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3VR Case Study

Canadian TirE

IN BRIEF
Customer: Canadian Tire
Integrator: Loss Prevention Services Limited

3VR SOLUTION:
3VR VIP Appliance
3VR VIP Facial Surveillance
3VR VIP License Plate Recognition

BENEFITS OF 3VR:
Superior video quality
Search capabilities reduce time spent on
investigations
“Where other systems merely record video, License plate recognition verifies parking
the combination of 3VR technology with lot activity
Loss Prevention Services’ support and Remote monitoring improves safety
monitoring allows us to stop organize retail
RESULTS:
crime, reduce internal theft, and improve
Conduct investigations 100% faster
internal store operations.”
Deter ORC with alerts and case management
— Kerry Leroux, Franchise Owner,
Secure valuable inventory lock up
Canadian Tire #30
Maintain safety and service procedures
in service station

Customer

Canadian Tire is one of Canada’s most-shopped guards are not followed as closely as possible. With
general merchandise retailers with 479 stores across a large inventory of high priced items, management
the country serving over 180 million customers a was particularly concerned with ensuring that only
year. Canadian Tire Toronto has over 76,000 square authorized managers obtained access to the secured
feet of retail, home and garden, and automotive inventory area known as the “lock-up.” Addition-
service space offering a wide variety of products and ally, the store operates a 24 bay automotive service
services. station. It is incredibly important from a liability and
cost perspective that only vehicles with valid service
Challenge orders are admitted to the service station.

Against a complex and growing backdrop of orga- Because most Canadian Tire stores have similar lay-
nized retail crime (ORC), Canadian Tire strives to outs and point of sale systems, when an ORC group
balance superior customer service with maintaining finds a way to exploit one store location, they quickly
store policies and procedures to protect its custom- move to other locations using the same technique to
ers, employees, merchandise, and revenue. In defraud yet more stores.
addition to general shoplifting, the store experiences
a wide variety of theft and fraud attempts on a daily While the store’s previous video surveillance system
basis including returns desk fraud, fraudulent UPC was adequate at recording and storing video, per-
reproduction, and unauthorized access to car repair forming a simple search required multiple steps. This
services. meant that only one or two staff members were
adept at using the system and could carry out an
In a bustling retail environment, store staff and man- investigation. Further, there was no way to flag per-
agement try to focus on customer service, which sons of interest so that store staff could be alerted
sometimes means that store policies and safe- when a known shoplifter or criminal entered the
Case Study: Canadian Tire

“I have a much greater peace of mind because we let the system do


the work in terms of finding the people that have been in the store.
We sleep a little bit better with this system because we can focus on
customers and selling.
 — Kerry Leroux, Franchise Owner, Canadian Tire #30

premises. Store management relied on intuition and (often successfully). With the 3VR case management
memory to recognize and address repeat crimi- tool, employees are able to flag known shoplifters
nals, which left them highly susceptible to the well and potential fraudsters so that when they enter the
planned and executed attacks of ORC rings. store, security can be alerted.

Toronto Store Owner, Kerry Leroux, wanted to imple- In one instance, a customer service agent thought he
ment a video surveillance system that would enable recognized a customer trying to return a product; he
the store to better address ORC as well as improve alerted security staff who were able to quickly pull
the day-to-day management of store policies. With up recent surveillance footage and identify the cus-
dual goals of limiting loss and improving store opera- tomer as part of a two-person team who had been
tions, Leroux consulted Canadian security integrator in the store earlier and were attempting to return an
Loss Prevention Services. item fraudulently.

3VR Solution The ability to quickly search through surveillance


footage and have high-quality images allows staff to
Loss Prevention Services presented a unified solu- not only put together investigations quickly and build
tion that combined the installation of 3VR’s Video solid cases for prosecution, but also allows manage-
Intelligence Platform (VIP) with the implementation ment to use the tools as a deterrent. By showing
of monitoring and investigative services from Loss shoplifters how easily and accurately they can be
Prevention’s trained staff of security professionals. identified, management can make it clear that the
store can very easily identify and prosecute them if
The store installed a 3VR P-Series with 3VR VIP Ana- they try to steal from the store again. “We average
lytics for Facial Surveillance and License Plate Rec- catching 3-5 thieves, per week,” said Leroux. “When
ognition. Using footage from cameras installed at the we interrogate someone, we show them video
store entrances, service center, garden center, and footage of their crime. Then we show them how we
customer service desk, the 3VR VIP tracks events as create an alert that will tell us if they enter the store
they happen and displays them in a simple to monitor again. Once we do that, we know they aren’t going
visual format. 3VR’s powerful search technology also to risk returning to our location.”
gives staff the ability to rapidly search video footage
and respond to events as they happen. Moving forward, Leroux is excited about the pros-
pect of leveraging the 3VR and Loss Prevention Ser-
“We can search video more than twice as fast as vices solution across more Canadian Tire locations
we used to,” said Leroux. “Before we would have so that the stores can collaborate and send alerts to
a stack of papers with the last 50 arrests sitting on each other to help reduce ORC and other forms of
a desk. Now we can go to the 3VR [VIP] and pull fraud that hinder business.
them up.”
Maintain Store Policies
Powerful Deterrent
In a hectic retail environment, maintaining the
Because of the size of the store and the number of balance between providing high-quality customer
store locations with similar layouts, Canadian Tire service and ensuring that store policies and proce-
was looking for a solution to their ongoing problem dures are followed can be difficult. While Canadian
with repeat offenders. Once criminals find a weak- Tire strives to provide its customers with the best
ness in store security and are able to take advantage customer service possible, staff do not consistently
of it, they often brazenly return to the store to steal follow store policies designed to protect their large
again, or try the same tactic at a different location inventory of high-priced merchandise.
Case Study: Canadian Tire

