Study: Luxury Retailers Brace for Rise in Losses to Theft and Security Issues

After many around the country watched the circulated video of a gang of masked and hooded people ransacking a Nordstrom store in a Canoga Park mall outside Los Angeles over the weekend, it’s no surprise that luxury retailers are bracing for a continued rise in the value of losses to theft and security issues and plan to boost spending to fight back.

A new global research survey conducted by Communications Specialist, Ltd asked luxury retailer senior executives with a total annual turnover of $3.1 billion across the U.S., South America, Europe, Africa, and Asia revealed that nearly two out of three (62 percent) expected a rise in losses to theft over the next three years, with nearly one-third (31 percent) forecasting a “dramatic increase.”

The senior executives that participated in the study said they were generally happy with the overall level of security operations in the luxury retail sector, with around 24 percent rating it as “Excellent.” In comparison, 64 percent said security is “Good,” and 12 percent rated it as “Average.”

Still, the research by the company that supplies technology supporting luxury retailers and its clients found that they plan to significantly increase security spending over the next three years.

The study found that average spending would increase by 28 percent, but one in five (20 percent) expected security spending to increase by 40 percent or more in the next three years.

Kevin Buchler, chief marketing officer at Communications Specialist, Ltd, said, “Security is crucial for luxury and high-end retailers given the value of the goods on sale, and it is worrying to see so many firms concerned about a rise in the value of losses from theft.

“In general, they are happy with the level of security the sector already has, but clearly, there is room for improvement, as highlighted by the plans to increase spending.

“We see the impact in increased interest from the sector, which represents a growing market for secure radio communications and communications technology,” concluded Buchler.

Video courtesy YouTube/ABC 7 News