At the NACS convenience store show in Las Vegas earlier this month, AI cameras were everywhere on the floor. A few years ago, smarter video meant ripping out every camera and starting over. Now most of these systems run on the cameras a store already has.
What I saw on the vendor list:
- Envyvision with Veesion: Watches for 12 theft gestures, like slipping an item into a pocket or bag, and sends a short clip to the clerk’s phone. It needs no new cameras.
- SOLINK: Turns existing video into alerts for after-hours break-ins, sweethearting (a clerk ringing up a friend for less), discount abuse and fake returns.
- Hanwha Vision: Cameras that count the line, flag loitering and spot a slip-and-fall as it happens.
- Mashgin and 365 Retail Markets: Camera checkout and smart coolers that tag items as they come off the shelf.
Where theft is moving
In July, the NRF reported that shoplifting incidents fell 12.4% last year, while more retailers reported increases in phone scams, loyalty fraud and gift card fraud. More of the loss is happening at the register and the returns counter, which is where these systems are aimed.
The security win
Old DVR camera systems are some of the most neglected devices on a store network. It’s the same problem behind this month’s attacks on French supermarket freezers, where the controllers were too old to get security updates. A camera upgrade is a chance to swap that hardware for equipment that still gets updates and keeps video on a server in the store.
One caution: be careful with facial recognition. In 2023, the FTC banned Rite Aid from using it for five years after its system produced thousands of false matches, and store employees followed and accused customers who had done nothing wrong.
Questions for the board
- Which of our camera systems are past the point of getting security updates?
- Can a new system run on our existing cameras?
- Have we piloted it in a few stores and measured the shrink before rolling it out?
- Where does the video live, and how long do we keep it?
- Does any of it use facial recognition, and who signed off on that?
Sources: Retail Systems, NRF, Fierce Healthcare
