Why retailers should buy into next-gen mobile access

ISJ hears exclusively from Michael Chaftari, Partner, Kindoo.

Balancing profit margins with shrinkage from theft, fraud and vandalism is one of the most significant operating challenges for retailers today.

The source of these threats can be both externally driven as well as from insiders, adding an additional layer of complexity to the problem.

According to the National Retail Federation, US retailers experienced an average shrinkage rate of 1.6% over the course of 2023, representing a whopping $112b in losses.

Almost two-thirds of the shrinkage was attributed to theft, with employees accounting for 29% of the losses. This presents an alarming threat to the bottom line of all retailers.

Traditional access control systems have been the standard means of managing access to back areas of retail operations for years, using physical credentials like keys, cards, fobs or proximity devices – all of which can be easily lost, stolen or replicated.

The retail industry’s high rate of staff turnover also makes it hard to keep track of physical credentials.

New mobile credential solutions alleviate these problems in a practical and affordable way, improving overall security and safety, reducing shrinkage and simplifying daily operations.

High employee turnover and internal theft

Retail has one of the highest employee turnover rates across industries.

The US Bureau of Labor Statistics reports that the retail and food service sectors have annual turnover rates exceeding 60%, which creeps even higher when dealing with part-time or seasonal staff.

This high turnover creates potential security gaps, adding increased costs to manage access permissions and credentials and increasing exposure to risks and liabilities from unauthorised intruders. 

Simplifying electronic access with mobile credentials managed in the cloud supports better business practices and daily operations.

Such systems allow managers and administrators to instantly and remotely create or revoke access permissions, granting entry to select locations within an organisation and/or multiple facilities by role-level permissions.

If a specific worker quits or is terminated, their access privileges can be shut off in seconds from any remote location by an authorised admin.

This removes the time and expense of chasing down physical credentials, which is a real game changer for businesses with high turnover rates.

Using mobile credentials addresses many longstanding pain points and barriers to entry of modern electronic access control for retailers.

In addition to eliminating the common pitfalls associated with physical credentials, mobile credentials on smartphones can integrate with HR and scheduling software, enabling access rights to match staff shifts dynamically.

This ensures that only the employees who are scheduled to work can enter restricted areas at the appropriate times.

This is particularly valuable for retailers across quick-service restaurants (QSRs), small chains and seasonal businesses that rely on flexible scheduling.

Mobile access allows retailers to provide granular access permissions based on users’ roles. Only those who are allowed access to a specific area can enter.

This reduces opportunities for theft and creates a digital audit trail.

With real-time logs that show who entered sensitive areas and when, it improves accountability and security, without adding complexity.

A cost-effective solution for retailers

Retail security needs to extend beyond exterior access points. It also needs to protect back rooms, loading docks, refrigeration areas, staff lounges and gated parking areas.

Modern mobile systems that are both cloud-based and hardware agnostic work with almost any pre-existing electronic lock and entry device including magnetic locks to sliding doors, turnstiles and gates, enabling rapid deployment without the need for expensive cabling or hardware replacement.

That flexibility allows retailers to cost-effectively secure all parts of their operation with a single, unified solution.

For retailers with multiple locations, a centralised dashboard makes permission management rapid and simple across locations.

The system admin(s) can grant or revoke access across stores without traveling onsite, bringing simplicity and virtually unlimited scalability to mobile management.

Mobile also means wireless

Conventional access systems require expensive controllers, hardwiring and dedicated IT support, which make these solutions out of reach for smaller operators.

With battery-powered, wireless devices that do not require internet connectivity, hardwired connection or local power at each door, modern mobile access solutions are fast, easy and affordable.

The lower cost of entry also results in lower total cost of ownership (TCO) relative to physical credentials, hardwired or traditional wireless systems that require network connectivity.

A better user experience

New modern mobile access solutions simplify employee enrolment, easing the onboarding process and ease of use.

Temporary/contracted workers and visitors can also be easily granted temporary access to specific areas for specific time periods.

In addition to making the user experience seamless, it enables admins to grant access to individuals almost on demand from any remote location providing more fluid operations while maintaining safe and secure operating procedures.

Maintaining privacy and trust

Maintaining personal privacy is also a critical consideration for both the employer and employee and a growing compliance mandate.

Collecting excess personal data or facial images can result in both non-compliance and hefty fines, especially with new and emerging regulations like the Illinois’ Biometric Information Privacy Act (BIPA).

Mobile access control platforms require minimal personal data and have built-in encryption to enhance security without compromising an individual’s privacy.

Breaking down barriers for better retail access

Retailers have long relied on physical devices to control access, but traditional access control system technology presents too many barriers to entry: They’re expensive to install, implement and sustain, require expendable credentials that are difficult to manage and, ultimately, do not provide adequate protections against unauthorised entry to what should be secured areas.

Modern mobile access control solutions overcome these challenges by combining ease of deployment with robust security, extreme flexibility and affordability.

A premium yet cost-effective solution, new mobile, cloud-based platforms pave the way for retailers to access the future.

About the Author

Michael Chaftari is a partner at Kindoo, a leader in mobile access control solutions.

Michael has more than 20 years of experience leading technology teams for global organisations. He holds several US patents related to security and access control solutions.