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For years, stores relied on a simple model: put a tag on an item, install pedestals at the door, and react when something beeped. That traditional EAS model no longer holds up against today's environment — where theft is faster, more organized, and often intentional.

In the battle against retail shrinkage, the method used to apply Electronic Article Surveillance (EAS) tags is as important as the technology itself. Source tagging—the process of applying security labels or EAS tags at the point of manufacture or packaging—offers retailers a way to enhance their existing in-store tagging programs by improving consistency, reducing labor requirements, and ensuring products arrive floor-ready.

Retail loss (called shrink or shrinkage by the industry) is usually associated with shoplifting. True, shoplifting is a major contributing factor: A 2018 study by the National Retail Federation (NRF) found that it is responsible for 36.5% of the total loss. The remaining 63.5% come from other sources, like employee theft, administrative errors and vendor fraud.

While external theft like shoplifting is often the focus of theft prevention, it’s not the only source of retail theft. A shoplifter can only work while the store is open, but an employee can steal before the store opens and after it closes.

Not all retail loss comes from theft. In fact, administrative error can cause significant inventory losses for your business. According to the National Retail Federation (NRF), administrative and paperwork errors are responsible for up to 18.8 percent of retail shrink. Unlike shoplifting, organized retail crime (ORC) or employee theft, I see administrative error shrink as completely within the retailer’s control. By following a strict inventory control process and consistently training your employees, you can prevent administrative error from affecting your bottom line.

Keeping costs down is a major concern for every security team. Luckily, with recent technology developments, you don’t need to replace your entire security system to improve it. In fact, integrating smaller technology add-ons is a more effective way to boost your security, while controlling the costs.