August 2023 - 17

SECURITY
Spike in theft reminds operators
to remain diligent about
MICRO MARKET SECURITY
While technology is making it easier
to track inventory levels and to catch the
occasional chronic thief, experts say the
formula for success involves deterrence,
inventory control, design and communication.
By Bob Tullio, Contributing Editor
M
ICRO MARKET THEFT HAS BEEN AN ISSUE
for operators since the first market went live
around 2009, but the sudden surge many
operators reported in Q1 of this year remains
largely unexplained. Could it be attributed to a post-holiday
financial hangover? Resentment about returning to the
office after January 1? A response to painful inflation rates?
Whatever the reason, thankfully, the problem has apparently
subsided for the moment, but the experience served as a
strong reminder that operators must remain diligent about
micro market security and theft mitigation strategies.
A RETAIL PROBLEM
Like many operators, Tim McAra, senior
vice president of Refreshment Services
Group at Continental Services in Troy,
Michigan, was surprised to see the
sudden surge in theft. In the June
13th Automatic Merchandiser and
VendingMarketWatch.com webinar,
State of the Vending and Micro
Market Industry Report, McAra
said that theft hit his company
hard in January of this year. " I
think it was a retail problem
because retail stores were
also reporting a big
spike in theft, and it
seemed to just carry
into our business. "
MODERATE THEFT IN 2022
Data compiled from the 2022 Automatic Merchandiser State
of the Industry report indicates that micro market theft was
moderate in 2022 and that operators are relying on several
methods to control losses from theft, commonly referred to
in retail as shrink or shrinkage.
According to the report, most operators believe
their shrink rate is in the 3% to 5% range. Screens
showing cancelled orders are the most popular theft
deterrent and for good reason. Operators and industry
consultants agree that transaction cancellation is the most
common micro market
theft technique. The end
user selects a product,
walks up to a kiosk, goes
through the motions of
a transaction, and then
cancels the transaction and
walks away with the product
without making a payment.
Regular market inventory,
signage designed to deter theft and
reliance upon camera systems
are also commonly used to
mitigate theft. Fortunately
for operators, technology
is lending a helping
hand, as companies like
Panoptyc, Cantaloupe
and Nayax offer
products designed to act
ZigmakCreative /Shutterstock
August 2023 * VendingMarketWatch.com 17
McAra said that theft almost doubled on them overnight.
" We had to get really vigilant. We have loss prevention help,
we have cameras, we have all these things that we do, but it
got away from us for a minute, and it reminded us that we
have to stay on top of these things. It's a lever that makes a
market profitable, and if you take your eye off it, it can get
away from you, " he added.
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August 2023

Table of Contents for the Digital Edition of August 2023
