It starts with a familiar retail dilemma: the drive to do more with less. Longer opening hours, fewer staff, and more self-service – all on the agenda for UK supermarkets. But with retail theft at record highs ambitions to run staffless stores or open longer hours are often held back by one question: how do you keep things secure?

Retail theft in the UK has reached record levels. According to the Office for National Statistics incidents of shoplifting rose by 20% last year with some major grocers reporting millions in losses. For businesses experimenting with unmanned or hybrid store models, these losses create a significant deterrent to experiment with greater automation. For consumers, it erodes the convenience and flexibility that modern retail is trying to offer.

Technology is being brought to the frontline. The Home Secretary’s recent push for facial recognition technology to combat theft reflects the seriousness of the issue. But it also signals a growing willingness to explore new tools in the fight against retail crime — including identity tech.

With biometric authentication, Open Banking, and secure mobile apps already embedded in the UK’s digital ecosystem, could these tools offer a fresh route forward?

A shift from surveillance to smarter access

Today’s self-checkout environments already lean heavily on camera systems, AI, and loyalty apps. In some cases, Face ID is used to log in to retailer apps or authenticate payments. Yet the link between a known customer and store access is still weak — particularly during unstaffed hours.

This is where identity infrastructure could play a stronger role. Bank-verified identity, already used widely in European markets like Sweden and Czechia, offers a low-friction way to authenticate individuals before they even walk through the door.

Instead of simply watching for shoplifters, could UK retailers prevent them from entering in the first place?

A working model: Coop’s hybrid stores in Czechia

In Czechia, supermarket chain Coop has pioneered a new store format that takes advantage of digital identity from the ground up. Their hybrid model blends traditional daytime service with automated, staffless access in the evenings — made possible by integrating mobile apps, bank identity verification, and centralised monitoring.

Here’s how it works:

• Mobile access via bank identity: To access the store outside staffed hours, customers scan a QR code from Coop’s loyalty app. Setting up the app requires linking a verified bank ID — a form of digital identity already used widely across Czechia for government services, utilities, and financial transactions.
• Real-time monitoring and support: Once inside, customers use the standard self-checkout kiosks. The entire store is monitored by a camera system connected to a central security desk overseeing multiple locations. Staff can intervene if needed — either to support customers or address suspicious behaviour.
• Automatic age verification: Age-restricted purchases such as alcohol are approved based on verified identity within the app, removing the need for manual staff checks.
• Data-driven insights: Sales data shows that customers regularly shop as late as midnight and on weekends. Unsurprisingly, alcohol, sweets, and impulse items are more frequently purchased during these unstaffed hours!

The results are promising. Coop reports improved service for rural communities, increased sales during off-peak times, and a drop in theft — thanks to the deterrent effect of linking entry to verified identity. Crucially, the system doesn’t require facial recognition or invasive surveillance when in the store. Trust is built in from the moment a customer registers with the loyalty scheme.

Why it matters for the UK

UK supermarkets already have the core components: loyalty apps, and advanced surveillance systems. What’s missing is a coordinated approach to access — one that uses existing identity tools not just for payments, but to enable secure, out-of-hours entry and create a stronger link between customer and store activity.

With Open Banking adoption on the rise in the UK, retailers actively investing in new tech to reduce losses through a new shared offender databases, now may be the time to rethink the role of digital identity in-store.

Imagine a future where:

• Late-night shopping is enabled via your mobile app and Open Banking details.
• Age verification is frictionless and secure.
• Known shoplifters are automatically restricted from entry, not just flagged by a camera.

Turning identity into infrastructure

Retailers have spent years refining the self-checkout experience. But rising crime is forcing a shift from reactive deterrence to proactive prevention. Looking to markets like Czechia — where identity is an enabler, not a blocker — could help UK retailers unlock the full value of their automation ambitions.

Because in the battle against retail crime, the smartest move might not be more surveillance. It might be knowing exactly who’s coming through the door.