A new technology that will monitor retail customers’ shopping behavior and track movement of goods from transit to storage points has been launched.
The solution developed by locally incorporated IT firm, Compulynx, and Tyco Retail Solutions, a global provider of retail performance and security solutions, targets leading local retailers who have fallen prey to shoplifting and general theft, costing them Sh 3 billion in pilferage loses annually.
The new technology dubbed, Sensormatic Acousto-Magnetic (AM) Electronic article Surveilance(EAS) and leverage on web and mobile platforms will help retailers deter theft to minimize losses by improving inventory management.
“Our solutions aim at creating a seamless customer experience at retail outlets while providing intelligent customer behavior analytics at the back end for retailers to take important decisions that are data driven,” said Compulynx Marketing manager, Bharati Savani.
It comes at a time when Marketing Society of Kenya (MSK) is pitching for more loyalty programmes in the market to extend free treatments, fixed discounts and extra goods or prizes for every purchases made.
While an influx in international retailers in the country has changed shopping it has also exposed local players to such vulnerabilities.
It has emerged leading retailers are not able to list their products in a secure platform to support their inventory management, pushing them to the jaws of an emerging pilferage ring mostly targeting supermarkets.
Leveraging on outdated technologies by indegenous players has been linked to the increased losses technically referred to as shrinkage, what is said to be lowering their competitive advantage against their rivals.
“Increased interest in the local retail market by international brands meant that indigenous retailers have to adopt the latest technology to remain competitive and better manage their businesses,” said Compulynx head of Business in Africa, SheerKumar Nair.
Foreign retail operators are required to give a list of products they are trading in before starting operations in the market.
The formal retail trade worth Sh 200 billion is now reeling from the new trend mainly targeting high value products like Electronics, general merchandise such as razors and batteries, health and beauty care, and baby related products such as infant formula.