Author: Rayan Cherri, Global Marketing Manager at, Ipsotek
2024 presented another challenging year for the retail industry. A slowdown in overall sales growth and declining consumer confidence in the UK tested the sector’s resilience as economic pressures persisted. Rising operational costs, inflation and a 2.2% drop in footfall placed further strain on businesses, while an uptick in theft and shoplifting added to profitability concerns.
Yet, despite these hurdles, retail is embracing innovation like never before. Retailers are increasingly turning to emerging technologies to not only confront these challenges but unlock new opportunities and revitalise the sector.
AI, for example, is no longer a concept of the future, but a critical tool for survival and growth in an increasingly competitive market. No modern retail strategy is complete without integrating AI in some capacity, whether as a means to build resilience, improve operational efficiency or enhance customer experience.
Redefining the retail landscape with computer vision
When we talk about AI, we’re not talking about any one, singular technology. Rather, AI is a collection of technologies that combine data, algorithms and computing power to mimic human intelligence or behaviour.
Amongst these, computer vision is proving one of the most transformative, particularly in retail. By integrating with existing camera surveillance systems, computer vision technology analyses visual data collected by CCTV streams and transforms it into actionable intelligence and insights.
As consumers increasingly value speed and convenience, a fast, frictionless shopping experience is essential. AI-powered technologies are helping retailers deliver this – automated checkout systems, such as those used in Amazon Fresh stores, allow customers to browse, select their items and leave the store at their leisure, with their purchases tracked and charged automatically.
In recent years, Sainsbury’s and Tesco have attempted to follow in Amazon’s footsteps and explore similar technologies, trialling checkout-free stores to cater to increasingly convenience-driven customers. These models eliminate the gripes long associated with in-store shopping, such as long queues and manual scanning, and make for a seamless and overall, more enjoyable experience.
They also support retailers from an operational standpoint and enable better resourcing. With less staff on the shop floor, managers can reassign staff to more valuable, customer-facing positions or reduce the number completely, resulting in a more efficient, profitable store and satisfied customers.
Beyond convenience, retailers are turning to AI to deliver more personalised, interactive and fulfilling in-store experiences in a bid to draw digitally inclined shoppers back to the high street. This includes virtual try-ons with augmented reality and smart mirrors that enable customers to visualise products in real time, giving a realistic idea of how an item would look without physically trying it on.
Within AI, computer vision solutions for example can help retailers optimise store layout, manage queues and enhance customer engagement, providing insights into customer behaviours, patterns of movements and typical workflows, identifying areas of high footfall to optimise the placement of promotional displays.
Protecting retail spaces with enhanced safety and securityÂ
Currently, the UK is facing an ‘epidemic’ of shoplifting. Figures report a 30% increase in England and Wales over the last year. As theft and loss prevention become critical concerns for retailers, AI-powered security solutions are becoming indispensable.
Computer vision systems can identify suspicious behaviour in real time, enabling security staff to take proactive steps before losses or potential thefts occur. Unlike traditional surveillance, which relies on staff monitoring CCTV streams and flagging anomalies manually, computer vision systems do so automatically and with better accuracy.
Aside from loss prevention, computer vision is improving physical security and creating safer shopping environments for both customers and staff. It can detect objects, hazards and areas of high risk such as a blocked exit or misplaced crate, where an accident could occur if unaddressed.
Driving efficiency behind the scenes
The benefits of AI aren’t limited to the shop floor. In fact, behind the scenes and back of the house, AI is making some of its most profound impacts, transforming inventory management, demand forecasting and streamlining the supply chain.
The rise of social shopping via apps like TikTok presents new challenges for retailers as items ‘go viral’ and create sudden peaks in demand. During these times, stock must be effectively tracked, measured and located, both in stores so that customers can find what they need, and in warehouses to ensure fast fulfilment times.
Not only can computer vision help retailers respond to demand spikes, but it can also help forecast and predict them. By monitoring sales patterns in real time and analysing customer behaviour and crowd patterns, computer vision-generated insights can give brands the edge they need to stay ahead in a fast-moving market.
In 2025 and beyond, AI will continue to reshape the retail landscape. Stores will become smarter spaces, leveraging AI to optimise resources and improve overall operations, which all lead to stronger customer loyalty. Computer vision will play a key role in this, creating the ideal shopping environment, enhancing customer satisfaction, and ultimately, empowering retailers to make data-driven decisions and stay ahead of the curve.
However, as AI becomes more deeply integrated into retail, consumer concerns around data privacy and security are growing. To build and maintain trust, transparency and accountability must therefore become an integral part of retailers’ AI initiatives, ensuring they communicate how, when and why customer data is collected, used and protected.
These considerations are essential for computer vision providers, which embed privacy and security into the design framework. By implementing robust privacy safeguards, computer vision solutions both comply with privacy regulations and uphold consumer trust.
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