Background

Harry Rosen, a pioneer in Canadian luxury men's retail, has been redefining style since 1954. From a single 500-square-foot store to a network of 19 luxury stores across Canada, Harry Rosen has consistently set the standards in high-end menswear. In 2018, it accounted for over 40 percent of the Canadian market in high-end menswear.

Seventeen years ago, Joe Esterreicher joined Harry Rosen as the Director of Loss Prevention & Risk Management. He built the department from the ground up, establishing and expanding its loss prevention strategy across Canada.

The Challenge: Proactive Loss Prevention

"Our focus is on preemptive action—much like an insurance policy that you hope never to claim, but are grateful to have when the need arises.”

A key priority – and challenge – is moving loss prevention from a reactive response to a proactive approach. Measures of success include reactive metrics such as shrink rate, as well as proactive controllables that influence overall store operations and returns. "We assess our effectiveness not just by how we handle incidents, but by how we prevent them.”

Joe needed to set the right system in place for success. This meant replacing the existing cameras, access controls, alarm systems, and servers from disparate vendors. "Our legacy system was fragmented,  all about not putting all your eggs in one basket. However, scaling up required an integrated and centralized approach for better visibility and control.”

Why Verkada?

• Loss Prevention: Real-time monitoring and analytics helped reduce shrinkage and detect theft, assisting in the battle against organized retail crime.

• Efficiency in Operations: Automated alerts and remote access reduced the need for manual checks and interventions, allowing staff to focus on customer service and sales.

• Audit and Compliance: Remote audits became feasible, ensuring compliance with internal standards.

Verkada cameras, access control, and alarms protect key areas like entrances, exits, cash registers, and inventory zones. From the cloud-based Command platform, the loss prevention team can remotely manage security operations from their phone or computer. No matter where they are located, the team can view and respond to events across all 19 stores, complementing the in-store security measures already in place.

“From an efficiency standpoint, having all our physical security under one umbrella saved a tremendous amount of time compared to jumping from server to server, store to store, and camera to camera. The technology also helps drive team efficiency, incident detection, mitigation, and response time. In turn, that influences the top-level loss metrics like controllables and inventory results.”

Faster Investigations with AI-Powered Search

“AI-powered search is an amazing tool that has already helped the team in searching, saving us a ton of time.”

Using AI-powered search, the loss prevention team can populate relevant footage and perform detailed searches by entering freeform queries. “If we know a suspected shoplifter is wearing a mask or carrying a distinctive bag, we type it into the search bar and immediately find the footage we need. This drastically cuts down our investigation time."

They can search for footage based on specific clothing items, such as ‘blue pants’ or ‘yellow sweater,’ or even the presence of logos and accessories like ‘shopping bags.’ Joe elaborates, “In one example, there was a known shoplifter in the mall wearing a specific logo on a hat. We searched for the logo and were amazed to see that the camera picked the words on the hat, turning up results.”

Joe adds, “Without this search function, it would have taken easily an hour searching through the cameras, without a guarantee that we would find them.”

Combatting ORC with Continuous Innovation

AI-powered search was first introduced as a response to direct feedback from customers like Joe, who needed precise search tools to combat theft and other security challenges. "The technology is always improving, it's getting better every day. The ability to adapt and refine these tools makes Verkada a valuable partner for us.”

Verkada is continually refining its software stack, with automatic updates that include AI-powered search, occupancy trends, and heatmaps. This ongoing development provides the loss prevention team with the latest features and security enhancements.

Control Access to Sensitive Areas

Cloud-based access control protects areas housing valuable merchandise and equipment. It also prevents unauthorized access and manages the flow of goods for shipping and receiving. Employees can leverage their smartphones to unlock doors through the Verkada Pass mobile app, which Joe prefers due to its convenience and enhanced security. Site- and role-based permissions reduce the risk of internal theft or unauthorized access.

"We are moving away from badges and encouraging mobile access through phones, making it easier for our employees to access secured areas without carrying additional items.” 

Remotely Monitor Shipping Doors

"Our security strategy includes a constant review of the changing in-store environment to optimally position cameras and cover essential areas.”

