Network Video Recorders for Retail Loss Prevention

Network Video Recorders for Retail Loss Prevention

Retail Surveillance Network Video Recorders (NVR’s) are a key element in protecting employees, retail inventory and profits, especially since loss prevention and profits go hand in hand. Providing a secure retail environment involves several aspects from monitoring all entry points, warehouses and loading docks to securing the registers and reviewing suspicious POS transactions. Other than providing a secure environment, surveillance directly combats Shrinkage costs, which in 2015 were over $123 billion (U.S.D). Shrinkage is compiled by several factors, such as employees involved in Organized Retail Crime (ORC), random shoplifters and hacker cyber threats attempting to steal client data from the POS systems, as well as unintentional losses and product diversion. ORC is a major topic for retailers across the map, whether small, medium or large in size nearly all retailers have been victims of organized crime. Retail Surveillance NVR’s have provided benefits for several department stores, retail chains and multinationals, but many others can also benefit from implementing NVR’s such as convenience stores, petrol/gas stations, grocery stores and shopping centers.

The easy management of Video Surveillance NVR’s allows retailers to focus on protecting their assets rather than managing the surveillance system. The video stream received by the NVR, through the network, is encoded and processed by the IP camera. The NVR does not require a direct connection to a video capture card or tuner and can be deployed in any location within the same LAN network as the cameras. Furthermore, NVR’s can broadcast the camera footage over the internet enabling remote monitoring of multiple locations, which is ideal for multi-location retailers.

Three critical aspects involved in Loss Prevention for the Retail Industry are POS Systems, Shoplifting and Warehouse Loading Docks. All three areas are of high risk for product theft and require full attention in surveillance efforts.


Shoplifting is a rather unskilled crime that is usually driven by a person’s financial situation, causing people of any ethnicity, social class, age and gender to shoplift. This type of theft has significant affects in a retailer’s bottom line, around $14 billion (U.S.D.) worth per year. It is believed that over half of retail losses are generated by employee theft or fraud and the rest by random shoplifting from patrons.


Forming a 4-way intersection at the POS are Retail Inventory, Cash, Bank Cards and Customer Data creating a high risk factor for threats such as Under-ringing, Sweethearting, card skimming and data theft. Under-ringing and sweethearting are extremely difficult to detect, cashiers simply do not scan all the items and allow the customer to leave the store with unpaid merchandise. Creating a free for all for card skimming, are early stage POS systems which were not designed to capture customer data in a secure manner, their main focus was for accounting and management of company inventory.


Many establishments are very familiar with the struggles of securing warehouse loading docks which makes them areas of high risk for product theft. Security protocols are often disregarded in these areas since there are a variety of vehicles, vendors, clients, employees and inventory coming in and going out.

The ideal deployment solution for an IP Video Surveillance NVR should provide seamless integration and features offered must include support for HD resolution connectivity and electrical power for multiple IP cameras and other peripherals.

Lanner offers its latest commercial embedded NVR LEC-7338, specifically designed for surveillance needs. The system is driven by Intel Celeron CPU and delivers HDMI video-out. Functioning as a surveillance gateway, LEC-7338 features 8 PoE GbE ports and 2 GbE ports for uplink. The NVR also comes with two serial COM ports for connections with other peripherals. With wide operating temperature from -20 to 55°C, LEC-7338 is the drop-in solution for commercial embedded surveillance NVR.

About Lanner

Lanner is a leading OEM with more than 30 Years of experience designing, building and manufacturing embedded and network computing hardware. From x86 rackmount systems to wide-operating temperature rugged industrial hardware, our appliances cover a diverse set of popular and niche applications.

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