ECR Retail Loss

Enabling the Retail Sector to Sell More and Lose Less

Top Technology Leaders Share Future Thinking on Video

The annual December meeting with video technology leaders from Genetec and Axis provided several key insights and takeaways for retailers, focusing on the future-proofing of video technology and its applications in retail environments. Here are the main points: 1. Importance of Video Technology in Retail The discussion emphasized the critical role of video technology in retail, particularly in enhancing security, improving operational efficiency, and supporting loss prevention strategies. Video technology is not just about surveillance but also about leveraging data for better decision-making and operational insights. 2. Future-Proofing Investments A significant concern for retailers is ensuring that investments in video technology remain relevant and effective over time. The meeting addressed this by discussing the importance of choosing technologies that are adaptable and scalable. Retailers were advised to invest in systems that can evolve with advancements in video technology, such as AI and high-resolution cameras. 3. AI and Video Analytics AI was highlighted as a transformative element in video technology. The leaders discussed how AI can enhance video analytics, making systems more reliable and capable of providing actionable insights. AI-driven video analytics can improve accuracy in detecting incidents, reduce false alerts, and offer better scene intelligence. 4. Compression Standards The introduction of AV1 as a new compression standard was a key takeaway. AV1 offers significant benefits over older standards like H.264 and H.265, including better compression rates and no licensing fees. This makes it a cost-effective and future-proof option for retailers looking to upgrade their video systems. 5. Cybersecurity Cybersecurity was another critical topic. The leaders stressed the importance of secure video systems, including features like signed video, secure boot, and crypto accelerators. Ensuring that video data is protected from cyber threats is essential for maintaining trust and compliance. 6. Ease of Installation and Configuration The ease of installation and configuration of video systems was discussed as a crucial factor for retailers. Simplifying these processes can lead to better quality installations and more efficient use of video technology. Innovations in device management and automatic scene configuration were highlighted as ways to achieve this. 7. Practical Applications and Use Cases Several practical applications of video technology were discussed, including: Shelf Management: Using video to monitor stock levels and identify empty shelves, particularly for high-demand products. People Counting: Improving accuracy in tracking customer flow and occupancy levels. Privacy Masking: Implementing privacy measures to comply with regulations while still utilizing video for security and operational purposes. 8. ROI and Total Cost of Ownership The leaders provided insights into calculating the return on investment (ROI) and total cost of ownership (TCO) for video systems. Tools and calculators were mentioned that can help retailers assess the financial benefits of their video technology investments. 9. Facial Recognition The discussion on facial recognition technology highlighted its potential benefits and ethical considerations. While facial recognition can enhance security and customer experience, it must be used responsibly to avoid privacy concerns. 10. Collaboration and Knowledge Sharing The meeting underscored the value of collaboration among retailers, technology providers, and researchers. Sharing insights and best practices can drive innovation and help retailers make informed decisions about video technology. Overall, the meeting provided a comprehensive overview of the current trends and future directions in video technology for retail, emphasizing the need for strategic investments, ethical considerations, and continuous improvement in video analytics and cybersecurity.

How to Kill the Light at Self Checkout Through Digital Age Checks?

Our working group discussion on age verification technologies at self-checkouts in retail stores highlighted several key takeaways and next steps for retailers: Key Takeaways: Current Challenges: Manual Interventions: Age verification at self-checkouts often requires manual intervention, leading to increased wait times and labour costs. Compliance and Safety: Ensuring compliance with age verification laws is crucial, but it also poses safety risks for staff who may face conflicts with customers. Technological Readiness: While age estimation and digital ID technologies are advancing, their adoption is hindered by regulatory uncertainties and the need for robust infrastructure. Technological Solutions: Age Estimation: AI-based age estimation can accurately determine if a customer is above a certain age threshold, reducing the need for manual checks. However, it is not foolproof and may require human oversight. Digital IDs: Digital identity verification using mobile driver's licenses or other digital credentials can streamline the process but requires widespread adoption and regulatory approval. Regulatory Landscape:Legislation: Different countries have varying regulations regarding age verification. In the UK, for example, there is ongoing work to update laws to allow digital age verification. Industry Collaboration: Retailers need to work together and with regulators to create standards and frameworks that support the use of new technologies. Operational Impact: Cost and Efficiency: Implementing new technologies can reduce labour costs and improve efficiency, but it requires initial investment and ongoing maintenance. Customer Experience: Enhancing the age verification process can improve the overall customer experience by reducing wait times and friction at self-checkouts. Next Steps for Retailers: Pilot Programs: Testing Technologies: Conduct pilot programs to test age estimation and digital ID technologies in a controlled environment to gather data on their effectiveness and impact on operations. Collaboration: Partner with technology providers and other retailers to share insights and best practices. Regulatory Engagement: Advocacy: Engage with regulators to advocate for updates to age verification laws that accommodate new technologies. Compliance: Ensure that any new systems comply with existing regulations and are adaptable to future changes. Staff Training: Training Programs: Develop training programs for staff to handle new age verification technologies and manage customer interactions effectively. Safety Measures: Implement measures to protect staff from potential conflicts during age verification checks. Customer Communication: Transparency: Communicate clearly with customers about the new age verification processes to ensure understanding and acceptance. Feedback Mechanisms: Establish channels for customer feedback to continuously improve the age verification experience. Data Analysis: Performance Metrics: Track key performance metrics such as wait times, compliance rates, and customer satisfaction to assess the impact of new technologies. Continuous Improvement: Use data insights to refine and optimize age verification processes over time. These key takeaways and next steps offer retailers some guidance as to how they could effectively implement age verification technologies at self-checkouts, enhancing compliance, efficiency, and customer experience, in their own business.

