Biggest U.S. Retailers Embrace Technology to Combat Organized Retail Theft in 2023.
Artificial intelligence (AI) is rapidly infiltrating various industries, and big-box retailers are now putting it to the test in conjunction with anti-theft technology to combat the escalating wave of organized retail crime.
The surge in large-scale merchandise theft has caused substantial losses for retailers and posed risks to shoppers and employees throughout the supply chain.
In response to this growing threat, major retailers like Walmart, Target, Lowe’s, Kroger, Macy’s, and CVS are partnering with technology companies to develop and implement advanced video surveillance systems, facial-recognition cameras, license-plate and vehicle readers, autonomous security robots, radio-frequency identification (RFID) tags, intelligent case locks, and predictive analytic software.
While versions of these security technologies have existed for years, the integration of AI is now taking them to new levels of effectiveness.
Christian Beckner, vice president of retail technology and cybersecurity for the National Federation of Retailers, emphasized that tech vendors increasingly incorporate AI into existing security technologies.
However, retailers must also be cautious about the controversial issues raised by the use of AI, particularly regarding predictive outcomes. AI should keep humans in the decision-making loop to avoid any negative impact on customers or employees, especially when supporting loss-prevention activities.
The primary objective of deploying these AI-enhanced security technologies is to not merely catch thieves but deter them from committing crimes altogether. By employing preventive measures that discourage criminals before they reach the store, retailers hope to make theft less appealing and reduce potential risks.
The Loss Prevention Research Council (LPRC), launched in 2000 with funding from Target, has been at the forefront of testing hundreds of security technologies in a simulation laboratory replicating various retail environments.
The aim is to identify effective deterrents against criminal behaviour, preventing potential offenders from proceeding with their illegal activities.
In-store AI-powered camera systems are used to monitor shelves, checkout lanes, and other areas, collecting data that is analyzed using predictive software. When suspicious behaviour is detected, store security is automatically alerted, and appropriate action can be taken.
Some retailers are even exploring using facial recognition software, though this technology raises concerns about privacy and potential bias.
Electronic article surveillance (EAS) systems have long been a standard shoplifting deterrent in retail stores, with hard plastic tags triggering alarms if not removed at checkout.
Newer RFID soft tags, embedded with sensors and undetectable to shoppers and thieves, are helping law enforcement track stolen items and prosecute perpetrators more effectively.
RFID tags also serve as inventory-management tools, providing real-time information on merchandise locations from manufacturing to the retailer’s shelves.
Lowe’s, for example, has implemented an innovative in-store security program called Project Unlock, leveraging RFID technology to prevent power tool theft. The tools are embedded with RFID chips during manufacturing and are inoperable until purchased and scanned, ensuring only legitimate buyers can use them.
The unique serial number of the tool and the barcode on the box are recorded on the blockchain, facilitating verification of legal purchases by vendors, resellers, and law enforcement.
While retailers are enhancing security to combat organized retail crime, they also need to strike a balance with customer experience. Excessive security measures can lead to friction for shoppers, potentially affecting loyalty.
The delicate balance between safeguarding merchandise and ensuring a seamless shopping experience is critical for retailers to consider.
As organized retail theft continues to evolve, retailers must address the root causes behind these criminal activities.
Balancing security with customer convenience will be essential to maintain a positive shopping experience while effectively deterring theft. Ultimately, successfully integrating AI and anti-theft technology can significantly reduce organized retail crime and protect retailers and consumers.
