How Locked Display Cases Impact Visual Merchandising and Sales

By Kelly Jacobson | October 24, 2024

Balancing Loss Prevention & Visual Merchandising: Rethinking Locked Display Cases

According to the Council on Criminal Justice (CCJ), all types of crime dropped in the first half of 2024 except one

And it’s a growing problem for retailers: Shoplifting

In the report, the CCJ, a nonpartisan think tank that focuses on criminal justice, notes that shoplifting rose 24% from January to June 2024, even as every other type of crime dropped. 

Unfortunately, that percentage may actually be even higher. 

“There may be a very large discrepancy between actual shoplifting incidents and the shoplifting that is reported to police,” Adam Gelb, president and CEO of CCJ, told CBS News.

Many large retailers choose to take dramatic action against theft and organized retail crime. 

For example, Target closed nine stores last year in major cities, including New York City, Seattle, Portland, and San Francisco. Walgreens also closed five stores.

Both retailers directly cited shoplifting as a safety jeopardization for employees and guests.

Other retailers choose more discrete methods to keep shoplifters at bay, like video surveillance, RFID technology, and less self-checkout lanes. 

One of the most popular choices to prevent inventory loss is the locked display case. 

A Bigger Retail Problem: Common Merchandise in Locked Display Cases

Typically, retailers put the most-lifted merchandise behind lock and key because they’re also some of the most expensive products: 

  • Electronics and small technologies (AirPods, printer cartridges, camera SD cards, charging cables) 
  • Makeup and beauty products 
  • Health supplements and vitamins
  • Over-the-counter medications 
  • Alcohol 
  • Tobacco products 

Occasionally, retailers put everyday merchandise in a locked display cabinet, like toothpaste, socks, and deodorant. It’s a seemingly random yet costly decision.

Locked Display Cases: A Visual Merchandising Conundrum  

Ironically, using locked display cases for products deters many responsible customers from purchasing them.

Large retailers are faced with the conundrum: Do we lose millions of dollars in sales from retail theft, or do we lose that money in providing an inconvenient customer experience?

An organized, breezy shopping experience is the foundation of visual merchandising. It’s well-known that anything that adds friction to the buying process will reduce sales.

So, when retailers lock sought-after products in a display case, they’re risking more than a shoplifting incident. They may lose a repeat customer.

Here’s why: 

  • Locked display cases are unsightly. Many companies can’t seamlessly incorporate a locked display case into their store branding. They’re a bulky, intimidating interruption for even a frequent shopper.

    Locked cases awkwardly stick out from aisles of organized, well-branded content, fixtures, and displays. It’s a visual merchandising nightmare that subtly apologizes and says, “We’re sorry, but we can’t trust any guest.”
  • Locked display cases are inconvenient. 55% of surveyed shoppers said when a product is locked up, they’ll try to find it elsewhere. They could look for the product online (which means your omnichannel retail strategy better be flawless), or they’ll go to a competitor.
  • Locked display cases hurt new brands and products. If a customer buys the same brand all the time, a locked case is an annoyance.

    However, if a customer wants to research brands, read labels, and compare products, a locked case is a terrible obstacle.

    Less than one in three shoppers will get a store employee to unlock the case. If someone is comparing products, it’s uncomfortable to have an employee stand over them, waiting to lock the case again.

    For the retailer, it’s wasted time. That employee would be better off resetting merchandise or upselling other customers.

    As Forbes said, “Customers who want to get the full product experience will gravitate to venues where that’s easy to do.”

    (And these venues aren’t willing to sacrifice visual merchandising standards when integrating loss prevention strategies.)

Harmonizing Loss Prevention and Visual Merchandising Strategies 

If locked display cases are unsightly, unbranded shopping nightmares for visual merchandising teams and customers, how else can retailers minimize loss prevention and organized retail crime?

The No. 1 answer is maintaining an organized store layout

A disorganized, chaotic store is a playground for criminals because it makes it harder for associates to spot missing merchandise –– or the person who took it.

Retailers can use visual merchandising software, like One Door, to adjust dynamic planograms and digital store layouts to help:

  • Employees become familiar with clear aisles and categorized products. This makes it easier to spot missing merchandise.  
  • Store planning teams coordinate where to add more subtle anti-theft measures, like security cameras and adequate lighting, and minimize blind spots with convex mirrors.
  • Visual merchandising teams organize where high-value items go, so multiple store associates and security guards can watch the open area. Updating and communicating new planograms quickly is especially helpful during highly anticipated, large-scale product launches. 
  • Retailers integrate other retail security technologies, like RFID, smart locks, and surveillance cameras, to get a holistic view of their stores and merchandise at all times. 

If retailers are unwilling to completely let go of locked display cases, in addition to maintaining an organized store layout, they can take notes from CVS. 

In a recent LinkedIn post, the Vice President of Merchandising for CVS, Zachary Dennett, announced a pilot program for the pharmacy giant. It allows customers to unlock display cases using their CVS Pharmacy app if they have an ExtraCare+ membership. 

This solution maintains visual merchandising standards by coordinating an omnichannel retail shopping experience, incorporating the brand throughout the interaction, and maintaining a high level of customer satisfaction through organized product displays. 

Organized retail crime, shoplifting, and general theft could be an existential problem for retailers, but disrupting a brand’s visual merchandising with locked display cases is not a proper answer. 

For retailers, the Band-Aid must be ripped off – not locked up.

If you’re interested in supporting shrink prevention with better visual merchandising and store planning, request a demo of One Door