Alpha helps Makro reduce shrinkage by 40%

This article is brought to you by Retail Technology Review: Alpha helps Makro reduce shrinkage by 40%.

Alpha High Theft Solutions a division of Checkpoint Systems has announced it has helped leading cash and carry wholesaler Makro cut shrinkage of its high-risk merchandise by 40 per cent by implementing an innovative three-tier anti-theft protection programme. This, in turn, has helped the wholesaler increase sales on its key lines by 50 per cent.

The two-year long partnership has seen a significant decrease in product loss and increase in sales across all areas of the business implementing the Alpha High Theft Solutions Spider Wraps, Keepers and Alpha Accessory Tags. Not only that, the use of these devices on expensive goods such as plasma screen televisions, iPods, cameras and razors allows these desirable products to be sold in an open merchandise format representing a first for a cash and carry outlet in the UK. Overall, the integrated solution ensures effective, secure and easy protection, without disrupting store employees or the customer shopping experience. And, ultimately, the increase in stock availability of high value goods has helped Makro improve its profitability.

The implementation of Alpha Spider Wraps secure wrap around cables on products in the vision department, including televisions and computers, has reduced Makros losses by over 500,000 in this area alone. The Alpha Spider allows the wholesaler to wrap a wire cable around a products packaging. This is then secured in a durable locking mechanism, which can only be opened using an Alpha security key.

By incorporating Keepers clear plastic cases onto iPods, Makro can move the products from defensive merchandising to open display, leading to a 50 per cent increase in sales.  The iPods are protected safely inside while customers can visually examine them, enabling purchasing decisions to be made easily without needing the assistance of a store employee.

Matthew Bowker, Head of Security for Makro UK, is delighted with the results of the project so far. He says: The project has been extremely successful to date. Results show a decrease in product loss across all areas implementing the solutions, whilst the financial results speak volumes. The Alpha products were selected thanks to their functionality, versatility and flexibility and have not disappointed.

Prior to implementing the protection programme, we were experiencing increased levels of shrinkage on our high value domestic electrical, health and beauty goods, meaning there was a lower number of products available for purchase something that simply could not continue in todays tough trading conditions.  The Alpha range is the first consistent loss prevention solution that we have employed, with the aim of reducing shrinkage, increasing on-shelf availability as well as sales. The solutions have certainly delivered on these objectives as well as enhancing the customers shopping experience, added Matthew.

Makro, which operates a network of 30 purpose-built cash and carry stores nationwide, chose the Alpha S1 and S2 solutions to deliver enhanced protection to its high-end products. Once implemented, they work in conjunction with Makros Checkpoint EAS system to provide a highly effective means of security without hindering the customer shopping experience or obscuring the product.

Patricia Lacey, Alpha UK Business Development Manager, concluded: Its great to see such fantastic results and Makros success in reducing shrinkage, and ultimately increasing product availability and sales, is testament to the innovative nature of the anti-theft technology used. The fact that the wholesaler is now able to display its high value goods in such an open environment is wonderful and a real step towards combating theft.

Makro and Alpha were recently crowned overall winners in the Loss Prevention category at the Retail Week Technology Awards for their success with the project.