NZ's Retailers Fighting $2.6 Billion Stock Loss with Facial Recognition

Retail theft in New Zealand now costs over $2.6 billion per year. That’s the estimate for total stock loss, including shoplifting, employee theft, and inventory shrinkage. For many retailers, it’s eating into already thin margins.

Traditional CCTV installation has been the go-to solution for decades. It helps after the fact, but it doesn’t always stop crime in the moment. In 2025, facial recognition is changing that.

Retailers are now trialling a new breed of security systems. These systems identify repeat offenders before they commit another crime. Some trials are already showing major results.

Traditional CCTV Still Helps, But It's Not Enough

Most retail stores already have surveillance cameras. They provide footage after theft happens. Sometimes it helps catch the offender. Sometimes it doesn’t.

Business owners say it’s no longer enough. They want tools that stop theft before it happens. Especially in high-risk areas like South Auckland and West Auckland.

For small business owners, especially, every lost item counts.

Facial Recognition CCTV Trials Show Big Results

At a Pak’nSave supermarket, facial recognition technology was trialled in 2024. Offending dropped by over 70%. Repeat shoplifters were flagged, trespass orders issued, and re-entry led to police action.

Select Westfield Newmarket stores also used the tech. Repeat offenders were caught early. Police followed up with immediate arrests.

The cameras scan faces and match them to an internal watchlist. If there’s no match, the image is deleted. If there is, staff are alerted in real time. Some systems also integrate with Auror, a retail crime prevention platform widespread in New Zealand.

Local Retailers Saving Thousands Per Week

A Farmers in West Auckland reportedly reduced shoplifting by $3,000 per week after upgrading their retail security cameras to include facial recognition. The system helped identify several well-known offenders who had stolen multiple times before.

Shop staff now get alerts before the person enters. Security can step in. It’s a game of prevention, not just reaction.

Expert Installers Say the Cost Is Worth It

Auckland CCTV, experts in commercial security systems, say these facial recognition setups cost a bit more than high-quality high resolution cameras, but not by much.

“The difference is usually a few hundred to a couple of thousand dollars depending on the site,” says a spokesperson. “But that’s nothing compared to the cost of weekly shrinkage from repeat offenders.”

More business owners are choosing this upgrade. Especially in commercial properties where organised theft rings are active.

Why the Shift Is Happening in 2025

In 2025, retail crime remains one of the biggest threats to small and large businesses alike.

According to Retail NZ, over 70% of stores report regular theft. Some report violent or threatening behaviour. Police have started retail crime response units, but response time and evidence are still issues.

With facial recognition, shop staff don’t need to wait until something is stolen. Offenders can be stopped at the door.

Know the Rules Before Installing

Facial recognition comes with strict privacy rules. Businesses must clearly display signs and delete unmatched images quickly. They also need to minimise bias and ensure fair use.

Good providers handle this. Integration with platforms like Auror helps simplify enforcement. Clear procedures reduce risk.

Retailers using facial recognition must follow the Privacy Act and ensure they are transparent with customers.

Conclusion: Smart Security, Real Impact

Retail crime won’t vanish overnight. But with tools like facial recognition, high resolution security cameras, and smarter systems, Kiwi retailers are finally going on the offensive.

Upgrading from basic CCTV to intelligent systems is no longer about surveillance. It is about survival.

And for many Auckland shopowners, that small upgrade is already paying off. Contact a professional installation company like Auckland CCTV and make shoplifting a worry of the past.