An economics professor with Sudbury’s Laurentian University says a grocery store chain’s choice to lock up certain cheeses and instructing customers to ask a cashier for assistance is an indication of a broader problem.
Louis-Philippe Rochon says the issue points to a much bigger societal issue than simply trying to deter theft.
The signage, spotted at a Vancouver No Frills store owned by Loblaw, shows the locked up 250g wedges of President’s Choice Splendido Parmigiano-Reggiano and President’s Choice Splendido Grana Padano, priced at $9.99 each.
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“As much as [theft] is a problem for the supermarkets, I think it points to a bigger issue in society, which is the fact that the prices of groceries have gone up by 10 per cent on average or more… People can’t afford to eat… People have to resort to stealing to feed their families,” said Rochon.
The Greater Sudbury Police Service does not have specific numbers on people stealing from grocery stores but notes an overall rise in reported thefts over the past five years. Sarah Kaelas, a spokesperson with the police service, reports the number of thefts under $5,000 was 609 in 2019, but that figure rose to 834 last year.
However, Rochon believes the focus should be on the root causes of these crimes rather than on the acts themselves.
“This is a reflection of deep inequalities and food insecurity. We should not concentrate on shoplifting and theft. These are symptoms. What we should be concentrating on is what causes those.”
He believes rising production costs and supermarkets’ reactions are exacerbating the problem.
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Supermarkets have increased the price of the goods in order to compensate. But there’s also a little bit of greed going on in the supermarkets. The packages have gotten much smaller," said Rochon.
Rochon suggests the government should consider price controls to address these challenges. He says it is easier for the government to introduce such a policy now than it was 30 years ago.
I’m also curious about the logic of what items get locked up.
I went in a few shops recently, and all the toothbrushes were locked up. I know personal-care items tend to be the first things in the cages. Yet plenty of other items with higher value and margins are out in the open.
Is there some virtue-agenda in play? Don’t make it too easy to steal your way into healthy or presentable?
Stores all have internal inventory systems. There’s a record kept of every product that’s ever gone missing off shelves without someone paying for it. The companies know exactly what and how much people are stealing.
Source, 4 years working in retail.
I would guess the response surface is a function of wholesale cost, profit margin, and previous year’s losses (or current theft).
So something that is frequently stolen and has a high wholesale cost and/or low margin will be locked up first. Toothbrushes are easy to conceal and likely have a low margin so lock them up.
Something else might sell for more, but has a higher margin or lower loss rate. You might lose one, but selling another 5 makes up for the loss.
It has to cost less to install an expensive cage and pay for the labor to open it up everytime a customer wants something from it than losing the item to theft.