Shoplifting and retail theft have become increasingly prevalent issues across many major US cities in recent years. According to data recently released by the Council on Criminal Justice, cities such as New York and Los Angeles have experienced significant increases in reported shoplifting offenses between 2019 – 2023, with incidents rising by 64% and 61% respectively.

In addition, it’s not just the number of cases that seem to be increasing, with the same report going on to suggest the average value of stolen goods may have risen by over $500 during a similar time frame. Santa Clara citizens may feel these issues are striking too close to home. As Dr Kirthi Kalyanam, Director of the Retail Management Institute at Santa Clara University states, “retail theft is a real big problem I have personally witnessed here in the bay area”.

In his professional opinion, Dr Kalyanam suggests “people need to get their arms around the organized nature of this crime”, which it appears local officials are attempting to do. Funding has been recently announced by the state as an investment to combat organized retail crime in California, but what retail security innovations in Santa Clara are likely to have an impact?

AI-infomed shelving solutions

One such innovation in retail security is currently being developed in North Bay. According to a recent NBC report, the local company Digital Media Vending International is harnessing AI technology with an eye to creating automated retail shelving units designed to prevent crime.

These units are essentially modular vending machines used to secure retail items behind a wall of high-security safety glass. Shoppers can either pre-pay for their items online, or via an in-store kiosk, with AI-informed robotics systems programmed to vend items on demand.

The company believes this added layer of security may measurably reduce the frequency of opportunistic shoplifting incidents, while reducing some of the workload shouldered by retail security teams. With multiple stores interested in trialing the units, results may soon be seen.

Additionally, the adoption of QR codes on retail shelving and products offers a dual benefit of enhancing security by enabling digital authentication and facilitating a contactless shopping experience, effectively deterring theft while streamlining customer service

Advanced video surveillance tools

The increasing popularity of AI-informed security technologies is not only limited to customer facing solutions. Modern security systems for retail stores can benefit greatly from the autonomous nature of AI-informed technologies, with the most obvious example being video surveillance.

Existing CCTV hardware can now be combined with AI-powered video analytics tools, with systems programmed to continuously monitor high risk areas in search of stimuli consistent with criminality. Solutions can be programmed to warn teams of crowds forming in unusual locations or the presence of contraband items, triggering wider security tools automatically. 

Considering the presence of a visible security system alone has been shown to deter as many 60% of would-be criminals from committing offenses, efforts to add extra functionality to CCTV systems could prove incredibly beneficial to store-owners wishing to prevent crime.

Similar AI-powered security strategies will likely expand into other sectors, such as property development. Alex Capozzolo of SD House Guys, a real estate development company in California, stated “Technology has made it easy to protect construction sites while they’re being built. Basic security systems stop most people from breaking in and committing petty crimes. We’re hoping the AI enhances security systems enough to where we don’t have to worry about people breaking into construction projects at night.”

Specialized loss prevention officers

While smart security solutions are designed to improve the efficacy and efficiency of retail security operations, the intention is to support in-person teams rather than to replace them. Officials in California seem to understand this distinction, with the Governor’s office recently announcing the state’s largest ever single investment to combat organized retail criminality.

Over $267 million has been awarded to be shared among 55 law enforcement agencies in the state, one of which being Santa Clara, with the intention to assist existing officers in the prevention and investigation of organized retail theft cases currently affecting local retailers.

In particular, the funding has been designed to help agencies create fully staffed retail theft investigation units and train specialized loss prevention officers to increase cooperation with businesses and the wider community. Coupled with investments into advanced surveillance technologies, officials believe this funding will lead to a reduction in significant retail crimes.

Summary

Shoplifting incidents and organized retail crimes are quickly becoming a serious problem for business owners across the US, an issue that some Santa Clara store owners may be all too familiar with. Thankfully, with aid from modern technologies and targeted funding initiatives, concerted efforts are being made to support business owners in the prevention of retail theft.

From local retail security innovations like AI-infomed shelving solutions, to the development of advanced video surveillance systems, both government officials and private businesses seem to be invested in tackling this issue. With dedicated funding already available to local law enforcement teams, only time will tell whether such efforts will have their desired impact.