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Retailers are grappling with the dual challenge of reducing shrinkage and boosting operational efficiency, all while facing increasing cost pressures, but IDIS low-TCO solutions offer a smart path forward by delivering AI-powered technologies to prevent loss and generate valuable business insights, helping retailers achieve smarter, more efficient operations without expensive system overhauls.
Global Retail Faces Mounting Shrinkage Challenges
The National Retail Federation (NRF) National Retail Security Survey reveals the staggering scale of the problem: retail losses in the United States reached $112.1 billion in 2022, equating to 1.6% of total sales. The primary causes of this shrinkage are:
* External theft: 36%
* Internal theft: 29%
* Process errors: 27%
* Other/unknown: 8%
With theft alone accounting for approximately 65% of all shrink, the survey underscores the vital role of robust physical security in any effective loss prevention strategy.
The Rising Importance of Business Intelligence in Retail
Beyond merely preventing loss, retailers are increasingly recognizing the power of video and data analytics to unlock valuable business intelligence. This intelligence can help them understand store performance, optimize operations, and enhance customer experiences.
According to Forrester, a leading global market research and advisory firm, retailers who adopted comprehensive business intelligence solutions achieved an average sales increase of 8.4% in their first year. This demonstrates how data-driven insights directly contribute to increased profitability.
As a result, modern video infrastructure is no longer just a security tool but a strategic enabler of smarter, more efficient retail management.
Cost Barriers to Security Upgrades
Today’s advanced technologies, such as ultra-high-definition video and AI-powered analytics, offer the potential to dramatically improve both loss prevention and operational efficiency.
For example, object recognition can automatically trigger alerts when high-value items are removed from shelves. Heatmap analysis enables retailers to identify high-traffic zones and optimize product placement, improving both security and store performance.
However, implementing these advanced technologies across every store presents a major challenge. Next-generation cameras can be costly, and many AI or BI functions require additional licensing or analytics platform fees.
Moreover, replacing all legacy cameras demands significant capital investment.
As a result, many retailers find themselves caught between the need to strengthen loss prevention and the desire to leverage video data for actionable insights—all while facing the financial burden of system upgrades.
IDIS Low-TCO: Combining Loss Prevention with Cost Efficiency
IDIS addresses these concerns with low-TCO solutions specifically designed to reduce shrinkage while lowering the cost of system upgrades.
* **VA Box:** Adds business intelligence functionality to existing cameras, delivering analytics without costly hardware replacement.
* **Edge AI Plus Cameras:** Provide advanced analytics straight out of the box, with no recurring license fees.
* **Fisheye Cameras:** Deliver distortion-free 360° views with industry-leading dewarping, reducing camera counts while maximizing coverage.
* **IDIS Solution Suite (VMS):** A modular video management platform that allows users to select and deploy only the functions they need.
* **Cybersecurity:** Dual-layer protection, RAID, and failover support minimize data risks.
* **Extended Warranty:** Among the industry’s longest, reducing long-term maintenance costs.
Success Story: DeFacto, Turkey’s Leading Fashion Retailer Brand
DeFacto, a prominent and successful clothing brand in Turkey, has experienced rapid expansion since its launch in 2004. This growth has led to thriving branches across Europe, the Middle East, Africa, and Central and Southeast Asia, operating hundreds of stores globally.
Like many large retailers, DeFacto recognized the importance of improving loss prevention and gaining better business intelligence from its video systems. To achieve this while operating on a nationwide scale, the company needed a solution that would deliver enhanced security and efficiency without escalating costs.
Through a phased IDIS low-TCO strategy, DeFacto strengthened both physical security and business intelligence while keeping costs under control.
To improve loss prevention and situational awareness, DeFacto deployed fisheye cameras for distortion-free 360° coverage, reducing the number of cameras needed per site. Edge AI cameras were also installed in key areas to provide real-time analytics, including object detection, loitering, and line-crossing alerts, enhancing security without additional license fees.
To gain deeper operational insights without new camera investments, DeFacto integrated VA Box devices with its existing infrastructure. This approach enabled people counting, queue monitoring, and heatmap analysis directly through current cameras, maximizing efficiency while eliminating the expense of large-scale replacements. Complementing this, IDIS Solution Suite was implemented in a web-dashboard-only configuration, offering a streamlined, cost-effective way to visualize store performance and analyze key operational trends.
Together, these solutions allowed DeFacto to achieve stronger security and smarter operations at a fraction of the usual upgrade cost, while benefiting from IDIS’s extended warranty and robust cybersecurity safeguards that ensured long-term reliability and data protection.
“Smarter Retail Security at a Cost That Makes Sense”
The DeFacto case study demonstrates how IDIS low-TCO solutions deliver next-generation, AI-powered security and business intelligence without requiring wholesale infrastructure replacement.
Looking ahead, IDIS will continue to help retailers and organizations across industries strengthen physical security, enhance operational intelligence, and achieve sustainable, cost-effective growth.
