Intelligent approach needed to reduce retail crime

Players in the sector came together at the conference – hosted by The Consumer Goods Council (CGC) South Africa and Technews Publishing – to discuss best practice and thought leadership around security in the sector.

Delegates agreed that the risks are the same as they have always been: losses to shrinkage and danger to life and limb in the form of armed robberies.

In light of these risks, Michael Broughton, Director of the CGC, suggests that employing the latest in security technology is now a non-negotiable for retailers.

“Technology can and does play an increasing role in addressing these risks,” says Broughton. “Retailers face a tricky paradox – their stores need to be open and inviting to customers but safe and secure at the same time. The shopping experience is about atmosphere and enjoyment; you can't have a bank-like environment where people come into a shop one at a time.”

Bryan McDermott, Retail Business Development Manager at i to i technologies, agrees. “Using intelligent, integrated security that is smart enough to catch criminals and prevent crime, but unobtrusive enough so as not to ruin the retail atmosphere can resolve this paradox,” he says. “This often means combining the tried-and-tested tools of the trade with a host of modern intelligent technologies.

Turning the old into a new, intelligent tool

“By adding video analytics to existing CCTV systems, for example, you can transform an old, and often outdated, crime deterrent device into an intelligent tool capable of making judgements and storing information. The analytics and algorithms allow cameras to monitor and track human behaviour and recognise suspicious activities so personnel can be automatically alerted to potential risks when detected.

“CCTV cameras can also be linked to other elements of the shop set up, such as point-of-sale equipment. This means that every time a void or a refund is processed by a cashier, a camera will automatically focus on that specific till and record the event,” says McDermott.

Keith Alexander, Executive: Risk Management for the Spar Group and member of the CGC Crime Prevention Program, adds that quality, high definition CCTV cameras have helped to increase convictions in recent times.

“The old systems that recorded onto VHS had poor-quality visuals that were often not good enough to convict perpetrators, but the cameras available now have super quality visuals and good evidential value,” says Alexander.

“Last year a police unit in Germiston arrested 85 suspects using CCTV footage during a crackdown and of these 85, 80 were in custody when I last checked.”

Alexander, however, insists that while shrinkage is the biggest financial risk facing the sector, the Spar Group and the CGC Crime Prevention Program view violent crime as their greatest concern.

The biggest threat

“The retail sector's biggest threat is violent crime – loss of life takes priority over reduced profits. That is why we have an absolute no weapons policy in Spar stores. We believe that having armed guards increases the danger to staff and customers as crime patterns show that the size and weaponry of gangs just escalates in proportion to your level of armed security,” explains Alexander.

In addition to lowering the risk of violent attack and reducing shrinkage, technology can also play a part in more efficient business practices.

Bryan McDermott says that today, smart Electronic Article Surveillance (EAS) can do more than just prevent theft – it can provide shop management with vital information.

“Smart EAS can collect and analyse data – such as how many people come into the store each day and what times are the busiest – that can help management to streamline store processes,” says McDermott.

“In addition, intelligent CCTV systems can monitor and track customer behaviour. This data can provide information such as how long an average customer spends in each section of the store. Merchandising strategies can then be rearranged for maximum impact.”

Another exciting technology is Radio Frequency Identification, or RF-ID, tagging, which is essentially an updated, more versatile, version of the barcode.

Eliminating the human factor

“RF-ID reduces the need for human intervention, is virtually impossible to counterfeit and, most ingeniously, has a 100% real time information benefit, which means that at any exact time it is possible to read the data that exists on the tags, which can drastically reduce shrinkage in the sector,” says McDermott.

i to i technologies is currently one of South Africa's leading suppliers of RF-ID technology and Sean Kiely, National Retail Accounts Manager, says the company, in partnership with Truworths, has recently invented a world-first in this arena.

“By combining an EAS lanyard tag with RF-ID, we have created a solution that promises to tackle retail theft more effectively than ever,” explains Kiely. “With this device retailers will no longer be left vulnerable in their changing room environments and foil-lined bags (magic bags) will no longer be of use to criminals trying to steal.”

With so much choice, the question becomes what to choose and how to combine it. Making effective interventions requires an integrated response that combines common sense, the latest in smart technology as well as the more traditional security methods, like physical guarding, to create a safer, more efficient and profitable retail space.

“Choosing one partner, like i to i technologies, to conduct a complete risk assessment and tailor-design a holistic solution is increasingly becoming the strategy of choice for retailers who are serious about protecting their assets, people and information,” says McDermott.