Deck the Halls with Smart Surveillance

Preparing for the Holiday Shopping Surge with AI-Enhanced Security 

By Dean Drako, CEO, of Eagle Eye Networks

With the holidays on the horizon, retailers are gearing up for an influx of in-store and online shoppers. This is the most wonderful time of year to help increase sales and end the fourth quarter on a solid note; however, this season of joy brings several added risks. As brick-and-mortar stores and the retail industry at large adapt to the digital age, they now face an urgent threat: the alarming increase in retail theft. 

Nationwide retail theft accounted for $112.1 billion in losses in 2022, and that number is expected to balloon to $143 billion by 2025, according to the National Retail Federation (NRF). In addition to impacting retailers’ bottom line, aggressive retail theft dampens the shopping experience, heightens safety concerns for customers, and may cause higher prices and reduced access to products. Beyond the financial toll, aggressive retail theft can sour the festive shopping experience, posing safety concerns for customers and staff alike.

As theft persists, some small business owners are being forced to shutter their doors, while major retailers such as Walmart adopt new security policies, relying less on self-checkout and adding staff to deter shoplifting. While these measures can serve as a frontline deterrent, the increasingly confrontational nature of organized shoplifting rings puts cashiers and security guards at heightened risk for injury or worse.

Meanwhile, a powerful deterrent is the one mounted in the corner.

The lens defense: how AI-enhanced cameras secure holiday shopping experiences

As retailers prepare for the seasonal surge,  there’s an emerging consensus that traditional video surveillance — while crucial — is no longer sufficient. Integrating AI-powered cloud-based video management systems with traditional cameras represents a remarkable upgrade: these systems actively monitor footage rather than passively capture it, and deliver real-time alerts about incidents such as overcrowded checkouts or spills in grocery store aisles. The AI features that are built into a cloud video management system represent a giant leap forward in the world of retail security, illuminating blindspots and empowering businesses to combat theft proactively.

The bottom line: a safer, more efficient shopping environment during the busiest time of the year. 

With broad camera compatibility, these AI-driven systems have a host of advanced analytics onboard, often including open API platforms and cloud video management systems that can securely transmit data to the cloud, store it, and provide important information to business owners and loss prevention professionals. 

AI-powered cloud video management systems give retail business owners new ways to protect their assets and enhance customer experiences during the holidays and beyond.

Surpassing security – operational benefits of video surveillance

As peak retail season ramps up, the operational benefits of AI-enhanced video surveillance become even more critical. Analyzing captured video, for instance, enables retailers to optimize staffing levels and deploy people where they are most needed to handle the holiday rush. The result is better customer service and overall operational efficiency, two factors critical to maximizing seasonal sales.

AI-powered cameras also serve as a deterrent against theft from both the outside and the inside. Footage aids in investigations while helping to make sure the right preventive measures are in place. The ability to monitor and respond to real-time incidents means that a retailer can keep an environment safe, even when shopping peaks.

With video surveillance, insights can be leveraged to strategize everything from where to place products to how to display merchandising and other elements to best align with customer behavior in ways that positively impact sales, further enhancing the shopping experience.

Cameras also help detect and document theft when it occurs from within. PwC’s 2022 Global Fraud Survey found that employees are less likely to steal knowing that their actions are being recorded, and the footage also assists in investigations to identify perpetrators. Additionally, the use of AI-powered cameras can provide real-time alerts, which contributes to effective loss prevention. 

With cameras near checkout counters, businesses can provide prompt assistance, boosting customer satisfaction and operational efficiency. Insights from video surveillance empower retailers to optimize product placement by aligning with customer behavior, leading to more effective merchandising displays and increased sales.

Positioning retailers for a holiday renaissance

The shopping season may be extra bright this year, with stirrings of a commercial comeback on the horizon, making headlines and boosting the bottom line. A recent report from Coresight Research, “The State of the American Mall,” reveals that more stores opened in 2022 than closed—a first since 2016—and mall sales grew more than 11% to nearly $819 billion. With occupancy rates rising and consumers returning to malls, retailers can capitalize on this growth by leveraging innovative solutions like Smart Video Search. 

By embracing AI-driven technologies to create secure retail environments, businesses can nimbly navigate the marketplace, adapt to trends, and empower growth. As we head into the New Year, the future for retailers looks bright, with AI lighting the way to a retail renaissance.

Dean Drako is founder, President and CEO of leading cloud video surveillance and AI analytics provider, Eagle Eye Networks, which has ranked four times on the “Deloitte Technology Fast 500” list spotlighting the fastest growing technology companies in North America. Drako is also chairman of Brivo, a cloud access control company, and founder and CEO of Drako Motors, where he recently launched Drako Dragon, a 200+MPH 2,000 HP, all-electric hyper-luxury SUV. He is Chairman of Cobalt AI, a leader in enterprise security automation, and was named Ernst & Young Entrepreneur of the Year Gulf South in 2024.

Previously, Drako was founder, president, and CEO of Barracuda Networks, where he created the IT security industry’s first spam filter appliance and then grew the company to more than 140 products and 150,000 customers from its inception in 2003 through 2012. Barracuda went public on the NYSE. With 25-plus years of experience building profitable, high-growth, high-recurring revenue technology companies, Drako was named one of Goldman Sachs “100 Most Intriguing Entrepreneurs of 2014.”

Drako received a Bachelor of Science in Electrical Engineering at University of Michigan, and his Master of Science in Electrical Engineering from UC Berkeley.