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

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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

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Episode Transcript

Speaker 1 (00:00):
Welcome to the Scott Townsend Show brought to you by
Pizza man Productions.

Speaker 2 (00:08):
Hey folks, welcome back to the Scott Townsend Show.
I hope you're all having afantastic day.
Today we're tackling a hotbutton issue in the retail world
.
Let me paint you a picture.
Okay, you're in your localstore maybe Walmart, cvs or
Walgreens just trying to grabsome basics like toothpaste,
razor blades or laundrydetergent.

(00:30):
You're in a rush, but there itis.
The product you need is lockedbehind a glass case.
You press a button, wait andwait and wait.
Frustrating right.
This is becoming the new normalfor shoppers everywhere, and,
while it might deter shoplifters, it's causing a serious problem

(00:52):
for retailers.
Sales are slipping.
Customers like you and me arewalking away, and today we're
going to dive deep into why thisis happening and what could be
done about it.
So let's start with some context.

(01:13):
Shoplifting is no joke.
According to the NationalRetail Federation, theft costs
the retail industry billionsevery year.
I'm talking about $94.5 billionin 2021 alone.
And it's not just about theoccasional shoplifter.
Organized retail crime is onthe rise.

(01:35):
Groups target high-value itemslike baby formula, electronics
and health and beauty productsbecause they're easy to resell.
Now here's the thing whenretailers lock up these products
to protect their bottom line,it creates a whole new set of
problems.
One major issue it frustratespaying customers, the very

(01:56):
people they rely on to stay inbusiness.
Case in point Walgreens.
They started locking upproducts 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.

(02:17):
It's a simple equation Few.
Fewer sales mean less revenue,and when customers get
frustrated, they start lookingfor other options, whether
that's a competitor like targetor an online retailer like
amazon.
And speaking of amazon, they'renot locking up toothpaste,

(02:38):
they're shipping it straight toyour door, hassle free.
So why would someone put upwith the inconvenience in-store
when they can click a buttononline and be done with it?
Let's zoom in on the customerexperience.
According to a numerator survey,60% of shoppers encounter

(03:01):
locked-up merchandise regularly.
And here's the kicker 27% ofthem either leave the store
without making a purchase orhead to another retailer.
Think about that for a second.
That's more than a quarter ofcustomers walking out the door
because they feel inconvenienced.
It's not just about theinconvenience, though.

(03:22):
There's an emotional side tothis too.
Locking up merchandise sends anunspoken message we don't trust
you.
For many shoppers, that's adeal breaker.
Trust is a foundation of thecustomer-retailer relationship,
and when that trust is broken,loyalty goes out the window.

(03:46):
One time I was in an outdoorretail store like Cabela's, bass
Pro, something like thatlooking for ideas for prizes we
were giving away at an eventlater that night.
After a while I noticed a guystanding several aisles over
watching me.
He kept following me around thestore.
It was obvious he thought I wasshoplifting, which was a little

(04:07):
unnerving.
It made me nervous and I wasn'tdoing anything illegal, just
shopping.
So I bought hundreds of dollarsworth of stuff because I was
running out of time and I justneeded to go and I was glad to
get out of there.
I haven't been back sinceeither.
That experience stuck with me.
If being treated like that feltuncomfortable for me someone

(04:31):
just trying to shop imagine howit feels for others who face
this all the time.
So what's the solution?
Well, some retailers aregetting creative.
For example, home Depot usesvisible staff and deterrent
technology like RFID tags thattrigger alarms when stolen items
cross a threshold.

(04:51):
Walmart has piloted smartshelving that tracks inventory
in real time, and other storesare leaning into community
partnerships, working with thelocal law enforcement and even
community leaders to reducetheft at the source.
There's also a movement towardredesigning store layouts.
Retailers like Costco andTrader Joe's build trust by

(05:15):
creating open, easy-to-navigatespaces where theft is less
likely because of visibility andgood customer flow.
But here's the broader questionAre we solving one problem just
to create another?
Locking up merchandise mightsave a few dollars in theft, but
if it costs hundreds of dollarsin lost sales and drives

(05:37):
customers away permanently, isit really worth it?
At what point do we, asretailers and consumers, decide
enough is enough?
Think about your own habits.
If you've ever abandoned a cartbecause something was locked up
, you're part of the story.
And it's not just aboutconvenience.
It's about how we feel ascustomers.

(05:57):
Feeling trusted and valuedmakes us want to come back.
Feeling like suspects not somuch.
Retailers have a toughchallenge ahead.
Balancing theft prevention withcustomer satisfaction isn't
easy, but it is essential.
The stores that figure out howto do this well by investing in

(06:18):
technology, training staff andrethinking the shopping
experience, will come out ahead.
Those that don't, well, theymight find themselves with
locked cases and empty aisles.
This is Scott Townsend.
Thanks for listening to theScott Townsend Show.
Have a great day.
Everything's going to be allright and we'll talk to you

(06:40):
later.

Speaker 1 (06:41):
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