ECR Retail Loss

Enabling the Retail Sector to Sell More and Lose Less

Wardrobing: Ten Questions Every Fashion Retailer Should Ask

Wardrobing, the practice of purchasing items, using them, and then returning them for a refund, poses a significant challenge for retailers. In our recent working group meeting we learnt from new academic research commissioned by ECR Retail Loss that 14%, from a sample of 5,900 shoppers aged 15-45, admitted to this form of returns abuse, that circa 90% of the incidents related to clothing, for example, formal wear suits and dresses, but power tools, lawn mowers, tents, and many more items can also be vulnerable to this form of returns abuse. We learnt too that 97% said they experienced no difficulties returning items they had no intention of buying, and 63% said they would do it again. Finally, we found that 10% of those shoppers who admitted to wardrobing, accounted for 35% of the incidents. From the discussion that followed, with experts from leading online retailers, we were able to create a list of ten key questions that can help all retailers, especially fashion, understand the scope of the problem, identify potential solutions, and implement effective prevention measures. The ten essential questions retailers should consider: Understand the Scope of Wardrobing: What is the current rate of wardrobing in our stores and online platforms? Which product categories are most affected by wardrobing? Are there specific times of the year when wardrobing incidents increase? What is the financial impact of wardrobing on your business? Identify Wardrobing Patterns: What are the common characteristics of the customers who engage in wardrobing? Are there specific geographic regions or stores with higher incidences of wardrobing? What are the typical behaviours or patterns associated with wardrobing (e.g., frequent returns, high-value items, specific return reasons)? Evaluate Current Return Policies: How do our return policies compare to those of our competitors? Are our return policies too lenient, making it easy for customers to engage in wardrobing? Do our return policies clearly communicate the consequences of returns abuse and wardrobing? Assess Prevention Measures: What prevention measures are currently in place to deter wardrobing? How effective are these measures in reducing wardrobing incidents? Are there any new technologies or tools that can help us better detect and prevent wardrobing? How can we leverage data analytics to identify and track potential wardrobers? Enhance Customer Communication: How can we educate customers about the impact of wardrobing on our business and other customers? What communication strategies can we use to discourage wardrobing without alienating honest customers? How can we use customer feedback to improve our return policies and prevention measures? Implement Technological Solutions: Can we implement tamper-proof tags or other physical deterrents on high-risk items? How can we use AI and machine learning to identify suspicious return patterns? What role can loyalty programs play in monitoring and preventing wardrobing? Train and Empower Staff: How can we train our staff to recognise signs of wardrobing and handle suspicious returns? What protocols should be in place for staff to follow when they suspect wardrobing? How can we ensure that staff are supported and empowered to enforce return policies? Balance Prevention with Customer Experience: How can we balance the need to prevent wardrobing with maintaining a positive customer experience? What impact will stricter return policies have on customer satisfaction and loyalty? How can we ensure that genuine customers are not unfairly penalized by our prevention measures? Monitor and Adjust Strategies: How will we monitor the effectiveness of our wardrobing prevention strategies? What metrics will we use to measure success? How often will we review and adjust our strategies based on new data and feedback? Collaborate with Industry Peers: What best practices can we learn from other retailers who have successfully managed wardrobing? Are there opportunities for industry collaboration to address wardrobing collectively? How can we share insights and strategies with other retailers to improve overall industry standards? By asking these questions, retailers can begin to develop a comprehensive understanding of their wardrobing problem, identify effective prevention measures, and implement strategies that balance fraud prevention with customer satisfaction.

How are QR codes transforming productivity, compliance and food waste in retail?

