How Unified Commerce May Help Canadian Tire And CVS Curb Shoplifting

Posted on October 28, 2024 by CBSF
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How Unified Commerce May Help Canadian Tire And CVS Curb Shoplifting

Posted on October 28, 2024 by CBSF
 

New Technology May Help Balance Security And The Shopping Experience

Unless you’re new to retail, you already know that one of the biggest challenges of the past three years is retail theft.

It’s a major headache for retailers, big and small.

Let’s break down the numbers:

  • Canadian Grocer reports shoplifting rates jumped 31% from 2021 to 2022.
  • Even more alarming, the Retail Council of Canada (RCC) notes some members have seen thefts skyrocket by 300% since 2020, with annual losses hitting a staggering $5 billion.
  • Retail giants like Target, Five Below, Dick’s Sporting Goods, and Walgreens keep flagging shrinkage as a key concern in their earnings reports.

There’s good news, though. Our recent collaboration with Shoppers Drug Mart led to a dramatic 90%+ reduction in shoplifting, proving that effective solutions do exist.

But here’s the catch: beefing up security can sacrifice customer experience by adding wait time.

Keeping products secure while also keeping customers happy is a tricky balancing act.

Tech-Driven Solutions: A New Approach

So, what’s the solution? Forward-thinking retailers are now testing innovative approaches that blend locked displays with mobile shopping apps. The goal? Tackle theft head-on without turning the shopping experience into a hassle.

Let’s dive into how two major players in the retail game are taking on this challenge.

App Evolution

Canadian Tire has been leading the retail digital transformation since 2010. What started as a simple app for scanning barcodes and browsing flyers has evolved into a sophisticated platform that’s now playing a surprising role in loss prevention.

The Canadian Tire: Shop Smarter app has seen steady growth in both functionality and popularity. As of June 2023, it was clocking in at an impressive 111,000 monthly downloads, according to Statistica. But it’s not just about numbers – it’s about smart strategy.

BOPIS Benefits

As an early adopter of Unified Commerce strategies, Canadian Tire was able to leverage its extensive network of physical stores to quickly implement Buy Online, Pickup In-Store (BOPIS) capabilities during the pandemic. This forward-thinking approach has resulted in significant benefits:

  • Cost savings: The company reports saving about 25% on freight expenses through optimized fulfillment strategies.
  • Improved service levels: Canadian Tire has set and consistently achieved a 99% next-day shipping service level.
  • Better inventory management: BOPIS allows for more efficient use of in-store inventory for online orders.

Leveraging BOPIS for Loss Prevention.

Now, Canadian Tire is taking its app to the next level in the fight against retail theft.

Here’s how they’re doing it:

  • By integrating the app into the in-store shopping experience, customers can now scan empty boxes or secure products and purchase them directly through their phones.
  • They then choose to have the goods shipped home or placed in a secure locker at the front of the store.
  • When their shopping is complete, customers receive a notification and security code to retrieve their items.

This innovative approach tackles theft prevention while enhancing the customer experience. Gone are the days of flagging down staff to unlock cabinets or waiting for cashiers to swap empty boxes for real goods. It’s a win-win solution that protects inventory without sacrificing convenience.

By leveraging existing technology and tweaking its BOPIS processes, Canadian Tire has found a way to implement theft prevention measures while actually improving the shopping experience. It’s a model that other retailers would do well to consider in their own loss prevention strategies. Speaking of which, let’s look at how another major retailer is approaching this challenge from a different angle.

While Canadian Tire’s approach focuses on secure pickup, CVS is tackling theft prevention from another angle: letting customers unlock the cases themselves with their phones.

In September, Zachary Dennett, VP of merchandising at CVS, shared this “big milestone for convenience” on LinkedIn: “Customers can now unlock products with the app!”

CVS spokesperson Amy Thibault explained to Retail Brew that this is “a very small pilot” and that CVS was “not ready to share any information.”

The Customer Experience: Convenience Meets Security

For shoppers, it’s a welcome change from the typical locked-case experience: no more pushing buttons, waiting endlessly, or tracking down staff for assistance.

But here’s the kicker – while shoppers will certainly benefit, the real winners here might just be the retailers themselves. By removing this friction point in the customer journey, CVS could see a significant boost in sales of high-value, frequently stolen items.

It’s another clever way to balance security needs with customer convenience – and it might just set a new standard for in-store theft prevention.

As we’ve seen from both Canadian Tire and CVS, innovative technology solutions can play a crucial role in balancing theft prevention with customer experience. By leveraging mobile apps and smart locker systems, retailers can protect their inventory while still providing a seamless shopping experience. These approaches demonstrate that with creative thinking, it’s possible to enhance security without sacrificing customer satisfaction.

Balancing Act: Security, Convenience, and Sales

Our team can help you develop a plan to address your retail shelving and display needs – including how to use lockup displays and other security solutions to curb theft. 

Contact us today to schedule a consultation and learn how we can help you create a safer shopping environment for your customers and employees.

Additional Resources

Video Transcription

This may look like an electric razor, but it’s actually just an empty box.

And this empty box is a simple, cost-effective way to curb in-store theft.

You see, the empty box is a placeholder for the real product. Shoppers grab the box, go to the counter, and cashiers swap it for the real product.

But it raises the question, does this approach provide the best customer experience? Or can technology and a tweak to existing BOPIS (buy online pickup in-store) processes give retailers the theft prevention measures they’re looking for…with an improved customer experience?

Canadian Tire thinks so.

By incorporating their app into the brick-and-mortar shopping experience, customers can scan empty boxes or secure products, purchase them directly in the app and choose to have the goods shipped to their home or placed in a secure locker at the front of the store. And when they are done shopping, they’re sent a security code to retrieve their item. 

Shoppers no longer have to flag down staff to unlock cabinets or wait for cashiers to swap out empty boxes for real goods.

And we think that innovative approach is worth talking about.