As consumers grow tired of retailers’ increasing utilization of locked display cases, cable ties and electronic tags, many are switching to digital channels to eliminate this major friction point, Amazon CEO Andy Jassy noted.
On the eCommerce giant’s earnings call Thursday (Aug. 1), Jassy spoke to how these theft-prevention measures’ negative impact on the in-store experience is boosting adoption of Amazon Pharmacy.
“When you think about the experience and the speed and ease with which you can order [from us] versus walking 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,” Jassy said. “[There’s] a lot of shoplifting going on in the stores. So, the combination of what’s happening in the physical world and how [we’ve improved] our pharmacy experience is driving a lot of customer resonance and buying behavior.”
The rise in concerns about shoplifting and organized retail crime has compelled retailers to adopt more stringent security measures. Products ranging from high-end cosmetics to everyday essentials are now often encased in plastic or metal enclosures, accessible only with the assistance of store personnel. While this approach may reduce shrink, it also introduces a layer of friction into the shopping journey that can erode customer loyalty.
Consumers may feel as though they are being treated as potential thieves, leading to frustration and resentment. Moreover, the need to locate a store associate to unlock items can be time-consuming and disruptive. Shoppers accustomed to quick and convenient access to products now face the inconvenience of locating store associates to unlock cases. This added step can be frustrating, especially in stores with understaffed floors, leading to longer wait times and potential abandonment of purchases.
For instance, a shopper needing a simple item like shaving cream might have to wait several minutes for an employee to retrieve it. This delay not only disrupts the shopping flow but also diminishes the overall customer experience. In an era where convenience is paramount, such impediments can significantly affect shopper satisfaction.
The long-term impact of locked cases on customer loyalty is a pressing concern for retailers. Frictionless shopping experiences are critical components of customer loyalty. PYMNTS Intelligence’s report last year “Consumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers” revealed that, when buying non-grocery retail products, more two-thirds of shoppers cited ease and convenience as key factors influencing their choice of merchant.
Some retailers are experimenting with alternative security measures that aim to strike a better balance between loss prevention and customer experience. For instance, some are turning to smart carts to offer a more theft-proof self-checkout solution than the traditional kiosks. Walmart-owned Sam’s Club has been replacing the practice of verifying receipts as shoppers exit the store with artificial intelligence (AI)-powered technology that can visually scan customers’ carts.
Ultimately, the success of any security strategy depends on its ability to protect the bottom line without alienating customers. Retailers that can find the right equilibrium between security and service will be best positioned to thrive in an increasingly challenging retail environment.
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