Business

Theft-Proofing Retail: How TRACARTS Revolutionizes Cart Security

Published

2 years ago

July 29, 2024

The problem of shopping cart theft is as old as the shopping cart itself. According to the Food Marketing Institute, approximately 2 million shopping carts are stolen or simply go missing every year, leading to substantial monetary losses for retailers that trickle down to the everyday consumer.

The escalating cost of living is a growing concern not only for consumers but also for retailers. While stolen carts may not be making regular headlines, they are a costly issue that threatens to worsen the economic strain that has already taken hold, with entire municipalities now getting involved in the missing cart problem.

Recently, the city of Fayetteville, North Carolina, earmarked $78,000 of taxpayer funds to tackle the cart problem and used the money to round up as many missing carts as possible over a two-year period. Albuquerque, New Mexico, ran a similar program, retrieving over 1,800 carts in just two months.

Missing and stolen carts create economic hardship, issues for consumers, and blight for cities. Thankfully, TRACARTS is a company stepping forward with a technology-informed solution, working to significantly reduce the number of carts that are stolen or otherwise go missing every year and save retailers time and money.

The cost of wayward carts

With each cart taken from a retailer, that retailer stands to lose upward of $180. Yet the millions of carts that go missing each year are a significant hit to not only the retailer but also the shoppers because when retailers seek to recoup funds lost due to missing and stolen carts, they are often forced to raise their prices.

TRACARTS has considered the human element of the cart problem with its system. In fact, the psychological aspect of the TRACARTS system is likely why it works so well.

“There are those retail stores that protect their carts by charging money from customers, who get a refund once their cart is returned,” says Chaya Grosinger, Chief Administrative Officer for TRACARTS. “In the U.S., this security measure is utilized with a quarter. If you wanted a cart, would you be willing to spend or lose 25 cents for a cart that costs upwards of $180?”

There is also an altruistic side to the cart problem that TRACARTS is leveraging. Recently, the question of whether one returns a cart after use has become a social media test of moral righteousness. The general consensus seems to be that “good people” return carts, while those who don’t face society’s harsh judgment.

This litmus test is part of TRACART’s multifaceted approach to solving the missing cart problem. TRACARTS is betting on the good feeling that comes from returning one’s cart.

A tech-informed solution

Along with psychology, TRACARTS is also using technology to address the issue of missing and stolen carts. They know that the psychological pull of a “good deed” may not be sufficient to truly address this costly issue, so the solution must be multifaceted.

The user-friendly TRACARTS system makes it easy to track and secure shopping carts while they’re in use and when they are returned. The TRAC hub — a series of customizable shopping cart trains arranged in one, two, or three multidirectional lines — can be installed in any retail store’s parking lot. Strategic placement of the TRAC hub allows for easy access to the carts without having to weave through parked cars.

When the carts are not in use, the TRAC system locks them into place. They can be released through the system’s smart technology program, with the TRAC kiosk acting as the customer interface that dispenses or accepts them. Shoppers can use a White Label app, a fob, a PIN code, or a phone number, among various other identification forms, to release the carts.

Returning the carts is hassle-free. Shoppers simply place the carts back into the TRAC hub without further interaction with the kiosk.

The integration of smart technology is another facet of the TRACARTS system that makes it stand apart from other solutions. It provides retailers with valuable data analytics and ways to engage with their shoppers. TRAC dashboard is entirely customizable, allowing it to meet the specific needs of different retailers depending on what date they are interested in collecting. Shoppers are incentivized to return their carts and given access to special promotions, such as VIP discounts and rewards, culminating in a positive shopping experience for both the shopper and the retailer while also gamifying the cart return process.

While the issue of stolen and missing carts will not vanish overnight, TRACARTS is deploying advanced technology, social consciousness, and psychology to help retailers save time and money. As more retailers realize that this problem will not simply go away on its own, they will turn to solutions like TRACARTS to help them manage their cart inventory and make shopping at their stores a more pleasant experience.

Business

How Technology Drives Value Creation in Private Equity

Published

4 days ago

April 29, 2026

Matthew Wiles

How technology drives value creation in private equity is now one of the most actively debated topics among institutional investors and fund managers. A decade ago, technology was largely a cost center in PE-backed companies. Today it sits at the center of margin improvement, revenue growth, and exit multiple expansion. Firms that figured this out early are generating better returns with less reliance on financial engineering.

