CVS tries to solve locked merchandise problem with new loyalty feature

As retailers strive to improve in-store experiences and beef up loyalty programs, CVS is testing one stone for those two birds. As part of the recent revamp of its mobile app, CVS is letting loyalty program members use the retailer's app to access locked-up products in select stores.

• To use the feature, users must be logged in to the CVS app, on the local store’s Wi-Fi, and enable their device’s Bluetooth, according to the Wall Street Journal.
• Currently, only three stores offer this feature. A larger pilot is planned for 10 to15 additional locations, with the end goal of making it available across all CVS locations.

Why it matters: Retailers like CVS, Target, and Walmart are locking up products to prevent theft—at the expense of the customer experience.

• Shoppers wait an average of 7.7 minutes for items to be unlocked, according to data from RDSolutions reported by Retail Brew.
• Mass retailers have the highest wait time (8.6 minutes) and drug stores have the lowest (6.9 minutes).

While the majority (62%) of consumers will wait for assistance with locked-up merchandise, over a quarter (27%) would rather switch retailers or abandon a purchase altogether instead of waiting, according to data from Numerator.

Between the lines: Allowing consumers to unlock products via mobile app seems like more of a move to encourage loyalty program adoption rather than an attempt to streamline the shopping process.

• A host of retailers—including Save A Lot, Lowe's, and Wayfair—have recently launched or revamped US loyalty programs. This effort comes as US consumers held an average of 19 loyalty program memberships per person in 2024—the highest rate in 10 years, according to The Bond Loyalty Report.

“Consumers already frustrated by locked-up products may become even more annoyed that they have to download an app and give a retailer their personal information to get products quickly,” said our analyst Sara Lebow.

However, existing loyalty members may see app-based product unlocking as an extra perk.

• 60% of consumers worldwide would switch brands/retailers if loyalty membership holders get a personalized experience compared with non-members, per November 2024 data from Capgemini.
• Over a quarter (27%) of US shoppers use retail apps to make shopping trips quicker, according to May 2024 data from SPAR Group.

The bottom line: Retailers are realizing that locking up products can impact their bottom lines.

• “When you lock things up, for example, you don’t sell as many of them,” Walgreens CEO Tim Wentworth noted in a recent earnings call.
• Retailers that lock up products must find creative ways to balance theft prevention with customer convenience.

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