WASHINGTON — Retail theft is a growing issue across the country, costing businesses billions of dollars every year. Stores in the DMV region are no exception, with incidents ranging from smash-and-grab robberies at luxury retailers to theft at local pharmacies.
In an effort to reduce shoplifting, major retailers like CVS have removed or locked up high-theft items, and Safeway has installed gates to deter thieves. However, small businesses are also fighting back. Some business owners are turning to artificial intelligence (AI) to help curb theft.
At JJ Liquor in Northeast, D.C., owner Karinjeet Singh says rampant shoplifting has threatened his livelihood, particularly in the years following the COVID-19 pandemic.
“This business means a lot to us. It’s our daily livelihood,” Singh said. “Shoplifting right after COVID got worse. We were having issues with daily customers.”
To address the issue, Singh has adopted a new AI technology called Veesion. The program connects to existing security cameras, using an algorithm to analyze footage in real time.
“We add a brain to the store,” explained Benoit Koenig, cofounder of Veesion. “When the cameras are the eyes, the small AI box is the brain that has been needed for years to reduce shrink."
The AI tracks customers’ movements within the store, flagging any suspicious behavior associated with shoplifting. Alerts are sent to an app in real time, allowing store owners to respond quickly.
“The owner doesn’t have to be in the back watching cameras, he can be working, taking care of his customers, while there is an AI watching his cameras for him," Koenig said.
WUSA9 saw the program work in real-time. Koenig simulated shoplifting by placing a bottle of wine into his backpack. Within seconds, the app sent an alert with video footage of the suspicious activity. Singh says when he receives an alert, he and his staff try to be as non-confrontational as possible.
“We show them the video first so they don’t try to get offended about us stopping them. We try to avoid any conflict. We just want you to leave the product and leave the store," Singh said.
According to a 2023 National Retail Federation (NRF) survey, retailers lost $112 billion to theft in 2022. The same survey found that 28% of retailers had been forced to close locations due to rampant theft.
“Retail crime is a threat to communities throughout the country, whether they be large metropolitan areas or small rural communities," said David Johnston, NRF’s Vice President of Asset Protection and Retail Operations.
Singh shared similar concerns, saying that closing his store was a real fear before installing Veesion. But since adding the technology, he’s noticed a significant drop in theft.
“It started working as a virtual security guard for us,” Singh said.