Axis targets retail shrinkage with network video system

Cognimatics, an Axis company, has developed safeguards against shrinkage – the loss of property through embezzlement and theft by customers or employees and other wilful actions throughout the supply chain.
“Shrinkage is a challenge faced by all retail businesses, yet often overlooked in favour of sales and cost-cutting measures,” Axis said in a press release. “Each year, shrinkage causes damages worth 1.23 per cent of the total value of retail sales worldwide. Based on estimated total sales of Bt35 trillion, losses attribute to shrinkage would measure as high as Bt4.4 trillion.”
The firm cited a survey conducted in 24 countries that found the threat of shrinkage is on the rise, led by employee theft (39 per cent) and customer theft (38 per cent), most of which occur at the point of sale rather than the inventory stage. 
Inventory mismanagement accounted for 16 per cent of shrinkage and malicious actions on the supplier’s part 7 per cent. 
“As a result, retailers have turned their attention and financial investments towards technological (34 per cent) and human resource development (22 per cent) to address the issue.
“An intelligent network video system capable of processing visual input and providing real-time alerts and notifications can become a hugely important asset for retailers, especially for supermarket franchises with a large number of branches or massive shopping malls that cannot be adequately covered by regular closed-circuit cameras and human observers,” Axis said.
“While e-commerce has captured a slice of the retail market,” Magnus Zederfeldt, regional director for South Asia Pacific, noted, “we are still seeing a preference for physical store visits among a majority of consumers interested in premium, high-value products that should be experienced and appreciated with their own hands. 
“Since items that are small in size but high in value are particularly vulnerable to theft, retailers need to tighten up their security measures to prevent losses. Axis is ready to step into the Thai retail industry to help reduce shrinkage-related losses, which amount to 1.64 per cent of the overall retail landscape.”
He said Axis aims to provide the same levels of business intelligence to retailers in the physical environment that their online counterparts have. 
“The new solutions will support retailers in two critical areas of their commercial objectives – revenue growth and loss-prevention solutions – to prevent theft and store optimisation solutions for customer understanding. 
In the loss-prevention solution, Axis’ network cameras, access controllers and video door stations are combined with analytics software to highlight issues in real-time and enable immediate action. Such issues might be unauthorised store exits and tailgating at entrances. Axis offers a mechanism for random selection without profiling.