Self Checkout: Insights on how to grow participation and manage losses

The September 2024 working group discussion on self-checkout success case studies provides several key insights and learning points for other retailers aiming to enhance their self-checkout (SCO) systems. Here were the main takeaways: 1. Technological Integration and Innovation Smart Gates and AI Solutions: Implementing smart gates and AI-driven solutions like skip scan and product switch can reduce losses and improve customer experience. These technologies help detect non-scanned items and prevent walkouts, significantly impacting loss prevention. In-House Solutions: Developing in-house solutions, such as bottom-of-trolley detection, can be tailored to specific needs and integrated seamlessly with existing systems, offering flexibility and control over the technology. 2. Customer Behaviour and Experience Behavioural Changes: Implementing technologies like skip scan can alter customer behaviour, encouraging them to scan items correctly. One retailer observed a significant reduction in alerts when transitioning from soft nudges to hard interventions. Customer Communication: Proactively communicating with customers about new technologies and their benefits can help mitigate negative reactions and improve acceptance. Coles' proactive media strategy helped manage customer expectations and perceptions. 3. Operational Efficiency and Staff Training Staff Training and Engagement: Comprehensive training programs for staff are crucial. Several retailers emphasised the importance of training staff to handle new technologies and customer interactions effectively. This includes understanding the technology, managing interventions, and maintaining a positive customer experience. Role of Store Managers: Involving store managers in the process ensures better oversight and support for staff. Managers can handle more severe cases and provide a visible deterrent to potential shoplifters. 4. Data-Driven Decision Making Algorithm Improvements: Continuously improving algorithms for spot checks and other interventions can enhance the effectiveness of SCO systems. One retailer in the group demonstrated how the focus on refining their spot check algorithm to reduce false positives and improve accuracy continually delivers results. Performance Metrics: Monitoring key performance indicators (KPIs) such as the speed of staff response to interventions and the thoroughness of checks can help identify areas for improvement and ensure the system's effectiveness. 5. Customer Safety and Security Safety Training: Providing safety training for staff to handle difficult situations and de-escalate conflicts is essential. One retailers safety training, included role-playing with actors, helping staff feel more confident and capable in managing confrontations. Balancing Security and Service: Ensuring that security measures do not overly inconvenience customers is crucial. Retailers must find a balance between preventing theft and maintaining a positive shopping experience. 6. Continuous Improvement and Adaptation Iterative Approach: Retailers should adopt an iterative approach to implementing and refining SCO technologies. One retailers experience with adjusting settings and configurations based on customer feedback and operational data highlights the importance of flexibility and continuous improvement. Future-Proofing: Investing in scalable and adaptable technologies ensures that retailers can respond to evolving customer behaviours and technological advancements. This includes exploring new solutions. Conclusion The discussion underscores the importance for this sample of retailers of integrating advanced technologies, training staff effectively, and continuously refining processes to enhance the efficiency and effectiveness of self-checkout systems. By focusing on these areas, other retailers can perhaps also improve loss prevention, customer satisfaction, and operational efficiency.

Seven ways to engage your Store Associates in the fight against food waste

In our September 2024 meeting of the food waste working group we reflected on the question as to how to engage store associates in the fight against food waste. Here were the key insights and takeaways for retailers on how to win the hearts, minds, and trust of associates in the war against food waste: 1. Education and Awareness Training Programmes: Develop comprehensive training programs that educate associates on the impact of food waste on the environment, the community, and the business. Use engaging formats like animations, videos, and gamification to make the training interactive and memorable. Certification Programs: Implement certification programs that recognise associates' efforts and knowledge in reducing food waste. This can boost morale and create a sense of achievement. 2. Emotional Engagement Storytelling: Share powerful stories that highlight the real-world impact of food waste reduction. Use testimonials from associates who have personal experiences with food insecurity to create an emotional connection. Community Impact: Emphasize how associates' actions contribute to the well-being of their local communities. Highlight the positive outcomes of food donation programs and sustainability initiatives. 3. Clear Communication Transparency: Provide clear and consistent communication about the company's goals, initiatives, and progress in reducing food waste. Use various channels like intranet, newsletters, and in-store posters to keep associates informed. Feedback Mechanisms: Create opportunities for associates to share their ideas and feedback. Regularly update them on how their suggestions are being implemented. 4. Recognition and Rewards Competitions and Challenges: Organize internal competitions to motivate stores and associates to excel in food waste reduction. Recognise top performers and celebrate their achievements. Awards and Recognition: Implement awards and recognition programs to acknowledge associates' contributions. This can include certificates, public recognition, and tangible rewards. 5. Practical Tools and Resources Standard Operating Procedures (SOPs): Provide detailed SOPs that outline the steps associates need to take to reduce food waste. Ensure these procedures are easy to understand and follow. Data Tracking: Use data tracking tools to monitor food waste metrics at the store level. Share these metrics with associates to create a sense of accountability and competition. 6. Collaboration and Partnerships Engage with NGOs and Food Banks: Strengthen partnerships with local NGOs and food banks. Facilitate visits to these organizations to help associates understand the impact of their efforts. Cross-Department Collaboration: Encourage collaboration between different departments to create a unified approach to food waste reduction. 7. Continuous Improvement Regular Training Updates: Refresh training content regularly to keep it relevant and engaging. Incorporate new insights and best practices. Innovation and Adaptation: Stay open to new ideas and innovative approaches. Adapt communication and engagement strategies based on feedback and changing circumstances. By focusing on these areas, retailers can effectively engage their associates in the fight against food waste, fostering a culture of sustainability and community support.

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The research priorities are determined by its members – they drive the agenda to ensure ECR delivers research that meets the need of the industry bringing new insights, tools and techniques that enables retailers to sell more and lose less.