Iceland cuts store losses by 80% with AI-powered theft detection

Iceland, the UK frozen food retailer, has cut losses from theft and shrink by 80% after rolling out SAI One, an AI-powered loss prevention platform from SAI, across its more than 1,000 UK stores. The system, which uses computer vision and generative AI to analyze live CCTV feeds and send alerts to staff within eight seconds, has also reduced false alerts by nearly 50%, and colleagues now respond to 90% of crime alerts. Iceland head of loss prevention Andy Edwards said the technology has made the retailer 'one of the hardest places to steal from on the High Street' and is improving productivity.

Iceland https://www.iceland.co.uk has slashed losses from theft and shrink by 80 per cent after rolling out an AI-powered loss prevention platform across its store estate. The frozen food retailer has partnered with store intelligence specialist SAI https://saigroups.com to use artificial intelligence alongside its existing CCTV infrastructure to identify suspicious activity and alert colleagues in real time. The SAI One platform uses computer vision and generative AI to analyse live video feeds across checkouts, aisles and store entrances, detecting incidents including missed scans, partial payments, walkouts, concealment, in-store consumption and shelf sweeping. Alerts are sent to Iceland colleagues’ handheld terminals within eight seconds of suspicious activity being confirmed, alongside images and footage showing the individual and their location. Iceland said the technology has delivered an 80 per cent reduction in losses since rollout, while the number of false alerts has fallen by almost 50 per cent. The reduction in inaccurate notifications has helped drive greater confidence in the system among store teams, with colleagues now responding to 90 per cent of crime alerts generated by the platform. The retailer, which operates more than 1,000 UK stores including around 700 high street locations, said the technology had also freed up staff to spend more time on shopfloor operations and serving customers. Iceland head of loss prevention and corporate audit Andy Edwards said: “We wanted to become the second choice on the High Street to steal from, and in order to do that, we needed to be more proactive. “We needed a solution that could work alongside us, rather than behind us.” Iceland previously estimated that theft was costing the business around £20m a year, with executive chairman Richard Walker warning that shoplifting was damaging margins and limiting its ability to keep prices down and invest in colleague pay. Edwards said the technology was playing a significant role in improving performance at Iceland’s 100 worst-performing stores, which account for around a third of the retailer’s overall shrink. “We’ve been delighted with the progress that we’ve made, and the journey that we’ve been on,” he said. “The platform is not just helping us reduce shrink and making Iceland one of the hardest places to steal from on the High Street, it’s also helping colleagues on the shopfloor from a productivity perspective.” SAI founder and chief executive Som Sinha added: “Iceland shares our belief that AI should make stores smarter, safer and easier to run. “Together, we’re proving that retailers can reduce shrink, empower colleagues and improve operational performance, all from a single platform.” Iceland is now looking to expand its use of the technology with repeat-visit alerts that can warn staff when previous offenders return to stores, alongside notifications that can be shared with nearby branches. The grocer is also exploring the use of facial recognition technology as part of its wider crime prevention strategy. SAI said any facial recognition deployment would include safeguards designed to prevent images of innocent shoppers being retained, allow customers to review evidence when access to a store is refused and ensure sanctions are proportionate to previous offences. Click here to sign up to Retail Gazette‘s free daily email newsletter https://www.retailgazette.co.uk/newsletter-sign-up-retail-gazette?utm source=Website&utm medium=Article&utm campaign=SignUp