Major Australian supermarkets Coles and Woolworths have reportedly conducted tests of facial recognition technology as part of efforts to combat rising retail crime. While both companies have confirmed early-stage investigations into the technology, neither has committed to a widespread rollout in their Australian stores, leaving the future implementation of such systems uncertain.
Supermarket Giants Explore AI for Security
The Australian Financial Review initially reported that both Coles and Woolworths had engaged in “early testing” of facial recognition technology. This exploration comes amid growing concerns about retail crime and workplace safety within the sector.
A spokesperson for Coles clarified the nature of their involvement, distinguishing between a “test” and a “trial.” According to the spokesperson, Coles conducted a “small, one-off, controlled proof-of-concept test” that did not involve customer or employee data. They emphasized that no decision has been made regarding the deployment of facial recognition technology and that Coles does not currently utilize it in its stores.
Woolworths, meanwhile, is understood to have tested the technology within its New Zealand operations. While a Woolworths spokesperson did not directly address the specifics of their testing or potential Australian deployment, they highlighted the company’s commitment to safety. “Keeping our team and customers safe is the most important thing we do and we’ve put significant investment towards this,” the spokesperson stated. “While our current safety initiatives are making a difference, we are still seeing a concerning amount of aggression and conflict incidents in our stores on a daily basis, including weapons being presented.”
Bunnings Paves the Way with AI Legal Victory
The supermarket trials follow a significant legal development in February, where hardware retailer Bunnings successfully defended its use of AI-powered facial recognition technology. Bunnings had faced scrutiny after the Privacy Commissioner found in 2024 that the company had breached privacy laws by scanning customer faces without adequate consent.
However, the Administrative Review Tribunal ultimately ruled that facial recognition technology could be permissible under specific circumstances. The tribunal determined that such technology could be used to address retail crime and protect staff and customers from violence and abuse, potentially setting a precedent for other retailers.
Retail Industry Cites Escalating Safety Concerns
The Australian Retail Council (ARC) has voiced strong support for the responsible use of technology in addressing escalating safety challenges faced by retail workers. ARC Chief Executive Chris Rodwell described the levels of violence, threats, intimidation, and abuse in stores as “unacceptable.”
“Used responsibly and in the right context, technology can play an important role in tackling modern safety challenges,” Rodwell said. “Facial recognition can help retailers identify known high-harm repeat offenders when they enter a store, allowing staff to take appropriate action before another violent or threatening incident occurs.”
Rodwell stressed the industry’s commitment to ethical implementation, stating, “The industry is committed to getting this right for workers, customers and the community. That’s why retailers are taking the time to test its use and ensure its rollout is aligned with the Privacy Commissioner’s guidelines and community expectations.”
This sentiment aligns with updated guidance issued by the Privacy Commissioner in July, which provides a clearer framework for the use of facial recognition technology in public spaces, including retail environments.
The Scope of Supermarket Crime and Worker Safety
Data from the Shop, Distributive and Allied Employees’ Association (SDA), a union representing retail, fast food, and warehouse workers, underscores the severity of safety issues in the sector. A recent survey of nearly 3,000 workers, published late last year, revealed:
- Approximately 34 percent of members reported not feeling safe in their workplace.
- A significant 88 percent experienced verbal abuse.
- Physical violence was reported by 25 percent of respondents.
- Sexual harassment affected 19 percent of workers.
- Online abuse was experienced by 11 percent.
- 10 percent of workers reported being spat on.
- Abuse or harassment related to ethnicity, race, or cultural background was experienced by 31 percent.
- Worryingly, 59 percent of workers had been subjected to abuse by the same customer more than once.
Both Coles and Woolworths have indicated their ongoing commitment to exploring and implementing initiatives aimed at enhancing the safety of both their employees and customers, acknowledging the persistent challenges within the retail environment.
