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CVS Shrinking Shrinkage

March 17, 2006


CVS, the country’s largest drugstore chain with 5,461 stores in 37 states, has expanded the use of video analysis software in several regions to prevent theft. After piloting Video Investigator from IntelliVid, Cambridge, Mass., in a high-risk store in the Boston area, the drugstore company has now installed the system in several stores throughout the country.

The technology uses retailers’ existing CCTV/DVR systems from static recording devices and automatic analysis of the images to report and organize theft events, as well as other in-store activities. The company has consistently posted one of the lowest shrink rates in retail.

The chain’s loss prevention team implemented the video analysis technology for several activities, including asset tracking functionality and enhancing the ability to monitor high-valued merchandise with video article surveillance.

“We are laser-focused on reducing shrink while at the same time improving customer service,” said Ernie Deyle, CVS vice president of loss prevention. “Video Investigator’s potential for delivering critical insights into product merchandising practices [will] help us reach our operational and merchandising objective, which is to be the easiest pharmacy retailer for our customers to shop.”

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