How Retailers Can
Leverage their Security Infrastructure
to Improve Operational Efficiency
By
Jordan Rivchun, Leader, Retail Solutions & Strategy– Hanwha Techwin America
Retailers today face a number of security
challenges, including shoplifting, shrink and theft at the point of sale,
protecting the premises after hours, slip and fall lawsuits and much more.
Adding complexity to the security challenge is that retailers face these threats
in a variety of locations within stores, each of which comes with its own unique
requirements.
For example, in the store itself, retailers must monitor register activity for
accuracy, theft, fraud or sweet hearting, theft by employees at the cash
register, by giving away merchandise to a "sweetheart" customer (friend, family,
fellow employee). They must also capture video footage from around the store to
ensure that if someone commits a theft, they will be caught on camera, or if
someone claims they’ve slipped and fallen, they will have video evidence. At the
same time, this must be accomplished unobtrusively to ensure a positive customer
experience. In the back of the house, retailers must protect stock, monitor
loading docks and parking lots for intrusion or other crimes. In these
locations, however, visibility of security cameras may be more important to
serve as a deterrent.
Today’s flexible, intelligent surveillance cameras offer a variety of form
factors and capabilities that allow them to address the range of security and
operational challenges.
What to Look for in a Security Camera
When choosing a security camera for retail applications, there are a number of
factors that will determine the success of security and operational efforts, as
well as the return on investment in the technology.
The first of these is video quality because details are important for
investigating a crime or identifying an individual. Therefore, cameras should be
capable of capturing a high level of detail for the variety of retail
applications.
A second primary factor is field of view. Even the highest-quality video is
useless if the camera is incapable of capturing video of an event of interest.
Wide angle or 360-degree capabilities, coupled with high resolution, provides
the best possible view over a larger field of view, which allows retailers to
see the entire sales floor in detail.
Lighting changes can be problematic with video, so it is necessary to choose
cameras capable of overcoming these challenges. Cameras with wide dynamic range
(WDR) capability are particularly useful at store entrances, for example. With
WDR, images are not affected by the bright sunlight that often shines through
windows, making it possible to capture details about individuals as they enter a
store.
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These three factors allow retailers to capture the highly detailed images that
makes video surveillance effective, but often at a cost. The more detail the
video contains, the larger the file sizes, which require more bandwidth to
transfer video from the camera to the storage solution. All of this can add up
to increased costs. However, with the advent of more efficient compression
technologies like H.265, cost increases have been somewhat mitigated. Cameras
for retail should incorporate H.265, which some manufacturers complement with
their own compression technologies for even greater efficiency.
Flexibility is another important factor when evaluating cameras. Today’s
advanced models are built on open platforms that make it possible to integrate
multiple technologies easily. Many also offer the ability to add new
capabilities by installing apps directly to the camera.
Finally, cameras that incorporate on-board video analytics bring intelligence to
the video that allows the detection of specific events or situations, such as
when someone enters a particular area of a store. These analytics solutions also
serve to extend the value of security cameras beyond security.
Going Beyond Security to Improve Business Operations
In the traditional retail businesses, the most critical aspect was providing
goods and services according to consumers' demands at a reasonable price, and
the main role of security cameras was protection of property, i.e. safeguarding
products from theft and deterring other illegal activities.
While security remains a primary driver behind retailers’ use of video, cameras
perform a number of functions beyond surveillance. When combined with a variety
of video analytics, cameras provide value to retailers in the form of business
intelligence, which can directly result in increased sales. Therefore, exploring
the management benefits of video in addition to the traditional focus on
security and loss prevention is key to leveraging the complete value of video in
retail operations.
In retail, where margins are often narrow, creating a positive customer
experience becomes a priority for retailers. As they seek to identify and meet
the rapidly changing needs and preferences of their customers, an entirely new
approach is needed for retail businesses. Today’s cameras not only meet the
basic requirements of safety and security but also deliver the intelligence
necessary to enable the “smart retail” necessary to understand customer
behavior.
Many cameras offer built-in heat mapping, people counting and other video
analytics that utilize video to review and analyze movement of people within a
retail outlet. This makes it possible to improve the store layout to alleviate
crowding and to increase profits by placing high-profit items at a
higher-traffic point. Video analytics also provide insight beyond sales numbers
to determine how well a new display is performing based on time, day or other
factors.
Short wait times play a main role in the customer experience and watching video
can provide important data about when additional personnel may be needed in
specific areas of the store, such as the checkout when lines are long. Having
enough sales associates available during busier parts of the day can improve
sales and increase the value of individual transactions.
Video also presents opportunities to improve employee performance in the areas
of customer service, attentiveness, sales aptitude and more. Both good and poor
performance can be reviewed and analyzed to create teachable moments and
positive reinforcement.
These are just some of the many possibilities for retailers using surveillance
cameras to address both security and operational challenges. High resolution,
efficient bandwidth usage and on-board video analytics combine to allow cameras
that may initially have been deployed for security purposes to be transformed
into intelligence-gathering devices that directly impact the bottom line more
than simply from a loss prevention perspective. Armed with the intelligence
available in today’s cameras, retailers can not only protect their assets but
also increase profits and generate a greater return on their investment in
surveillance cameras.
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Hanwha Techwin America
Video
Surveillance Built on Trust
Jordan Rivchun, Leader, Retail Solutions & Strategy and
Miguel Lazatin, Director of Product & Channel Marketing |
|
![](http://d-ddaily.com/images/NYC19_07_Hanwha_DAILY.png) |
As a leading security manufacturer,
Hanwha Techwin America
offers video surveillance products including network cameras, storage devices
and video management systems founded on world-class optical design,
manufacturing and image processing technologies. Miguel Lazatin and Jordan
Rivchun explain how Hanwha can help retailers secure people, property and data
while delivering a superior ownership experience through continuous innovation,
unparalleled service and the highest standards of integrity.