US stores are keeping toothpaste, deodorant in locks: Here's why
What's the story
Major retailers in the United States (US), including Walmart, CVS, Target, Home Depot, Walgreens, and Foot Locker, have started locking up daily use products like toothpaste, chocolate, detergent powder, and deodorant due to an increase in petty theft and organized shoplifting, reported AFP.
Organized retail crime, involving groups of thieves who shoplift merchandise and resell it online, is becoming a serious issue for many retailers as it is impacting inventory and forcing some stores to close.
Context
Why does this story matter?
The US is grappling with a high cost of living triggered by high inflation. To control this, US policymakers have raised the interest rates from nearly zero to 5.5% in 18 months, the highest in 22 years.
Reports note the rate of crime increased after the COVID-19 pandemic, indicating rising unemployment.
The US Department of Justice's Office of Justice Programs notes that "crime often increases during periods of low unemployment."
Details
Organized retail crime surged during pandemic
Stores are installing transparent walls and fitting shelves with locks while refrigerators are being secured by padlocked chains.
The National Retail Federation's 2022 retail security survey showed that retailers in the US lost $94.5 billion (estimated) to "retail shrink" in 2021 alone. Retail shrink refers to inventory loss from staff theft, shoplifting, and administrative mistakes.
Retailers saw a 26.5% rise in organized retail crime in 2021, with most respondents attributing the increase to the pandemic.
Figures
Miscreants coming up with ways to bypass security
Meanwhile, "flash rob" incidents are becoming increasingly common in the US, wherein groups rush into stores, snatch items within their reach, and flee.
In August, in a Los Angeles-based Nordstrom store, about 30 masked people stole luxury items worth over $300,000 (around Rs. 2.48cr) and bear-sprayed a security guard before running away.
In June, a masked miscreant used a blowtorch in front of customers and employees, melted locked cases, and stole items at a Walgreens store in Queens, New York.
Insights
Locked-up items lead to customer annoyance, resulting in sales drop
In 2021, Walgreens shut down five of its stores in San Francisco due to theft, while Walmart closed four outlets in Chicago, citing a lack of profitability this year.
Meanwhile, locked-up items can lead to 15-25% sales declines, as per the head of an anti-theft gadget business.
Some stores are using cases that can be unlocked by any employee with a smartphone or requiring shoppers to enter their phone numbers or scan a QR code.
Items
These items are most sought after
The items most sought after by shoplifters are those that are handy and come with higher price tags, called "hot products," and are usually kept under locks.
These items include cigarettes, health and beauty products, over-the-counter medications, contraception, alcohol, teeth-whitening strips, and other items.
As per CNN, a criminologist came up with the acronym "CRAVED" to describe what makes items susceptible to theft.
It stands for "concealable, removable, available, valuable, enjoyable, and disposable."