Co-op is adopting AI technology to combat retail crime and enhance safety.
- The retailer’s losses due to crime rose by nearly 20% in early 2024.
- AI trials are underway in 14 stores, aiming to detect weapons and theft.
- The system can also alert authorities if staff assaults occur.
- Co-op plans to open 120 new stores following financial recovery.
Co-op is implementing artificial intelligence (AI) to tackle a growing retail crime issue, emphasised by a near 20% surge in losses to £39.5 million in the first half of 2024. This step is part of a broader strategy to protect employees and properties amid increasing crime rates. The company disclosed that these losses prompted the allocation of £18 million towards protective measures.
The trial phase of the AI technology is currently operational in 14 stores. It is designed to identify concealed weapons and stolen items, thereby addressing one of the major challenges faced by retailers today. Importantly, this system does not employ facial recognition technology, keeping privacy concerns in mind. Moreover, the system is capable of notifying a centralised monitoring station managed by Mitie if a member of staff faces physical assault, ensuring rapid response and support.
Co-op Managing Director of Food, Matt Hood, expressed concern over the escalating violence, noting a 34% increase in daily attacks on staff compared to 2022, and a worrying 37% rise in cases of severe abuse. Hood remarked, “It isn’t going away…that all the money we are investing will pay off. But I think it is going to be slightly longer term than that.” His comments underline the urgent need for robust deterrents and a collaborative approach, including potential legal reforms.
In contrast to these challenges, Co-op reported a return to profitability, following a £33 million loss last year. The retailer credits strong sales growth across its food stores and online platforms for this turnaround. In a proactive move, Co-op has unveiled plans to expand its footprint by opening 120 new stores over the next 18 months, reflecting confidence in its growth strategy and operational improvements.
Co-op’s innovative use of AI marks a significant step in addressing retail crime as it continues to expand its business.
