The initial results from Foodstuffs’ North Island facial recognition trial are showing the technology offers real opportunities in the fight against retail crime, according to local peak body Retail NZ.
The trial ended earlier this month with early results showing positive signs of reducing harm to the supermarkets’ staff. The trial was in place for six months across 25 New World and PAK’nSAVE stores in the North Island.
It comes amid a wave of retail crime across the country impacting retailers across the board. In June, Woolworths New Zealand confirmed that physical assaults on staff increased by 50 per cent to 329 incidents in the last 12 months, compared to 219 in the previous year.
Retail NZ released a Crime Report in October 2023 that found the cost of retail crime to its members was well over $2.6 billion.
During the Foodstuffs’ North Island trial, there were 1,747 alerts with only one reported case of misidentification and four others where identity was established following conversations with the customer.
The early results show that the trial reduced serious harmful incidents by avoiding an estimated 130 incidents such as assault and verbal abuse, and has seen an 8 per cent reduction in crime over the last quarter.
“Full credit to Foodstuffs North Island for taking a transparent and robust approach to trialling facial recognition,” Retail NZ CEO Carolyn Young said. “The early indications are encouraging and I look forward to further updates when the final report is completed.
“Preliminary findings show real potential to improve safety and prevent harm to staff.”
The latest news comes after the New Zealand Government launched a Ministerial Advisory Group on Retail Crime. Young joins four other key names in the advisory group, including Waikato community advocate and business leader Ash Parmar, Foodstuffs’ North Island retail and property general manager Lindsay Rowles, and Michael Hill’s national retail manager in New Zealand Michael Bell.
“Over a third of offences in retail are caused by recidivous offenders,” Young said. “Facial recognition has assisted participating stores to identify who is in their store, enabling a pro-active approach to decisions on how to act.
“Evidence tells us that early identification of who is in a store assists in maintaining a safe working environment. The trial showed that actions taken in store can range from observation, to asking an individual to leave, to no action at all.”
Young added that she was able to see the trial in action. She said she was encouraged that the training and security measures taken to ensure privacy considerations for all customers were balanced against the key focus of ensuring everyone is protected.
“I was impressed with the thoroughness of the system,” she said. “A key question for the wider retail sector is where to from here?
“The rise in retail crime means that all retailers are considering what actions they can take to keep their staff, customers and stores safe. Facial recognition is one tool that can assist with improving safety in store.
“If you know who is in store you can have a plan to manage those situations, however more work is needed on legislation to support retailers in the fight against crime, but we believe that technology is a critical part of that solution. We wait expectantly on the independent evaluator’s final report of the trial, due out in the next few weeks.”