The shift happened for a practical reason. As interest rates rose and deal multiples compressed, financial leverage stopped doing the heavy lifting. Operational improvement became the primary value creation lever. Technology accelerated what was possible within the ownership period.

How Technology Drives Value Creation in Private Equity Operations

Operational improvement through technology produces the most measurable results. PE firms apply technology tools to reduce costs, increase throughput, and improve decision-making speed inside their companies.

Digital Process Automation in PE-Backed Companies

Manual processes in back-office and production functions carry real costs. They consume labor, generate errors, and slow down the information flow that management teams depend on. Automation tools eliminate these costs without requiring headcount reductions that disrupt company culture.

The most impactful automation deployments in PE-backed operations include:

Accounts payable and receivable automation that compresses billing cycles and reduces days sales outstanding
Production scheduling software that reduces downtime and improves throughput in manufacturing environments
Inventory management systems that cut carrying costs by aligning purchasing with real-time demand signals
Quality control automation that reduces defect rates and warranty claims in product-based businesses

ZCG Consulting (“ZCGC”) works with companies across industrials, manufacturing, packaging, and consumer products to identify and implement automation programs tied to specific financial outcomes. The approach connects technology investment to measurable margin improvement rather than treating automation as a general upgrade.

Data Infrastructure as a Value Creation Tool

Many PE-backed companies arrive under new ownership with fragmented data systems. Different departments use different tools. Reporting requires manual consolidation. Leadership makes decisions with incomplete information.

Fixing that infrastructure creates immediate value. Integrated data systems give management teams real-time visibility into revenue, cost, and operational performance. That visibility accelerates decisions and surfaces problems before they become material.

James Zenni, founder and CEO of ZCG with over 30 years of capital markets experience, has consistently emphasized that information quality drives investment performance. That view shapes how ZCG approaches technology investment across the companies in its portfolio.

Technology Drives Value Creation in Private Equity Through Revenue Growth

Cost reduction gets most of the attention in PE operational improvement, but technology also drives revenue growth. The mechanisms are different, and they compound differently over a hold period.

E-Commerce and Digital Customer Acquisition

Companies that sell primarily through traditional channels often leave significant revenue on the table. Adding e-commerce capabilities or investing in digital customer acquisition expands the addressable market without proportional cost increases.

PE firms that invest in digital revenue channels generate higher growth rates during the hold period. That growth rate difference translates directly into exit multiple expansion.

Revenue growth technology applications in PE-backed companies include:

E-commerce platform buildouts that open direct-to-consumer channels alongside existing wholesale relationships
Customer relationship management systems that improve retention and increase repeat purchase rates
Digital marketing infrastructure that lowers customer acquisition costs through better targeting and attribution
Pricing optimization tools that identify margin improvement opportunities without volume loss

Technology-Enabled Customer Experience Improvements

Customer retention is cheaper than customer acquisition. Technology investments in customer experience, service speed, and product quality consistency reduce churn. Lower churn produces more predictable revenue. More predictable revenue supports higher exit valuations.

ZCG deploys Haptiq Technologies and Solutions, its 300-plus-person technology division, to support digital transformation across its companies. The platform was founded 20 years ago and manages approximately $8 billion in AUM. It brings implementation resources that most individual companies cannot afford to build internally. That capability gives ZCG’s companies faster access to technology improvements at lower execution risk.

Building Technology Capability Within PE-Backed Companies

Technology investment during the hold period creates value in two ways. It improves financial performance during ownership. It also makes the business more attractive to the next buyer.

Strategic buyers and later-stage PE funds pay premium multiples for companies with modern technology infrastructure. A business with integrated systems, clean data, and digital revenue channels commands a better price. A comparable business running on legacy platforms does not.

The ZCG Team structures technology investment as part of the initial value creation plan for each company. Priorities get set at entry based on the gap between current capability and acquirer expectations.

This pre-sale positioning approach changes how technology investment gets funded and sequenced during the hold period. Projects that improve financial performance and exit readiness simultaneously get prioritized. Projects with long payback periods that do not improve the sale narrative get deferred.

How technology drives value creation in private equity is ultimately about execution discipline. The tools matter less than the clarity of the financial objective each technology investment must achieve.