Unveiling Retail’s Invisible Crisis: How Trigo Makes Shrink Visible

Retail shrinkage is a $1.77 trillion global problem that erodes profitability and threatens the future of physical stores. The biggest challenge? You can’t fix what you can’t see. Understanding and combating this invisible threat has never been more critical.

Introduction

Retailers around the world are grappling with an invisible enemy: shrinkage, which includes losses due to theft, employee fraud, and operational inefficiencies. With an estimated $1.77 trillion lost annually to inventory distortion, shrinkage is a monumental challenge that threatens profitability and the very existence of brick-and-mortar stores.

The core issue lies in the lack of accurate, real-time data. Without clear visibility into where and how shrinkage occurs, retailers are left in the dark, unable to implement effective strategies to combat losses.

The Data Dilemma: Why Is Shrinkage So Hard to Measure?

Fragmented Data Sources

Retailers often rely on multiple systems to track inventory, sales, and losses:

• Point-of-Sale (POS) Systems: Capture sales data but may not account for unscanned items.
• Inventory Management Systems: Track stock levels but can’t pinpoint where losses occur.
• Security Systems: Collect video footage but require manual review.

This fragmentation leads to data silos, making it difficult to get a cohesive view of shrinkage.

Inconsistent Reporting Standards

Without industry-wide standards for reporting shrinkage:

• Definitions Vary: What one retailer classifies as operational loss, another might label as theft.
• Measurement Techniques Differ: Some use periodic stock counts, while others rely on perpetual inventory systems.
• Lack of Benchmarking: Inconsistent data prevents retailers from comparing shrinkage rates effectively.

Unreported Incidents

A significant portion of shrinkage goes unreported due to:

• Employee Reluctance: Staff may hesitate to report incidents fearing repercussions.
• Detection Challenges: Subtle theft tactics and internal fraud are hard to detect without sophisticated tools.
• Resource Constraints: Limited personnel to monitor and analyze data in real-time.

The Impact of Invisibility: How Data Gaps Hurt Retailers

Ineffective Loss Prevention Strategies

Without accurate data:

• Misallocated Resources: Retailers may invest in the wrong areas, such as overstaffing low-risk sections.
• Reactive Measures: Loss prevention becomes about damage control rather than proactive prevention.
• Blind Spots Remain: Critical areas of loss go undetected, allowing shrinkage to continue unchecked.

Customer Experience Suffering

To combat shrinkage, some retailers implement measures that inadvertently harm the customer experience:

• Locked Product Cases: Frustrate shoppers who must wait for assistance to access items.
• Overbearing Security Presence: Creates an unwelcoming atmosphere.
• Complex Checkout Procedures: Lengthy processes deter customers from making purchases.

Financial Consequences

The cumulative effect of invisibility leads to:

• Decreased Sales: Frustrated customers may shop elsewhere.
• Eroded Profit Margins: Losses eat into profits, making it hard to sustain operations.
• Store Closures: In extreme cases, persistent shrinkage can lead to shutting down stores, especially in high-risk areas.

Making the Invisible Visible: Trigo’s Revolutionary Solution

Trigo addresses the data problem head-on by transforming existing store environments into intelligent spaces where every product movement is tracked and analyzed in real-time.

How Trigo’s Technology Works

• Leverages Existing Infrastructure: Uses current CCTV cameras and POS systems to create a digital replica of the store.
• AI-Powered Computer Vision: Uses standard cameras to analyze patterns in shopper behavior and product interactions.
• Privacy-Preserving Technology: Employs skeletal tracking without facial recognition or biometric data, ensuring compliance with privacy laws.

Key Features and Benefits

Solving the Data Problem: Detailed Insights with Trigo

Real-Time Monitoring and Analytics

• Continuous Visibility: Monitor store activities 24/7 with minimal manual intervention.
• Data Integration: Combines data from various sources into a single, cohesive platform.
• Actionable Insights: Identifies patterns and trends that inform strategic decisions.

Focus on High-Risk SKUs

• Target High Risk Goods: Prioritize monitoring of items most susceptible to theft and with the highest total impact on the bottom line.
• Efficient Resource Allocation: Deploy staff where they are needed most.
• Reduced Operational Costs: Optimize loss prevention spend by focusing on critical areas.

Proactive Loss Prevention

• Predictive Analytics: Identify potential theft based on behavior patterns.
• Immediate Alerts: Notify staff of suspicious activities in real-time.
• Staff Empowerment: Provide retailers the tools to act swiftly and appropriately.

Balancing Security and Customer Experience

Trigo’s solution ensures that enhancing security doesn’t come at the expense of customer satisfaction:

• No More Locked Cases: Products remain accessible, improving the shopping experience.
• Discreet Monitoring: Maintain a welcoming store environment without overt security measures.
• Less Friction, More Security: Computer Vision AI for Loss Prevention tackles theft and reduces customer friction, improving bottom line. 

Looking Ahead: Trigo’s Vision for the Future of Retail

Trigo aims to revolutionize retail by:

• Creating Fully Digitized Stores: Utilize the digital twin for various use cases – from preventing thefts and losses to improving customer experience, tracking inventory, improving planogram and more..
• Expanding Capabilities: Address internal theft and operational inefficiencies through advanced analytics.
• Driving Industry Standards: Set new benchmarks for data accuracy and loss prevention strategies.

Conclusion

The invisibility of shrinkage data has long hindered retailers’ ability to combat losses effectively. Trigo changes the game by making the invisible visible, providing retailers with the real-time, detailed insights needed to tackle shrinkage head-on.

By addressing the data problem, Trigo empowers retailers to implement proactive, targeted strategies that enhance security while improving the customer experience. In doing so, retailers can break free from the cycle of losses and move towards a more profitable, sustainable future.

You can’t fix what you can’t see. With Trigo, now you can. Contact us now.

FAQs

1. How does Trigo ensure customer privacy while monitoring in-store activity?

Trigo uses advanced AI algorithms that focus on skeletal tracking and behavioral patterns, not facial recognition or biometric data. This approach ensures customer anonymity and compliance with global privacy regulations.

2. Do I need to invest in new hardware to implement Trigo’s solution?

No, Trigo leverages your existing camera infrastructure, minimizing additional costs and simplifying deployment.

3. How quickly can Trigo’s system be implemented in my store?

Implementation timelines vary, but retailers can typically begin seeing benefits within a few weeks, with significant results in reducing shrinkage observed in just three months.

4. Can Trigo’s technology adapt to different store formats and sizes?

Yes, Trigo’s solution is scalable and customizable to fit various retail environments, from small boutiques to large supermarkets.

5. How does focusing on high-risk SKUs help in loss prevention?

By identifying and monitoring the small percentage of items that account for the majority of shrinkage, retailers can allocate resources more effectively, reducing losses without negatively impacting the overall shopping experience.