From Reactive to Proactive: AI-Driven Solutions in Retail Loss Prevention

In the dynamic realm of retail, the perpetual need to balance profitability with the imperative of loss prevention propels an ongoing quest for innovative solutions. The intricacies of security and loss prevention form an intricate mosaic of myriad challenges: shoplifting and employee theft, technology and cybersecurity breaches, organized retail crime, fraudulent transactions, and the safeguarding of supply chains. It's a complex narrative with no panaceas or one-size-fits-all solutions, urging retailers to approach the issue strategically and tailoring responses to the unique contours of their business.

Amid this complexity, a notable shift has emerged, driving a move from reactive to proactive measures, particularly at the front end of the store, thanks to cutting-edge loss prevention technology. This evolution addresses security concerns and remains steadfast in enhancing the shopper’s experience. 

Loss prevention technology is no longer solely about combating theft; it also plays a pivotal role in enhancing the overall customer experience. Traditional security measures, often conspicuous and intimidating, could make shoppers uncomfortable due to strict scrutiny. The latest advancements make surveillance systems more discreet, blending seamlessly into store designs. Furthermore, artificial intelligence (A.I.)-driven systems optimize store layouts and product placements based on customer behavior, resulting in a more enjoyable shopping experience and increased customer satisfaction.

With a focus on shrink reduction, accuracy improvement, data-driven decision-making, and cost savings, advanced security measures have become transformative forces within the retail industry. These innovations underscore a commitment to safeguarding assets while elevating the retail experience for every shopper who walks through the door. 

The AI-powered ELERA® Security Suite enhances loss prevention measures that directly and positively impact retailer profits and improve the shopper experience.

Reducing Shrink: A Proactive Approach

Improving Accuracy with Item Recognition

Retailers have historically grappled with shrink by depending on visible security measures. However, the rise of A.I. and machine learning has ushered in a new era. A.I. is the new darling in the retail technology industry, and retailers are exploring the strategy to address challenges like loss prevention, payments, and promotions. Advanced surveillance systems equipped with A.I powered technologies can detect suspicious behavior patterns in real-time, enabling proactive loss prevention. This shift from reactive to proactive measures and initiating a corrective dialog with the consumer in real time marks a significant advancement in the fight against shrink.

Inaccurate stock-keeping unit (SKU) entries contribute significantly to shrink, affecting revenue and customer satisfaction. Advanced produce recognition software, leveraging integrated computer vision and A.I., ensures accurate product identification, weighing, and pricing. This protects the business from financial losses and creates a smoother, more customer-friendly checkout experience. For example, the practice of intentionally or accidentally misrepresenting or mislabeling items at checkout, scanning a lower-priced item like a banana, and passing it off as a higher-priced item like steak has been observed repeatedly in consumer behavior. But now, with innovative produce recognition solutions, a banana will always be scanned accurately as a banana, and the consumer will be prompted to self-correct, both deterring fraudulent activities and protecting the shopper experience when these types of errors are unintentional.

In the era of data dominance, loss prevention technology is a valuable source of insights. A.I.-equipped cameras analyze customer purchase behavior, providing data on preferences and purchasing patterns. Retailers can utilize this information to make informed decisions on inventory management, marketing strategies, and customer engagement. This data-driven approach helps identify trends and proactively address potential issues, such as relocating frequently stolen items or implementing enhanced security measures.

Cost Savings: A Long-Term Investment

Data-Driven Decision Making

ELERA™ Security Suite: A Game-Changer

While the initial investment in loss prevention technology may seem hefty, the long-term benefits and quick ROI far outweigh the price. Traditional security measures, such as large security staff and physical surveillance, are expensive and far less effective. Loss prevention technology automates many security tasks, reducing the need for extensive human intervention and/or reviewing the videos by the human eye after the fact. The cost of stolen inventory and losses due to inefficient inventory management surpasses the initial investment in technology, making it a financially sound decision for retailers.

The Toshiba Global Commerce Solutions team empowers retailers to reimagine, build, and scale their operations to provide a smarter, highly personalized, and privacy-conscious experience for customers, associates, and the enterprise. We are truly unique in our ability to provide end-to-end, modular, connected, and empowering solutions, coupling CV/AI technologies with deep customer interaction design to accelerate the future of retail. Inventory shrink is a pervasive issue in the retail industry, and frictionless technologies are increasingly significant in promoting retail security. The A.I.-powered ELERA® Security Suite enhances loss prevention measures that directly and positively impact retailer profits and improve the shopper experience. Retailers have seen strong returns on their investment through increased inventory accuracy, decreased staff intervention, and increased adoption of their self-checkout lanes.

The end-to-end ELERA® Security Suite solution, deployed through Toshiba’s IoT platform, harnesses the power of A.I., edge computer vision, and sensors to monitor consumer behavior in real time. Responding to incidents promptly and notifying shoppers of potential errors minimizes employee intervention and improves the overall checkout experience for everyone involved.

Retailers investing in the ELERA® Security Suite can see strong returns on their investment through increased inventory accuracy, decreased store staff intervention, and increased adoption of their self-checkout lanes.

The Self-Service Loss Prevention solution, a fundamental component of the ELERA® Security Suite, empowers retailers to monitor customer interactions through groundbreaking camera technology and algorithms, aiming to minimize losses and simultaneously streamline the entire self-checkout process. The decreased friction contributes to shrink reduction and simplifies the checkout process for the customers.

Along with the ELERA® Security Suite, Toshiba Global Commerce Solutions has updated the ELER® Produce Recognition solution that will now include front-end produce recognition in cashier lanes and self-checkout. To further enhance the self-checkout process, ELERA® Produce Recognition will also be able to scan and identify produce while it is still in a bag, which other competing systems do not offer.

In Conclusion: Embracing the Future

Loss prevention technology has transformed remarkably in a few short years. The advancements safeguard inventory, enhance consumer experiences, and provide valuable data-driven insights. As the industry evolves, retailers must view these advancements as necessary to prosper in a fiercely competitive business environment. By investing in the latest technologies, retailers can turn data into decisions and losses into profits, ensuring a seamless and secure shopping experience.