A US study conducted on behalf of the Entertainment Merchants Association (EMA) has found that new point of sale disc activation technology could increase annual sales by $6 billion.
'Benefit denial' is the concept of denying shoplifters the ability to use stolen goods by shipping them to stores in a disabled state and only activating them at the point of sale.
The study, which was conducted by Capgemini, found that retailers, movie studios, game publishers and others could annually see as much as $6 billion in increased sales and an additional $800 million in cost savings and cost avoidance if the technology is rolled out.
"It is intuitive that, if we can utilise emerging technology to reduce the shrink in the DVD, Blu-ray discs, and videogame categories and eliminate barriers erected to deter shoplifting, consumers will have easier access to the products, additional retail channels will carry these products, and costs will be eliminated from the supply chain," said Bo Andersen, president and CEO of the EMA.
Capgemini VP Mark Landry added: "The study projects that benefit denial technology will enable retailers to increase revenue from sales lifts from open merchandising, reduced out-of-stocks, new distribution channels, and legitimate sales replacing sales of stolen merchandise. The revenue enhancements would be spread broadly among retailers, studios, publishers, distributors, and replicators."
The EMA will now investigate the cost of deploying benefit denial technology for DVDs, Blu-rays and games. It said that if the results are positive the technology could be rolled out to stores in the fourth quarter of 2010.
Article supplied by Edge-Online