Blog

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.

What makes retail security different and tougher for small businesses? You’re fighting chain-level theft with a smaller team and a tighter budget. That means your plan has to be simple and surgical: a visible EAS entrance system, protection on the few SKUs that walk most, and just enough video to validate incidents and coach staff.

Retail theft is at an all-time high, costing U.S. businesses over $112 billion annually, according to the National Retail Federation. For store owners, even a small percentage of shrinkage can erase profits, hurt staff morale, and damage customer trust.

In the retail industry, security tags have become a common sight, attached to items ranging from clothing to electronics. Research shows that the retail security tags market in North America is projected to grow to US $344.97 million by 2030. They serve as a deterrent to shoplifting, which is a significant issue for retailers worldwide.

There are numerous types of security tags with a variety of different applications. To ensure anti-theft and keep retail stores safe, selecting the right system and tag is of the utmost importance. Implementing retail security tags can dramatically reduce theft while also helping with profitability.

Electronic article surveillance (EAS) is a type of system used to prevent shoplifting. If you've ever been to a store and heard an alarm when somebody was exiting you've seen the EAS system in action. The system is designed to detect unpaid items in people's pockets or bags as they are leaving the store. It typically consists of two components: the EAS antennas and EAS tags or labels.

The acronym RFID stands for Radio Frequency Identification. It’s a type of technology that has a similar function as a barcode: it is used to identify objects (or animals, or people). Whereas a barcode is printed on a sticker or product packaging that can be scanned using an optical scanner, RFID uses what’s called an inlay inside a label or plastic tag, and is “scanned” (actually read) by a reader that uses radio waves. RFID labels may look exactly like barcode labels or price stickers.

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.