Target's Lock-Up Policy: CEO Cornell Asserts Customer Appreciation Amid Frustration
Despite facing customer frustration over locking up merchandise in an attempt to curb theft, Target CEO Brian Cornell insists that many shoppers have expressed gratitude for the measure. In a recent media call discussing Target’s fiscal third-quarter earnings, Cornell addressed concerns regarding the impact of this policy on sales and customer experience.
Responding to a query from CNBC about potential sales losses due to shoppers’ dissatisfaction with waiting for store employees to unlock cases, Cornell claimed a surprisingly positive shopper response. “I’ve visited stores on both coasts where items are locked up, and the feedback from guests is a big thank you,” he said. “We’re ensuring the availability of the brands they need, and we’ve invested in labor to assist our guests promptly.”
Cornell’s assertion contradicts the common sentiment among many shoppers who have voiced their frustration on social media platforms. Customers have complained about the inconvenience of waiting for assistance to access basic items like body wash, toothpaste, and deodorant, which are now often kept behind glass panels. Kurt Jetta, a shopper from Delray Beach, Florida, vented his frustration on X (formerly known as Twitter), lamenting the lack of available staff to unlock items, leading to lost sales for the retailer.
Despite these grievances, Cornell remained firm in his stance, emphasizing that maintaining in-stock levels is a priority for Target’s clientele. “In many cases, being in stock is more critical than the inconvenience of waiting,” he reiterated. “Our guests appreciate our efforts to ensure product safety and availability.”
Target's approach to theft prevention by locking up merchandise is a part of the retailer's broader strategy to balance customer experience with security concerns. The move has been seen as necessary following a string of store closures in cities like New York, San Francisco, Seattle, and Portland, Oregon, due to rampant theft issues.
This policy comes after Target's multi-billion-dollar investment to enhance the shopping experience, including store remodels and convenient services like the “Drive Up” program. However, a survey by Coresight Research in August indicated that 26% of consumers might opt to shop elsewhere or move online if faced with locked merchandise in stores.
As Target navigates the challenges of theft and customer satisfaction, the retailer's in-stock levels have reportedly improved, with a 14% year-over-year inventory reduction. Despite these improvements, the debate over the effectiveness and impact of the lock-up policy continues, with Cornell’s optimistic view clashing with the frustrations expressed by a significant portion of Target's customer base.
