How effective is intelligent video surveillance on shrinkage?

Shrink is very costly for businesses: over 7 billion every year in France. Unsurprisingly, the main cause of this considerable loss of revenue is theft. Video surveillance offers a number of solutions to this scourge. Discover the effectiveness of intelligent video surveillance on shrinkage.

Definition of shrinkage and its impact on businesses

What is shrinkage?

Shrinkage is the total loss of products recorded by a retailer. It is the difference between stock and actual inventory. A real loss of income for businesses, shrinkage has repercussions on sales and the break-even point. There are many possible causes of shrinkage:

• errors in checkout, metering or weighing ;
• inventory errors
• preparation errors
• administrative errors
• breakage ;
• internal theft ;
• shoplifting.

The impact on businesses

Shrinkage can account for up to 3% of a company’s turnover. The main cause of shrinkage is theft. This accounts for more than two-thirds of the shrinkage experienced by French businesses.
Remember: one theft in two is committed by a regular customer, i.e. a consumer who often visits the same shop. That’s why it’s vital to identify these individuals, to prevent the phenomenon from becoming a recurring one, with major repercussions for the business concerned. A prevention policy based on security systems can make a major contribution to reducing shrinkage.

The role of intelligent video surveillance in preventing shrinkage

What is intelligent video surveillance?

Intelligent video surveillance (IVS) is an image analysis system designed to assist security guards. This technology goes further than the simple combination of security gates and surveillance cameras. Basic video surveillance systems are generally limited to viewing images, or even recording them. The role of the security guard is therefore essential, but not infallible.
To enhance the effectiveness of these installations, software coupled with cutting-edge hardware analyse the images. These systems, based on Artificial Intelligence (AI), are capable of :

• detect behaviour that is a priori suspicious
• trigger an alert
• help solve police investigations.

How can intelligent video surveillance help detect and prevent shrinkage?

Thanks to its ability to detect suspicious behaviour in shops, intelligent video surveillance can help prevent and reduce shrink. It complements the video surveillance system that is usually already in place, and supports the security team without replacing it. Capable of identifying typical shoplifting gestures, intelligent video surveillance alerts shop managers and/or security managers via an alert and a short video, as soon as an anomaly is detected by the system. This makes it possible to react more quickly to a theft situation and, if necessary, to intervene on the shelves or wait for the suspect to pass through the checkout. Veesion has developed its video surveillance system, based on Artificial Intelligence, with the aim of enhancing the protection of goods and people.

Overview of intelligent video surveillance systems

There are several intelligent video surveillance systems. These include

• aI-based video surveillance, which uses video analysis to detect suspicious behaviour;
• the “circular eye”, which protects roofs and isolated buildings thanks to its 360° vision over a radius of 100 m;
• the 3D mobile camera, which provides temporary security for sites such as building sites, car parks, events, storage areas, isolated buildings and plots of land, etc;
• a system based on high-definition (HD) cameras ranging from 1.3 to 10 megapixels for improved intrusion prevention.

Placement and coverage of surveillance cameras

Whichever video surveillance system you choose, it’s vital to think carefully beforehand about where the cameras are placed.
The ideal location depends on a number of factors. What is the purpose of the surveillance? What is the area to be monitored? Please note: depending on the regulations in force and the purpose of the surveillance system, cameras cannot be installed just anywhere. That’s why we recommend that you find out about the rules in force.
Here are a few tips for the judicious placement of surveillance cameras inside a business:

• Define the most strategic location to obtain the widest view of the area;
• avoid blind spots;
• place the equipment at the right height (not at the height of people, or facing a display that would obstruct the camera’s field of vision);
• take care to avoid backlighting and any risk of reflections;
• place the equipment as a priority in sensitive areas, such as a department away from the rest of the shop, for example, and/or near valuable goods.