Axis's Retail Report Examined

Author: John Honovich, Published on Jan 12, 2011

In this note, we examine a report on retail surveillance use sponsored by Axis. While the report claims an overwhelming interest in network surveillance, we believe the sample size is heavily biased to chain retailers with large locations, under-representing the mass of retailers who find it quite difficult to justify IP camera adoption.

Axis shared a copy. Read the full 33 page retail report.

Let's start by examining key findings from the report:

  • 98% use video surveillance
  • More than half have used it for more than a decade
  • 2/3rds use analog cameras, 1/4 use IP cameras
  • 87% of retailers using analog 'have considered' using IP instead
  • Nearly 80% do not have video integrated with their central monitoring station
  • Maintenance costs and technical issues were top reported issues
  • The overwhelming issue cited in not moving to IP was cost
  • Over 25% of retailers say they use people counting and over 10% use dwell time or hot/cold analytics

To put these numbers into perspective, we must understand who are these retailers (as retail is a massive world). Here are the key metrics of the participants:

  • Over 80% have more than 100 stores (half of those have more than 500)
  • Only 6% had less than 25 stores
  • Over 70% of respondents had stores of 10,000 sqft or more (for perspective, most retailers in malls are considerably less than 10,000 sqft - obviously excluding department stores)

The retailers in the report are large organizations with fairly large stores. This mean higher camera counts and more security demands than most retailers.

The retail 'world' is quite large and diverse. While there are many large chains, retail is also filled with smaller sites and smaller operations. For instance, according to US government records, there are over 25,000 convenience stores, 100,000 gas stations, 130,000 clothing stores (here's a table from the US Census office breaking down retail locations by category). These organizations are not properly represented in the study. In our experience, they have significant challenges making the move to IP (much more than their big box brethren).

If analog has a 2.5x lead over IP in this group, we would suspect this would be 5x or 10x in a more diverse study of retailers.

The same concern applies to video analytics. We also question whether those numbers mean that the retailer uses analytics in all their locations or only in a few. In our experience, many retailers use analytics in a few locations (pilots, early stage roll-outs, etc.). We suspect these were counted in the survey, misleading the true adoption of analytics.

As a final note, it is interesting that even the relatively large retailers chosen cite cost as the number #1 concern - perhaps they need to read Axis's other 'study'.

1 report cite this report:

2011 Mid Year Video Surveillance Review on Jun 11, 2011
The first half of 2011 featured a number of important shifts within the video surveillance industry. In this report, we provide an overview of the...
Comments : PRO Members only. Login. or Join.

Related Reports on Retail

CES 2019 Show Report on Jan 10, 2019
IPVM was at CES 2019 for the second year (see our CES 2018 Show Final Report) and is reporting on announcements and interesting news from the show...
Intel Neural Compute Stick 2 / Movidius AI Test on Nov 21, 2018
AI is a major trend in video surveillance with manufacturers paying significant attention to Intel's Movidius Myriad chips. Indeed, Avigilon has...
Kogniz Silicon Valley AI Startup Profile on Nov 07, 2018
Kogniz is a Silicon Valley company that aims to bring AI analytics to security and surveillance, centering on their own smart cameras: We spoke...
ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Why Vivint / Best Buy Failed on Aug 31, 2018
DIY has bested Vivint. In 2017, Best Buy and Vivint partnered with Vivint employees on the floor of 400+ Best Buy stores, helping customers with...
Ligowave Wireless Profile - Ubiquiti Competitor on Aug 27, 2018
Ubiquiti has become the most common choice for wireless in video surveillance (see Favorite Wireless Manufacturers) but not without controversy and...
Directory of Video Surveillance Startups on Jul 18, 2018
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known entity...
FST Fails on Jul 17, 2018
FST was one of the hottest startups of the decade, selected as the best new product at ISC West 2011 and backed with tens of millions in...
Arecont Acquisition By Costar on Jul 11, 2018
Arecont Vision acquisition by Costar Technologies has been approved by the court, concluding the bankruptcy process triggered by Arecont's...
UK VSaaS Startup Ocucon on Jul 03, 2018
Decreasing exposure to fraudulent slip-and-fall insurance claims and lawsuits is one of the oldest selling points of video surveillance for retail....

Most Recent Industry Reports

Cable Trenching for Surveillance on Jan 21, 2019
Trenching cable for surveillance is surprisingly complex. While using shovels, picks, and hoes is not advanced technology, the proper planning,...
Milestone Favorability Results 2019 on Jan 21, 2019
Milestone's favorability moderately strengthed, in new IPVM integrator statistics over their results from 2016. While the industry has been...
Intersec 2019 Live Day 1 - Massive China Presence on Jan 21, 2019
There’s a massive presence from Chinese or China-focused video surveillance firms, chiefly Hikvision, Dahua, Huawei, and Infinova, at...
The IP Camera Lock-In Trend: Meraki and Verkada on Jan 18, 2019
Open systems and interoperability have not only been big buzzwords over the past decade, but they have also become core features of video...
NYPD Refutes False SCMP Hikvision Story on Jan 18, 2019
The NYPD has refuted the SCMP Hikvision story, the Voice of America has reported. On January 11, 2018, the SCMP alleged that the NYPD was using...
Mobile Surveillance Trailers Guide on Jan 17, 2019
Putting cameras in a place for temporary surveillance where power and communications are not readily available can be complicated and expensive....
Exacq Favorability Results 2019 on Jan 17, 2019
Exacq favorability amongst integrators has declined sharply, in new IPVM statistics, compared to 2017 IPVM statistics for Exacq. Now, over 5 since...
Testing Bandwidth Vs. Low Light on Jan 16, 2019
Nighttime bandwidth spikes are a major concern in video surveillance. Many calculate bandwidth as a single 24/7 number, but bit rates vary...
Access Control Records Maintenance Guide on Jan 16, 2019
Weeding out old entries, turning off unused credentials, and updating who carries which credentials is as important as to maintaining security as...
UK Fines Security Firms For Illegal Direct Marketing on Jan 16, 2019
Two UK security firms have paid over $200,000 in fines for illegally making hundreds of thousands of calls to people registered on a government...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact