Retailers now often find themself in a precarious situation. Profit margins are being squeezed by widespread shoplifting: The Council on Criminal Justice reports that between the first half of 2023 and the first half of 2024, shoplifting reports increased by 24%.
Meanwhile, the strategies used by shops to deal with this situation are alienating consumers and affecting total sales. Andy Jassy, the CEO of Amazon, stated during an earnings call that customers are now purchasing more pharmaceuticals from Amazon in response to other retailers locking their cabinets.
Media reports
This crisis impacts not only the large chains—more than 7,100 retail stores were closed in the U.S. in 2024, a 69% increase from the previous year—but also small, local businesses, whose profit margins are even narrower.
Media reports out of Los Angeles show that small businesses in regions with greater shoplifting rates are more likely to close, and small business owners' job satisfaction and general well-being are negatively impacted by the fear of crime.
How to safeguard staff and inventory
Unchecked retail theft demoralises staff and makes the store less attractive to customers
This is obviously not a sustainable situation. In addition to lowering revenue, unchecked retail theft demoralises staff and makes the store less attractive to customers.
Unfortunately, making customers wait in line to enter a store or locking up toothpaste and deodorant only makes the customer relationship worse. Retailers need to figure out how to safeguard staff and inventory without alienating their customer base—and they need to figure it out fast.
Advanced video security
A new tool has come to the forefront of this fight: advanced video security. Of course, video surveillance has been used in stores for many years. However, the technology currently being used to reduce retail theft is very different from the outdated analog video systems of the past.
With features like cloud-based flexibility and AI-enhanced analytics, this new generation of video surveillance systems has all the advantages of modern technological advancements, while also providing businesses with a competitive edge in the fight against retail theft.
Security's new AI video standard
Workers are constantly rushing from aisle to aisle in an effort to satisfy eager consumers
Although the typical chain pharmacy may appear straightforward to the customer, retailers are aware of how intricate these spaces are. Hundreds or even thousands of shoppers may come and go on any given day, with a larger volume during busy seasons like holidays or special promotional events.
It's common for shoppers to pick up merchandise and put it down in another part of the store, often far away from its original location. Meanwhile, workers are constantly rushing from aisle to aisle in an effort to satisfy eager consumers, particularly during these busy seasons.
How much can recorded videos reveal in a busy
Using traditional CCTV, managers and security teams can monitor some of this activity, but their viewpoint of events will always be incomplete.
There is a limit to how much recorded videos can reveal in busy, fast-paced customer situations, and even the largest chain stores lack the staff and resources to continuously sort and evaluate all of the data they collect. When more customers are in the store for a special event, there’s also naturally a higher risk of theft.
New generation of video security
Using machine learning algorithms trained on large amounts of retail-specific data
The new generation of video security aims to provide retailers with comprehensive intelligence that covers all aspects of their operations.
Using machine learning algorithms trained on large amounts of retail-specific data, they are focused on predictive actions and can recognise problematic behaviour in real time from raw video footage.
AI-powered surveillance
For example, if someone entered a store with empty bags but bypassed the cashier and started heading to the exit with a full bag, AI could predict a potential theft before it happens. Instead of just recording the theft, security action could be triggered in the moment.
AI-powered surveillance is like an all-seeing security officer, quickly analysing the thousands of variables at play and spotting the warning signs of a possible crime before it happens. This is especially crucial during the holidays and busy shopping periods.
Security personnel required to monitor cameras
Imagine a chain store with 500 locations and 32 cameras each: that’s 1,600 cameras
Cameras with AI can also alert human security personnel of events that would have otherwise been missed. Imagine a chain store with 500 locations and 32 cameras each: that’s 1,600 cameras.
Now just imagine the number of security personnel required to monitor all of those cameras – when it comes down to it, traditional security is a numbers game. AI is the differentiator here that will allow retailers to win this game.
VSaaS: A new tool to Deter Theft
The emergence of Video Surveillance as a Service (VSaaS), a surprisingly under-discussed aspect of the broader SaaS revolution, is an important part of video security’s evolution.
VSaaS solutions are especially helpful for chains that require a high level of centralisation and coordination across hundreds or even thousands of locations. In addition to offering action alerts at the shop level, VSaaS offers comprehensive security systems accessible from any location. This gives corporate headquarters access to complete, aggregated insights on all aspects of business operations.
Identify the best ways to deploy staff
Retail operators are constantly in a state of triage, rushing to identify the best ways to deploy staff
This is significant in part because of the importance that social engineering and store layout have in preventing theft. Stores are frequently more busy during specific hours than others, and consumers may congregate in particular areas of the store while others are comparatively empty.
Retail operators are constantly in a state of triage, rushing to identify the best ways to deploy staff and organise inventory while accounting for all of these variables.
Cloud-based VSaaS solutions
Cloud-based VSaaS solutions help streamline this process by eliminating uncertainty, highlighting blind spots and bottlenecks, and informing retailers of what truly works.
Another regrettable reality is that employees frequently steal from businesses they work at. Here, too, VSaaS solutions—when combined with sophisticated, integrated access controls—are essential.
AI analytics technology
Implementation and deployment of VSaaS is also easier and less costly than CCTV
Implementation and deployment of VSaaS is also easier and less costly than CCTV. When new AI analytic updates become available, the client software and hardware don’t need to be upgraded, and the onsite technology and cameras also don’t need to be replaced.
The AI analytics technology is upgraded in the cloud, enabling faster deployment and implementation of new technology.
New VSaaS solutions
Theft will always occur at some level; it's just a part of doing business. However, the growth in shoplifting that retailers have experienced in recent years is unacceptable, and if these figures keep rising, the consequences will be disastrous.
In a time of dire need for retail, new VSaaS solutions have come to the forefront and are already turning the tide.
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