As Stores Lock Down Products, Shoppers Head to Amazon

Big-box stores like Walmart and Target are keeping a growing range of items locked up in plexiglass cases, but it might be costing them more in business than they would have lost to sticky fingers if their goods were more accessible. Francisco Velasquez at Quartz says sales figures strongly suggest that customer frustration with the extra security is "playing into Amazon's hands." He notes that a study from market research firm Numerator found that almost a quarter of shoppers abandon their purchases when the products they want are locked up and they have to find an employee to open a case—and those customers are more likely to turn to online shopping.

Last month, Amazon said it had seen strong growth in its "essentials" category. "We're continuing to lower prices and ship even more quickly," Amazon CEO Andy Jassy said during an Oct. 31 earnings call. "We can see this resonating with customers." He described traditional pharmacies as "forlorn physical venues" with inventory "behind locked shelves." Amazon CFO Brian Olsavsky said customers who buy things like groceries and cosmetics on the platform "build bigger baskets, shop more frequently, and spend more on Amazon."

Velasquez says the message for retailers is clear: If they don't find a way to "balance security and please customers, they risk losing business to competitors that offer an easier shopping experience." Insiders tell Bloomberg that Walmart is testing a way to make things easier for customers. The sources say the chain is testing technology that allows people to open locked cases with their cellphones. They say the technology is already being used by employees in hundreds of Walmart stores and the company is considering extending it to Walmart+ loyalty members. CVS is also testing mobile unlocking, KTLA reports. (More retail sales stories.)