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Jumbo ends AI experiment aimed at combating shoplifting

Jumbo ends AI experiment aimed at combating shoplifting

The Jumbo supermarket chain has interrupted using artificial intelligence to detect shoplifting, citing concerns about customer experience and societal impact. CEO Ton van Veen confirmed the decision, stating: “We have tried to use technology to recognize deviant behavioral patterns, but we will not continue with it.”

Jumbo announced at the beginning of the year that it was losing more than 100 million euros annually due to shoplifting, a significant blow to the company’s bottom line. “That’s money we can’t pass on to customers in the form of lower prices,” Van Veen said.

This year, Jumbo managed to reduce theft losses by €30 million, reducing theft-related losses to 1% of total revenue. “We reduced it by a third, but I think it should be reduced to no more than half a percent of turnover,” Van Veen said. “These savings can then be passed on to our customers.”

Jumbo had implemented AI tests at the beginning of this year analyze customer behavior and identify potential thieves based on deviations from patterns. The experiment included analyzing surveillance footage and conducting targeted random checks at automated teller machines. Despite these efforts, the initiative fell short of expectations.

“It doesn’t enhance the shopping experience,” Van Veen said. “Customers are not potential thieves. They are absolutely welcome, even if someone forgets to scan an item occasionally. We don’t want to respond to strengthening society with tougher measures.”

Van Veen emphasized the importance of social interaction in combating theft, saying, “Social control and eye contact with customers is essential.” He also ruled out using employee cameras, a measure implemented by other supermarket chains such as Dirk’s earlier this year. “Body cams are not the answer,” he said.

Instead, Jumbo is focusing on traditional security measures, including enhanced surveillance, stricter random checks at self-checkout counters and increased employee presence in the shop floor. The company has also implemented measures such as issuing €181 fines to shoplifters and frequently imposing shop bans.