DISCUSSION
Can enhanced self-checkout stop shrink?
Written by RetailWire Staff
Source: Demonstration video – “Strongpoint SCO powered by Edgify”
Self-checkout may be quick and convenient, but it is not uncommon for retailers to find that the technology allows an unacceptable level of shrink. Just Walk Out, scan and go and other new forms of contactless checkout run the risk of providing even more room for shoplifting. Recently, to combat the problem, some vendors have been building solutions utilizing computer vision which they anticipate putting an end to self-checkout's shrink problem.
In-store cameras that use computer vision to catch theft at an enhanced rate and self-checkout kiosks that use analytics to determine if the item being rung up is the correct one, are some of the solutions that vendors are developing to prevent shrink at the self-checkout line, according to The Motley Fool.
A video on YouTube demonstrates how a computer vision-enabled system can automatically select one variety of apple over a similar one, preventing a customer from having to select a SKU number from a list and possibly entering the wrong one — accidentally or intentionally.
The need for some solution, whether technological or operational, that will reliably cut down on shoplifting, is growing as major retailers like Target and Walmart experience huge losses — in the hundreds of millions, in Target’s case, according to the New York Post.
The National Retail Federation (NRF) placed shrink at around $94.5 billion for 2021, or 1.4 percent of retail revenue. Shrink experienced a massive 47 percent surge in 2020 after growing steadily at a compound annual rate of seven percent between 2014 and 2019.
The problem has also grown alongside inflation as shoppers find themselves more motivated to cut costs by any means necessary, according to Loss Prevention Magazine. In the second half of 2022, U.S. retailers reported a 26.5 percent increase in organized shoplifting, and UK retailers reported an 18 percent uptick in theft. In nine out 10 cases, shoplifters targeted self-checkout registers. The industry also saw an increase in first-time shoplifters with no criminal background, leading experts to believe that higher costs are driving people to steal.