Cameras enhance overall visibility, monitoring entrances, exits, transactions, inventory, and storage. At key locations, cameras support both security and logistics operations. "Anytime that door opens, we get a notification," says Joe, highlighting the system's capability to alert staff immediately about any unauthorized access or unusual activity. This setup allows for real-time intervention, adding another layer of security.

Faster Audits and Daily Compliance Checks

“Our audit processes have been revised to incorporate new technology, improving our approach since introducing remote audits during COVID. The addition of remote monitoring into our formal auditing framework allows audits to be conducted remotely, optimizing time and resources.”

The team conducts daily audits to maintain high operational standards and adherence to security protocols. Cameras provide live feeds and recordings accessible from any location. Faster audits mean quicker responses to irregularities and a better overall understanding of the store environments, significantly reducing the risk of theft and loss. "The real-time alerts and insights allow us to address potential issues in a fraction of the time.”

Store Analytics for Different Departments

Beyond security, heatmaps and occupancy trends help optimize store performance across various departments. "The potential of this technology to inform buying decisions, marketing strategies, and operational management is a major benefit.”

Other benefits across departments include:

• Buying: By understanding which areas of the store attract more traffic, the buying team can better decide where to place high-demand items or how to layout store designs to maximize product exposure.

• Marketing: Promotional effectiveness can be gauged by observing increased foot traffic in specific areas after marketing initiatives. This allows the marketing team to adjust campaigns dynamically in response to real-time heatmaps.

• Operations: Occupancy trends can help improve the accuracy of forecasting staffing needs. This helps ensure there are enough employees during peak times to handle customer needs without overstaffing during slower periods.

Heatmap and occupancy trends are accessible in Command, which centralizes information across all store locations. Seeing trends over time helps to identify meaningful patterns or changes. "We're learning how to translate these video analytics into actionable strategies.”

Internal Control with Helix POS Integration

Joe is evaluating Verkada Helix, which would integrate with their point of sale (POS) system to support transaction accuracy, employee training, and internal controls. “In luxury retail, high-value transactions are common and even small percentages of loss can translate into significant financial impacts.”

One of the main use cases of Helix involves monitoring and investigating transactions. "We can review transaction data alongside corresponding video footage to prevent and detect fraud," This includes internal control and activities such as sweethearting, where employees might give unauthorized discounts or process fictitious returns. "Helix allows us to monitor these transactions. If a sales associate inputs a transaction that could suggest sweethearting or other fraudulent activities, we can immediately investigate the incident.”

The Helix integration can also be used as a training tool. By reviewing transaction footage, management can audit compliance with company policies and procedures, providing real-time feedback and training to elevate service quality.

Supporting Priority Police Response

In a retail environment, every second counts in preventing or mitigating theft and damage. Before Verkada, Joe had to retrieve footage from a physical location, transfer it to a USB drive, and then physically deliver it to the police. "Now, it’s just a matter of creating a police report and sharing the file digitally. We can get evidence into the hands of law enforcement faster."

Through integrated Alarms, teams can know when an incident is occurring, verify the threat through integrated cameras, and take action immediately. In many regions, including Toronto, police prioritize calls where there is verifiable evidence of a crime, such as video footage of a break-in. "The fact that 911 responders can see the incident live or recorded means they can verify an emergency situation and prioritize it accordingly.” This collaboration between loss prevention and police ensures that incidents are handled more efficiently, reducing potential losses and increasing safety for both employees and customers. 

Looking Ahead

Joe looks forward to using AI-powered search to speed up investigations and strengthen loss prevention. Continuing the focus on efficiency and safety, Harry Rosen plans to expand Verkada Access Control to all stores by 2025. “I’m excited to see the capabilities we unlock.”

Insights from VerkadaOne

At VerkadaOne 2024, Joe shared how Verkada has transformed their approach to proactive security and loss prevention.

Watch the interview to learn how Verkada is helping Harry Rosen strengthen security operations in luxury retail:

To learn more about elevating loss prevention with an integrated security platform, join a webinar on combating retail theft or request a personalized demo.