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Defining and Measuring the Economic Benefit of Electronic Article Surveillance

NCJ Number
162428
Journal
Security Journal Volume: 7 Issue: 1 Dated: (April 1996) Pages: 3-9
Author(s)
R L DiLonardo
Date Published
1996
Length
7 pages
Annotation
This paper uses three actual case studies to define the quantifiable economic benefits that retailers derive from the use of electronic article surveillance (EAS) equipment as an antishoplifting tool.
Abstract
Electronic article surveillance is the term used to describe retail antishoplifting protections systems for both apparel and packaged products; an electronically detectable element (tag) is either pinned onto a garment or affixed by means of an adhesive to the item to be protected. Transmitters and receivers are placed at store exits to detect the presence of the tags as shoppers leave the stores. At the point of purchase, these tags are either removed or rendered inoperative, so that the purchaser may exit the premises without setting off an alarm. The three case studies presented in this article illustrate methods used to collect and examine data relevant to the following questions: Will EAS reduce inventory shortage, and if so, by how much? What is the effect on shortage if EAS is removed and subsequently reinstalled? How can the effects of EAS be measured if the equipment is installed in different locations over a period of years. The most important issue was EAS contributions in reducing inventory shortage. The primary goal of the case study related to this issue was to isolate the inventory shortage statistics, so that EAS user stores could be compared to nonuser stores, and EAS user departments could be compared to nonuser departments. Additionally, statistics were developed to compare the shortages before and after the use of EAS. Findings show that shortage in EAS user departments in user stores decreased about 17 percent during the 5 years of the study. Shortage in the same departments in the non-EAS user locations increased 30 percent during the same time. Overall shortages decreased in EAS user stores strictly on the strength of the shortage improvement in the user departments. 3 figures and 2 references