March - April 2018

PRODUCT SHOWCASE But wait. What does loss prevention look like in a cashierless environment? An honest customer has to download an app and “sign in” at a station, so they can shop and be charged for their purchases. What if they “shop” and don’t sign in?

Amazon Go Vice President Gianna Peurini told CNBC, “Accidental shoplifting happens so rarely that we didn’t even bother building in a feature for customers to tell us it happened.” The fact that there isn’t even a feature to tell Amazon something has been taken is interesting. It says that the company is so confident in its system that it hasn’t developed protocols to safeguard against missing items. In addition, Amazon apparently isn’t distinguishing between those customers who “accidentally” steal and those who are definitely trying to steal.

It appears that Amazon is counting on the fact that the majority of customers are honest, and huge sales more than make up for some losses. With all of the cameras and sensors in the store, all but the boldest of shoplifters may be deterred. But then again, what about organized retail crime? With one test store, maybe it’s not a huge concern.

What happens if the concept explodes and becomes a model for shopping in the future?

Who knows?

To that point, it will be interesting to see how the public adopts this concept and how profitable it is for Amazon. After all, ten years ago it was predicted that self-checkout stations would “revolutionize” retail. Many studies have shown that self-checkout has not been all it was cracked up to be in terms of shrink, throughput, and labor savings.

Instead of expanding the technology, a lot of retailers have bypassed the concept entirely, and others are removing systems already installed.

Not to mention, with Amazon’s new concept, there is always the fear of “Big Brother” watching our every move.

Time will tell for Amazon Go. It should be interesting.

The ALTO Approach to Managing Retail Theft Earns “Historic” Win in Albertson’s Shoplifting Case

In what one former prosecutor termed “historic,” a habitual shoplifter who was set to be arraigned on a misdemeanor continued on page 70

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MARCH–APRIL 2018

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