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TRANSFORMING RETAIL IN THE PHILIPPINES WITH TECHNOLOGY TO COMBAT LOSS
By Gigi Lariosa, Country Manager for Philippines, Zebra Technologies
In the evolving retail landscape of the Philippines, businesses must constantly adapt to consumer demands influenced by seasonal trends, regional events, and economic changes. The Philippine Retailers Association anticipates a 10-15 % increase in retail sales in 2025, up from the estimated P4.7 trillion( about US $ 84.5 billion) last year. However, a poor shopping experience can quickly divert customers to competitors or online platforms. Long queues and inaccessible products are common frustrations that drive shoppers away.
Globally, retail crime is on the rise. In the United States, retail theft resulted in estimated losses of US $ 86.6 billion in 2022, with projections reaching US $ 115 billion by 2025. In the Philippines, while precise statistics are scarce, in-store theft and shrinkage remain significant concerns, particularly in urban areas. Retailers often lock high-value items in cabinets to prevent theft, but this can hinder customer convenience as they must find staff to unlock products, potentially deterring purchases.
A Zebra Shopper Study revealed that over one-third of global shoppers left stores empty-handed because they couldn’ t find their desired items, and one-quarter abandoned purchases due to long checkout lines. In the Philippines, where staffing can be limited, expecting customers to wait for cabinet access is unsustainable.
Technology presents a smarter solution. Instead of stationing associates to guard cabinets, advanced inventory and loss prevention tools can improve both security and efficiency, allowing store teams to better serve customers without compromising safety.
SHRINK VISIBILITY
Empowering store staff to scan and manage inventory can reduce reliance on costly third-party services while improving accuracy, thanks to employees’ familiarity with store layouts and stock flow. Retailers using this approach report up to 50 % savings in inventory management costs. Importantly, regular internal scanning allows near real-time tracking of high-risk items, enabling decisions to lock products based on current data rather than outdated annual counts. This data is fed into a software platform that identifies shrinkage patterns and suggests preventive actions.
PRESCRIPTIVE ANALYTICS
Retailers can also harness AI-driven prescriptive analytics, which analyze complex inventory data from multiple systems to reveal inconsistencies and shrink trends. This technology provides actionable recommendations, streamlining workflows and allowing staff to intervene swiftly before losses increase.
CONCLUSION
Philippine retailers face the challenge of protecting inventory from theft while ensuring a seamless shopping experience. Technology-led solutions like shrink visibility and prescriptive analytics offer a practical path forward. By adopting these innovations, retailers can detect shrink trends faster, secure high-risk items intelligently, and enhance both operational efficiency and customer satisfaction.
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