3 Technologies Disrupting Retail Crime

The retail landscape is a dynamic and ever-evolving space shaped by consumer habits, economic fluctuations and advancing technology. As it continues to evolve, so too do the unique challenges faced by retailers. Retail crime is one such challenge that continues to impact retail operations as avenues for threat and fraud have also evolved in the post-COVID shopping era. Emerging technologies are revamping the strategies to tackle the problem while, at the same time, transforming the customer experience.

From video surveillance bolstered by artificial intelligence (AI) to the capabilities of radio-frequency identification (RFID) technology, retail crime prevention is entering a new era of innovation. Here, we explore some of the new technologies that are aiding loss prevention and enhancing the shopping experience for your customers.

Traditional video surveillance has been a mainstay in retail security for years. However, the addition of AI is turning these cameras into hyper-aware sentinels capable of recognizing anomalies and potential crime in real time. How?

Anomaly detection: AI-enabled systems can flag unusual behavior, such as loitering near valuable items or spending excessive time in a single section, potentially indicating an attempt to shoplift. By identifying these potentially suspicious activities, AI technology can be of value in proactive loss prevention measures.

Transaction monitoring: AI technology also holds great potential to deter loss at point of sale. In cases where scan-as-you-go technology is in place, allowing shoppers to ring up or tally products as they place them in their baskets for faster checkout, video surveillance powered by AI can match scanned items in shoppers’ carts with the items that are actually bagged at checkout or leaving the store. 

AI-enabled cameras can also help identify when staff is extending a “hook up” to a customer (often referred to as “sweethearting”), or even when no customer is present during a transaction at all. In short, AI empowered video surveillance automates the correlation of suspicious activities captured by video surveillance to point-of-sale data, enabling your loss prevention teams to identify and address transactions of interest.

RFID is one technology helping retailers gain real-time visibility and accuracy into inventory while reducing opportunities for theft, inventory errors and stockouts. RFIDs combine a scanning antenna, transceiver and transponder that work together to register and track tagged products. More benefits of RFID technology include:

Enhanced visibility: RFID technology provides a granular level of visibility into inventory with the capability to track items at every stage of movement from stockroom to checkout. This allows retailers to react faster to stock discrepancies and potential theft.

Automation: RFID technology also makes the process of inventory counts more automated and accurate. The moment an item leaves the shelf, it’s logged within the inventory system, updating stock counts in real time and minimizing potential for human error.

Not only does this enable retailers to ensure that the right products are in the right place at the right time for the best shopping experience, but it also enables loss prevention teams to know when and where product goes missing. Such intel holds significant value when forming your loss prevention strategies.

Self-checkout and on-demand services have undeniably transformed the retail landscape, offering customers a more streamlined and efficient shopping experience. These technologies, primarily designed to cater to the modern consumer's desire for speed and convenience, also serve as solutions to mitigate labor shortages in the retail sector. Let’s discuss both the benefits and drawbacks of this technology.

Addressing labor shortages and theft opportunity: The adoption of self-checkout systems allows retailers to reallocate their staffing resources more effectively, potentially reducing overhead associated with labor costs.

But recently, many retailers have withdrawn their self-checkout options partially or entirely due to concerns over theft and shrink. The lack of immediate supervision makes it easier for theft to occur, either through unintentional misuse or by deliberate exploitation. This issue is compounded by customer frustration when facing technical difficulties or errors during the self-checkout process.

Balancing the best of both worlds: In response to these challenges, retailers have implemented limitations on the number of items customers are allowed to self-check and increased the presence of personnel. These staff members are tasked with monitoring for suspicious activity and play a crucial role in enhancing customer service, ensuring that help is at hand when needed.