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Defined as “the loss of products between point of manufacture or purchase from supplier and point of sale, “shrinkage” is not a term that’s on most ECPs’ minds. In fact, most retailers VM spoke to admitted they don’t like thinking about it. “Shrinkage” is a retail term that encompasses a range of product losses, either from outside robbery/burglary/shoplifting and/or from employee theft.

Inevitably in the life of every boutique or dispensary will come the day when a pair of frames (or multiple pairs) goes missing. “The first time you realize something was stolen is the worst day of your business.,” said optician Coyote DeGroot, owner of Chicago’s Labrabbit Optics.

 
 Illusion Optical Displays offer locking frame holders as part of their “smart frame display system.”
Based on the National Retail Security Survey for 2010, compiled by the University of Florida in collaboration with the National Retail Federation (NRF), a membership organization for general merchandise and specialty retailers, responding retailers experienced an average shrinkage rate equaling 1.49 percent of total annual sales, or 0.05 percent higher than the rate in 2009, yet still among the lowest rates in the survey’s 19-year history. Additionally, the NRSS reported that the majority of retail loss was primarily the result of employee theft (45 percent) and secondarily the result of shoplifting or organized retail crime (31 percent).

Another study, from the Global Retail Theft Barometer released in October found that, on average, 2011 saw a 6.6 percent rise in global shrink over last year. Contrary to the NRSS, which measured U.S.-based retailers, the Barometer’s international survey said that the majority of retail loss from June 2010 to July 2011, or 43.2 percent, is the result of customer theft. Both the Barometer and NRF’s results compound information from various types of retailers.

 
 According to the NRSS, employee theft was the number one cause of loss in 2010.
For optical, there are no hard statistics about losses, but the design firms who sell locking stands, bars and cases say ECPs differ on their anti-theft needs and cite anecdotal evidence that thefts and security are issues facing more retailers in recent years.

“We offer and suggest it, but most doctors still want patients to try the glasses on and not be obscured by a lock. But we like to give them the option,” said Andrew Fader, director of marketing for Eye Designs. Eye Designs has found that the need for security measures varies based on demographics of the office locations. “A lot has to do with the products that they’re selling. High-end products with high-end clientele will put products under lock and key so it’s presented and makes a show. Other products will be locked up just to keep them from walking,” Fader said. Eye Designs also makes sure that anything near the door is locked when outlining a practice. “We have doctors who say they want everything locked and other doctors who don’t want to lock anything—it’s pretty even keeled as a priority,” Fader said.

At Illusion Optical Displays, a company that offers magnetic locking frame boards, lead designer Corey Van Duinen told VM they’ve heard more shoplifting stories from ECPs in the last two to three years. “Times are really difficult and people are hard up for money. We’re hearing a lot more about store thefts lately.” He added that shops in Chicago and New York have been asking for locking capabilities, “especially for sunglasses, they get stolen very easily because they’re ready to wear,” Van Duinen said.

The Global Retail Theft Barometer study found that in 2011, retailers increased their spending on loss prevention security by 5.6 percent over 2010, to $28.3 billion globally. The NRSS showed that in 2010, nearly all retailers were using a burglar alarm and digital video recording system (98.1 percent and 95.2 percent, respectively). Over half of retailers in the NRSS report used magnetic electronic security tags (58.1 percent) and cables, locks and chains (54.3 percent). ■

dpaunescu@jobson.com