Display Security: How Much is Enough?

When interviewed about three years ago, experts responsible for retail security agreed that the items most likely to be stolen from P-O-P displays are small, easily concealed products with a relatively high "street value" that can readily be converted into cash. This remains true today, according to the experts we interviewed for this article, but some new items have been added to the "frequently stolen" list while others have largely disappeared."Several years ago, photographic film was one of the most frequently shoplifted items," says Allen Buchholz, executive vice president of Frank Mayer & Associates of Grafton, WI. "Today, with the increased popularity of digital photography, the thieves are going for the cameras themselves. In fact, one of the greatest challenges we are facing today is securing cameras, hand-held games, cell phones, PDAs and other small, highly portable electronic devices."David Myers, vice president - business development of Se-Kure Controls Inc., Franklin Park, IL, agrees. "Although film is not really an item of choice any longer, removable media such as memory cards have taken its place," he says. "Other small items with good street value that have been added to the list include everything from multi-blade razors to herbal remedies to hand-held electronic devices."In fact, the availability of portable electronic devices has changed the way marketers think about security. "It's a balancing act," says Buchholz. "With items like batteries, film and candy bars, retailers always expected a certain amount of theft and simply factored the cost into the price of the product. After all, you can't take these high-impulse items and put them under lock and key or out of sight because sales would be dramatically impacted. Things like portable electronic devices, on the other hand, really need to be touched and experienced by the consumer in order to complete the sale. At the same time, you can't simply put them out there and factor the cost of their loss into the price because it would be overwhelming."One way to protect such products, of course, is to keep them locked up in clear display cases. When a customer requests a demonstration, a clerk removes the item from the case and watches as the customer tries it out. "Since these are typically slower moving items and not impulse purchases, most retailers can afford to secure them and service only those customers who are truly interested in purchasing them," says Mark R. Doyle, vice president of Jack L. Hayes International Inc., a security consulting firm based in Fruitland Park, FL. Different Levels of SecurityNot only do different products require different levels of security depending upon their vulnerability and their street value, but the kind of people most likely to steal them must also be taken into account."Shoppers basically fall into three categories," says Howard Levinson of Howard Services, a security consulting firm located in Franklin, MA. "There are professional thieves who enter a store with the express intent of stealing something. There is a middle group, probably about 60% of all shoppers, who don't enter the store with the intent to steal but who might if presented with the right opportunity. Then there is another group who would never steal under any circumstances. It's very difficult, if not almost impossible, to stop a determined thief. It's the middle group, who can be easily discouraged from stealing if it requires any significant effort or if there is a good chance that they may be caught doing it, that marketers really need to protect themselves against."Tom Nook, vice president - research & innovation with Harbor Industries of Grand Haven, MI, agrees. "There are basically three levels of security that can be built into a display," he says. "There is 'complete' security, such as a display that cannot be opened without a special key. Of course, there is no such thing as 100% safe because there is always a slight chance that someone, probably a store employee, can get the key and open the display. There is what I call 'pilfer deterrent' that requires a special effort, such as cutting a heavy cable with wire cutters. This will usually stop all but the most determined professional thieves. Then there is 'pilfer resistant,' which will not stop a professional thief but will deter most casual shoppers."Cost Versus Benefit"There is no hard and fast rule that will determine the exact level of security a particular item may require," says Jeff Pacelt, CEO of DNI Marketing, St. Charles, IL. "In general, the higher the value of the product, the more incentive there is to protect it against theft, but each case really requires its own cost/benefit analysis." Such an analysis can be equally effective for both higher-value and lower-value items. "It can often be justified if multiple items in a single display are very similar," explains John Naill, DNI's vice president - national accounts."An ROI analysis requires answers to a number of questions," says security consultant Doyle. "How many items are being stolen when the product is openly displayed? What will be the effect on sales if the item is secured or locked up? What is the cost of the theft-resistant design, and can this be absorbed into the price without negatively impacting sales?"Who makes the final decision regarding the level of security required? "It's often a compromise," says John