In April, we hosted our annual catch up with retailers, including Tesco, Mercadona, Woolworths and Norgesgruppen, who each shared their latest learnings on the use of QR codes with embedded date codes, in their perishables category. Here below are five key learning points from retailers regarding the trials, deployment, and business cases related to QR codes with embedded date codes: 1. Enhanced Traceability and Supplier Identification Retailers have found significant benefits in using QR codes for enhanced traceability and supplier identification. By embedding date codes and other relevant information within QR codes, retailers can track the origin of products more accurately. This is particularly useful for variable weight products where traditional barcodes fall short. For example, one retailer implemented QR codes to identify suppliers for each unit, which allowed them to differentiate sales from different suppliers effectively. This improved traceability helps in better inventory management and supplier accountability. 2. Improved Expiry Date Management and Reduced Food Waste One of the primary advantages of QR codes with embedded date codes is the ability to manage expiry dates more efficiently, thereby reducing food waste and improving productivity. Retailers have leveraged QR codes to block the sale of expired products automatically. This ensures that expired items are not sold to customers, which not only complies with food safety regulations but also enhances customer trust. Additionally, dynamic pricing based on expiry dates has been explored, where products nearing their expiry dates are discounted to encourage sales and minimise waste. 3. Operational Challenges and Solutions The deployment of QR codes has not been without challenges. Retailers have faced issues such as wrinkles on labels, which hindered the readability of QR codes, especially at the POS. One retailer addressed this by placing labels on the flat side of products and improving the labelling system and QR read quality controls with their suppliers. They also implemented contrast measures to ensure QR codes are readable and optimised the size of the QR code. These changes have improved the read rate at the POS to be 99.9%, however, the target remains 99.95%. This gap and the operational challenges highlight the importance of thorough testing and collaboration with suppliers to refine the process and ensure smooth implementation. 4. Technological Integration and Employee Training Successful implementation of QR codes requires robust technological integration and comprehensive employee training. Retailers have had to upgrade their scanning systems and ensure that all relevant information is captured accurately. For instance, one retailer had to inform all cashiers about the change from traditional barcodes to QR codes to prevent confusion at the point of sale. Continuous follow-up and monitoring are essential to maintain the effectiveness of QR code scanning and to address any issues promptly. 5. Customer Engagement and Transparency QR codes offer an opportunity for retailers to enhance customer engagement and transparency. By scanning QR codes, customers can access detailed information about the product, including its origin, expiry date, and pricing. This not only improves the shopping experience but also builds trust and loyalty. Retailers have started to direct customers to their website upon scanning QR codes, providing additional product information and reinforcing their commitment to quality and transparency. Overall, the learning from the trials and deployment of QR codes with embedded date codes is that the results are positive, with QR codes improving traceability and productivity, reducing food waste, and enhancing customer engagement. However, retailers must navigate operational challenges and invest in technological upgrades and employee training to ensure successful implementation. Our next retailer update on QR codes will be in April 2026, click to register for this meeting.

Meet the Innovators Tackling E-Commerce Loss Head-On

From AI-powered authentication to next-generation returns models, the 2025 E-Commerce Loss Innovation Challenge showcased some of the brightest minds working to combat retail loss today. Over the course of two events—one in-person and one virtual—our panel of leading retailers heard from thirteen impressive innovators. Each shared bold, practical solutions designed to help businesses reduce fraud, protect profits, and improve customer experience across the board. The Challenge highlighted just how much creativity and momentum is driving this field forward. Together, these companies represent the cutting edge of e-commerce loss prevention. Here’s a closer look at what each one brings to the table. Apruvd Apruvd helps retailers prevent fraud and chargebacks with AI-driven transaction approval. Sitting behind existing fraud systems, it re-evaluates risky transactions using deeper data and expert human analysis. Its performance-based model includes a chargeback guarantee and has already helped recover more than €200 million in sales. apruvd.com Doug Bertram Executive Director, Sales & Strategy doug.bertram@apruvd.com Catecut Catecut's AI-enabled deep tagging technology for apparel product imagery automatically creates more in-depth and precise product descriptions, provides valuable metadata, and strengthens SEO and GPT prompt performance. catecut.com Heidrun Osk Sigfusdottir Co-founder & CEO heidrun@catecut.com Ecomtent Ecomtent boosts conversion rates by using AI to generate high-quality product content. From better SEO to reduced cart abandonment, Ecomtent helps retailers enhance listings, attract more customers, and improve the path to purchase. ecomtent.ai Abba Biavati Head of Strategy abba@ecomtent.ai Entrupy Entrupy offers near-perfect accuracy in luxury goods authentication. Combining advanced microscopy and computer vision, the platform helps retailers identify counterfeits quickly and confidently, reducing fraud in high-value transactions. entrupy.com Julia Kononenko Account Executive EMEA julia.kononenko@entrupy.com Keyless Keyless delivers Zero-Knowledge Biometrics™—a privacy-first approach to identity verification. It allows fast, secure authentication without storing biometric data, helping retailers fight fraud while staying compliant. keyless.io Francisco Martins Director of Sales UK | Nordics | Benelux francisco.martins@keyless.io Legitmark Legitmark brings digital authentication to sneakers and other collectibles. Its expert-verified, photo-based system certifies items’ legitimacy, protecting customers and brands in the resale economy. legitmark.com Jacob Roscoe Founder jacob@legitmark.com Pinnacle (by Navixy) Pinnacle enhances delivery operations with GPS tracking, smart routing, and task management tools. Retailers can boost performance, reduce delays, and cut costs by gaining better oversight of last-mile logistics. navixy.com / pinnacle-air.com Simon Fowler Managing Director simonfowler@pinnacle-air.com Rediem Rediem helps retailers improve customer retention with loyalty programs that increase repeat purchases. It strengthens brand relationships and reduces churn by fostering meaningful customer engagement. rediem.co Sarah Ganzenmuller Co-founder & CEO sarah@rediem.co SkipReturns SkipReturns flips the returns process on its head by rerouting returned items directly to new buyers. This innovative model eliminates the need for costly reverse logistics and warehousing, making returns faster, cheaper, and more sustainable. skipreturns.com Ari Williams Co-Founder & CEO ari@skipreturns.com Stytch Stytch helps retailers stop fraud before it starts with advanced tools like Device Fingerprinting and Strong Captcha. Its APIs and SDKs offer real-time protection against bots and fraudulent sessions—without adding customer friction. stytch.com Deirdre Lambert Business Development Operations dlambert@stytch.com Verdict Verdict provides AI-powered ID verification that seamlessly integrates with e-commerce platforms. It supports fraud prevention, age verification, and compliance, giving retailers a fast and reliable way to verify customers. getverdict.com Dylan Pierce Founder dylan@getverdict.com Yofi Yofi uses behavioural data and image metadata to detect and prevent policy abuse, fake returns, and reseller fraud. Its real-time fraud scoring engine protects revenue while keeping genuine customers happy. yofi.ai Jordan Shamir Co-founder & CEO jordan@yofi.ai ZigZag ZigZag simplifies returns with a data-driven platform that lowers costs, improves the customer experience, and unlocks resale opportunities for returned products. zigzag.global Al Gerrie Founder & CEO al@zigzag.global

