Walmart (WMT) is quietly testing out a new way to tackle a major pain point for shoppers who have previously expressed growing frustration over encountering locked-up products in stores.
It is widely known that in order for customers to purchase a product that is locked behind a glass display, they have to seek the assistance of an employee who can unlock it, which can be time consuming if the store is low on staff.
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Many retailers lock up their products in order to help prevent theft, but this form of theft prevention can also cause retailers to lose sales from frustrated consumers.
Related: Walmart quietly tests self-checkout feature that can curb theft
According to a recent survey from Consumer World, 55% of respondents said that when they encounter a product that is locked up in a store, they search for another place to purchase it instead of seeking a store employee to unlock it.
As the distaste for locked-up merchandise grows amongst consumers, Walmart is exploring the possibility of allowing its shoppers to open security locks for items in stores themselves, according to a new report from Bloomberg.
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The retailer is allegedly testing out technology that will allow its employees to digitally unlock security cases for products with their cell phones. Walmart is currently testing this out at hundreds of its stores, and it has discussed possibly expanding the technology to allow Walmart+ members to have a mobile key to access locked-up products.
The move from Walmart comes after Amazon CEO Andy Jassy said during a recent earnings call that many consumers are growing tired of having products locked behind cabinets at stores, and they are flocking towards online services such as Amazon Pharmacy to purchase items.
Locked up toothpaste to prevent shoplifting are seen at a Duane Reade drugstore and pharmacy on August 24, 2023 in New York City.
He said that Amazon Pharmacy is “driving a lot of customer resonance and buying behavior” due to its “speed and ease” that physical pharmacies are starting to lack.
“If you walk into pharmacies in cities today, it’s a pretty tough experience with how much is locked behind cabinets, where you have to press a button to get somebody to come out and open the cabinets for you and a lot of shoplifting going on in the stores,” said Jassy.
Walmart battles retail theft in its stores
Shoplifting has been a growing problem for Walmart and other retailers across the country. According to the National Retail Federation, in 2022, retail theft resulted in industry losses of $112.1 billion, compared to $93.9 billion in losses the previous year.
During an earnings call on Aug. 17, Walmart U.S. CEO John Furner revealed that shrink (how much a company loses in inventory due to theft, damage, etc.) has recently increased at the company’s U.S. stores, and theft was a major factor.
Related: Walmart’s sneaky tactic to prevent theft
“Shrink has increased a bit this year,” said Furner. “It increased last year. It’s uneven across the country. It’s not in every market. Some markets are higher than others.”
Over the past few years, Walmart has been taking significant steps to curb retail theft at its stores. For example, the retailer has installed cameras that are embedded with artificial intelligence to monitor checkouts and prevent theft in thousands of its stores.
It has also removed self-checkout machines at a number of its stores. The self-service kiosks have become a growing source for retail theft for retailers across the country.
Also, some consumers recently discovered that they can scan Great Value items through self-checkout machines at Walmart without using a barcode, which could help prevent theft as the machines detect items more easily. But in a statement to TheStreet in September, a Walmart spokesperson denied that the self-checkout feature is being tested to prevent retail theft.
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