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The Hidden Cost of Locked Cabinets: How Shoplifting Deterrents Are Driving Customers Away

Security TagsSteve Jacobs

*Secured cases in stores and locked shopping cabinets are driving customers away.

In an era where retail theft is at an all-time high, many retailers are turning to drastic measures to protect their inventory. From CVS to Walgreens, and even major players like Target and Walmart, stores are increasingly locking up high-theft items behind plexiglass cabinets. While this approach aims to deter shoplifters, it’s also having a profound impact on the shopping experience—and not in a good way.

The Unintended Consequences of Locking Up Merchandise

The logic behind locking up merchandise is simple: make it harder for thieves to access high-value items. However, this strategy is proving to be a double-edged sword. According to retail experts, these locked cabinets are frustrating legitimate customers and pushing them towards online shopping or competitors who offer a more convenient in-store experience.

Joe Budano, CEO of the anti-theft technology company Indyme, estimates that securing products behind locked cases can cause a drop in sales ranging from 15% to 25%. This significant decrease is a clear indication that while the merchandise may be protected from theft, it’s also less accessible to paying customers.

The inconvenience of having to wait for a store employee to unlock a cabinet is not just a minor annoyance—it’s a major deterrent. As Amazon CEO Andy Jassy recently pointed out, the “speed and ease” of online shopping becomes even more appealing when compared to the hassle of shopping in-store where so many items are locked away.

The Bigger Picture: Organized Retail Crime

Retail theft accounted for a staggering $112.1 billion in losses in 2022, according to the National Retail Federation’s 2023 security survey. Organized retail crime, where groups of thieves swarm stores to steal goods that can be easily resold online, has become increasingly common. This trend has forced retailers to adopt more stringent security measures, especially in cities and large metro areas where theft rates are highest.

However, the question remains: Are these locked cabinets the best solution?

A Smarter Alternative: EAS Detection Systems and Security Tags

While locking up merchandise might seem like an effective way to combat theft, it’s clear that this approach comes with significant downsides. Instead of driving away customers, retailers should consider alternative solutions that enhance security without compromising the shopping experience.

Electronic Article Surveillance (EAS) detection systems and security tags offer a more customer-friendly approach. EAS systems work by attaching security tags to merchandise that trigger an alarm if someone tries to leave the store without removing or deactivating the tag. This technology is highly effective in deterring theft while allowing customers to browse freely and access products without unnecessary barriers.

Security tags can be easily integrated into a wide range of products, from razors to electronics, and they provide a visible deterrent that discourages shoplifters. Unlike locked cabinets, which require employee intervention, EAS systems operate seamlessly in the background, allowing store associates to focus on providing better customer service rather than constantly unlocking cabinets.

Conclusion: Balancing Security and Customer Experience

Retailers are facing a difficult challenge: how to protect their inventory from theft without alienating their customers. While locking up merchandise might offer a quick fix, it’s not a sustainable solution. The future of retail security lies in technologies like EAS detection systems and security tags that offer robust protection while preserving a positive shopping experience.

By adopting smarter, more customer-friendly security measures, retailers can strike the right balance between deterring theft and keeping their customers happy—both in-store and online.

https://www.axios.com/2024/08/11/retail-theft-cvs-walgreens-locked-cabinet