RiskUKOctober2017

Retail Security and Loss Prevention: Dixons Carphone Case Study
stock has been stolen or the barriers at the
front of the store have been activated and the
offender is long gone.
To help him do his job, McKee has real-time
remote access to the in-store CCTV system via a
tablet, which he can use to study customer
behaviour, while analytics platforms provide
direct alerts about any suspicious behaviour,
such as someone being in a particular area
longer than is considered usual.
Suzanne Borg (project manager in the Group
Loss Prevention Department at Dixons
Carphone) observed: “Having products on open
display brings with it certain security concerns
that we’re addressing through the use of
sophisticated technology. Customers want to
touch and experience products. They no longer
wish to see them locked down or behind
cabinets, so we have to accommodate their
desires. However, this brings with it increased
risk, so early warning technology is absolutely
central to mitigating any risk and thwarting
those with criminal intent in mind.”
As a result, Amberstone’s smart shelves have
been installed. When product is picked up,
McKee receives an alert via a headset, directing
him to the area and product concerned, while
specific items – such as vacuum cleaners – have
tags attached that also relay information. As
well as significantly reducing losses, this allows
McKee to play a key role in the customer
experience, in turn helping the host retailer to
sell more and lose less.
Organised shoplifting
Organised shoplifting gangs are a major
concern for retailers. Groups of professional
thieves now travel the length and breadth of
the country to steal products which they can
then sell on. To combat this problem, Dixons
Carphone employs electronic technologies such
as ANPR and facial recognition that identify
known vehicles or offenders.
“The profiling of individuals and their
behaviour is crucial in order to recognise the
difference between good and bad customers,”
explained McKee. “With the use of data sharing
and analytical tools, we can share information
and allow ad hoc tasks to be added centrally
from regional field or head office teams, while
also ascertaining exactly which products are
being targeted. We use the analysis of online
auction sites and recent store thefts to profile
the risk against the year, month or day to gain a
better understanding of when thieves are most
likely to strike.”
Given that he’s a vital part of the senior
management team at the store, Cardinal
Security has provided McKee with
investigaton, evidence gathering and statement
writing training (the latter used within morning
briefings). Dixons Carphone staff are made
aware of any current risks and work very much
as part of a team. This holistic approach to
security is highly effective and deters both
organised and opportunist offenders.
Return on investment
Like all other aspects of modern retailing, the
security function at Dixons Carphone has to
deliver a return on investment. Suzanne Borg
commented: “Part of Dan’s job is to use the
technology-based tools at his disposal to
constantly assess risk and report back. Data
provides a clear picture of the cost of his
employment and what he returns. This is
measured through shrink reduction, assistance
in increased sales, greater staff safety and a
focus on stock loss reduction. This dynamic
approach builds a comprehensive risk model
and creates decision-making and business
rules out of the back of it.”
The new store concept, combined with such
an innovative approach to security and loss
prevention, has already enjoyed some notable
successes. The sale of high risk products,
including headphones, increased in the first
year of opening, while McKee was directly
involved with the arrest of an organised gang
leader who was subsequently sentenced to two
years in prison.
Onwards and upwards
These are good times for Dixons Carphone,
which saw its trading over Christmas 2016 beat
all forecasts as the business reported its fifth
consecutive year of growth. As the company
continues to redefine its retailing strategy, it’s
plainly obvious the key role that cutting-edge
security techniques will play in its ongoing
success are very much to the fore.
“Dan McKee is the embodiment of the
modern security officer and absolutely integral
to what our company is doing at the Hedge End
store,” concluded Suzanne Borg. “As a
dedicated security solutions provider, Cardinal
Security is clearly able to develop security
operatives who are confident, articulate and
technologically savvy in their work. It’s
precisely this type of approach that the modern
retailer must look to embrace as part of a
successful loss prevention strategy.”
“We use the analysis of online auction sites and recent store
thefts to profile the risk against the year, month or day to
gain a better understanding of when thieves might strike”
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