Co-op is trialing AI systems to combat increasing retail crime and protect staff.
- Losses due to crime rose almost 20% to £39.5m in the first half of 2024.
- The technology can identify hidden weapons and theft without facial recognition.
- AI alerts a centralised station if an assault occurs, enhancing response time.
- Co-op plans further expansion despite challenges, with 120 new stores announced.
Co-op’s decision to implement artificial intelligence (AI) technology signifies an innovative step in addressing the escalating challenge of retail crime. Faced with a nearly 20% increase in losses due to crime, amounting to £39.5m in the first half of 2024, Co-op is exploring AI as a solution to enhance security and safeguard its employees. This move comes after significant investment in protective measures, amounting to £18m, which included fortified kiosks and body-worn cameras.
The AI system being trialed in 14 stores has the capability to detect concealed weapons and stolen goods, thus addressing the core issues of theft and potential violence. Importantly, this technology operates without the use of facial recognition, ensuring a level of privacy for customers. Additionally, it can identify if a physical assault on staff is occurring, prompting an alert to a centralised monitoring station managed by Mitie, allowing for swift intervention and support.
Matt Hood, managing director of food at Co-op, highlighted the grim reality faced by retail staff, noting a 34% rise in physical attacks on employees compared to 2022, with serious abuse incidents increasing by 37% over the past two years. His statement underscores the urgent need for effective measures to protect staff from the risks associated with retail crime. Despite the immediate challenges, Hood emphasised a long-term approach, acknowledging that the impact of these investments and potential legislative changes might take time to materialise.
Amidst these security challenges, Co-op reported a return to profitability following a £33m loss the previous year, citing strong sales performance in its food sectors. On the back of this positive financial turnaround, the retailer announced plans to open 120 new stores over the next 18 months. This expansion reflects a strategic shift towards proactive growth, aiming to strengthen its market position despite the ongoing crime issues.
Co-op’s strategic use of AI and planned expansion suggest a resilient approach to tackling retail crime and enhancing business growth.
