The Co-op is trialling groundbreaking AI technology to address retail crime effectively.
- In the first half of 2024, Co-op’s crime-related losses surged by nearly 20% to £39.5 million.
- Fourteen stores are piloting the AI system, which identifies concealed weapons and thefts without facial recognition.
- The innovative system quickly detects assaults on staff, ensuring prompt action through a centralised monitoring station.
- Despite security investments, Co-op acknowledges the long-term challenge of reducing crime rates.
The Co-op is innovating its approach to retail security by testing artificial intelligence technology designed to identify offenders carrying stolen items or concealed weapons. This initiative is aimed at tackling a significant rise in retail crime that has adversely affected the company’s financial performance. In the initial half of 2024, Co-op’s losses attributable to crime escalated by almost 20%, reaching a total of £39.5 million. This has been accompanied by an £18 million expenditure on protective measures to ensure the safety of its workforce.
The AI system, currently in trial in 14 Co-op stores, is a part of the retailer’s broader strategy to combat theft and violence. Notably, it does not employ facial recognition technology. Instead, it focuses on identifying potential threats such as concealed weapons or theft activities. The system is capable of recognising signs of physical assaults against employees, subsequently alerting Mitie, a centralised monitoring station, to coordinate a swift response.
Matt Hood, Co-op’s managing director of food, highlighted the persistent nature of this challenge, acknowledging a worrying 34% increase in attacks on staff compared to 2022, and a 37% surge in serious abuse incidents over two years. He expressed a cautious outlook regarding immediate reductions in crime rates, suggesting that substantive improvements will require both continued investment in security and legislative action.
Despite these challenges, Co-op reported a return to profitability following a £33 million deficit last year, driven by robust sales in its food stores and online platforms during the first six months of 2024. In line with its improving financial health, the retailer announced plans to open 120 new stores over the coming 18 months as part of its strategy to expand its market presence.
Co-op’s adoption of AI technology represents a critical step in addressing retail crime, although long-term success will require sustained efforts and policy support.
