Luxury retailers are braced for a rise in theft and security issues and are planning to boost spending to fight back, according to new global research by Communications Specialist.
The study surveyed senior executives at luxury retailers with a total annual turnover of $3.1bn across Asia, Africa, Europe, the US and South America.
Out of those surveyed, nearly two out of three (62%) expect a rise in losses to theft over the next three years while 31% predict a dramatic increase.
Senior executives questioned are generally happy with the overall level of security operations in the luxury retail sector. Around 24% rate it as excellent while 64% say security is good and just 12% rate it as average.
Despite this, luxury retailers are set to significantly increase spending on security by 2026. On average, spending will be increased by 28%, but one in five (20%) expect security spending to increase by 40% or more in the next three years.
GlobalData finds that new technologies such as augmented and virtual reality, artificial intelligence and blockchain are providing luxury brands with new opportunities to boost revenue and increase security measures.
Communications Specialist chief marketing officer Kevin Buchler commented: “Security is crucial for luxury and high-end retailers given the value of the goods on sale and it is worrying to see so many firms concerned about a rise in the value of losses from theft.”
Another key concern for luxury retailers is counterfeit products. Recently, Louis Vuitton Moet Hennessy (LVMH), PRADA and Cartier joined forces to create Aura, the first blockchain consortium focused on providing a platform for tracking product history and proof of the authenticity of luxury goods.
