Retailers continue to face a serious problem with organized crime, with average losses exceeding $700,000 for every $1 billion in sales, according to the National Retail Federation. Through the use of technical tools like RFID, they have been able to increase their loss prevention.  

RFID security tags are placed on products and emit unique signals that can be read by specific devices. Unlike traditional security systems, RFID tags not only alert you to theft but also identify the specific item being stolen. In contrast, RF systems simply indicate that a theft is occurring without providing details about the product. This makes RFID a more precise and efficient solution for theft prevention.  As they pass through checkpoints, such as store exits, these tags send signals to readers, allowing employees to identify whether an item was paid for or not. 

In this article, we look at how RFID technology can help prevent theft problems in the retail sector, as well as the advantages and comparisons with well-known traditional systems.  

Benefits of using RFID technology in security labels for the retail sector

RFID tags offer multiple advantages over traditional theft prevention systems. Among the most outstanding benefits are: 

  1. Loss prevention efficiency: RFID tags allow for quick detection of any shoplifting attempt, reducing inventory losses and improving store security. 
  2. Optimized inventory management: RFID tags not only allow for precise tracking of products throughout the supply chain but also enhance internal theft management. By using control points, it is possible to identify discrepancies more effectively, and in case of theft, the unique product IDs help determine exactly what was stolen, even if the thief is not apprehended. 
  3. Implement source tagging: Partnering with specialized companies such as Checkpoint Systems, allows retailers to apply RFID tags directly at the point of manufacture, a process known as “source tagging”. This reduces costs, minimizes tagging errors, and ensures that products arrive in stores ready for sale. 
  4. Protection of brand integrity: The labels are easily adapted to the aesthetics of the product, to be applied carefully and not to modify its original appearance, taking care of the brand image. 
  5. Multi-sector application: From food and beverage to fashion, RFID offers security tags adaptable to almost any type of product. With the right supplier, there will be no problems with known materials that often interfere with RFID performance, such as liquid in the case of perfumes or beverages. Checkpoint Systems designs tags specifically for the most challenging environments so that they do not interfere with the proper functioning of RFID.  

Comparison: RFID vs. other theft prevention systems

When evaluating theft prevention systems, key factors such as scanning range, costs, alarm accuracy, inventory management, and their ability to address organized retail crime (ORC) must be considered. 

Unlike traditional systems like EAS and barcodes, RFID offers a significant advantage by identifying the specific products being stolen. This capability is particularly critical in combating ORC, as it allows retailers to track the total value of stolen goods.  

Below is a detailed comparison highlighting the operational benefits of RFID in the retail environment. 

  • Scanning range: Traditional anti-theft systems like RF or AM require the item to pass through designated detection gates, which require items to pass through a specific point, limiting their flexibility. RFID, on the other hand, offers a greater range, allowing for cleaner entryways and wider detection coverage. For example, RFID systems like SFERO can achieve a range of up to 10 meters between antennas without the need for obstructive pedestals. This makes RFID an ideal solution for seamless monitoring and enhanced inventory management, streamlining operations across stores and supply chains. 

 

  • Cost reduction and profitability: RFID technology can significantly reduce costs by automating processes that require manual labor, such as inventory tracking, loss prevention, customer experience, point of sales, and data collection. By providing real-time visibility into assets and supply chains, RFID minimizes errors, prevents losses, and streamlines operations. This leads to faster decision-making, improved efficiency, and lower operational expenses. 

 

  • False alarm: One of the potential shortcomings of traditional EAS systems is that sometimes if tags are not deactivated or removed correctly, they can cause false alarms. This can affect the customer experience by causing inconvenience during the checkout process. RFID systems, on the other hand, avoid these situations, as they automatically identify paid items and do not generate unnecessary alarms. 

 

  • Inventory management and product availability: RFID technology can provide more accurate and real-time data on inventory levels, which helps retailers manage their stock more efficiently. RFID also plays a crucial role in an omnichannel retail environment. By improving product availability across both physical stores and online platforms, RFID helps retailers meet customer expectations for seamless shopping experiences, regardless of the channel. In addition, these systems update inventory in real time, ensuring that products are deducted from stock as they are purchased, which contributes to a smoother checkout process. 

In conclusion, the implementation of RFID tags and source tagging have become increasingly popular solutions for retailers who want to maximize security and optimize their operations, especially in the face of times when stores become crowded, and controlling shoplifters is a complicated task.