Shoplifting, repeat offenders, and in-store incidents continue to challenge retailers of all sizes. As traditional methods of loss prevention struggle to keep pace with rising theft levels, many in the industry are turning to a new tool that promises to shift the balance—facial recognition technology.

Long used by law enforcement, facial recognition is now being explored by retailers to proactively prevent theft, identify known offenders, and improve store safety. But how does it work, what equipment is needed, and what are the implications for customers and store owners alike?

What is Facial Recognition?

Facial recognition really isn’t a new thing. It falls into the realm of biometrics and is essentially a way of identifying individuals by analysing and comparing their facial features to images or videos. It would take quite a while to break down exactly how it works, but essentially it maps key facial characteristics like the distance between the eyes, the shape of the nose and the contours of the face, and compares them to a database of known faces to find a match. There are two types of facial recognition:

LFR: Stands for Live Facial Recognition. This technology is able to capture and analyse live facial images and compare them with a database of known individuals in real time.

RFR: Or Retrospective Facial Recognition. This uses facial recognition on existing footage or images after an incident has occurred.

It’s something that’s commonly used by law enforcement to identify criminals who have been caught on camera, usually by CCTV. Which is where the biggest use case for retailers comes in.

How Can Retailers Use Facial Recognition?

Retailers are now looking at ways that they can use facial recognition to their benefit. The biggest by far is to deter theft (which is the number 1 concern for senior retail leaders according to an Avery Dennison survey in 2024). It could also be used to proactively identify repeat shoplifters or people who have already been banned from a store, reducing known risks, allowing the retailer to take appropriate action.

In some cases, larger retailers are already trialling facial recognition, specifically LFR, to see if the benefits are worth it. For example, ASDA have been using live facial recognition in 5 of their stores, with the aim of identifying any individuals who have engaged in criminal activity on their property. Other supermarkets, including Iceland, are also exploring the use of facial recognition for various things, including identifying shoplifters, preventing queue-jumping and identifying regulars.

For smaller retailers, the benefits are even bigger. Smaller or independently-owned retailers tend to feel losses from shoplifting a lot more than bigger retailers with loss-prevention budgets. So being able to prevent theft proactively, or identify criminals accurately after the fact to reclaim their losses, is incredibly valuable to them.

Things to Consider

While the theory behind LFR and RFR is good, in practice, there are some issues it raises. Mainly, you need to think about:

Privacy: The use of facial recognition technology has always raised concerns around data privacy. Shoppers may not be aware that their faces are being scanned or that their data is being stored. This can lead to a breakdown in trust, especially if there’s a lack of transparency around how that data is used, who has access to it, and how long it’s kept for. You can read more about the privacy issues around facial recognition here.

Accuracy: Facial recognition isn’t perfect. It can, and does, make mistakes sometimes. Studies have shown that it can struggle with accuracy, particularly when identifying people of colour, women or younger individuals. False positives could lead to innocent people being stopped or wrongly accused, while false negatives could let an actual offender slip by unnoticed.

Legal Implications: The legal landscape for facial recognition is still evolving. Depending on where you are, there might be strict regulations around biometric data collection and storage. Retailers need to ensure they’re compliant with laws like GDPR, or similar data protection regulations elsewhere, or risk heavy fines and reputational damage.

What Do I Need For Facial Recognition?

If you’re looking to put facial recognition in place in your shop, then there are a few things you need. First and foremost is a high-quality CCTV system. The good news is, many retailers already have this in place, and if you don’t, we can help you there. Facial recognition software works by analysing video feeds that are captured by your security cameras, so the quality, positioning and capabilities of your CCTV system are crucial. So you’ll need:

High-definition CCTV Cameras: The clearer the image, the more accurate the facial recognition. Cameras should offer at least 1080p resolution and perform well in varying light conditions.

Strategic Camera Placement: Cameras should be placed at key entry and exit points, as well as high-risk zones within the shop, like self-checkouts of blind spots.

Live Video Feeds: If you want to use Live Facial Recognition, your systems need to be capable of streaming real-time footage to the software for immediate analysis.

Reliable network infrastructure: Because video data can be large, a stable and secure network is necessary to allow smooth processing and transmission to the recognition software.

Facial recognition software integration: The of course, the software itself. This software can be integrated into existing CCTV systems, and it’s what performs the facial matching by comparing live or recorded footage to a database of known individuals.

If you’re already using a CCTV system provided by a professional’s security partner (like us), then chances are you’re most of the way there. It’s just a matter of integrating the software into your existing setup. Facial recognition can be a powerful tool in retail, especially when it comes to loss prevention. But it also comes with serious responsibilities. If you’re interested in learning more, or want to talk about installing facial recognition in your retail store, just get in touch with the Securifix team today for your free consultation.