Shrinkage reduction: Target follows Walmart in testing digital locks on store shelves

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 |  
Jun 2025
 |  
Bloomberg
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What: Target introduces smartphone-based technology to unlock store shelves, aiming to reduce theft while improving shopping experience for customers and staff.

Why it is important: This initiative reflects the retail industry's shift toward smart security solutions that enhance rather than hinder the shopping experience.

Target Corp is implementing new technology that enables store shelves to be unlocked via smartphone, addressing both security concerns and customer experience challenges. The system will allow staff to unlock secured cases more efficiently than traditional key-based methods, with potential extension to Shipt delivery workers and paid membership program users. This digital tool, currently in active testing, represents Target's innovative approach to combating shoplifting, which has significantly impacted retail operations through both direct product losses and foregone profits. The initiative comes as retailers industry-wide grapple with the balance between securing merchandise and maintaining customer satisfaction, as locked shelves have become a source of frustration for shoppers and additional work for employees. Target executives note recent improvements in shrink management, suggesting this technology is part of a broader strategy to enhance security measures.

IADS Notes: Target's digital shelf-locking initiative represents a significant evolution in retail security technology. According to Financial Times' June 2025 coverage , retailers invested £1.8bn in security measures last year to combat losses that reached £2.2bn, highlighting the industry's determination to find innovative solutions. The Robin Report's August 2024 analysis revealed how traditional security measures were creating "untailing", - where loss prevention efforts unintentionally hindered sales by creating friction in the shopping experience. Retail Dive's February 2024 report showed that 61% of retailers plan to use RFID by 2026, demonstrating the industry's shift toward more sophisticated security solutions. Journal du Net's January 2025 coverage emphasised how retailers are increasingly focused on balancing security with seamless customer experiences through smart technology integration. Target's smartphone-based unlocking system shows how retailers are evolving beyond traditional security measures to create solutions that protect merchandise while maintaining customer convenience.


Shrinkage reduction: Target follows Walmart in testing digital locks on store shelves