From footfall tracking to loss prevention, AI-driven solutions are proving to be a game-changer for retailers looking to enhance efficiency and improve profitability.
New Delhi: The retail sector is witnessing a major shift in how businesses are utilizing data and technology to optimize their operations and enhance customer experience. In a recent webinar by Aivid.AI, a Gujarat-based software development company in partnership with IndiaRetailing, industry experts discussed the evolving role of AI-powered in-store analytics and how it is transforming the retail environment. From footfall tracking to loss prevention, AI-driven solutions are proving to be a game-changer for retailers looking to enhance efficiency and improve profitability.
Optimizing store operations with AI
Dhaval Vora, chief executive officer (CEO), of AIVIDTechVision, explained how AI is being leveraged to enhance various aspects of in-store operations. “Our solutions provide everything from footfall counting and in-store analytics to staff productivity and business performance. We track visitor dwell times, interactions with staff, and merchandise engagement, allowing retailers to optimize store layouts and improve customer service,” Vora shared.
For food and beverage outlets, the system also tracks table occupancy and revenue per table, helping businesses manage their operations more effectively. This AI platform not only provides real-time data on footfall and conversion rates but also helps retailers optimize marketing campaigns and prepare for peak periods by understanding customer behaviour more accurately.
He highlighted that the technology is designed to integrate seamlessly with existing CCTV infrastructure, ensuring high accuracy with minimal storage requirements. “Our system tracks footfall data and visitor interactions without storing video footage. Instead, we retain image proofs of each visitor’s entry, making the storage requirement minimal and optimized,” Vora added.
Addressing data and storage concerns
Retailers are often concerned about the storage requirements for handling multiple cameras and extensive data analytics. “In retail stores, there are often multiple cameras capturing detailed data. How much cloud storage is required for this, and how do we justify the ROI?” Manoj Patel, chief information officer (CIO) of Safari Industries, asked.
Vora responded, clarifying that no video footage is stored on the platform. “We only store images, which are optimized and stored in bytes rather than megabytes. For a chain of 100 stores, around 2 TB of central storage would be needed for a 90-day image retention period. This ensures cost efficiency and aligns with our customers’ need for minimal storage overhead.”
Amit Arora, chief information officer (CIO) at SHR Lifestyles, echoed similar concerns about integrating new technology with legacy systems. “When we implemented AI-based analytics, we faced integration challenges with our POS systems. We also needed a solution that did not require additional hardware investment. This system allowed us to use a subscription model and tailor storage as we expanded to 140 stores,” Arora said. He emphasized how important accurate, real-time data was in improving their conversion rates, with analytics helping to boost conversions by 2.5%.
AI & Customer Experience
AI is not just used in tracking footfall but it also plays a critical role in understanding customer behaviour and improving the shopping experience. “We noticed that in our female-centric stores, a significant number of male customers were visiting. Based on this data, we decided to add a men’s category to the store,” Arora explained. The insights also led to more efficient inventory management, with AI suggesting where products should be shifted between stores to optimize stock levels.
Lal also inquired about the potential for more user-friendly dashboards that could integrate with existing systems. He suggested that adding conversational AI capabilities would further enhance the platform’s value. Vora responded that the company is working on integrating GenAI to make the dashboard more dynamic, enabling management to ask real-time questions like, “Which store had the highest footfall today?”
Abhishek Lal, Head of Digital at Marks & Spencer, pointed out that data privacy remains a top concern for retailers. “Even if the system is on-premise, the data flows to the algorithms. We need to ensure that privacy is maintained, especially regarding facial recognition,” Lal said. Vora assured attendees that the technology prioritizes data privacy, with personal data like facial images blurred to comply with privacy standards. “All data is kept within the control of the retail enterprise, either on-premise or in a dedicated cloud, ensuring that no unauthorized access occurs,” he added.
Loss prevention and security
Loss prevention is another area where AI can help, especially in high-risk areas like cosmetic sections in stores. Vora shared a case study where AI helped reduce shoplifting in a pharmacy chain in Saudi Arabia. “We used AI to monitor customers picking up items from the cosmetic section. If a customer picked up an item and concealed it, the system sent an immediate alert to the store manager with video proof, helping prevent theft,” he said.
The technology also detects camera disconnections and internet failures, ensuring continuous monitoring. Vora explained, “Our edge appliances can detect when cameras are tampered with or disconnected and trigger alerts in real-time, ensuring security even during system downtime.”
The future of in-store AI analytics
Retailers are increasingly recognizing the importance of data-driven decisions, and AI-powered in-store analytics is playing a central role in improving operational efficiency, enhancing customer service, and optimizing business performance. With continued advancements in technology, the future of retail analytics looks promising, with even more intuitive, user-friendly systems on the horizon.
In summary, AI-powered analytics are not just enhancing the shopping experience for customers, but are also enabling retailers to streamline their operations, optimize marketing efforts, and improve ROI. As technology evolves, so will the opportunities for businesses to leverage data for better decision-making and more profitable outcomes.
