Anti-theft measures in stores push customers to Amazon, says CEO

Amazon CEO Andy Jassy recently noted that traditional drug stores implementing anti-theft measures, like locking products behind glass cases, are pushing more customers to shop online to avoid the hassle—benefiting Amazon’s pharmacy services.

Jassy’s comments come as major pharmacy chains like Walgreens, CVS and Rite Aid have faced economic challenges and changing consumer behaviors, leading to hundreds of store closures and, in Rite Aid’s case, bankruptcy.

Several of these retailers have in-store anti-theft measures that can frustrate shoppers. People do not prefer locked-up cases and the inconvenience of seeking assistance to access items.

Retailers securing items can negatively impact sales. Joe Budano, CEO of anti-theft tech company Indyme, mentioned that such measures can reduce sales by 15% to 25%.

While retailers are aware of the impact, some CEOs, like Walmart’s Doug McMillon, are more worried about shoplifting, which they believe could result in store closures and higher prices for consumers.

Ironically, some stolen goods from physical stores end up being sold on platforms like Amazon, despite the company’s efforts to prevent such sales.

Overall, as retailers focus on theft prevention, they risk losing customers to online stores like Amazon.