New tech tag hopes to reduce retail's shrinkage problem

Dive Brief:

After announcing their collaboration in May, Kenco Label & Tag Co. and Primera Technology will introduce the new Kenco-LP tag at the NRF Protect conference on June 12 and 13 in Anaheim, California, according to a Primera Technology press release sent to Retail Dive.
The Kenco-LP tag, which doesn't have a price listed, aims to be a "highly cost-effective" way to help retailers track products across inventory and returns processes, prevent employee or shopper theft, enable retailers to easily change prices and detect fraudulent returns without damaging the garment, per the release. The tag can also verify the authenticity of products.
Every tag, which is printed in full-color with a distinct serial number and security enhancements embedded into the device, is attached using a patented method that makes the tag tamper-proof and non-transferable, the company said. The tags also connect to software that tracks the garment's journey.

Dive Insight:

The rollout of the Kenco-LP tag is yet another technological attempt at addressing multiple problems retailers face. Merchandise theft continues to be a pricey problem for retailers, costing them roughly $100 billion in sales internationally in 2017. Organized crime in the same year had eaten away $777,877 per $1 billion in sales of retailers' profit, according to the National Retail Federation's Organized Retail Crime survey.

Kenco and Primera are the latest among other manufacturers that are trying to merge technology into their inventory tracking and fraud prevention process. Major retailers like Target, Lululemon and Levi Strauss have turned to third party companies for RFID tags in an effort to streamline their inventory operations.

Aside from enduring shrink losses, it's essential for retailers to master their returns processes. Retailers that fail to provide a seamless returns process risk losing loyal customers and hurting their overall brand. The move comes as more retailers are considering how to improve their returns process and thus improve customer relationships.