Enterprise Ireland Client Everseen, the retail security AI company, today announces that it has secured funding from MARCOL and other investors, to tackle the growing problem of product loss and shrink in the global retail industry. Everseen uses advanced video analysis and artificial intelligence to reduce non-scans at the checkout by up to 90%, a problem that costs retailers $40bn a year globally according to the Centre for Retail Research.
When goods are not scanned at the checkout, retailers’ supply chain systems do not see that a particular item has left the inventory. It’s only when stock checks happen that this loss is discovered. By then it’s too late to see where it occurred and retailers have mistakenly assumed this loss is through customers or staff stealing from the shelves. UK and US retailers alone invested $15bn in 2014 in measures to deter theft in-store (outside of the checkout) but some of this investment is misplaced.
“Retailers are losing $40bn a year through shrinkage at the point of sale. Products non-scanned are not only impacting profits but also creating supply chain issues leading to out of stock products. Non-scans can be intentional or unintentional and are generated by customers, employees through operational errors and process non-compliance,” said Professor Joshua Bamfield from the independent research group, Centre for Retail Research. “At the moment, retailers are almost certainly haemorrhaging revenue through their POS and are probably completely unaware of how it is happening, how they prevent it and the scale of the problem.”
Everseen, which works with five of the top 10 global retailers, has proven that 95% of the issues at the checkout are non-scans. The problem is more acute at self-scan checkouts with up to 10 times more non-scans when compared to manned checkouts. The company estimates that 90% of all non-scans at the checkout can be identified by using its video analysis and artificial intelligence system approach. By visually recognising such events using existing CCTV feeds and linking them to checkout transaction data, Everseen can identify precisely when, where and why the activity took place. A video of the incident can then be shared with store staff in real time.