Understanding Loss Prevention in the DIY World of Sodimac

Offering the best variety and categories of products that are easily accessible to customers defines Sodimac’s customer focused philosophy. To maintain customer satisfaction an important element of Sodimac’s product assortment policy is their private brand strategy; creating regional private brands in tools, paint, adhesives and other important categories.

With customers demanding better service and more convenient access to merchandise, Sodimac recognized the need to implement new Loss Prevention (LP) technologies. In selecting the right anti-theft solutions Sodimac needed to consider how to openly display and protect vulnerable high-theft items. The most significant challenges to overcome in a DIY format include:

  • Wide exits that allow large purchases like lumber, dry wall, metal fences, etc.
  • Most frequently shoplifted items that have metal content
  • Source tagging label footprint small enough for an extensive line of products

According to Mr. Migliorini, “as a growing DIY retailer, our LP strategies include the continued rollout of Acousto-Magnetic (AM) technology in all Sodimac stores in Chile, and eventually in stores located Colombia, Peru and Argentina. With the rollout we need to continue the focus to promote our source tagging program with our vendors in order to maximize the program across the chain. We will also initiate pilots with point-of-sale scanning manufacturers and ADT to integrate Sensormatic’s POS deactivation solutions.”

ADT/Sensormatic had the winning combination of technology solutions to overcome Sodimac’s obstacles. To help reduce shrink and increase sales of openly displayed merchandise, Sodimac stores are protected by the Sensormatic® Pro-Max® Detection System — the high performance anti-shoplifting solution designed to cover wide exit openings. With a robust design Pro-Max® is the perfect solution for withstanding impact from carts or other objects common in the DIY environment. Pro-Max® offers flexible configurations and the widest EAS detection coverage, enabling Sodimac to protect high traffic areas for large contractor purchases.

A significant amount of the most frequently stolen products found in a DIY have metal. Sensormatic AM systems offer the highest detection rate to protect all types of products. Most importantly Sensormatic AM technology is capable of detecting security tags found in a wide line of metallic products Sodimac carries like power and hand tools, lighting, etc., and tagged products containing non-ferrous metals.

Sodimac launched the source tagging program in 2006 to ensure products are protected, shelf ready and openly displayed for customers to conveniently purchase. With more than 300 suppliers and more than 8,000 SKUs the source tagging program has proven successful in helping increase the speed of products to the selling floor that translates into increased sales.

Having the smallest label footprint that easily integrates into a wide range of products, the Ultra•Strip® offered Sodimac a number of key benefits:

  • Virtually no false alarms
  • Not detuned by foils or liquids
  • Unlimited activation/deactivation
  • Only activated with specially designed activators

Implementing source tagging along with Sensormatic EAS into their LP program not only increased Sodimac’s profitability due to product availability but also enhanced labor savings at the store level. As Sodimac discovered, Sensormatic is the preferred technology to help protect the challenging retail environment of a DIY.

Filed under Loss Prevention; Acousto-MagneticKeywords electronic article surveillance; acousto-magnetic; EAS; loss prevention; shoplifting; shrink

Published on 10/19/2008 Permalink

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