Retail security is a crucial factor in ensuring customer loyalty, enhancing shopping experiences, and protecting the reputation of stores and malls. Retailers must not only offer a diverse range of products and excellent service but also guarantee the safety of their customers and staff.
Stores, especially large ones with heavy foot traffic, are susceptible to threats like theft, shoplifting, and violent incidents. Given that malls come in various sizes and have unique setups, a customized approach to loss prevention and security is needed. This is where AI-powered retail security solutions come into play. Let’s explore the vulnerabilities in retail security and how AI is helping retailers address these challenges and prevent losses.
AI-Powered Retail Security: A Growing Trend
Retailers worldwide are increasingly investing in AI technologies. Research indicates that the global market for AI in retail was valued at approximately USD 9.97 billion in 2023, with projections to reach USD 11.83 billion in 2024 and grow to USD 54.92 billion by 2033, at a CAGR of 18.6%. AI’s applications in retail are diverse, ranging from cashier-free services to chatbots, virtual fitting rooms, and personalized customer experiences.
One major application is retail video analytics, which uses AI to track customer behavior in-store, analyze patterns, and create heat maps. These insights help with smarter inventory planning, stock forecasting, and price optimization. Moreover, AI-driven systems can boost sales by offering personalized recommendations, advertisements, and special offers to customers.
In addition to enhancing customer experience, AI is revolutionizing physical security within stores, malls, and retail supply chains. Security teams can now make data-driven decisions and respond proactively to potential threats, reducing losses before they occur.
Loss Prevention with AI-Powered Retail Security
Tackling Inventory Shrinkage
Inventory shrinkage, which results from employee theft, shoplifting, vendor fraud, and errors, is one of the biggest challenges for loss prevention professionals. According to the latest National Retail Security Survey, U.S. retailers lose over $31 billion annually due to retail theft, with shoplifting accounting for nearly $10 billion.
To combat shrinkage, retailers traditionally rely on security technologies like video surveillance. While CCTV cameras are widely used, large shopping malls with high foot traffic can overwhelm security officers, leading to missed detections and inventory losses. AI-powered video surveillance systems can analyze camera feeds in real time, detecting suspicious behavior and sending alerts to security teams, enabling them to act proactively.
Preventing Shoplifting
AI technologies, particularly face recognition and watchlist systems, are highly effective in preventing shoplifting. Retailers can identify known offenders the moment they enter a store and alert security staff immediately. This real-time, proactive approach helps reduce thefts and ensures a safer environment.
By integrating AI-powered security systems with existing surveillance setups, retailers can detect potential thefts by analyzing behaviors such as fidgeting or restlessness. These AI-driven systems can monitor multiple areas at once, distinguishing between normal customer activities and potential thefts, and alerting staff to intervene before a theft occurs.
AI for Slip and Fall Detection
Slip-and-fall accidents are common in shopping centers, often caused by wet floors or obstacles. AI-powered video analytics can detect these incidents in real time, alerting staff to respond immediately and provide assistance. This quick action can help prevent injuries and reduce liability risks for retailers.
Edge AI Solutions in Retail Security
A new trend in retail security is edge AI, which allows for real-time video analytics without relying on cloud connectivity. Edge AI solutions are cost-effective, offering real-time analysis directly on the device, reducing the need for network bandwidth. These solutions are ideal for use in areas with unstable internet connections, such as large stores or warehouses.
Edge AI can also be deployed in security systems, such as automatic pay stations or drones, to monitor inventory, detect theft, and ensure the proper placement of stock.
Addressing Violence in Retail Spaces
Retail stores and malls have also seen an increase in violence, including active shooter incidents. AI technologies, such as object detection and anomaly behavior recognition, can monitor these spaces 24/7, detecting threats like firearms, knives, and violent behavior. When a potential threat is identified, AI systems can trigger alerts for security staff to respond quickly and effectively, potentially preventing violent incidents from escalating.
Securing Parking Areas with AI
Parking lots in shopping centers are high-risk areas, vulnerable to auto thefts, accidents, and even vandalism. AI-powered video surveillance systems enhance situational awareness in these spaces by monitoring vehicle and pedestrian traffic, detecting unusual behavior, and alerting security teams in real time. This proactive security measure helps prevent thefts, accidents, and other safety risks in parking areas, ensuring a safer environment for shoppers.