Retail Theft and the Impact of Locking up Merchandise

The rise in retail theft is causing major headaches for drugstores and discount retailers, with the practice of locking up merchandise failing to deter criminals and instead driving frustrated consumers to shop online more, according to retail experts.

This trend is not only impacting retailers’ profits but also leading to a surge in store closures. Secured cases can lead to a drop in sales by 15% to 25%, highlighting the negative impact of this approach.

Aisles full of locked plexiglass cases are becoming a common sight at many CVS and Walgreens stores, where customers have to wait for an employee to unlock them. Other retailers like Target, Walmart, and Dollar General have also scaled back on self-checkout to combat shoplifting.

The issue of organized retail crime, where thieves target stores for products they can resell online, is becoming increasingly brazen and resulting in significant losses for companies. Items like razors, deodorant, body wash, technology products, and alcohol are among those being locked up, with the situation varying by store and region.

While retailers defend their use of security measures like locked cases as a last resort, there is some debate about the extent of the problem and whether theft is being used as a scapegoat for other challenges. Some executives have even suggested that the issue has stabilized and may have been exaggerated.

Overall, the impact of retail theft on the shopping experience and the shift towards online shopping is a significant concern for the industry, with retailers grappling with how to balance security measures with customer convenience.