Although the store has a secure “lock-up” that only


managers are allowed to access, they often lend their
key to a non-manager. It had been difficult to enforce
this policy until the installation of the 3VR system.
With 3VR, Leroux can quickly monitor footage of
who enters the lock-up using motion and facial
surveillance to ensure only authorized staff access
the area.

“Our staff always put the customer first,” said Leroux.


“But we still have to follow procedures. 3VR keeps us
honest and ensures we don’t cut corners.”

The store also uses 3VR to track cars that come in


to the service station to ensure that each vehicle
has a service order assigned to it. If a car enters
the service station without an order, not only is
the store liable for the vehicle, but the store could
potentially lose money on work being completed
without payment.

“With 24 service bays and more than 20 staff at work, The Future
I need tools to help me ensure that store policies
are being followed,” said Leroux. “With License Leroux knows that once an ORC ring discovers how
Plate Recognition I can review all the cars that enter to exploit a weakness at a particular Cana-dian Tire
the service station and ensure each car has a valid location, it is highly likely that they will successfully
service ticket.” carry out the same scam at other locations.

Using Intelligent Technology to “The key to using 3VR to stop ORC is get all the
Make Business Smarter Canadian Tire stores on the same platform,” said
Leroux. “Then we can set up alerts at one store and
Canadian Tire understands that no single tool can know that if that same person tries to hit another
eradicate shoplifting and ORC, but with cutting edge location, they will get caught.”
advanced video analytics like facial surveillance and
license plate recognition from 3VR, combined with With a collaborative effort, the stores can work
proactive and forensic monitoring services from Loss together to be one step ahead of the criminals.
Prevention, this solution promises tremendous reduc-
tion in fraud and theft without the hefty price tag of Using 3VR’s open platform for integration, Leroux
other complex loss prevention solutions. also wants to connect his 3VR to his Canadian Tire
point of sale (POS) system. This would allow him to
“Loss Prevention offers many valuable tools that we run reports based on exceptions like voids, returns,
can use to protect our store,” said Leroux. “When a and no sale transactions to audit for any suspicious
problem is detected, Loss Prevention has services behavior.
available to find out how it was done, and not only
bring the people to justice, and also to help us “We know we’ve only begun to take advantage
modify our practices so that it doesn’t happen again. of what the 3VR has to offer,” said Leroux. “We
And with their effective interrogation techniques, expect to see a very short return on investment
they ensure that the store is protected with conduct- because it is so simple to implement and use 3VR’s
ing sensitive investigations.” advanced tools.”

“Our staff always put the customer first, but we still have to follow
procedures. 3VR keeps us honest and ensures we don’t cut corners.”

— Kerry Leroux, Franchise Owner, Canadian Tire #30


Case Study: Canadian Tire

About 3VR About Loss Prevention Services


3VR, Inc., the video intelligence company, Loss Prevention Services (LPS) Ltd. is
enables organizations to search, mine and a Private Investigation Agency that was
leverage video to bolster security, identify founded in 1972. Loss Prevention Services
and mitigate fraud and better serve cus- has recorded over 500,000 arrests over
tomers. 3VR’s Video Intelligence Platform the past 35 years through its highly
allows video surveillance systems to reach effective Loss Prevention Program. LPS
their true potential and deliver a measur- provides national organizations with inves-
able and sustainable return on investment. tigation and security services that focus
3VR is the video surveillance standard on eliminating internal and external theft
for hundreds of global customers, includ- and fraud. Clients include national and
ing leading banks, retailers, governments local retailers, mid-sized firms and Fortune
and law enforcement agencies and owns 500 companies searching for an effective
CrimeDex, an online community reaching alternative to in-house security and loss
more than 600,000 fraud, loss preven- prevention. Loss Prevention Services
tion and law enforcement professionals continues to help businesses combat
dedicated to stopping crime. Based in San the ever increasing criminal element, the
Francisco, CA, the company is privately seemingly inadequate punishment for such
held with funding from DAG Ventures, behavior and the effect such behavior has
Focus Ventures, In-Q-Tel, Kleiner Perkins on a company’s bottom line.
Caulfield & Byers, Menlo Ventures and
VantagePoint Ventures. 3VR’s VIP Appli-
ance is the three-time winner of the SIA
Best New Video Product Award and was
named Security Product of the Year from
Frost & Sullivan in 2006 and 2007, among
other awards. For more information, please
visit www.3vr.com.

3VR, Inc.
475 Brannan Street, Suite 430, Tel: 415.495.5790
San Francisco, CA 94107 Fax: 415.495.0255
Sales: 415.513.4611
Email: info@3VR.com
Website: www.3VR.com

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