Tyco Retail Solutions Reduces Shrink at Leading US Grocery Retailer

Independent Study Finds Sensormatic EAS Delivers ROI in Less than a Year

SAN DIEGO, CA — NRF Loss Prevention Conference & Expo Booth # 1101 — June 12, 2013 — Tyco Retail Solutions (www.tycoretailsolutions.com), a leading global provider of retail performance and security solutions, today announced a leading US grocery retailer has significantly reduced shrink through the use of its Sensormatic Acousto-Magnetic (AM) EAS technology. Based on a recent study conducted by a leading retail industry analyst firm IDC Retail Insights, the findings note the implementation of EAS technology not only serves as a theft deterrent to minimize loss, but also helps to improve inventory management and maximize labor usage. To learn more about the study please download the study here.

cover of TRS/IDC Grocery Study

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According to IDC Retail Insights, food retailers on average report 2% of sales lost due to shrink from shoplifting, check and gift card fraud, employee theft, vendor fraud and organized crime. While percentages vary by product category and company size, the most substantial losses are from general merchandise such as razors and batteries, health and beauty care, and baby related products such as infant formula.

The study evaluated the shrink performance of four stores over a six month period by using Tyco’s Sensormatic brand AM EAS anti-shoplifting technology and compared the results to stores without EAS. During the test, theft prone general merchandise and drug items were tagged at the source by product manufacturers, or tagged at the retailer’s distribution center. Most items had EAS tags placed inside products or their packaging, ensuring tagging consistency, and increasing the level of security.

At the completion of the study, the grocery retailer found:

  • Shrink in general merchandise and drug departments was reduced by 79 basis points, which is a significant percentage of overall shrink, in stores with AM EAS as compared to stores without;
  • Tagged items resulted in better inventory management, inventory reductions, and improved in stock position;
  • Minimizing in-store tagging by store associates enabled them to carve out more time to focus on customer service while simultaneously increased employee awareness towards controlling shrink;
  • The combination of Sensormatic AM EAS technology and source tagging can drive a “halo” effect onto other items in the same department preventing further theft.

“For the purposes of this study we focused on the potential to reduce loss through EAS technology; however, the business benefits extend beyond that. The ability to reduce out of stocks also improves the customer experience enabling them to find the products they want to buy. This is critical as customer satisfaction, in stock performance and customer loyalty go hand–in—hand in today’s competitive market where there are simply too many other places a shopper can go to find the products they want,” noted report author Leslie Hand of IDC Retail Insights.

“Grocery retailers face unique challenges when it comes to protecting high theft products in difficult categories. By combining our proven Sensormatic AM EAS technology with vendor source tagging, our customers can not only leverage a powerful theft deterrent, but also drive operational improvements,” noted Nancy Chisholm, vice president and general manager, Tyco Retail Solutions. “This study reconfirmed the value of the customer’s EAS investment and reinforced that, with proper execution, greater results can be derived.”

About Tyco Retail Solutions

Tyco Retail Solutions is a leading global provider of integrated retail performance and security solutions, deployed today at more than 80 percent of the world’s top 200 retailers. Customers range from single-store boutiques to global retail enterprises. Operating in more than 70 countries worldwide, Tyco Retail Solutions provides retailers with real-time visibility to their inventory and assets to improve operations, optimize profitability and create memorable shopper experiences.

The Tyco Retail Solutions portfolio for retailers is sold direct through Tyco businesses and authorized business partners around the world. For more information, please visit www.tycoretailsolutions.com or visit www.YouTube.com/TycoRetailTV.


Kim Warne

Tyco Retail Solutions

+1 (561) 912-6049

Julie Crotty

Attune Communications

+1 (978) 877-0053

TYCO, SENSORMATIC, and the product names listed in this document are marks and/or registered marks. Unauthorized use is strictly prohibited.

Filed under Acousto-Magnetic; Loss PreventionKeywords acousto-magnetic; grocery; EAS; loss prevention

Published on 6/12/2013 Permalink


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