LOSS PREVENTION AND RETURN ON INVESTMENTPoint of Sale Software and Video Integration

THE PROBLEM:RETAIL SHRINK

RETAIL SHRINK

• US shrink grew 6% in 2011• Overall average of 1.59% of sales• $41.6 billion total

• A growing problem, prompting business response• Global spending on Loss Prevention

grew 5.6%

“Shrink” is a reduction in inventory due to shoplifting, employee theft, paperwork errors, and supplier fraud.

Shrink affects your bottom line, and makes you less profitable.

Source: 2011 National Retail Security Survey

RETAIL SHRINK

• Internal and External theft accounts for nearly 80% of retail shrink• 43% of all loss is due to external theft

• 35% increase in shoplifting• 35% of all loss is due to internal theft

• 24% increase in employee theft

Shrink is a global problem, and internal and external theft are the primary sources of loss.

Source: 2011 National Retail Security Survey

THE SOLUTION:SHRINK PREVENTION

SHRINK PREVENTION

• #1 Solution: Labor• Over 50% of Loss Prevention

expenditure in 2011

• #2 Solution: Security equipment• 31% of Loss Prevention expenditure in

2011• Equipment expenditures in the US are

declining

• An effective Shrink Prevention Solution must provide effective and efficient Return on Investment (ROI)

Improvements in labor and security equipment are powerful tools for combating retail shrink and improving loss prevention.

Source: 2011 Global Retail Theft Barometer

RETURN ON INVESTMENT

• Sample ROI calculation• 10M annual sales with 2% shrink

equals $200K lost• 80% of this is

shoplifting/employee theft, totaling $160K

• An integrated system can reduce employee theft by 90%

• This saves $144K in the first year

• ROI dramatically affects the total cost of ownership over the life of the product

The number one objection to point-of-sale integration with video surveillance systems is COST.

PROVIDING SOLUTIONS

• Theft deterrence

• Evidence for restitution if an incident occurs

• Potential insurance savings

OpenEye surveillance products have a strong record of reliability, ease-of-use, and innovation in the areas of business security, theft deterrence, and restitution. With a variety of cameras and recorders available, along with RADIUS remote management software, OpenEye’s products are as effective as they are versatile.

EXTERNAL THEFT AND SHOPLIFTING SOLUTION:

VIDEO SURVEILLANCE

PROVIDING SOLUTIONS

• Dramatically reduce average investigation time

• Conduct investigations with improved efficiency

• Proactive identification of employee theft

• Customized Key Performance Indicators (KPIs) highlight irregularities

• Improved evidentiary video with transaction overlay

• Increases information provided by video surveillance

• Add real-time awareness to suspect exceptions

• Use email alarms to notify managers and loss prevention officers of pre-determined criteria

POINT OF SALE SOFTWARE

INTERNAL AND EMPLOYEE THEFT SOLUTION:

FURTHER RETURN ON INVESTMENT

• Human Resources / Management

• Objective employee review metrics

• Trace specific activities

• Track employee performance trends

• Reward positive employee behavior

• Correct detrimental employee behavior

• Terminate problem employees

• Marketing / Merchandising

• Use video analytics alongside data analytics

• Build conversion rate reports

• Show dwell times for specific items

The Loss Prevention department is not the only business group that benefits from using SaleGuard.

CROSS-DEPARTMENTAL VALUE

CASE STUDY: FESTIVAL FOODSFestival Foods is a regional grocery store in Wisconsin, with roughly 30 large locations.

• Calculated that 60% of shrink was internal after focusing on shoplifting and external theft

• Used a formula consisting of 2 parts training/procedures and 1 part technology

• Deterred theft by demonstrating to employees that the Loss Prevention department was paying attention via specific examples

• Installed video surveillance with POS integration

• Utilized example videos during cashier training

• Reduced employee theft by 90% after 1 year of implementation

SALEGUARD OPTIONS

SALEGUARD BASIC• Provides live text overlay

• No database functionality• Video can be played back with

overlay• Accomplished through third-

party text inserter• No advance search tool

SALEGUARD INTERMEDIATE• Provides live text overlay• Database logging• Multi-criteria transaction search

with video• Export video with or without

transaction information• Alert notifications• Remote transaction search

capability• Basic reports available

SALEGUARD ADVANCED• Provides live text overlay• Database logging• Multi-criteria transaction search

with video• Export video with or without

transaction information• Alert notifications• Remote transaction search

capability• Basic reports available• Customizable intelligent

algorithm• Proactively identify key

trends• Produce detailed LP reports

SALEGUARD BENEFITS

OPENEYE / SALEGUARD INTEGRATION

• SaleGuard Pro combined with E-Series recorders is a great value• No long term residual contract pricing• Free software updates throughout the life of the product• Potential for third party video integration for large projects• Decentralized transaction and video search

SaleGuard includes the same commitment to value, ease-of-use, and Heroic Customer Service OpenEye is known for.

SALEGUARD IS PROACTIVE

• Automated reports direct Loss Prevention officers to possible problems

• Risk Analysis feature provides the fastest method to conduct investigations quickly

• Provide an automated base-line risk ranking on a location-by-location basis

SaleGuard allows retailers to be proactive in their loss prevention, rather than reactive.

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