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Problem
This famous department store followed a rigorous conventional loss prevention strategy that relied extensively on on-site loss prevention personnel and fixed and PTZ (pan-tilt-zoom) video surveillance cameras. The approach was labor-intensive, time-consuming, and costly. Still, the results were unsatisfactory. Losses continued to mount. Many fraudulent incidents were never identified, and some were not pursued because of timeframe and resources required to make the case.
Solution
The store decided to take advantage of the existing video surveillance cameras place throughout the store to monitor and assess store traffic from an operational perspective. It turned to IntelliVid for a set of intelligent video applications that would analyze traffic captured by cameras at the entrance and covering store aisles and merchandise display areas. The IntelliVid applications would analyze data from the video feeds and report on a range of operational metrics, from traffic counts to the lingering by promotional displays.
Results
Managers gained a number of operational insights from the IntelliVid video analytics. Not surprisingly, the video analytics revealed three times higher traffic on Saturday than on weekdays. More surprising, however, was that the ratio of sales to traffic fell on Saturday, from $46 on Thurs to $34 on Saturday. A camera focused on an end cap display found that 34 out of 217 shoppers who passed the aisle end cap lingered there. Of those, five picked up the product. In combination with product-level POS data the retailer was able to calculate conversion rates for the product on display, allowing managers to compare merchandising effectiveness, optimize product and display placement, and improve conversion rates. In addition, heat maps based on the video revealed traffic hot spots, traffic flow, and traffic bottlenecks throughout the store, which enabled managers to optimize the layout and product placement to improve traffic flow and enhance the customer’s shopping experience.
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