(FinancialPress) — Shrinkage is a major problem for retailers, and a painful one at that because it strips money right off the bottom line. On average, shrinkage runs at about 2 percent of sales across the entire retail industry, a little figure the National Retail Security Survey said added up to a whopping $49 billion in losses in 2016. More and more, companies are turning to technology to curb theft, utilizing new tech like Endexx Corp.’s (EDXC) AutoSpense™ industrial-grade automated inventory control and dispensing solution.
In addition to cutting down theft, machines like AutoSpense benefit retailers by reducing costs and errors and improving best practices in safety. Home improvement stores like Lowes and Home Depot are implementing dispensing machines for commonly stolen items and grocery stores are more frequently leveraging tech to protect items like razor blades, amongst other things.
Endexx is targeting the global pharmacy automation market that Research and Markets forecasts will reach $9.22 billion by 2022 as part of a broader retail automation industry the firm’s analysts predict will hit $19 billion by 2023.
Cave Creek, Arizona-based Endexx said last week that it inked an agreement with Impulse Health that will bring retail products into its AutoSpense machines. The plan is for the partners to offer the customer-facing solution to more than 20,000 retail and pharmacy locations across the U.S. For the first time, retailers adopting AutoSpense will offer their customers the opportunity to access their inventory, including restricted and regulated products, and be able to pick-up products and prescriptions outside of typical hours.
While improving the customer experience, retailers will reap the benefits of the automation, including reducing operating costs.
“AutoSpense delivers a new solution for our retail partners that protects consumer privacy, improves tracking of regulated products, and reduces overall product shrink,” said Dustin Sullivan, Impulse Health’s VP Business Development.
Endexx CEO Todd Davis added that the contract significantly expands the company’s footprint nationwide for the technology and “for our nutraceutical product line.” That was an interesting little snippet added to a news release that was focused on AutoSpense, indicating Davis is aiming to leverage the relationship to bolster sales for the company’s portfolio of innovative phytonutrient-based food and nutritional products, as well.
Implications abound the new pact for Impulse Health, Endexx, the scalability of AutoSpense and for the pharmacy industry in general. In addition to improving margins, pharmacies will have the opportunity to evaluate operations. Pharmacists can remove the point-of-sale equation and get back to being pharmacists. Large pharmacies could open smaller, satellite locations in smaller towns or different cities without substantial capital expenditures.
One thing is for sure; you can be confident that every company is interested in getting back their share of the $49 billion lost to shrinkage while making operations more efficient and keeping customers happy and coming back. AutoSpense provides a means to accomplish those goals.
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