Co-op has turned to artificial intelligence to counteract rising theft and fraud costs, now totalling £39.5 million in six months.
- The new AI technology identifies offenders with concealed weapons and stolen items, enhancing store security.
- Recent statistics show shoplifting incidents have soared to a 20-year high, with significant impacts on retail operations.
- Co-op’s investment in security includes body-worn cameras and fortified kiosks to protect its staff and customers.
- Changes in legislation to protect shopworkers have been welcomed by major retailers as a step forward.
In response to a surge in theft and fraud, Co-op is deploying artificial intelligence to enhance security across its stores. The technology is designed to identify offenders concealing weapons or stolen items. During trials, it has also demonstrated the capability to detect physical assaults on staff, thereby prompting alerts to a central monitoring system operated by Mitie for appropriate intervention.
The increase in theft has significantly affected Co-op, pushing leakage costs from theft and fraud up by 19% to nearly £40 million within the first half of the year. To address these challenges, Co-op returned to profitability by spending £18 million on measures to safeguard its workforce and customers. This expenditure encompasses initiatives like the roll-out of body-worn cameras and fortified kiosks in its food stores, along with the integration of AI technology in select locations to identify theft and potential threats.
Notably, incidents of shoplifting, abuse, violence, and anti-social behaviour reported by Co-op surged by 44% last year. There is an alarming average of 1,000 incidents occurring daily. Matt Hood, Co-op’s Food Managing Director, starkly noted that ‘The reality is every day four of my colleagues will be attacked and a further 116 colleagues will be seriously abused.’ This reflects a worrying trend supported by data from the Office for National Statistics (ONS), which recorded more than 400,000 shoplifting incidents across England and Wales within a year, marking a 32% increase from the previous year.
Despite these figures, police attendance at incidents has been insufficient, with only 21% of incidents seeing police intervention where criminals were detained. Recognising this shortfall, Co-op remains committed to enhancing safety, having invested over £200 million in recent years. However, Matt Hood emphasises that industry collaboration is essential, stating, ‘we can’t fix this on our own.’
Legislative changes are underway to enhance protections for retail workers, with a new law making it a standalone offence to attack or abuse a shopworker. Both Co-op and Tesco have expressed approval of this legislative progression. Co-op’s CEO, Shirine Khoury-Haq, expressed satisfaction with the government’s decision, urging for swift enactment of these changes to better safeguard employees.
Co-op’s strategic adoption of AI and its call for legislative support mark significant steps in addressing the escalating issue of retail theft.
