With the increase in organized retail crime, many stores have also started locking up more and more products in-store.
CNN Business took a look at this trend, and turned to leaders in the LP industry for answers.
Adrian Beck, who studies retail losses at the University of Leicester, explained how stores look to protect the vital few products that are most profitable for them to sell, while they’re willing to accept more theft of the lower-margin items. Drug stores have a higher proportion of high-theft items, so they have more products secured in lock boxes or with other anti-theft devices.
The story also touched on how online marketplaces have made it so much easier to resell these items.
“More products today are locked up because the problem has gotten so much bigger,” said Lisa LaBruno, senior executive vice president of retail operations at the Retail Industry Leaders Association. “Criminal actors can steal high volumes of products and sell them with anonymity.”
An Amazon spokesperson was quoted saying: “We regularly request invoices, purchase orders, or other proofs of sourcing when we have concerns about how a seller may have obtained products.”
The article continues, saying that many of the anti-theft measures companies are taking irritate customers and cut into sales.
“Consumers understand why you have to lock up a fur coat or jewelry, but they say, ‘why are we locking up deodorant?'” said Jack Trlica, editor-in-chief and co-founder of LPM. “There’s going to be an evolution of security products.”
Read the full article here.
