#220 Locked Glass Cases in Retail: Security Measure or Customer Deterrent?

Retail theft is costing businesses billions, but locking up merchandise alienates customers and reduces sales. Solutions exist, and finding a balance between security and customer satisfaction is crucial for retailers. 

• Retail theft costs nearly $94.5 billion annually 
• 60% of shoppers encounter locked merchandise regularly 
• 27% of customers abandon purchases due to locked items 
• Locking up products damages trust and customer loyalty 
• Innovative solutions include RFID technology and smart shelving 
• Open store layouts can encourage theft prevention and customer satisfaction 
• Retailers must balance theft prevention with a positive shopping experience

References
Numerater 2024  https://www.numerator.com/press/60-of-consumers-encounter-locked-up-merchandise-27-will-switch-retailers-or-abandon-purchase-numerator-reports/?utm_source=chatgpt.com

Crain's New York Business https://www.crainsnewyork.com/retail/walgreens-says-locking-items-hurts-sales?utm_source=chatgpt.com

Transcript

Speaker 1: 0:00

Welcome to the Scott Townsend Show brought to you by Pizza man Productions.

Speaker 2: 0:08

Hey folks, welcome back to the Scott Townsend Show. I hope you're all having a fantastic day. Today we're tackling a hot button issue in the retail world. Let me paint you a picture. Okay, you're in your local store maybe Walmart, cvs or Walgreens just trying to grab some basics like toothpaste, razor blades or laundry detergent. You're in a rush, but there it is. The product you need is locked behind a glass case. You press a button, wait and wait and wait. Frustrating right. This is becoming the new normal for shoppers everywhere, and, while it might deter shoplifters, it's causing a serious problem for retailers. Sales are slipping. Customers like you and me are walking away, and today we're going to dive deep into why this is happening and what could be done about it.

Speaker 2: 1:08

So let's start with some context. Shoplifting is no joke. According to the National Retail Federation, theft costs the retail industry billions every year. I'm talking about $94.5 billion in 2021 alone. And it's not just about the occasional shoplifter. Organized retail crime is on the rise. Groups target high-value items like baby formula, electronics and health and beauty products because they're easy to resell.

Speaker 2: 1:44

Now here's the thing when retailers lock up these products to protect their bottom line, it creates a whole new set of problems. One major issue it frustrates paying customers, the very people they rely on to stay in business. Case in point Walgreens. They started locking up products to combat theft, but even their CEO, tim Wentworth, admitted it backfired. He said when you lock things up, you don't sell as many of them. Pretty simple. It's a simple equation Few. Fewer sales mean less revenue, and when customers get frustrated, they start looking for other options, whether that's a competitor like target or an online retailer like amazon. And speaking of amazon, they're not locking up toothpaste, they're shipping it straight to your door, hassle free. So why would someone put up with the inconvenience in-store when they can click a button online and be done with it? Let's zoom in on the customer experience.

Speaker 2: 2:56

According to a numerator survey, 60% of shoppers encounter locked-up merchandise regularly. And here's the kicker 27% of them either leave the store without making a purchase or head to another retailer. Think about that for a second. That's more than a quarter of customers walking out the door because they feel inconvenienced. It's not just about the inconvenience, though. There's an emotional side to this too. Locking up merchandise sends an unspoken message we don't trust you. For many shoppers, that's a deal breaker. Trust is a foundation of the customer-retailer relationship, and when that trust is broken, loyalty goes out the window.

Speaker 2: 3:46

One time I was in an outdoor retail store like Cabela's, bass Pro, something like that looking for ideas for prizes we were giving away at an event later that night. After a while I noticed a guy standing several aisles over watching me. He kept following me around the store. It was obvious he thought I was shoplifting, which was a little unnerving. It made me nervous and I wasn't doing anything illegal, just shopping. So I bought hundreds of dollars worth of stuff because I was running out of time and I just needed to go and I was glad to get out of there. I haven't been back since either. That experience stuck with me. If being treated like that felt uncomfortable for me someone just trying to shop imagine how it feels for others who face this all the time.

Speaker 2: 4:37

So what's the solution? Well, some retailers are getting creative. For example, home Depot uses visible staff and deterrent technology like RFID tags that trigger alarms when stolen items cross a threshold. Walmart has piloted smart shelving that tracks inventory in real time, and other stores are leaning into community partnerships, working with the local law enforcement and even community leaders to reduce theft at the source. There's also a movement toward redesigning store layouts. Retailers like Costco and Trader Joe's build trust by creating open, easy-to-navigate spaces where theft is less likely because of visibility and good customer flow.

Speaker 2: 5:24

But here's the broader question Are we solving one problem just to create another? Locking up merchandise might save a few dollars in theft, but if it costs hundreds of dollars in lost sales and drives customers away permanently, is it really worth it? At what point do we, as retailers and consumers, decide enough is enough? Think about your own habits. If you've ever abandoned a cart because something was locked up, you're part of the story. And it's not just about convenience. It's about how we feel as customers. Feeling trusted and valued makes us want to come back. Feeling like suspects not so much. Retailers have a tough challenge ahead. Balancing theft prevention with customer satisfaction isn't easy, but it is essential. The stores that figure out how to do this well by investing in technology, training staff and rethinking the shopping experience, will come out ahead. Those that don't, well, they might find themselves with locked cases and empty aisles. This is Scott Townsend. Thanks for listening to the Scott Townsend Show. Have a great day. Everything's going to be all right and we'll talk to you later.

Speaker 1: 6:41

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