Wyer, DNI's vice president, marketing. "Cost, of course, is always a factor. Whoever is paying for the display obviously wants to do it as economically as possible. At the same time, they don't want to sacrifice either security or the ability of the display to promote sales of the product. While it is obviously their responsibility to set these priorities, it is the responsibility of the P-O-P producer to find the best way to implement the strategy."Security consultant Doyle agrees that everyone needs to work together to adequately secure items with high theft appeal. "While the brand marketer and the P-O-P producer want the product displayed openly in order to increase sales, they also must be concerned with security and losses," he explains. "If a retailer's losses due to theft exceed the profits on an item, the retailer has no real choice but to increase security at the risk of losing sales, stop carrying the item, or find a better way to display it."Frank Mayer's Buchholz agrees that balancing security and ability to increase sales must be a team effort. "First, the brand marketer must decide whether to spend money on security, thus limiting access to his product, or bear the cost of replacing it when it is stolen. The P-O-P producer is responsible for coming up with a well-designed and engineered display that will assure security but allow access to product features. A good example is interactive games, both the hand-held variety and those with separate game controllers. These items need to be secured, but you need to maximize the player's interaction with the product. 'Body English' is important to a game player, for example, and if the security device is too constrictive, it will limit this important aspect of the product experience. Finally, the retailer is responsible for where the display is placed. Displays in high-traffic areas keep honest people honest and discourage the thief from carrying out his work."The retailer also has to be responsible for the security of keys that allow access to the display. These keys may not be misused in the store but may be in another store in the same chain since most displays are keyed alike or have only a few different versions.Tobacco displays are a good example of how things have changed dramatically, due to both increased state regulation and the higher cost of a carton of cigarettes. "In most places, a clerk must unlock a glass display and physically hand the carton to the customer," says Nook of Harbor Industries. "Many of these displays are now set up to make an audible sound when a carton is removed. If too many are removed at once, an alarm may go off in the manager's office. The manager must then decide whether or not to confront the culprit, who may create a scene or even be armed and dangerous."Technology's RoleMany larger retailers are eliminating this decision by embedding RFID chips into frequently stolen items. An RFID sensor records when each item enters the store. If it is bought and paid for, the RFID signal is detected by a sensor at the cash register and the item is eliminated from inventory. If the signal is not detected at the cash register, it will be detected by a sensor at the door and activate an audible alarm or flashing lights to alert trained security guards to confront the culprit.Another effective security technique is the use of cables that cannot be disconnected without special tools that only store personnel have, such as one-way screws that can be removed only with a special Allen wrench."Some things require an actual hands-on demonstration," says Nook. "When purchasing a PDA, for example, the customer needs to be able to see how bright the display is, how easy it is to navigate from screen to screen, etc. This can only be done by handling an actual PDA, so some sort of retractable cable, preferably one that sounds an alarm if disconnected, might be a good solution in this case." Cell phones are another good example. "Part of the decision is based on feel and ergonomics, so it requires a hands-on demonstration," Nook explains. "Since there are so many different models available, it would take too long for a clerk to hand them to a customer one by one from inside a locked case. It would also require quite a long retractable cable to provide the full range of motion required, so dummy phones that weigh exactly the same as the real thing are often used."There are also other choices for items that require a hands-on demonstration. "Miniature DVD players, for example, can be placed under clear plastic so the customer can see the quality of the image but cannot steal the item," Nook explains. "Another possibility is an interactive demo using a touchscreen monitor, making it possible to walk the customer through a step-by-step demo without ever touching the actual product."Security consultant Levinson notes that computers have had a dramatic effect on retail security, especially in the area of video recording. "Surveillance cameras, especially if they are very obvious, may have some effect in deterring theft. But until recently, they haven't been nearly as effective as people think they are. "The problem is that either someone needs to sit and watch a bank of monitors the entire time the store is open, or a recorder needs to operate continuously with the idea that it can be replayed to reveal the identity of the thief," he says. "Besides the obvious expense of paying someone to watch a bank of