Whitepaper: Managing Loss Prevention at IKEA with Video Surveillance

A look a Milestone Systems integration of IP video surveillance and transaction data in the Netherlands

"In addition to better general surveillance monitoring of the store locations, the software gives us a solution that is integrated with our transaction system to resolve and reduce errors at checkout."
- Remco Hempenius, Project Manager, IKEA Pilot Store Delft, The Netherlands

The Challenge

The IKEA Pilot Store in Delft, The Netherlands, tests systems for the rest of the IKEA world to find the best proven solutions for the organization. They wanted to upgrade their existing analog approach for security surveillance to modern digital networked technology that could integrate with their retail transaction system to improve their management of shrinkage and reduction of fraud.

The Solution

An intelligent Milestone integration of transaction data with time-linked video images of events gives an optimal tool for managing exception transactions. IKEA's video data is integrated with the ERP system Navision from Microsoft Business Solutions for combined analysis by unlimited transaction types, register, or employee. Milestone XProtect Retail provides the user-friendly interface and is the engine operating a mix of Axis 2100, Axis 205, and Sony SNE-CS3P network cameras together with various analog cameras converted to digital images through Axis 2400+ blade servers. IKEA's XProtect runs on Windows XP with routers and switches from DELL.

The Advantages

The IKEA Pilot Store has increased the capabilities of its general surveillance by moving it to a pure digital security platform, and added integration with its back office transaction system to control shrinkage and reduce errors at the cash registers. The solution has also given them new IP video tools for their global corporate education facilities. Milestone XProtect software allows them to choose a flexible mix of hardware for different location needs, and provides the ability to integrate with even more systems in future, like customer counting for better queue management.

A different approach

The IKEA Pilot Store is part of Inter IKEA Systems B.V., the owner and worldwide franchisor of the IKEA Concept. They increase the availability of IKEA home products by continuously providing IKEA retailers with systems and methods proven successful for marketing and selling IKEA products. The IKEA Pilot Store has the task of representing a complete implementation of the IKEA Retail System and recommendations. It is the base for coaching, education and 'show-how' regarding the IKEA Concept and works closely with the IKEA Business College. The IKEA store network worldwide includes 203 stores in 32 countries.

The IKEA business idea uses a different approach to offer a wide range of home furnishings with good design and function at prices so low that as many people as possible can afford them, responding to the home furnishing needs of people throughout the world.

The IKEA Pilot Store (hereafter called IKEA) also wanted a smart way to approach their surveillance, to improve the running of their business with more efficient and effective monitoring of their retail activities. The Pilot Store found XProtect Retail from Milestone Systems that handles more than just security.

The IKEA Pilot Store's new solution has three components:
1. General surveillance for shoplifting, vandalism, and people safety;
2. Shrinkage reduction through monitoring and analysis of transaction data;
3. Educational tools for proactive learning and training to improve service levels.

An integrated retail solution to control shrinkage

IKEA's new solution from Milestone has an intelligent interface that combines the data from the store's retail transactions with corresponding video images for fast searching and analysis by transaction ID, item number, cash register, time, date, amount, employee, etc. The system is so flexible that IKEA can sort by any category or type they choose to configure, including scoring employees on performance.

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