Checkout Challenge: Shrink Reduction With No Customer Impact

Amazon go storefront

An array of innovative security solutions is paving the way for reducing the incredible shrinking grocery story in a way that has its finger on the pulse of current and future trends, making grocers and retailers alike happy. When considering these security measures, we must do so holistically, with the store design in mind, realizing that it is a cost, a burden, and can cause friction on the shopping experience, but also poses a way out and a way forward.

Shrink reduction in grocery and retail stores has usually been influenced by consumers, and a myriad of factors, among them product type, inventory count, store location and other factors. While loss prevention strategies have helped in the past, the current widely held view is that they’re trending negatively, especially when you factor in frictionless shopping and checkout.

Frictionless checkout, another alternative to store-based surveillance, is the ultimate surveillance state without feeling like cameras are watching your every move. If you’ve visited an Amazon Go store (and others), you have seen this in place, including their “just walk out” technology which is exactly as it sounds. You shop, scan your own items, pay with an app and away you go. But this also comes with risk and that can lead to negative variables like skewed inventory count, theft and more.

Next, factor in facial recognition, which has made significant advancements worldwide, thanks to artificial intelligence and camera networks, but with this innovation comes consumer concerns regarding privacy and what data is being shared through a facial scan.

Steven Duffy, our senior vice president of design, offers four things grocers can do to address the incredible shrinking store.

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