In recent years, hardware stores have seen an increase in theft that continues to impact the industry. Many big box stores have gone to great lengths to protect their inventory from theft such as installing a Bluetooth locking system to items that can only be deactivated by employees. These expensive solutions are often not cost-effective for smaller hardware retailers. However, there are many innovative security solutions available to minimize hardware store theft.
What Challenges do Hardware Stores Face?
Theft has increased over time for the retail industry and has particularly hit the hardware industry hard. Stores that sell power tools and lawn and garden equipment are targets for theft due to their high-value merchandise made up of practical items for both professionals and homeowners.
Research shows that organized retail crime has increased for hardware retailers. Fueled by poverty and organized crime, individuals or teams enter stores and walk out with thousands of dollars of products and then sell it to pawn shops or resell websites to make cash. Because products sold by hardware stores are in high demand and expensive, they are easily sold, making shoplifters easy, often untraceable, cash.
How Does Theft Impact Profit Margins for Hardware Stores?
Statistics from The National Association for Shoplifting Prevention estimate that merchandise theft causes $13 billion in annual losses for retailers. Organized retail crime costs retailers more than $700,00 per $1 billion in sales based on the 2020 National Retail Federation survey. All retailers experience levels of theft but once shrinkage passes a threshold, it starts to impact profits. Hardware retailers are seeing this negative effect more often.
How Can Hardware Stores Reduce Inventory Loss?
Hardware retailers can reduce shrinkage by implementing retail security devices on their retail displays. When you install simple theft-prevention devices, you can protect your merchandise without sacrificing the customer experience. RTF Global’s complete security solutions for hardware retailers use high-security aircraft cable recoilers, wall adapters to attach to retail displays, and a cable lock that locks the cable in place. These products can be easily customized to specific retail displays like pegboards, slatwalls, or gridwalls.
Reduce Shrinkage with Security Display Devices from RTF Global
While hardware stores are often a target, the effect on your business can be reduced after implementing a simple security solution that prevents theft. The professionals at RTF Global are trusted experts for hardware retailers looking to protect their merchandise. Our retail security devices can be customized to your retail display and protect items of different sizes and lengths. We’re ready to partner with you to help reduce shrinkage and increase your profits with our complete security solutions.
