US retailers place toothpaste, chocolates and deodorant under lock and key. Here’s why

Major retailers across the United States have begun placing everyday products like toothpaste, chocolate, washing powder and deodorant under lock and key amid a reported rise in petty theft and organised shoplifting as the country grapples with the cost of living. Meanwhile, some shoppers said they are fearful during shopping amid the rise in organised retail theft.

US retailers justify placing products under lock and key

According to a report by AFP, major American retailers like Walmart and Target, drugstore chains CVS and Walgreens as well as home improvement firm Home Depot and Dick’s Sporting Goods are among some of the growing number of companies who have voiced concerns about the thefts, including some violent incidents.

They have also spoken about how it has affected their recent earnings. “Organised retail crime, and theft in general, is an increasingly serious issue impacting many retailers,” said Lauren Hobart, chief executive at Dick’s during a conference call, as quoted by AFP. She also called the impact of stealing on the company’s inventory “meaningful”.

In a separate briefing, Target chief executive Brian Cornell said, “During the first five months of this year, our stores saw a 120 per cent increase in theft incidents involving violence or threats of violence.” He also noted how this loss of inventory due to theft is well above what is sustainable over the long term.

According to the National Retail Federation’s Retail Security Survey 2022, American retailerslost some $94.5 billion nationwide to the so-called “shrink” in 2021. In this context, shrink refers to the loss of inventory from factors including staff theft, shoplifting or administrative errors.

The survey also noted that retailers on average saw a 26.5 per cent rise in organised retail crime in 2021 and a majority of respondents said that the pandemic has led to an increase in risks.

What is causing this rise in violence and theft?

The US Federal Reserve has announced consecutive interest rate hikes taking the number once close to zero to around 5.5 per cent over 18 months, which is the highest in 22 years.

The higher interest rates have not only made it pricier to borrow funds for bigger purchases but also made it difficult for companies to expand while American consumers have been feeling the squeeze.

Measures taken by the stores

The rise in theft has prompted stores to install transparent walls with locks on shelves, sometimes padlocked chains on refrigerators, and scattering call buttons in aisles for staff, according to AFP. Additionally, stores also sparsely stock unprotected shelves.

Some retailers have closed stores due to the rise in theft and lack of profitability. In 2021, Walgreens closed five stores in the US city of San Francisco due to theft.

US shoppers are afraid

Ann McGee, a New Yorker from the borough of Queens, told AFP that she doesn’t like the recent fear she has while shopping, amid a rise in theft. “It’s not normal to be scared” when shopping, McGee told the news agency.

She has been a resident of the borough for more than four decades now and said she has recently been so concerned about her safety that she leaves her purse and jewellery – including her wedding ring – at home when she goes shopping.

(With inputs from agencies)

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