How Does Scan and Go Prevent Theft (And Why Should You Go for It)
Lukas Moshuber
Product Manager at Anyline
Global shrinkage losses are projected to surpass a staggering $132 billion in 2024, making it one of the most pressing challenges for retailers worldwide. Shrinkage, which includes theft, fraud, and inventory errors, eats into profits and can jeopardize business sustainability.
Retailers who embrace innovative loss prevention strategies reduce shrinkage and enhance the customer experience—a critical factor for staying competitive in today’s retail landscape. One such solution is Scan & Go technology, which allows customers to scan items directly using their smartphones or in-store devices, bypassing traditional checkout lines.
But can Scan & Go help reduce theft, or does it pose new risks for loss prevention? Let’s explore how this technology impacts shrinkage and whether it can be a game-changer for retail security.
1. What is the current impact of theft in retail?
Inventory losses in the German retail sector have reached an estimated €4.9 billion in 2024, continuing an upward trend from previous years. Retailers are responding by investing heavily in security measures, with an estimated annual expenditure of €1.6 billion on solutions like article security, surveillance systems, and loss prevention staff. This reflects a significant cost increase as retailers attempt to counteract these losses.
Contribution of Non-Customer-Related Losses
Employee theft, supplier fraud, and damages contribute significantly to inventory discrepancies. Losses attributed to these factors amount to approximately €2.7 billion, underscoring the multifaceted nature of inventory shrinkage beyond shoplifting.
These figures highlight the escalating challenge theft poses to the retail sector, necessitating innovative and comprehensive approaches to inventory protection.
3. How can Scan & Go discourage theft?
Robust User Identification
The Scan & Go method creates a psychological theft-barrier. Customers register in the app using their name and payment information. Using these authentication methods helps to minimize the anonymity present, which means customers are less likely to engage in theft behaviors. Meshing this with loyalty programs further enhances this loss prevention.
Shaping the User’s Expectations
Offering this service helps strengthen the relationship a retailer has with their customer. Trust has rules to it, and it’s natural for a user to learn how to use the app while maintaining those responsibilities in order to maintain the relationship.
4. How can retailers prevent theft with Scan & Go?
There are multiple methods.
Random checks are the easiest way to prevent theft. The system uses an algorithm to randomly check some baskets before the customer leaves the store. If items scanned in the basket match there’s no problem. If there’s a mismatch, the employee can add items the user did not scan at that time.
Exit gate control strategies are another option. The customer using Scan & Go leaves through a specific exit area to secure loss prevention. They can scan their receipt code at the dedicated terminal. Customers pay at a dedicated terminal and algorithms help prompt employees to audit some shoppers at that terminal on a random basis.
RFID tags are another layer of protection. This is a seamless process that allows for the customer to autonomously shop while the RFID cloud solutions allow products with these tags on them to deactivate after payment. That allows the customer to leave the location without any employee help but creates an alarm should they leave without paying for the items.
