Amazon has seen a boost in sales as shoppers bail on brick-and-mortar retailers where basic essentials are behind lock and key
Nearly one in four shoppers abandon their purchases when they can’t easily access the products they need, according to a study from market research firm Numerator.
For years, stores have relied on glass-encased displays to prevent theft, particularly in high-demand categories like cosmetics, pharmaceuticals, and tech. This practice, known in the industry as “shrink,” aims to protect inventory.
While the strategy might safeguard products, it’s also fueling customer frustration. As shoppers become more accustomed to the seamless experience of buying items online, locked shelves have started to feel like a major obstacle. That frustration is playing directly into Amazon’s hands. According to GlobalData, a data analytics and consulting firm, nearly $340 million in sales are lost due to locked-up items, while Amazon has seen nearly a $200 million jump in sales, as shoppers flock to its online platform.
During Amazon’s earnings call on Oct. 31, executives said they planned to focus on lower-priced categories including groceries and personal care products, which it said were “resonating with customers.” In July, Amazon’s Prime Day event saw strong sales for essential items, such as protein shakes and trash bags.
Amazon has long capitalized on the demand for convenience, and that trend isn’t limited to big-box retailers. Pharmacy giants Walgreens $WBA (WBA) and CVS (CVS) have also taken to locking up items, including medications.
During October’s earnings call, Amazon CEO Andy Jassy pointed out the shortcomings of traditional pharmacies, which account for over 90% of prescriptions in the U.S., for their “forlorn physical venues,” where much of the inventory is “behind locked shelves.”
“We think customers deserve better,” Jassy said, emphasizing that customers shouldn’t have to wait in line to get their medications only to find out about pricing at the register.
Walgreens, in response to allegedly rising theft and operational challenges, recently said it would close 1,200 stores. The move could further exacerbate accessibility for customers, ultimately leaving them with fewer options.
For brick-and-mortar stores, the message is clear: If retailers don’t find ways to balance security and please customers, they risk losing business to competitors that offer an easier shopping experience. Whether retailers can rethink their security strategies and keep customers coming back remains to be seen.
Target, for example, has shown little interest in changing its security policies. In September, CEO Brian Cornell confirmed that items like deodorants and undergarments would remain behind glass cases for the foreseeable future.
Amazon may not be locking up items in this way (at least for now), but it still faces stiff competition from Walmart, which has rapidly expanded it’s e-commerce business and recently hinted at the possibility that loyalty members would be able to unlock items with their smartphones. Walmart’s also pushing into pharmacy delivery, and like Amazon, it hopes to win big on convenience and speed.
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