Top Technology Leaders Share Future Thinking on Video

The annual December meeting with video technology leaders from Genetec and Axis provided several key insights and takeaways for retailers, focusing on the future-proofing of video technology and its applications in retail environments. Here are the main points: 1. Importance of Video Technology in Retail The discussion emphasized the critical role of video technology in retail, particularly in enhancing security, improving operational efficiency, and supporting loss prevention strategies. Video technology is not just about surveillance but also about leveraging data for better decision-making and operational insights. 2. Future-Proofing Investments A significant concern for retailers is ensuring that investments in video technology remain relevant and effective over time. The meeting addressed this by discussing the importance of choosing technologies that are adaptable and scalable. Retailers were advised to invest in systems that can evolve with advancements in video technology, such as AI and high-resolution cameras. 3. AI and Video Analytics AI was highlighted as a transformative element in video technology. The leaders discussed how AI can enhance video analytics, making systems more reliable and capable of providing actionable insights. AI-driven video analytics can improve accuracy in detecting incidents, reduce false alerts, and offer better scene intelligence. 4. Compression Standards The introduction of AV1 as a new compression standard was a key takeaway. AV1 offers significant benefits over older standards like H.264 and H.265, including better compression rates and no licensing fees. This makes it a cost-effective and future-proof option for retailers looking to upgrade their video systems. 5. Cybersecurity Cybersecurity was another critical topic. The leaders stressed the importance of secure video systems, including features like signed video, secure boot, and crypto accelerators. Ensuring that video data is protected from cyber threats is essential for maintaining trust and compliance. 6. Ease of Installation and Configuration The ease of installation and configuration of video systems was discussed as a crucial factor for retailers. Simplifying these processes can lead to better quality installations and more efficient use of video technology. Innovations in device management and automatic scene configuration were highlighted as ways to achieve this. 7. Practical Applications and Use Cases Several practical applications of video technology were discussed, including: Shelf Management: Using video to monitor stock levels and identify empty shelves, particularly for high-demand products. People Counting: Improving accuracy in tracking customer flow and occupancy levels. Privacy Masking: Implementing privacy measures to comply with regulations while still utilizing video for security and operational purposes. 8. ROI and Total Cost of Ownership The leaders provided insights into calculating the return on investment (ROI) and total cost of ownership (TCO) for video systems. Tools and calculators were mentioned that can help retailers assess the financial benefits of their video technology investments. 9. Facial Recognition The discussion on facial recognition technology highlighted its potential benefits and ethical considerations. While facial recognition can enhance security and customer experience, it must be used responsibly to avoid privacy concerns. 10. Collaboration and Knowledge Sharing The meeting underscored the value of collaboration among retailers, technology providers, and researchers. Sharing insights and best practices can drive innovation and help retailers make informed decisions about video technology. Overall, the meeting provided a comprehensive overview of the current trends and future directions in video technology for retail, emphasizing the need for strategic investments, ethical considerations, and continuous improvement in video analytics and cybersecurity.

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