Case Study: PAK’nSAVE Achieves a Return on Investment within Six Months

Situational Background

PAK’nSAVE’s policy is to provide New Zealand’s lowest food prices. The grocery chain, which is owned by the Foodstuffs Group, follows a food warehouse format unique to New Zealand supermarket shopping. Stores buy and stock a range of everyday basic products in bulk, and doing this in large volumes means that savings are passed on to customers in the form of New Zealand’s lowest overall food prices.

The chain also reduces in-store costs, with basic style stores without fancy floor coverings, extravagant shelving or expensive lighting. Their stores offer a practical and functional environment with wide aisles, where grocery items are stacked on shelves in their boxes so that it’s easy to shop. Customers pack their own groceries, so as to further cut costs.

Reducing costs by these methods enables PAK’nSAVE to pass the savings directly on to customers, without sacrificing the quality of products offered.

The Challenge

Mt Albert PAK’nSAVE is one of the chain’s busiest stores, serving tens of thousands of customers weekly. Like all grocery stores, Mt Albert PAK’nSAVE aims to minimize stock loss through shoplifting and ‘sweet hearting’ (whereby checkout staff avoid scanning high value items in friends or family members grocery shopping). Commonly stolen high value items include meat, razor blades batteries, and health and beauty products.

The Solution

To reduce shoplifting a number of Auckland PAK’nSAVE stores use ADT Sensormatic electronic article surveillance (EAS) theft prevention systems, including one of its busiest stores in the suburb of Mt Albert.

In addition to video surveillance, Mt Albert PAK’nSAVE installed the following Sensormatic solutions:

  • • Maxcalibur and Ultra•Post, which were customised to PAK’nSAVE’s brand colours
  • • Customised signage

Thanks to the easily-concealed slim-line EAS security labels, stock losses are down for commonly stolen high value meat, razor blades batteries, and health and beauty products. The labels can be slipped unobtrusively into packaging, enabling double-tagging as a backup measure for determined shoplifters who manage to remove one tag. Microwaveable labels under meat tray absorbent pads have also proven successful. The pads can not only help protect the meat’s freshness and visual appeal, but also deliver hard-to-defeat, anti-theft protection with acousto-magnetic technology.

Additionally, Sensormatic’s advanced technology means that false alarms are a rarity, thus avoiding embarrassing customers who have not shoplifted, and preventing unnecessary disruption to store personnel.

The Results

Mt Albert PAK’nSAVE’s management believes the store achieved a return on its investment within six months. What’s more, stock takes show gross profit improvement in the two years since the EAS system was installed.

“ADT is very responsive and provides excellent service and a great product. Using Sensormatic EAS technology has helped to make a significant difference to our profitability because would be shoplifters know that Mt Albert PAK’nSAVE takes security seriously,” said Colin Sheehan, Store Manager Mt Albert PAK’nSAVE.

Management has been impressed with the robust nature of the EAS hardware: “The pedestals are constantly knocked by shopping carts and probably get hit thousands of times a year and function just as well as when they were installed two years ago.”

What’s more, the word appears to have spread that Mt Albert PAK’nSAVE takes security seriously, with former repeat offenders now giving the store a wide berth.

Filed under Loss PreventionKeywords electronic article surveillance; acousto-magnetic; EAS; loss prevention; shoplifting; shrink

Published on 2/13/2011 Permalink


Add a comment


* indicates a required field