Co-op Implements AI Technology to Combat Rising Retail Crime
The Co-op, a leading UK retailer, has turned to cutting-edge artificial intelligence (AI) technology in a bid to counteract a significant surge in theft and fraud-related losses. This year, these crimes have cost the retailer nearly £40 million in the first half alone, marking a 20% increase compared to previous periods. The AI technology is currently undergoing trials in 14 of its stores and aims to detect offenders carrying concealed weapons or stolen goods.
The innovative system goes beyond theft detection, as it is also equipped to identify instances of physical assaults on staff. When such activities are detected, the technology immediately notifies a central monitoring station managed by Mitie, which can then deploy support as necessary.
This high-tech approach is part of a broader, £18 million initiative implemented by Co-op this year to protect its employees within its food business. The company has introduced various safety measures, such as body-worn cameras and fortified kiosks, to address the increasing incidence of violent and abusive behaviour towards staff.
Retail crime cost the Co-op £70 million last year. Food Managing Director, Matt Hood, highlighted the stark reality faced by employees on a daily basis, with the retailer experiencing an average of 1,000 incidents per day related to shoplifting, abuse, violence, and anti-social behaviour. This marks a 44% increase from the previous year.
Hood said, “Last year, we experienced something like £70m worth of loss because of the ongoing retail crime epidemic. However, the real cost is the physical and mental wellbeing of our colleagues as much as the goods that disappear from our shelves. The reality is every day four of my colleagues will be attacked and a further 116 colleagues will be seriously abused.”
Adding to the complexity of the situation, police response to these incidents has been notably lacking. Hood pointed out that in 79% of cases where a criminal had been detained, police did not attend the scene.
Shoplifting across England and Wales has reached unprecedented levels, with the Office for National Statistics (ONS) reporting over 400,000 incidents recorded by police in the year leading up to September 2023. This figure represents a 32% increase compared to the prior year and is the highest rate recorded in 20 years.
In response to the escalating crisis, substantial investments have been made to enhance safety and security measures within the retail sector. Hood remarked, “We are 100% committed to tackling it and to making our colleagues safe and over £200m has been spent over recent years in safety and security. But as an industry we can’t fix this on our own.”
The issue has also captured the attention of legislators. In the King's speech earlier this year, it was announced that attacking or abusing a shopworker would be made a standalone offence, a move welcomed by both Co-op and another retail giant, Tesco. Co-op's chief executive, Shirine Khoury-Haq, expressed approval of the government's plan to change the law, urging for the legislation to come into effect “as soon as possible.”
The adoption of AI technology by Co-op underscores the retailer's commitment to advancing employee safety while tackling retail crime head-on. As the trial progresses, the effectiveness of these measures will be closely monitored to determine their impact in reducing losses and protecting staff wellbeing.
Source: Noah Wire Services