Protecting against internal and external threats in retail with Scylla

The retail industry is a cornerstone of everyday life, with millions of interactions every day, and is a major global employer, with 9.8 million retail workers in the USA alone.

Retail security means protecting employees, customers and property from internal and external threats. These threats include:

• Theft – including shoplifting, organized retail crime and employee theft
• Weapons – gun and knives
• Aggression and fighting, including attacks on staff and customers
• Intrusion – unauthorized entry

Theft

Retail theft is a costly problem. Retailers are increasingly concerned about increasing loss trends from theft.
There are three types of theft in retail:

• Shoplifting – one-off thefts by an external party
• Organized retail theft – coordinated “smash and grab” theft by organized crime groups
• Employee theft – theft by insiders

On average, shoplifting costs $311 per incident. Shoplifting is widespread because it is a hidden behavior and is therefore difficult to detect.

Although retailers have always been vulnerable to shoplifting, organized retail theft is a new trend. Groups target stores with high value, resalable items and will attack even during retail hours. Many of the perpetrators are drug addicts.

Employee theft results in around 28.5 percent of stock shrinkage, with an average cost of $1,219 per incident.

Retail theft increases prices for all consumers. Shoplifting is now 2% to 3% of total sales, nearly triple the rate before the pandemic. For every $330 of retail theft, the retailer must sell another $300,000 to break even. Only 2.9% of retail theft is ever recovered.

Aggression

Retail workers are at high risk of assaults and violent acts, especially at convenience stores, gas stations and businesses selling alcohol. 44% of frontline retail workers have experienced hostility from customers in the past six months.

Aggression towards retail workers may include weapons such as guns or knives.

This aggression can result in deaths and serious injuries as well as lost time, psychological harm and increased staff turnover.

Workplace violence also has a financial and reputational cost. The average out-of-court settlement for a workplace violence incident is $500,000 with jury award settlement being even higher.

Protecting against retail threats

There is no magic bullet that can reduce retail threats. Retailers must use a combination of people, processes and technology to improve security.

People-based approaches involve training on what to do in and after threat situations. Proper, thorough training ensures the correct response becomes ingrained and second nature.

For example, if a retail worker sees someone shoplifting, experiences an organized retail crime attack, an incident of verbal abuse or a physical attack, do they know what they should do, and who they should report it to? If someone pulls out a gun, what should they do?

After an incident occurs, do retail workers know what to do next and where to get follow-up help?

Processes are step-by-step guides that address the entire range of situations that can occur in a retail environment. Each incident receives a consistent and optimal response.

Technology is the third pillar of protection against retail threats. Technology ranges from well-known, established technologies to the most cutting-edge approaches.

Established technologies include external lighting, physical locks, automatic doors and access control systems. These are well-known and effective tools to keep retail premises safe.

Advanced technologies include video surveillance cameras linked to a central VMS. These provide situational awareness as well as automating access control via face recognition. The most recent tools use AI.

AI-powered video analytics can be used to identify people by their faces, detect fighting, guns, intrusions into restricted areas, and even shoplifting or employee theft. AI doesn’t suffer from fatigue or distractions. Since AI is a new technology, products vary in effectiveness. Choosing the right vendor is vital.

To conclude, people- and process-based approaches, as well as established and advanced technology, can help improve retail security outcomes.

Ara Ghazaryan, Ph.D. is a seasoned tech expert helping companies build products using AI, computer vision and predictive analytics. He holds a Ph.D. degree in Optics and Molecular Physics. Ara is Technical Co-founder and VP of AI at Scylla, the leading physical threat detection solution with worldwide reach and global installations.