How supermarkets are monitoring shoppers to crack down on theft

As cost of living bites Victorians, retailers are going all out with tech to spy on and track customers, while cutting back service at checkouts. And there’s more to come.

As cost-of-living pain hit Victorians, 2023 was also the year supermarkets and retail giants went all out introducing new technology that allowed them to spy on and track their customers like never before — while also continuing to cut back on customer service at the checkout.

Here are just some of the “initiatives” that have been introduced to try to reduce theft while simultaneously reducing the number of human workers on store floors.

Checkouts at the East Burwood Kmart in 1969.

A busy Coles checkout at Oakleigh in 1989.

Stores get serious about theft

In September, Coles’ chief operating officer Matt Swindells boldly declared “if you’re a thief, we’re gonna catch you”, as shoppers became increasingly unnerved by the supermarket’s introduction of overhead cameras, trolley locks, smart gates and antitheft fog machines.

The feeling of being watched by Big Brother was no joke, with surveillance and tracking of shoppers starting from the time they entered some stores, to the time they scanned and bagged their own items at the self-serve check-outs.

When Coles self-serve check-outs first arrived, replacing the ‘checkout chicks’.

There are now smart gates that lock automatically to prevent anyone with unscanned items leaving the store, fog machines that go off to disorientate would-be thieves and trolleys with wheels that lock if someone tries to do a runner with their groceries.

“Coles has a range of security measures in place to reduce theft from our stores including CCTV, electronic article surveillance (EAS), and in some stores new smart gate technology that automatically opens as customers make payment for their products,” a Coles spokesperson said.

To help combat threats against staff as well as thefts, it also revealed in September body cameras would be introduced in some of its high-risk stores.

At Woolies, it was revealed in August high-tech sensors that floated above self-checkout areas would start to be rolled out in stores, which tagged shoppers with an anonymous identification number that tracked their movements until they coughed-up for their groceries.

But it wasn’t just supermarkets that moved from asking customers to serve themselves to outright distrusting them as they did so, with Kmart also introducing new Artificial Intelligence (AI) self-checkout scanners that worked to prevent sneaky shoppers getting away with self-made bargains.

Kmart started rolling out a new security camera system trial at self-serve check-outs in some stores, using camera vision and AI to detect when items are not scanned correctly.

When the system detects a missed scan, it will pause the register and allow the customer to correct the purchase before a Kmart staff member is called.

Cameras at the entrance to a Kmart store. Picture: Justin Lloyd.

North Face — the brand preferred by former Victorian Premier Dan Andrews — relies on AI to perform the roles of a personal shopper and sales assistant, with its app recommending, for example, the best coat for a potential customer’s specific needs. The platform will ask the customer questions such as where they plan on wearing the coat and what they are looking for so that they can choose a product from a preselected list of options.

So what could be ahead of us in the retail creep of AI taking the place of human beings?

Robots most likely, with retailers increasingly exploring the use of robotic security systems to monitor and patrol their premises.

These robots can navigate autonomously, equipped with cameras and sensors to detect suspicious activities. They can provide real-time video feeds to human operators, reducing the need for constant physical presence.

Robots and drones will also increasingly be used to restock shelves, it’s predicted.

According to global analysis, Artificial Intelligence in the retail market is estimated to be worth US $27.2bn by 2025.

Robots and drones stacking store shelves may not be far away. Picture: Apptronik

Looking to the future

According to global technology leader Thales here’s what else we can look forward to — or fear — next in the retail world. Some of it, in fact, is already here and being used in some places. We can, however, expect these initiatives to become far more widespread.

• Facial recognition of regular customers that will be used to suggest and reorder their favourite dishes just through scanning the characteristics of their face.

• Bluetooth-enabled notifications sent to loyal customers walking past stores they tend to frequent.

• Augmented Reality (AR) and Virtual Reality (VR) technology to help consumers visualise how something will look in their home by using an app on their phone.

• Data sharing that allows retailers to create a personalised experience in-store that is based on consumers’ preferences.

• Cashier-less shops – based on the same technology used in driverless cars – computer vision, sensor fusion and deep learning – AI-powered technology in shops will allow customers to simply walk into a shop by scanning a mobile app, pick up what they need and walk out, without having to go through checkouts.