Cannabis retail stores face unique security challenges, including high-value products, strict regulations, and constant customer flow. As the cannabis industry grows, so does the risk of theft, both external and internal. Video analytics is transforming security for cannabis retailers, providing intelligent monitoring, real-time alerts, and behavior analysis to safeguard products and prevent losses.
In this blog, we’ll explore how AI-powered video analytics can help cannabis retailers prevent theft, improve employee accountability, and create a safer retail environment.
1. Monitoring High-Risk Areas for Theft Prevention
Cannabis products are valuable and highly regulated, making them attractive targets for thieves. Video analytics allows cannabis retailers to monitor high-risk areas, such as display counters, storage rooms, and checkout counters, ensuring these spaces remain secure and tamper-free. AI-powered cameras can detect suspicious behavior, such as lingering near displays or reaching over counters, and send alerts to security staff for immediate response.
For example, MedMen could use video analytics to monitor product displays and alert staff if a customer exhibits unusual behavior, such as repeatedly reaching toward unsecured products. With real-time alerts, the staff can step in promptly to prevent potential theft.
2. Reducing Internal Theft and Increasing Accountability
Internal theft poses a serious risk to cannabis retailers, where employees have direct access to inventory. Video analytics can monitor employee behavior, track access to restricted areas, and ensure accountability by flagging unusual patterns, such as excessive time spent in storage rooms or unauthorized access to inventory.
Imagine Curaleaf using video analytics to monitor employee activity in its dispensaries. If an employee is accessing storage areas frequently or deviating from usual patterns, the system can notify management, allowing them to review footage and address any suspicious behavior discreetly. This level of accountability helps reduce internal losses and maintain inventory integrity.
3. Preventing Inventory Shrinkage and Product Diversion
Cannabis retailers are subject to strict inventory control, and any shrinkage or diversion can lead to compliance issues and financial losses. Video analytics tracks product flow from storage to sales, helping to prevent shrinkage by recording every step of the process and detecting any discrepancies between recorded and actual inventory.
A retailer like Green Thumb Industries could use video analytics to oversee inventory transfers from storage to the sales floor. If a product goes missing along the way, the system can highlight potential issues, allowing the team to investigate and identify where the shrinkage occurred, reducing the risk of compliance violations.
4. Enhancing Customer Safety and Reducing Shoplifting
Cannabis retailers experience high customer traffic, especially during peak hours, which increases the potential for shoplifting. Video analytics helps identify suspicious behavior patterns in real-time, such as loitering, concealment, or multiple people crowding one display, allowing staff to prevent shoplifting without being intrusive.
Consider Planet 13, one of the largest cannabis retailers, using video analytics to monitor customer flow in its busy stores. If the system detects a customer lingering near unsecured displays or acting suspiciously, security can be alerted to intervene, reducing shoplifting risks and creating a safer retail environment.
5. Streamlining Compliance with Video Documentation
Cannabis retailers must adhere to strict regulatory requirements, including maintaining records of all security footage for a set period. Video analytics simplifies compliance by securely archiving footage, providing an accurate and easily accessible record of all incidents, and ensuring full transparency during audits or investigations.
For instance, Cresco Labs could rely on video analytics to maintain an organized, timestamped archive of all surveillance footage, allowing them to retrieve video records as needed for compliance checks. This setup reduces the burden of manual monitoring, ensuring the retailer remains compliant with industry regulations.
6. Detecting and Deterring Employee Misconduct
In a retail environment, issues such as unauthorized discounts, failure to follow protocol, or even verbal altercations can impact a store’s reputation. Video analytics can identify incidents of employee misconduct, allowing managers to address issues proactively and ensure all employees uphold the brand’s standards.
Imagine Harvest Health & Recreation using video analytics to oversee cashier activity and prevent unauthorized discounts. The system could flag transactions where protocols aren’t followed, giving managers insight into potential misconduct and opportunities to provide training or corrective action.
7. Improving Cash Handling and Reducing Register Errors
Cannabis retailers handle large amounts of cash, which requires strict monitoring to prevent theft and ensure accurate transactions. Video analytics can monitor register transactions and identify discrepancies, alerting management if errors or suspicious activities occur during cash handling.
For example, The Green Solution could use video analytics to monitor cash drawers and identify if a cashier repeatedly makes mistakes or if there are discrepancies between sales and cash in the register. With this level of oversight, management can address any issues proactively, reducing cash losses and improving transaction accuracy.
8. Enhancing Security with Remote Monitoring for Multi-Location Chains
For cannabis retail chains with multiple locations, managing security remotely is a significant advantage. Cloud-based video analytics allows for centralized monitoring, giving security teams a unified platform to oversee all store locations, detect issues, and ensure each branch operates under consistent security standards.
A chain like Columbia Care could use remote video analytics to monitor all of its dispensaries, from New York to California, ensuring that each location maintains optimal security standards. This centralized oversight enhances efficiency, streamlining incident responses and ensuring that every store remains safe and compliant.
9. Increasing Operational Efficiency with AI-Driven Insights
Beyond theft prevention, video analytics can provide valuable insights into customer behavior patterns, peak hours, and staff efficiency, helping retailers optimize operations. By analyzing customer foot traffic, dwell times, and employee efficiency, video analytics provides data that can enhance store layout, staff allocation, and overall customer experience.
For instance, TerrAscend could analyze video data to identify high-traffic times, helping them allocate staff effectively and reduce waiting times. By understanding customer flow, the retailer can optimize its store layout to improve accessibility and customer satisfaction, creating a more efficient and profitable environment.
David’s Story: How Video Analytics Transformed Security at a Cannabis Dispensary
David, the manager of a busy cannabis dispensary, was facing challenges with inventory shrinkage and customer theft. After implementing Arcadian.ai’s video analytics solution, David noticed a significant improvement in his store’s security and overall operations.
One afternoon, the system flagged an employee spending excessive time in the storage room without a clear task. This insight allowed David to address the issue discreetly, preventing further losses. Additionally, video analytics detected a customer attempting to conceal a product, prompting the security team to step in immediately. Since adopting Arcadian.ai, David’s dispensary has become a safer and more efficient operation, with reduced shrinkage and better staff accountability.
Want to safeguard your cannabis retail operation? Discover how Arcadian.ai’s AI-powered video analytics can prevent theft, improve compliance, and create a secure environment for your business. Schedule a demo today.