monitors, there is probably either so much going on that the person can't be alert to everything or nothing is happening and the person winds up watching an empty aisle. Playing back a tape usually reveals a guy wearing a baseball cap and sunglasses who probably left the store hours ago."Computer technology, however, has greatly enhanced the capabilities of video surveillance systems. "The camera can be programmed to operate only when it detects motion," Levinson explains, "so when nothing is happening, the screen is blank. It can also use facial recognition software to identify anyone who has ever been caught shoplifting, or pattern recognition to detect, for example, someone who keeps putting his hand into his pocket. It can even alert store personnel that someone is walking very quickly down an aisle or leaving the store via a closed checkout lane."There is even software available that can enhance the image captured by the camera to help identify the thief. The Video Detective, for example, from Pyramid Vision of Arlington, VA, a Sarnoff Co., is a complete, pre-installed, pre-connected system contained in a portable carrying case. It transforms shaky, blurry, low-resolution video footage into rock solid images, according to the company. Levinson cautions, however, that in spite of the availability of such enhancement techniques, it is still necessary to use some common sense when setting up a video surveillance system. "Surveillance cameras are commonly left unattended for long periods of time," he explains. "Dust and grime can build up on the lenses, so they need to be cleaned regularly. Some people point the camera toward a window that faces the morning sun and then wonder why the image is a blur. Others position the camera to the left of the display, when 80% of all shoplifters are right-handed. All the video enhancement in the world can't correct mistakes like these."Help is AvailableSuppliers of security products are very aware of the problems faced by brand marketers, retailers and P-O-P producers, and are rapidly introducing new products designed to solve them."Security is definitely becoming a bigger issue," says Bob Gustafson, vice president - sales and marketing with Vulcan Spring of Telford, PA. "Expensive razors and OTC (Over-The-Counter) non-prescription drugs are becoming frequent targets."Myers of Se-Kure Controls agrees. "Thieves have become significantly bolder and more aggressive," he says. "There are also more organized theft rings working their way across the country. Leather items have been consistently popular targets over the years, but their popularity has now been exceeded by items such as high-end, brand-name sports shoes and professional sports team items, especially jerseys and tops. The key factors impacting their rate of theft are price, portability and street value."To counter these trends, suppliers have turned to technology to make security devices even more effective. "Security devices today are custom made to the product line," says Peter Passuntino, business development manager for Sennco Solutions Inc. of Plainfield, IL. "Wires and cabling are made to endure the punishment of a retail store environment. Security devices use microprocessors instead of switches in mounting heads and buttons, and they are interactive with the function of the display."Ken Cressman - sales manager, special products for Baltimore-based Maryland Precision Spring agrees. "Security can never be an afterthought," he says. "It needs to be designed into the display. For example, we recently introduced a retractable cable with a special tee end that can be inserted through a small opening but cannot be pulled back through."Vulcan Spring recommends use of pusher springs that dispense only one product at a time with a delay built in to prevent theft of more than one item. "It prevents a thief from grabbing a handful and running out the door," explains Gustafson. The company's newest product is a pull box with a battery-powered alarm that emits an audible signal when an item is taken. "The frequency of the signal alerts store personnel that someone is probably up to no good," says Gustafson. "Our new product development efforts have been driven by the miniaturization and rapid introduction of new consumer electronics," says Myers of Se-Kure Controls. "The widespread release of products such as digital cameras and camcorders, GPS units, PDAs, portable DVD and MP3 players and other devices has created a need for innovative security products."An example is the new Se-Kure Power and Security System. "It allows retailers to display, power up and protect a digital camera or camcorder using a single wire," Myers explains. "This system improves the appeal of the product on display by reducing wire clutter. At the same time, we developed smaller electronic and mechanical recoiling devices so as not to overwhelm the new smaller items on display and to help reduce the space needed for security devices within the fixtures.""The continued evolution of both electronic and mechanical security devices designed to secure display merchandise is inevitable because of the much more aggressive measure being used by thieves to defeat them," Myers continues. "As the merchandise offerings evolve, so must the protective measures designed to prevent theft of these 'new and improved' products."

Display Security: How Much is Enough?

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