With sales of beauty products rising sharply around the world, a trend that has been widely attributed to the ongoing international selfie phenomenon, should retailers also be on the lookout for spikes in cosmetic product shrinkage?
2015/16 saw big boosts in sales for cosmetics – with global brands like Estee Lauder, L’Oreal and Max Factor all posting increases in turnover across their make-up lines – with UK sales of highlighters growing by as much as 48.5% against previous years, an increase which the NPD group recognised as being “key to the strobing trend”.
We know that Customer Theft remains one of the most common types of crime across the world. The Global Retail Theft Barometer (GRTB, 2014/15) indicated that shoplifting and dishonest employee theft accounted for around 77% of all shrinkage in 2014/15, combining reports from retailers across the world.
The 2016 Retail Crime Survey, undertaken by the British Retail Consortium (BRC), indicated that Customer Theft accounted for 75% of crime incidents and accounted for 66% of the direct cost of retail crime to retailers (£438m of £660m for 2015/16).
Make-up products were also identified as the number two target for thieves in the Health & Beauty category, both in Europe and the US (GRTB, 2014/15), while other sources continuously place Cosmetics in the overall top-five most stolen items year-on-year.
So while retailers celebrate the boost in sales the selfie love affair might be fuelling, should Loss Prevention Professionals be paying even closer attention to the cosmetics counters as a result?
Chris Napthine, Director of Operations for Sekura Global, believes so. Chris said: ‘We at Sekura have invested a lot of energy in tackling cosmetics theft for our clients, and we’ve developed some bespoke solutions that do exactly that.
‘The patent-pending Sekura ShrinkWrap Sleeve range comes in AM, RF and RFID technologies, and has been designed to protect hard-to-tag make-up merchandise without impacting its POS appeal. The transparent sleeves seal the label tightly to the product, making them a much less desirable target for ORC. The ShrinkWrap Sleeve fits snugly around your cosmetics products and, when removed by your customers, leaves no sticky residue on the merchandise.
‘Because our ShrinkWrap Sleeve solutions also incorporate source-tagging, Sekura Global are simultaneously helping clients reduce the hidden costs of applying tags on the shop floor. We always aim to help you save time and save loss in your business.’