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Study: Retailers Use IP Video Surveillance for
Loss Prevention Today, Business Performance Tomorrow
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At NRF’s BIG Show, LPRC Survey Shows
Continued Market Shift to
IP Video Surveillance in Retail with Intelligent
Video Analytics and
Business Systems Integration as Driving Trends
CHELMSFORD, Mass. and NRF BIG Show, NY (booth
#943) – Jan. 14, 2013 –
Axis Communications, the global leader in
network video, today announced the results of
the Loss Prevention Research Council’s (LPRC)
“CCTV in Retail 2012” report at the
National Retail Federation’s (NRF) BIG Show in
New York City (booth #943). The survey,
commissioned by Axis in October 2012, shows the
increased adoption of IP-based video
surveillance technology by retail organizations
and their growing interest in cross-functional
uses of digital video systems, such as video
analytics and point of sales (POS) integration
for improved sales, marketing and operations.
For the “CCTV in Retail 2012” report, loss
prevention (LP) executives from 47 national and
regional retailers completed an online survey
about their company’s use of video surveillance,
perceptions about the effects of video
surveillance and the additional uses of IP-based
digital systems beyond security and LP. All
companies surveyed currently use video
surveillance in their stores, with nearly 64
percent of stores having some form of
IP-connected system.
This survey followed a similar
LPRC study from 2010, which reported that
only 31.3 percent of respondents had IP cameras
or a combination of IP/analog in their stores.
Additionally, the use and awareness of
intelligent applications for purposes beyond
security and LP has grown. The high-level
results of the “CCTV in Retail 2012” report
include:
Migration to IP Video:
• In 2010, two-thirds of respondents said they
use analog-only systems, as compared to about
one-third
who have analog-only today;
• Of those who use analog-only systems, 43
percent say they have an IP migration strategy
in place,
while 21.4 percent would like to create a plan in the future;
• The main drivers for the adoption of IP video
solutions were better image quality/HDTV and
integration
with other business systems and intelligent video;
• Only 38.5 percent of respondents with
IP-connected digital systems have access to live
surveillance
footage via a mobile device, yet 87.5 percent would find it beneficial;
• “Cost of technology refresh” remained the
biggest obstacle for the adoption of IP video,
yet the rise of
cross-functional uses of digital video for improved sales, operational
efficiencies and new revenue
opportunities could lead to budget contributions by other departments.
Intelligent Video for Sales, Marketing and
Operational Efficiency:
• Of the retailers who use IP-based video
systems for cross-functional benefits outside of
security and LP,
93 percent have seen a positive impact on operations, while 40 percent
have seen a positive impact on
merchandising;
• Nearly one-quarter named “integration with
business intelligent video, such as analytics
and POS
integration” as a main driver for adopting a network/IP system;
• People Counting was by far the most used
non-LP analytic application, with 46.3 percent
of respondents
deploying this feature, up from 27 percent in 2010;
• Dwell Time Analysis (20 percent) and Heat Map
or Hot/Cold Zone (18.2 percent) usage increased
in
2012, while 38.3 percent of respondents use video analytics to detect POS
fraud;
• Queue Counters are used by less than 10
percent of companies surveyed, yet 50 percent
say they may
use this application in future. Similarly, while no respondents said they
utilize Out of Stock Alerts today,
more than 56 percent say they may use them in the future;
• Nearly 32 percent of respondents utilize
surveillance to help analyze “shopping & buying
behavior,” with
20 percent using video to measure shelf and product placement
effectiveness;
• More than 60 percent of respondents said that
having no one to monitor or analyze video data
was the
biggest drawback of a video surveillance system, suggesting the need for
improved intelligence and
proactive alerts.
Another interesting stat that emerged from the
findings was that nearly three-quarters of
executives use covert cameras for LP.
“Our most recent survey of leading retail Asset
Protection decision-makers indicates the wants
are driving the needs for retail video
surveillance, as intelligent applications and
additional uses of video are opening new doors
for the shift to IP solutions,” said Dr. Read
Hayes, director, LPRC, and a Research Scientist
at the University of Florida. “Retail executives
are telling us IP video gives them greater
resolution, flexibility and a much better future
upgrade path.”
“The need for cameras in stores for LP and
security is a given. It’s the cross-functional
uses of digital IP video that will propel the
industry into the next phase of retail
surveillance,” said Jackie Andersen, business
development manager for retail, Axis
Communications, Inc. “There are many greenfield
opportunities ranging from IP migration
strategies [video encoder solutions, hosted
video, edge storage, etc.] to looping in POS and
video analytics data that are taking IP video
mainstream for retailers with a quantifiable
impact on sales and operations.”
Axis Communications, along with its software and
analytic partners, will showcase intelligent IP
video surveillance solutions at the
NRF BIG Show in booth #943 from January
14-15. Spokespeople will be on hand to discuss
full survey results as well as today’s leading
LP and video surveillance trends.
Note to editors: About one-half of respondents
work for a retailer that operated more than 500
stores, while nearly one-third operated between
101 and 500 stores. A further breakdown of the
respondents, including average store size and
retail category, can be found in the Executive
Summary. For more details or complete results,
contact Domenic Locapo at
dlocapo@axis.com.
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