The Retail Renaissance: Why the Future of Physical Stores Hinges on AI-Driven Self-Checkout Monitoring

Retail is evolving at a rapid pace. Despite the rise of e-commerce, physical stores are far from obsolete. In fact, they’re thriving. According to a report by the International Council of Shopping Centers, the number of physical stores in the U.S. is projected to grow by 10% by 2025, with over 1.5 million new stores opening within the next five years.
This growth signals an exciting opportunity for retailers—but it also comes with challenges. Retailers are doubling down on improving the in-store shopping experience while tackling perennial issues like shoplifting and operational inefficiencies. Among the key innovations transforming this space are self-checkout (SCO) counters, but they bring their own set of challenges.
The Rise of Self-Checkout: Convenience Meets Risk
Self-checkout counters are becoming a staple in modern retail. By 2025, over 70% of retailers are expected to implement SCO systems. They offer undeniable benefits—speed, efficiency, and autonomy for customers—but also present vulnerabilities.
Here’s why they demand attention:
- Shoplifting is a growing threat: Over 30% of Gen Z and millennials are predicted to steal from SCO counters
- Repeat offenses are common: Nearly 50% of self-checkout thieves are likely to steal again.
- Chain stores are prime targets: Retail chains face higher risks of theft compared to local stores.
Research by the National Retail Federation highlights that shoplifting costs retailer over $30 billion annually, with SCO systems being 3x more likely to attract theft than traditional checkouts.
Why Retail Needs AI-Powered SCO Monitoring
The solution? AI-driven surveillance tailored to SCO systems. By leveraging machine learning and advanced algorithms, AI-powered systems can detect suspicious behavior in real time and alert staff before incidents escalate.
According to the Retail Technology Review, AI-powered SCO monitoring can cut losses due to theft by as much as 25%. Here’s why it’s a game-changer:
- Preventing losses: Real-time alerts prevent theft before it happens, reducing shrinkage and improving margins.
- Enhancing customer experience: Automated monitoring creates a safer, smoother shopping journey for honest customers.
- Boosting sales: Reduced theft directly translates to better bottom-line performance.
- Benefits for Store employees: Freeing up staff to focus on delivering exceptional customer service and handling their core responsibilities, instead of wasting time resolving errors or creating unnecessary friction with waiting customers.
Breaking Barriers: Making AI Accessible and Scalable
One of the biggest hurdles for AI adoption in retail has been cost. For AI solutions to succeed, they must strike a balance between effectiveness and affordability. This means ensuring the ROI is clear and justifiable for retailers of all sizes.
SAI Group delivers cutting-edge, cost-effective solutions with a proven ROI in mere months. Powered by 90+ advanced AI agents, their visual AI platform detects theft, aisle concealment, self-checkout fraud, and incorrect billing—all while seamlessly integrating with existing retail systems. It goes a step further by providing legally admissible video evidence, empowering retailers to streamline loss prevention with zero operational disruption.
What’s Next for Retail?
As physical stores continue to flourish, the ability to adapt and innovate will separate the winners from the rest. AI-powered Aisle and SCO monitoring is no longer a luxury—it’s a necessity. Retailers who embrace these technologies will not only protect their profits but also redefine the in-store shopping experience for a new generation of consumers.
The retail renaissance is here. The question is, are you ready to lead it?
About SAI
As a leader in computer vision technology, SAI Group delivers cutting-edge, multi-modal AI solutions into retail environments. Using a unique platform approach, its technology uses existing camera systems to target losses, increase store safety, and underpin operational efficiencies.
All solutions are built from the ground up to ensure the highest levels of security and data protection, respecting the privacy expectations of the public and operating to stringent ethical standards while delivering substantial value to our clients. Globally, SAI monitors millions of transactions per day, protecting the revenues from tens of millions of product sales and hundreds of millions of customer interactions. Its models also accurately identify anti-social behaviour, aggression and violence, helping to de-escalate situations with real-time interfaces to security officers and operations centres.