In a bid to curb the rising wave of shoplifting, numerous retail outlets have turned to innovative measures involving artificial intelligence (AI) technology. This development is in response to the significant spike in shoplifting offences, which have surged by 30 percent in the past year alone, reaching their highest level in two decades. Retailers such as Holland & Barrett and Premier Store have adopted the cutting-edge AI system from tech company X-hoppers to combat this issue.
The AI technology works by monitoring customers' movements to identify potentially suspicious activities, such as placing items into bags without paying. Upon detection of such gestures, the system promptly notifies store staff with video footage and the precise location of the incident, enabling them to address the situation swiftly. This advanced surveillance system aims to support retailers in tackling the nearly 444,000 shoplifting crimes recorded by police in the year ending March 2023, a dramatic increase from the 342,428 reported in the previous year.
In south-west Wales, Fiona Malone, who runs Tenby Stores, implemented the AI system in September after shoplifting began costing her business £26,000 annually. Despite her efforts, she struggled to receive adequate support from law enforcement. However, since the system's installation, theft incidents have decreased by half, translating to substantial financial savings for her business. "We are a relatively small shop, and it reached the point where it was simply unsustainable, and something drastic had to be done," said Malone. Serving as a local Post Office and banking provider, the store's closure would have left the community without accessible services, requiring a two-hour journey to the nearest facilities.
Malone recounted several instances where the technology helped catch shoplifters in the act, including an individual attempting to make off with multiple bottles of vodka. Upon detecting suspicious behaviours, the AI system sends alerts directly to Malone's phone or headset, allowing her and her husband, Vince, to effectively manage the situation. While staff are not encouraged to confront shoplifters, the Malones are equipped to do so with clear evidence from the AI system.
Despite the success, the AI technology represents a significant financial commitment, costing Tenby Stores £1,000 per month. Nonetheless, Malone views the expenditure as justifiable if it means enhanced safety and sustainability for her business and its patrons. "That's a lot of money for us, but if it makes our customers feel safe and makes the business more sustainable, then it's worth it," she noted.
The AI system can also identify other suspicious activities, such as a customer looking around for staff members, triggering alerts for employees to offer assistance as needed. Ian Rowan, chief executive of X-hoppers, explained, "Everything that's going on in the store, whether it's a buying gesture or a theft detection, will also put a message into the headset." The technology uses movement recognition to identify potential thefts, signalling a transformative approach in retail security.
This technological advancement comes at a time when only 17 percent of recorded shoplifting cases result in charges, and over half of investigations conclude without identifying a suspect. It highlights the retail industry's ongoing challenges in dealing with shoplifting and the need for innovative solutions to counteract the growing problem, underscored by initiatives such as the Mail on Sunday's campaign to combat the shoplifting epidemic.
Source: Noah Wire Services