LEICESTER, U.K. -- Buying things via mobile phone while walking the store aisles may sound like a cool evolution in payment, but retailers weighing the customer convenience vs. the uptick in theft may have their fears justified, as a new study involving retailers in the United States and Europe shows such options may lead to more pilfering.
The study, from the University of Leicester, Leicester, U.K., found that based upon 250,000 shopping trips where customers used mobile phones to scan goods while shopping led to a 3.97% shrinkage rate.
Compared to four other studies on the matter, the rate was significantly higher than the highest comparative figure at 2.6%, researchers said. Adrian Beck, a professor at the University of Leicester, and Matt Hopkins, a senior lecturer, authored the study, noting four reasons theft may occur more during such mobile-payment transactions:
- Theft through intentional failure to scan items.
- Nonintentional loss by not scanning or encountering scanning errors.
- Physical and verbal “abuse” against staff generated via audit checks, when store employees would randomly verify a customer’s purchases.
- Transaction fraud or fraudulent use of payment wallets.
The study outlined many benefits the option offered, including customer convenience and tracking how much a customer spent during the shopping trip. Researchers said they did not delve into how the benefits could outweigh the additional losses in shrink.
Second, the study did not assess the degree of actual, malicious behavior that occurred vs. simple absentmindedness. Unfortunately, determining a shopper’s intent can create a dilemma for retailers, the study said. A retailer’s zealous pursuit of thieves could result in lawsuits and bad press, researchers said.
Ultimately, the report concludes: “Either way, more research is needed to [understand] this very high rate of nonscanning by consumers using mobile forms of scan technology.”
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