AI technologies are developing with extreme speed. A few years ago, the world was buzzing over voice assistants that could recognize human speech and provide comprehensive answers to all kinds of questions. Today, everyone is talking about computer vision – the ability of computers to see, observe and understand.
Experts believe that the use of computer vision will drastically increase in 2021 and change many industries, including retail.
This article will explain how retailers can leverage computer vision to boost sales, improve security, and enhance customer experience.
What is computer vision?
Computer vision (CV) is a field of artificial intelligence (AI) focused on image processing. CV enables the system to analyze images and videos (inputs) and derive meaningful information or take specific actions (outputs).
Computer vision is pretty similar to human vision. It can be used to detect movements, recognize different objects, define the size and proximity of the objects, analyze colors, etc.
Computer vision applications in retail
Computer vision is a game-changer for the retail industry. In 2021, companies will leverage CV for multiple purposes. Let’s discuss them in detail.
Shrinkage prevention
For many decades, retailers have been struggling to reduce shrinkage. Despite their efforts, the inventory shrinkage percentage remains at the point 1.6%. The shrinkage includes not only stolen products but also the products paid with fake coupons and price tag switching.
Screenshot source: cdn.nrf.com
Computer vision offers innovative solutions that allow retailers to address shrinkage problems. Here is how it works:
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Computer vision uses security camera footage as input.
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The system analyzes the behavior of customers in real-time.
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The system detects triggers associated with shoplifting (for instance, a moment when a customer tries to put the item in the pocket or under clothes).
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Security staff receives an alert.
In such a way, computer vision allows retailers to boost in-store security and cut costs associated with inventory shrinkage.
Basically, well-trained computer vision applications can work more effectively them a team of human security experts. Why? Because the system is capable of analyzing footage from dozens of cameras simultaneously and spotting even minor abnormalities.
Monitoring of storage conditions
Another problem retailers deal with is sudden changes in storage conditions that result in product spoilage. In fact, it’s one of the most common issues that grocery stores struggle to solve. When a customer leaves a fridge door open or when an employee mistakenly sets the wrong humidity level in the store, it leads to product spoilage and increased food wastes.
How can advanced technologies help grocery store owners prevent such situations from happening? The use of computer vision along with temperature and humidity sensors can help to eliminate this problem. The system will analyze security camera footage and signals that come from sensors and inform in-store staff members about any possible issues and malfunctioning appliances.
Reduction of queuing time
People are impatient by nature. They don’t like to wait, and they perceive standing in long queues as one of the most annoying experiences. Those retailers that fail to reduce queuing time tend to have fewer loyal customers and have fewer chances to keep their businesses afloat in the long run.
How will the retail business change in 2021? Retailers will use computer vision and a deep neural network for queue time estimation in checkout counters. Here is how this technology works:
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Computer vision uses camera streaming as input. YOLO algorithm provides real-time object detection. The stereo vision algorithm detects the number of shopping carts and the number of items in them.
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Simultaneously, an artificial neural network analyzes the efficiency of employees who work at a counter (item scanning speed, payment receiving speed).
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Deep neural network estimates the waiting time and displays it at the digital display board.
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Store employees get notifications if their colleagues need help or if more counters should be opened.
This approach will allow the offline retail store to improve employee efficiency, reduce wait time, and increase customer satisfaction. When customers know how much they should stand in the queue, the waiting doesn’t seem that annoying.
Enhanced strategic planning
Advanced technologies are changing every aspect of the retail industry, including marketing and strategic planning. Computer vision is a great tool for collecting data that can be further used for making important decisions. Computer vision makes it possible to analyze customer store journeys and measure the time spent in front of the shop window – the system can track the number of pedestrians who stop at the shop window or look at it.
Screenshot source: datafromsky.com
How can such information benefit retailers? When store managers know exactly what products attract pedestrians, they can build a more effective visual merchandising strategy. Besides, they can optimize their product placement and change store layout to create a seamless customer shopping experience and eventually increase sales.
Inventory management
Demand for different products is influenced by many factors, and it’s ever-changing. Pretty often, retailers fail to meet the spike in demand because of poor inventory management. Here are a few reasons why it happens:
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Employees waste too much time counting and finding necessary items in stock.
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Employees fail to timely detect products that are about to expire.
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The staff spends too much time on repetitive tasks that can be automated.
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There is a lack of real-time visibility of products in stock.
Computer vision can help retailers to take their inventory management to the next level. The trained system can leverage video analysis to define how many items are in stock and on what shelves/ at which sections they are located. On top of that, the system can inform managers about the products that are running out of stock and suggest ordering more items. Working this way, the application of computer vision creates a cost-effective supply chain and improves employee efficiency.
Image source: roboflow.com
Wrapping up
The proper use of computer vision is beneficial for retailers. Grocery stores, multi-brand outlets, pharmacies, pet shops – everyone can take advantage of this AI-driven technology.
In 2021, competition among retailers will keep getting more and more intense. So if a company wants to get ahead of the market, it needs to implement innovative solutions. Computer vision is definitely one of those futuristic solutions that are worth investing in.