Retail organizations have used video surveillance as a valuable tool to combat shrinkage, which can account for more than 2% of retail sales for some U.S. organizations, according to the National Shrinkage Database. Shrink is up 6.6% in 2011 over 2010 — the highest level since 2007, reported the Global Retail Theft Barometer.
Rising shrink rates are the result of increased shoplifting, employee fraud and organized retail crime, reaching $119 billion worldwide. This trend affects both retailers and consumers. Retailers lose up to 2% of annual sales, which in turn costs shoppers on average $435 per family. Additionally, 47.8% of U.S. retailers report increased losses from organized retail crime.
But there is a light at the end of the theft tunnel. Skimming, employee theft and identity theft are continuing threat vectors that can be minimized using sophisticated video analytics and IP camera technology. But while video helps avoid business losses, it also is a key component of business growth. Read this 3VR-sponsored paper to see how video is now moving from its LP core competency to real-time analytics — business intelligence that provides "see it in action" proof that's invaluable for marketing and merchandising professionals.