Introduction
The alarming escalation of retail losses, as reported by the National Retail Federation, highlights a major challenge for the industry. In 2022 alone, U.S. retailers faced an astonishing $112.1 billion in inventory shrinkage, with theft, including organized retail crime, contributing to approximately 65% of these losses. In this environment, traditional loss prevention methods are proving insufficient. Gatekeeper Systems offers the Purchek® technology, an innovative solution designed to tackle this issue head-on, offering retailers a strategic advantage in combating pushout theft.
The Real Impact of Pushout Theft
Pushout theft extends its impact beyond the immediate loss of merchandise. Safety concerns are a top priority, as the stress on employees dealing with or preventing thefts, that often result in violent confrontations, can degrade workplace morale and elevate turnover rates. Additionally, theft harms inventory accuracy, a major factor for maintaining customer loyalty in today’s omnichannel world. Customers expect essential items like Tide, baby products, and other household necessities to be in stock. When products are unavailable despite being shown as in-stock online, it damages the retailer’s credibility and hurts repeat business.
Case Study: Demonstrating Effectiveness
Over a ten-week period, Gatekeeper Systems conducted a merchandise theft experiment in a major U.S. superstore to measure the frequency and impact of pushout thefts. The study was divided into two phases: the first seven weeks focused on observing and recording theft incidents, followed by three weeks of evaluation after the Purchek® technology was activated.
Benefits of Implementing the Purchek® Solution
The surveillance phase recorded 584 pushout thefts, amounting to $84,460 in lost merchandise. Remarkably, within the first week of activating the Purchek® technology, these incidents saw a dramatic decrease, showcasing the system’s immediate effectiveness in preventing theft, improving safety and adding value. By significantly reducing theft, the Purchek® technology not only reduces the opportunity for dangerous and violent confrontations, but also ensures that inventory levels are maintained, leading to a better shopping experience.
The Purchek® technology allows employees to focus less on security and removes the human lens from identifying potentially bad actors. Employees can focus more on customer service and store operations, thereby boosting overall efficiency and profitability.
The case study clearly demonstrates the effect known as the Purchek Curve™, whereby the solution’s capacity to rapidly prevent pushout thefts results in an immediate and significant drop in theft activity. This translates into direct savings and safety enhancement for the store. This immediate return on investment is a compelling argument for its widespread implementation.
YOUR Customized Report
Predicting YOUR Benefits
Building a Business Case for the Purchek® Solution
Investing in the Purchek® technology should be viewed as a strategic move towards profitability and improved safety. This solution is an investment that enhances the brand’s value, employee morale and operational integrity.
When evaluating the investment opportunity, the following points should be considered:
- The reduction in theft incidents post installation clearly demonstrates the solution’s effectiveness.
- The total cost per theft incident versus the cost of the Purchek® technology deployment shows a favorable return on investment (ROI) / internal rate of return (IRR)
- Improved customer satisfaction, safety, labor attainment and reduced employee turnover highlight the secondary benefits of the system.
Gatekeeper Systems’ team members are available to help you in building out a business case for deploying the Purchek® Solution.
Next Steps: Implementing the Purchek® solution in Your Store
We invite retail executives to engage with our team for a detailed consultation. We will tailor an implementation strategy that aligns with your specific needs, ensuring that the Purchek® solution integrates seamlessly into your operational framework.
Final Word
Gatekeeper Systems’ Purchek® solution offers a robust solution to one of the most pressing issues in retail today – pushout theft. By adopting this advanced technology, retailers can not only prevent significant losses but also enhance the safety and satisfaction of both employees and customers, ultimately contributing to the store’s long-term success.
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