- Focus on the customer experience: While strengthening security, retail has increasingly focused on improving the customer experience. This means finding security solutions that do not compromise customer convenience or satisfaction during the purchasing process.
- E-commerce challenges: With the growth of online commerce, retailers face new challenges regarding losses, such as online fraud and return management. The adaptation of loss prevention strategies to the digital environment has become essential for many companies.
In summary, the transformation of losses in retail over the past decade has been marked by significant technological advancements, a more integrated and proactive approach to security, and a greater emphasis on data analysis and customer experience. We still don't know what lies ahead, but some international fairs, such as NRF in the United States and Euroshop in Germany, always give us some clues (the theme of artificial intelligence has been a constant in the most recent meetings).
One thing is certain: these changes will continue to shape how retailers approach and mitigate losses in their businesses, always seeking continuous improvements and adaptation to new market realities. If this response is not quick and assertive, it is to be expected that they will have problems. And that, definitely, no one wants!!!
