Retail Pharmacies Rethink Product Lockdowns as Digital Solutions Aim to Fix Security
As retail pharmacies like Walgreens move toward ending product lockdowns, the decision reflects a change in consumer behavior and a response to rising security concerns.
During the company’s Q1 2025 earnings call, Walgreens CEO Tim Wentworth told analysts that locking up products to stem shoplifting has hurt sales, underscoring the tension between safeguarding goods and providing an accessible, seamless shopping experience.
More consumers are now shopping digitally than ever before, according to PYMNTS Intelligence, and retail pharmacies face the dual challenge of adapting to a more digitally-savvy customer base and addressing security concerns in ways that don’t detract from their in-store experience.
Read more: Five Years Post-COVID, We’re Really Not Shopping (or Doing Much Else) Like It’s 2019
As Katy Dubinsky, founder and CEO of Vitalize, said in an interview with PYMNTS, the strategy of locking up products has caused customer frustration, making shopping slower and less convenient, ultimately pushing shoppers toward online alternatives.
“It was done to reduce theft, but it ended up pushing customers toward easier options like online shopping,” Dubinsky said. “Pharmacies need to focus on making the shopping experience faster and more welcoming. If this marks the end of product lockdowns, pharmacies should focus on creating faster, more welcoming shopping experiences to win back customers.”
One key theme retail pharmacies should focus on is the digital experience, Dubinsky added.
“They can improve apps for easier online shopping and offer quick in-store pickups,” she said. “Subscription options for common products and posting helpful tips on social media could also increase engagement.”
Dubinsky said she the end of product lockdowns.
“Instead, they can use security tags on high-risk products or place those items near the checkout area where theft is harder,” she said. “Have a loss prevention officer monitoring cameras during the hours of operation and have security by the door to ensure no items are removed without being paid for.”
This change is crucial, Dubinsky added, as locking up products erodes trust, making customers feel unwelcome.
“Loyalty can be rebuilt by improving access to products, creating a friendlier shopping environment, and making customers feel valued again,” she told PYMNTS.
Combining the digital and in-store experience will go a long way toward rebuilding trust and increasing in-store engagement, Dubinsky noted.
According to the PYMNTS Intelligence report, “2024 Global Digital Shopping Index: U.S. Edition,” created in collaboration with Visa Acceptance Solutions, one-third of U.S. consumers are click-and-mortar shoppers, who blend digital features with in-store experiences. The report noted that 19% of consumers surveyed prefer shopping with digital tech in-store, 11% opt for online orders with in-store pickup, and 75% want to use their preferred payment methods while shopping.
Yet, while retailers adapt to changing consumer preferences, concerns over shoplifting and organized retail crime have pushed retailers to implement stricter security measures. Items from luxury cosmetics to everyday essentials are often locked in plastic or metal cases that require assistance from store staff to access. While this may help reduce theft, it adds friction to the shopping experience, which can negatively impact customer loyalty.
The impact of locked cases on customer loyalty is a significant issue for retailers, as seamless shopping experiences are essential for maintaining customer satisfaction. Another PYMNTS Intelligence report, “Consumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers,” found more than two-thirds of shoppers considered ease and convenience the most important factors when choosing a retailer for non-grocery purchases.
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