Target's CEO on why deodorant is still locked up despite 'optimism' on shoplifting
Target (TGT) CEO Brian Cornell expresses cautious optimism about managing retail crime, even as the company continues its controversial practice of locking up essential items.
“We do not like locking up product, but we like running stores, and we want to keep our stores open,” Cornell told Yahoo Finance (VZ) in an interview.
The company will keep essentials like body wash, deodorant, and undergarments secured for the foreseeable future. Customers will need to swipe their hands in front of the small devices set up at the glass barriers to access those items. Cornell did not reveal whether Target has plans to remove the glass shelves anytime soon.
Cornell, who has led Target for a decade, said that increased government support, particularly in California, has been instrumental in combating retail crime. He also highlighted the role of the Department of Homeland Security as a critical ally.
“I feel so much better today than I did a year ago,” Cornell said.
For the last few years, businesses across the U.S. have claimed that retail theft poses significant challenges to operations, leading to store closures and heightened security measures. Major retailers, including Walmart (WMT), Dollar General (DG), and T.J. Maxx (TJX), have reported feeling the impact.
Beyond the help from the government, Target has implemented several new measures to curb retail crime.
Earlier this week, the company updated its return policy and said that it “reserves the right to refuse returns, refunds, and exchanges” if it suspects any fraudulent activity.
In March, Target announced a new self-checkout strategy, which would limit the number of items shoppers could scan to 10 or less. In April, it introduced new self-checkout technology to alert shoppers if they forget to scan an item.
Target said earlier this month it would hire 100,000 seasonal employees to help manage the holiday rush, further underscoring its efforts to maintain operational efficiency and security.
Target is not the only retailer experimenting with new theft deterrent solutions. T.J. Maxx, for instance, has implemented a strategy where store employees wear body cameras. The company’s CFO reported that this measure “definitely feels like it’s playing a role” in reducing theft.
