High cost of low security

At the same time, security spending as a percentage of sales by Thai retailers was the lowest.

The study was conducted by the UK-based Centre for Retail Research and underwritten by International protection systems manufacturer Checkpoint Systems. The survey involved 1,069 retailers from 41 countries. About 196 respondents were retailers in nine Asia-Pacific countries, including 21 major retailers in Thailand.

The study found that Thailand's rate of shrinkage had increased by 4.4 per cent to a value of US$1.1 billion (Bt36.54 billion) - the second-largest shrinkage in Asia-Pacific. However, Thailand's respondents spent only 0.13 per cent of total retail sales on security - the lowest rate among countries in the region. It compared with average security spending in the region of 0.17 per cent of total sales and the global average of 0.31 per cent.

Wanich Wasuwanich, general manager of Chubb (Thailand), a local partner of Checkpoint Systems, said that improving their shrinkage record was an important issue for retailers around the world and particularly for those in Thailand.

Chubb (Thailand), together with Checkpoint Systems, is providing consultancy services, system development and technology implementation for retailers in Thailand.

The main recommended technology is called Electronic Article Surveillance, consisting of small security tags applied to high-theft merchandise to alert retailers when shoplifters try to take stolen items through electronic sensors at exit doors.

The system is currently used by large retailers in Thailand including Big C, Tesco-Lotus, Carrefour, Tops, Central, B2S, Supper Sport and Boost.

Thostep Nivasabute, loss prevention and security director for Ek-Chai Distribution System, the operator of Tesco-Lotus, said his company's bigger stores had shrinkage of between Bt2.4 million and Bt2.5 million. For small stores, the value was about Bt200,000.

"We invested in security systems with technology to prevent loss," he said. "In only one year, we recouped its cost. We plan to reduce our shrinkage to 0.4 per cent by the end of next year," Thostep said.