Self-Checkout Shrinkage Avoidance for a Big Box DIY Retailer

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Challenge

A major Big Box DIY retailer was facing significant shrinkage at their self-checkout (SCO) stations, leading to considerable loss of revenue. The retailer needed a cost-effective technology solution that could integrate with their existing video surveillance systems to minimize theft and improve accuracy at the checkout. The challenge was to reduce shrinkage without disrupting the customer experience or investing in expensive new hardware.

Key Questions

  • How can the retailer reduce shrinkage at self-checkout without the need for expensive hardware upgrades?
  • Can real-time data and alerts improve checkout accuracy and prevent revenue loss?

Solutions

Computer Vision at the POS

StrataVision utilized the retailer’s existing video infrastructure to implement a computer vision system that identifies and tracks items at self-checkout in real time.

Automated Item Verification

The system compares the expected item count with scanned items, ensuring all products are accounted for and reducing the chance of missed scans or omissions.

Real-Time Alerts & POS Lock

If discrepancies are detected, real-time alerts are sent to store associates or the POS can be automatically locked until the issue is resolved, ensuring accurate transactions.
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a person using a self checkout system
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Tools & Technology

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StrataVision Computer Vision System

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Real-Time POS Integration

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Automated Notifications and POS Lock Systems

Results

Improved Item Count Accuracy

Removal of background noise items such as brochures, drinks, and stickers enhanced item count precision at self-checkout.

Recovered Revenue

$180K worth of previously unscanned items were reclaimed, directly increasing revenue.

Significant Cost Savings

Potential annual savings of up to $362M in avoided merchandise loss across 2,000 stores.

Actionable Insights

Background noise from items like brochures, drinks, and stickers at the POS was interfering with accurate item counts, leading to discrepancies during self-checkout.

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Sales Impact

StrataVision’s solution helped reclaim $180K in previously unscanned items at self-checkout, with the potential to save the retailer up to $362M annually in avoided merchandise loss across 2,000 stores.
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Benefits

Reduced Shrinkage at Self-Checkout

StrataVision’s computer vision technology has drastically reduced shrinkage by ensuring that all items at the self-checkout are accurately scanned.

Increased Accuracy in Scans

The system’s real-time item verification and automated alerts have improved the accuracy of customer transactions, minimizing the risk of missed scans.

Substantial Long-Term Savings

By addressing shrinkage across 2,000 stores, the retailer has unlocked the potential for $362M in annual savings, significantly lowering merchandise loss and enhancing profitability.
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