Michael Peveler, Vice President of Sales for AtlasIED explains how retailers can use risk mitigation technology to improve safety and reduce theft.

Risks to retailers

Opening a business is a challenging endeavor and dealing with the repercussions of theft can make the task even more difficult.

Theft is a significant consideration for retailers of all sizes, and the financial impact is substantial.

According to the National Retail Federation, “shrink” – the industry term for shoplifting and employee theft – resulted in $112 billion in retail losses in 2022, while projections reported by Capital One indicate shoplifting could cost retailers over $150 billion in 2026.

The effects of retail theft are also highly visible, impacting people’s perceptions of safety.

Several major grocers, drugstores and other retail outlets have cited shoplifting and employee safety as their primary reasons for closing multiple locations and placing goods behind counters and in locked cases.

As retailers note an increase in theft across stores nationwide, there’s an unfortunate side effect of the inventory loss: an uptick in violence against retail employees themselves.

While retail theft has a large impact on companies’ bottom lines, an even more troubling issue lies in the increased violence toward employees.

This could cause fewer people to accept and work retail jobs in the future, creating significant disruption to the retail industry at large.

Equally concerning is the risk to consumers, who are aware that they may be putting themselves in harm’s way when they shop.

It’s a price much higher for the retail industry than the cost of their monetary losses.

Overall, the National Retail Federation found that 88% of retailers reported shoplifters were more aggressive and violent compared with 2022, including 49% who said they have observed “much more” violent and aggressive behavior.

However, new technologies are coming to market that can help retailers improve safety and reduce theft.

Next-gen surveillance with AI

AI-powered risk mitigation and threat detection technologies are becoming increasingly important components of a facility’s comprehensive safety strategy.

When overlayed with existing video surveillance systems, the threat detection software continually monitors live digital security camera feeds to detect threats in real-time, providing a constant shield of protection.

These platforms don’t just identify risks; they proactively protect against danger from day-to-day hazards, including slipping hazards, fallen persons, trespassing and unauthorized vehicles, as well as more critical incidents such as weapon detection and violent acts.

One of the most robust factors for AI-based risk mitigation is the system’s ability to learn.

These systems have been trained to identify various risks by reviewing huge collections (think tens of thousands, if not millions) of images containing examples of the problem to identify, whether it be weapons detection or recognizing liquid spills that could lead to slips or falls.

These systems can also be trained to identify shoplifting incidents through a similar methodology.

Albeit important, risk mitigation and threat detection software is just one aspect of a facility’s layered security solution, which needs three key capabilities from its overarching communication and security solution:

1. Detect potential or active problems
2. Inform the right people instantly and effectively
3. Manage incidents to a successful resolution

Achieving those goals requires a robust solution that includes a mass notification or reliable and modern public address system, video surveillance coupled with AI machine learning risk mitigation software and a central platform to automate announcements, instructions and support response plans once threats are identified.

The seamless integration of these systems can enhance situational awareness, improve response times and provide real-time information to keep onsite personnel safe and notify first responders as necessary.

How risk mitigation works

Risk mitigation and threat detection solutions turn a traditionally reactive or archiving system of security cameras into a proactive, predictive detection system without adding additional security headcount and successfully outperforming human-based detection.

By pairing breakthrough AI technology with existing security camera infrastructure, the resulting solution protects against a growing collection of risks, including gun violence and less severe risks, such as slip and fall hazards, trespassing and more.

AI technology analyzes patterns and anomalies in the camera feeds without storing or using personally identifiable information (PII) or facial recognition.

Some software uses a simple, non-disruptive connection between cameras and a video management system, router or switch – all that’s needed is minimal space for equipment, power and a network connection.

These platforms autonomously scan for hazards in real-time without human fallacies that include getting bored, fatigued or distracted.

They continue to learn and refine their datasets of risk identification over time.

Once a risk is identified, it can be programmed to require human interaction to take action or can initiate pre-programmed notification processes based on alert severity through a central mass communication platform.

Those notifications can include audio and visual responses onsite via mass notification endpoints and alerts to staff, stakeholders and law enforcement via text or desktop notifications.

These highly scalable platforms are suitable for facilities of all sizes.

They can be tailored to meet specific security needs, whether for small businesses or large retailers.

The system’s flexibility allows for customization based on the unique requirements of different environments (both indoor and outdoor), ensuring that the platform can adapt to changing security needs.

Retail example

In the suburbs of a US city lies a big-box retailer with 135,000 square feet (12,500 m2) of floor space.

There are structural pillars throughout but no walls in the main shopping area.

Aisles are created via rows of floor shelving, with cross aisles allowing shoppers to move about freely.

Offices, bathrooms, eateries and customer returns line the wall toward the front of the store, while a large employee-only warehouse dominates one side of the building.

Although having a single entry and exit point for shoppers, safety is a primary concern due to increased theft and violent outbursts.

Recognizing a need to secure the building cost-effectively without inconveniencing shoppers or creating privacy issues, company leadership implemented a trio of interrelated technologies to mitigate problems and improve communications between staff, shoppers, first responders and the general community.

The retailer expanded upon its existing public address system to provide mass notification capabilities, including audio and video-enabled endpoints in aisleways.

The upgrades included directly tying the mass notification system to the fire detection system for improved response.

A central alert software system was implemented to coordinate communications among varying groups depending on the nature of the alert.

Lastly, an AI-based risk mitigation and threat detection solution was incorporated into the existing security camera infrastructure, while additional cameras were added to include coverage of all entry and exit points.

All three platforms are programmatically tied together, so if, for example, a violent act is detected in the parking lot, the risk mitigation solution communicates that a risk has been identified and the risk classification with the central alerting software.

The software receives the “message” and based on pre-programmed directives, sends communications to audio and visual endpoints around the building, as well as first responders indicating that help is needed.

The message is heard and seen by staff instructing them to follow proper protocol.

The entire process happens practically instantly.

In another example, after a heavy downpour, a puddle formed inside the main entrance carried in on shoppers’ clothing and umbrellas.

The risk mitigation solution communicates the slip hazard to the central alerting software, which then emails and texts staff about the puddle, allowing them to take the necessary actions to prevent anyone from falling.

Simplifying the security landscape

Risk mitigation and threat detection platforms are becoming indispensable in modern security plans.

The rapid dissemination of information during emergencies, coupled with advanced risk detection technologies, enhances overall safety and preparedness.

Organizations can successfully implement these advanced security measures by fostering collaboration across departments, ensuring transparent communication and emphasizing the long-term benefits.

As the security landscape continues to evolve, embracing these technologies is essential for maintaining robust and adaptive security strategies.

With continuous advancements in AI and machine learning, risk mitigation platforms will evolve to offer even more sophisticated threat detection capabilities.

This article was originally published in the January edition of Security Journal Americas. To read your FREE digital edition, click here.