Diebold Nixdorf Sets Out to Combat Shrink in Retail with New AI-powered Offering
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Insights
The introduction of Diebold Nixdorf's AI-assisted checkout solutions represents a significant advancement in retail technology, particularly in the area of loss prevention. By utilizing AI and machine learning, these solutions are poised to reduce 'shrink'—a term referring to the loss of inventory due to factors such as theft, employee misconduct, or administrative errors. The ability to integrate seamlessly with existing infrastructure is a key advantage, as it minimizes the need for costly overhauls and reduces implementation friction.
From a technology standpoint, the use of computer vision to distinguish between fresh produce items is a noteworthy development, potentially reducing the margin of error in pricing and preventing loss due to misidentification. Additionally, the autonomous age verification system could significantly expedite the checkout process for age-restricted purchases, enhancing the customer experience while maintaining compliance with legal requirements.
Diebold Nixdorf's deployment of these AI solutions is likely to have a ripple effect across the retail industry. By addressing common sources of revenue loss, these innovations could become a new standard, prompting competitors to follow suit. Retailers adopting these technologies may see a reduction in shrink, which could translate to improved profit margins and stock performance, particularly if the solutions deliver on their promise of scalability and efficiency.
Moreover, the emphasis on improving both customer and employee experiences aligns with broader market trends that prioritize user experience as a driver for loyalty and sales. As retailers continually seek to enhance operational efficiency and customer satisfaction, Diebold Nixdorf's offering could see significant market uptake, potentially affecting the company's market share and growth trajectory.
The financial implications for Diebold Nixdorf and its retail clients could be substantial. By reducing instances of shrink, these AI solutions have the potential to directly impact the bottom line of retailers. The stock market typically responds favorably to technological innovations that promise to increase efficiency and reduce costs, suggesting a positive outlook for Diebold Nixdorf's financial performance contingent on successful implementation and client results.
Investors will be particularly interested in the scalability of these solutions and their impact on operating margins. The ability to deploy without replacing current infrastructure is financially attractive to retailers, which could expedite adoption and generate a steady revenue stream for Diebold Nixdorf from software licenses, maintenance and potential data analytics services.
With millions of checkouts in use by major retailers globally, the company's newest AI-assisted solutions address the top causes of retailer shrink–all without replacing current infrastructure
Designed to prevent the most common sources of loss at self-service and traditional POS checkouts, the new Smart Vision technology-powered offering will complement Diebold Nixdorf's already-live AI-based solutions, which reduce friction during fresh produce scanning and age verification for restricted sales. Bringing these technologies together on a single platform will result in one of the most holistic anti-shrink solutions on the market – with great ability to scale. Diebold Nixdorf can deploy its new AI-powered solutions for retailers, without disruption, through its existing in-store integrations.
Retailers have long recognized the exponential potential that self-service technology offers in terms of customer convenience, optimized floor space and employees' ability to better engage shoppers. However, managing and mitigating the associated risk of shrink at the self-service checkout has long been a challenge. Poor shopper and employee experiences are also factors that retailers must consider when the self-checkout process is disrupted by the need for human intervention, stock inaccuracies and other points of friction. All of this can detract from the convenience of using self-check outs.
Diebold Nixdorf's new AI-powered solution, "Vynamic® Smart Vision I Shrink Reduction" is powered by SeeChange's AI and machine learning cloud platform, and is aimed at satisfying retailers' need to easily implement and deploy new technologies across multiple store locations and geographies.
Matt Redwood, vice president, Retail Technology Solutions at Diebold Nixdorf said: "Retailers are committed to innovating, but they want to avoid duplication of efforts and costly implementations. Any new innovation deployed inside stores not only needs to be seamless but must also enhance the customer experience. We designed our new AI-powered offerings based on insights we've gained deploying millions of POS and thousands of self-checkouts across the major retailers we work with. We've left no stone unturned when it comes to enhancing customer and employee experiences, as well as retailers' need to scale easily and improve efficiency."
Effective immediately, Diebold Nixdorf's new solutions are equipped to reduce the most relevant sources of revenue loss and friction at self-checkout—at scale:
- Reduce loss across high priority shrink scenarios at checkout. The new AI-based offering will combat common causes of loss, including theft where shoppers deliberately do not scan an item, mistakes where an item is unintentionally not scanned, and situations where shoppers scan only one item of several, use false barcodes or switch them, and pay for some items but leave with more.
- Autonomously verify age to assist with age-restricted sales. The need to verify the age of a shopper for certain types of purchase is a legal requirement in all countries and can account for up to
22% of interventions by a shop employee. By using a consumer facing camera and requiring the shopper's consent to use the application, an algorithm estimates the consumer's age in real time, without storing any consumer information in the system. This enables consumers to privately prove their age in less than 10 seconds, compared to an industry average of three minutes when employee verification is required. - Identify and distinguish between fresh produce items. Diebold Nixdorf's AI-equipped self-checkouts additionally speed up the process of purchasing produce that is priced by weight or quantity, such as fruit, vegetables or other loose non-barcoded items. Through a combination of camera-enabled computer vision and extensively trained algorithms, the system identifies the produce and quantity so that shoppers no longer have to, and retailers' margins don't suffer due to misidentified items.
For more information about Diebold Nixdorf's Vynamic Smart Vision, please visit https://www.dieboldnixdorf.com/en-us/retail/portfolio/software/self-service/vynamic-self-service/
About Diebold Nixdorf
Diebold Nixdorf (NYSE: DBD), Incorporated automates, digitizes and transforms the way people bank and shop. As a partner to the majority of the world's top 100 financial institutions and top 25 global retailers, our integrated solutions connect digital and physical channels conveniently, securely and efficiently for millions of consumers each day. The company has a presence in more than 100 countries with approximately 21,000 employees worldwide. Visit www.dieboldnixdorf.com for more information.
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SOURCE Diebold Nixdorf, Incorporated
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