Integrate to Save
Loss prevention and improvement is on the business owner’s mind
There are many aspects to consider when developing a
retail security strategy, including loss prevention, physical
security, asset protection, risk management, and
IT. All of these areas could be the responsibility of just
a few people working to secure a handful of stores or
each of these areas could be entirely separate departments, as is often
the case for major retailers with locations throughout the country.
Regardless of the size of the retailer, there are many different
technologies that can be used within a retail store to improve security
and loss prevention, yet none should be used in a silo. There are
tremendous benefits to integrating security technologies and communications
systems together, including enhancing overall safety and
security, reducing shrink and improving operations.
As the existing security infrastructure is evaluated and plans for
the future are developed, the team responsible should consider some
of the following questions: Are there areas of the store that require
greater security? Are there notifications or other technologies that
could improve the efficiency of personnel and the safety of shoppers?
Are there other departments within the organization that could benefit
from the data gathered by the security technology? Understanding
current pain points within the stores and how integrated security solutions
can address these is the key to implementing the best solution.
Here are a few “hot spots” within a typical retail store that easily
demonstrate the power of integrated solutions.
Point of sale terminals. Whether it’s loss through sweethearting or
other fraud, point of sale terminals present a significant shrink risk
for retailers. Integrated systems enhance security at these locations.
Video recording of HD or megapixel cameras integrated with point
of sale data makes it easy to locate video associated with transactions
and exception reporting. This allows for visual verification of each
transaction when needed.
Other risks like robbery not only result in loss, but also impact
the safety of employees and shoppers alike. Panic buttons or bill trap
sensors connected to the intrusion detection system ensure silent
alarms are issued when employees are at risk. When the intrusion
detection system is integrated with the video system, pressing a panic
button or pulling the bill from the sensor can automatically trigger a
video snapshot to be sent to the monitoring station to provide verification
of the alarm and more information for law enforcement when
they are dispatched.
Adding audio integration to the intrusion
system can also result in a message sent to
the store security personnel’s two-way radio
when a panic button is pushed or a bill trap
sensor is activated. If no security guard is
onsite, video monitoring services can allow
the monitoring center to intervene through
audio, alerting the perpetrator that his or
her actions are being monitored and that the
authorities have been contacted. This may
cause the offender to flee the area, helping
to mitigate the safety risk as well as the potential
for loss.
High value displays. Protect high-value
or frequently-stolen items, such as electronics,
using video analytics integrated with audio
communications. For example, a person
standing at a display for longer than a predefined
time or touching items on display
can trigger a video snapshot to be sent to
the store manager and an audio message to
play through a nearby loudspeaker, such as:
“Thank you for your interest in our smartphone
selection; an associate will be there
soon to assist you.”
This not only alerts potential offenders
that their actions are being watched, it also
serves to improve customer service for legitimate
shoppers—as a retail floor associate is
notified that a customer may need assistance.
Cash office. An access control reader at
the door to the cash office restricts access
to only authorized individuals. Integrating
video can automatically capture an image
of the person requesting access for verifying
an employee’s identification prior to granting
access or for retrospective analysis in the
event of a theft.
Exit doors. If an employee props open a
back door—either for easy re-entry after a
break or to allow access to another person
with intentions of theft—integration of the
intrusion detection system to the video and
audio system can significantly reduce risk
of loss. For example, the intrusion detection
system can monitor doors for abnormal conditions,
even when the system is disarmed.
A door left open for longer than a predefined
time can cause an alarm on the intrusion
panel, which can trigger a nearby
camera to send a snapshot of the open door
to the store manager and trigger the public
address system to play a pre-recorded message
through a nearby speaker. This prompts
the employee to close the door, reducing risk
of theft.
Coolers and freezers. Loss isn’t just about
theft. Loss can also occur when a cooler or
freezer malfunctions or when the door of one
of these units is accidentally left open. The
same concept for monitoring exit doors can
also apply to doors for coolers and freezers
to prevent spoilage. A cooler or freezer door
monitored by the intrusion detection system
can trigger an alert or chime to play in the
area to remind an employee to close the door
or to alert the store manager to the issue.
Serving a Dual Purpose
While the technology solutions previously
described positively impact loss prevention
in a retail store, they can also extend beyond
security to improve health and safety, and
enhance customer service as well as customer
engagement and sales.
For example, while securing a store’s main
entrance with IP cameras featuring on-board
video analytics, retailers can use the metadata
from the cameras to gather business
statistics like counts of people entering the
store. This data can help them understand
peak days and times when making decisions
about staffing. Also, while providing surveillance
of the cash register area, the camera’s
video analytics can also be used to trigger an
alert in case the number of people in a queue
exceeds the pre-defined threshold.
At this point, the same public address
system and loudspeakers used to play background
music to enhance the shopping experience
could be activated to broadcast a
message to request another cash register to
be opened, improving store operations.
For security and loss prevention purposes,
video analytics can also be used to ensure
that no one enters or leaves the retail shop
using the emergency exit. To address health
and safety issues, these same cameras can
also trigger an alarm if that emergency exit is
blocked by an object—improving the safety
of customers and employees.
Metadata generated by the cameras can
also be used to gather information that when
processed with sophisticated algorithms in
the cloud can show trajectories of the paths
that shoppers take as they travel throughout
a store as well as heat maps indicating where
they walk, stop and dwell—all while protecting
the privacy of individual shoppers. This
information can be used by merchandisers
to evaluate the success of displays and store
layouts, which directly impacts customer engagement
and sales.
When systems are used for and deliver
data for purposes beyond security, other departments
may be willing to contribute toward
the cost of the system. This provides an
added benefit by relieving some of the cost
burden from security or other operational
budgets.
Product Selection
Integration is becoming easier through the
use of standards and expanding industry
partnerships. However, in some cases,
choosing systems from a single vendor that
are designed to work together can help to
speed and simplify installation, while also
reducing system costs for both the integrator
and the user. Regardless of the products
chosen, it will be important for a retailer
with many locations to have consistency
in the type of equipment installed at each
site. This makes support easier and enables
a more uniform response to incidents that
happen at various stores.
As many retailers already understand,
there is no silver bullet to reducing loss.
However, a combination of the right
technologies working together to prevent
shrink and improve investigative capabilities
can result in smarter
and more effective loss
prevention.
This article originally appeared in the July/August 2018 issue of Security Today.