Some stores have recently become the target of shoplifting, flash-mob robberies, break-ins, and thefts mid-supply chain, compelling retailers to take a radical approach to product shrink, reports The Washington Post.
A Giant Food store in Washington D.C. will remove all national labels from its beauty and health aisles in the next few weeks to combat theft that is affecting retailers of all sizes.
“We want to continue to be able to serve the community, but we can’t do so at the level of significant loss or risk to our associates that we have today,” said Giant president Ira Kress. Product shrink from shoplifting has been a problem among top regional and national retailers.
Dollar Tree, in addition to other discount and convenience retailers, is locking up larger portions of its products. The discount chain reported a 30 percent decline in gross profit margin last quarter which it attributes to shrink.
In Chicago, Walgreens launched an anti-theft store with only two aisles of “low-value” products, including cheap snacks, with the rest of the items kept behind the counter. The only way to purchase them is digitally through the Walgreens app or website.
Theft has forced many grocery giants, including Walmart and Target, to shut down in key urban areas. Earlier this year, a Whole Foods in San Francisco was forced to close because of crime. Before closing, a former manager of the store told The Washington Post that the retailer placed fliers on shelves instructing customers to contact employees to purchase high-value merchandise. Full Story (Subscription required)
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