Retail theft has become an increasing concern for major retailers across the United States. Once reserved for high-value items like electronics and designer apparel, theft prevention measures now extend to everyday essentials such as toothpaste, deodorant, and detergent. Frustrated customers often face long waits for store employees to unlock cabinets, leading to a decline in customer satisfaction and brand loyalty. 

With the rise of organized retail crime, retailers are looking for innovative solutions that both secure merchandise and enhance the customer shopping experience. Bailiwick, a trusted technology deployment partner, has played a pivotal role in helping major retailers implement modern loss prevention solutions, including the deployment of digital locks. 

The Growing Need for Smarter Security

A recent article in the Los Angeles Times highlighted the increasing prevalence of locked merchandise in retail stores, a response to what some retailers describe as an “epidemic” of shoplifting. Traditional locking mechanisms have been met with customer frustration, with some shoppers opting to buy products online rather than endure long waits for store assistance. 

Joe Hinrichs, Vice President of IT and Product Development at Bailiwick, acknowledges this challenge: “Many customers are turning away from traditional retailers because they get increasingly frustrated when products such as toothpaste and detergent aren’t consistently available on shelves because of theft. Even though these products are not high-value items, they are targets for organized crime rings because they can easily be sold on a secondary market.” 

A Smarter Alternative: Digital Locking Solutions

To address this issue, Bailiwick has partnered with a hardware manufacturer and a cybersecurity software firm to develop a cutting-edge digital locking system. This technology allows retailers to secure merchandise while ensuring customers can access products quickly and conveniently. 

 “Some retailers are looking at locking these items but doing so in such a way that makes it easy for customers to gain access to them,” explains Hinrichs.  Bailiwick’s solution, with a simple scan of a code, users can unlock cabinets containing locked merchandise. This not only speeds up the service time but also provides enhanced security and operational insights. 

“Bailiwick has worked with our partners to devise a solution that allows those authorized, be it store associates or loyalty members to open locked cabinets with a scanner or smart device,” said Hinrichs. “This allows customers access to merchandise without waiting for store personnel to unlock the product with a physical key.”

Benefits Beyond Security

Beyond securing products from theft, this digital locking system provides valuable data insights to retailers. Store managers can track access to merchandise, creating an audit trail that enhances operational security. “With this system, store management is provided with an audit trail that reports who opened a case and how long it stayed open,” said Hinrichs.  

Additionally, this technology can integrate with loyalty programs, allowing retailers to offer personalized marketing to their best customers. 

The technology allows retailers to track customers who are in a loyalty program. Companies can track what stores high-valued customers visit and when, and what products they might be drawn to. This allows for highly personalized marketing programs targeting your most valuable customers.