1. SOLUTIONS SHOWCASE
DIGILOCK
71
LP MAGAZINE | SEPTEMBER - OCTOBER 2015
Lockup by Digilock Reduces Shrink
and Contributes to Retail Profitability
A
s a manufacturer of electronic locks and lockers,
Digilock®
is thriving in the security solutions
industry expanding beyond the traditional
security markets into securing personal belongings.
The evolution of Digilock’s product offerings is driven
by the market demands for personal security.
In 1992, the company was the first to introduce
a keyless electronic lock for cabinets and lockers.
Today, manufacturing electronic locks is one of
the fastest-growing segments of the security and
access-control marketplace. IHS, a global information
company, forecasts that the global market for
electronic locks will exceed $1 billion in 2015.
Why Is Fighting Shrinkage Challenging?
The importance of loss prevention is a major topic
of discussion across the retail industry these days.
One of the latest retail security surveys stirred another
round of magazine publications and social media posts
regarding the reasons of the increase of the so-called
“shrinkage.” According to the 2015 National Retail
Security Survey, conducted by the National Retail
Federation and the University of Florida, two main
culprits are shoplifting and employee theft. As Oscar
Wilde said, “I can resist anything but temptation.”
“The average loss for internal theft is nearly five
times that of shoplifting,” says Los Angeles Times editor
Nick Shively in his article. Dr. Richard Hollinger, a
criminology professor at the University of Florida, who
leads this annual study, pointed out during a Q&A with
Los Angeles Times reporter James F. Peltz, “There is
no form of property crime in America that adds up to
$44 billion a year. Bank robberies, household burglary,
auto theft, none of them. In fact, if you add all of
those up, they don’t get close to $44 billion a year.”
Another study, The Global Retail Theft Barometer™
report, was carried out in 2014 by Checkpoint Systems,
which teamed up with The Smart Cube and Ernie Deyle,
a retail loss prevention analyst. It was conducted in
twenty-four countries among 222 retailers representing
$744 billion in sales in 2013. The lowest shrink rates
were recorded in Norway (0.83 percent of retail sales),
and the highest rates were recorded in Mexico (1.70
percent) and China (1.53 percent). The United States
came in at 1.48 percent of retail sales. With the evolution
of loss prevention techniques, retailers have been able to
reduce shrink as a percent of sales; however, the actual
dollar loss due to shrink continues to grow according to
Alan Fanarof, retail practice head ANZ, Cognizant.
To reclaim lost revenue, retailers are using different
means to develop employee awareness about the vital
importance of loss prevention. The most common way
is to perform extensive new employee background and
references checks and to communicate conduct guidelines
during the new employee training, focusing on the severity
of the employee theft issue and its consequences. Another
approach is to continuously work on developing good
relationships with employees. Companies with the lowest
turnover rates have the lowest internal theft rates.
Digilock, committed to
developing
new products that are
driven by customer
demands, created a
perfect loss prevention
solution for retail
environment—Lockup—to
add to the holistic loss
prevention strategy and
to enforce the traditional
loss prevention activities.
Shoplifting, 38.0%
Employee Theft,
34.5%
Administrative
Error, 16.5%
Vendor Fraud,
6.8%
Unkown, 6.1%
SOURCES OF SHRINKAGE IN RETAILSources of Shrink in Retail
Statistics from 2015 National Retail Security Survey

2. SOLUTIONS SHOWCASE
DIGILOCK
72
SEPTEMBER - OCTOBER 2015 | LPPORTAL.COM
Although most stores have a strategy in place to fight
shrinkage, the statistical research shows that, despite all
the retailers’ efforts, the industry has hit a plateau in the
fight against shrink. According to FBI reports, employees’
theft is the fastest-growing crime in America. Now the
dilemma emerges—how to stay ahead of the curve and
prevent shrink in stores, while providing secure storage for
employee belongings. As the saying goes, “Where there’s a
will, there’s a way.”
How Lockup Solution Works
to Combat Shrink
Employee merchandise theft that does not involve
a cash register is difficult to identify because you have
to catch it in the act. It is much easier to proactively
prevent this kind of theft than to deal with it after it
has already happened. What proven methods empower
stores to dramatically curb retail shrink? Digilock’s
patented technology and responsiveness to market
demands is ensuring security simplified®
with an
out-of-the-box approach that allows a locker to be
always available for each employee to secure belongings.
Options include a clear polycarbonate door giving
store managers the ability to see the contents inside
the employee lockers, contributing to internal theft
prevention. The procedure is simple: store employees
gain access to their lockers with the entry of a four-digit
keypad code, and the store management controls and
audits the lockers by using an electronic manager key.
Lockup®
delivers a top-of-the-line employee locker
complete with the security of a shared-use keypad
lock. The locker is manufactured from heavy-gauge
powder-coated metal to withstand heavy use in demanding
environments. It is delivered ready-to-use, fully assembled
with pre-programmed electronic keypad lock. Lockup
locks are designed specifically for retail employee use,
where multiple shifts are scheduled throughout the day.
This shared-use technology allows employees to occupy
one locker during their shift, and once vacated, the locker
is available for another user. The electronic manager key
permits locker audits and provides external power for
locks. Lockup offers retailers a cost-competitive solution
for secure personal storage and a shrink-reduction plan.
Digilock, committed to developing new products that
are driven by customer demands, created a perfect loss
prevention solution for retail environment—Lockup—to
add to the holistic loss prevention strategy and to enforce
the traditional loss prevention activities. Lockers enable
store management to take proactive steps to ensure
merchandise is not lost.
Contact us at 707-766-6000 or sales@digilock.com for
a free demo locker and learn why Lockup is the preferred
employee locker choice among retailers. Or visit us online
at lockup.com for more information.
Digilock’s patented
technology and
responsiveness to market
demands is ensuring
security simplified®
with an
out-of-the-box approach
that allows a locker to
be always available
for each employee to
secure belongings.