The modern retail landscape looks a lot different than it did several years ago.
For one, consumers are far more price sensitive than they once were.
Related: Struggling retail chain closing 27 stores, locations revealed
While it’s true that most of us have probably always enjoyed saving money, consumers are feeling the pinch a little extra in recent years as persistently high inflation puts pressure on our budgets.
The latest data from the Consumer Price Index shows that prices were up 0.5% month over month in February, putting the annual rate of inflation at a hotter than expected 3%.
Here’s a look at how some the price of several items and services changed month month:
Food: increase 0.5%Energy: increase 1.1%Fuel oil: increase 6.2%New vehicles: unchangedUsed vehicles: increase 2.2%Apparel: decrease 1.4%Shelter: increase 0.4%Transportation services: increase 1.8%Medical care commodities: increase 1.2%
Walmart food and grocery section, which offers value to many cost-conscious customers.
Walmart
High prices have outsized effects
Prices aren’t coming down anytime soon, and that’s had an affect on how many people shop.
Some customers may choose to be less brand loyal, instead going to the retailer where prices are lowest.
Other people have gotten more desperate, and the rate of retail crime has spiked in recent years.
Especially after COVID-19, many retailers have struggled with an increase in inventory shrink, of the industry term for the loss of goods due to theft or other issues.
It’s a pervasive issue that few retailers have been able to solve. Some retailers have hired more security guards and stationed them throughout their stores. Others have revoked self-checkout kiosks. And others simply let it happen, unable to prosecute every shoplifter, particularly in high foot traffic areas.
Target CEO Brian Cornell has expressed his frustration with the ongoing issue.
“The unfortunate fact is violent incidents are increasing at our stores and across the entire retail industry. And when products are stolen, simply put they are no longer available for guests who depend on them,” he said.
“Left unchecked, organized retail crime degrades the communities we call home. As we work to address this problem, the safety of our guests and our team members will always be our primary concern. Beyond safety concerns, worsening shrink rates are putting significant pressure on our financial results.”
Target said it lost $500 million in 2023 due to inventory shrink.
Retailer finds creative solution
GO Outdoors, a popular outdoor apparel and accessory retailer, has found one solution though.
The U.K.-based retailer is testing out a new body camera option for its employees, allowing its workers to wear camera equipment during their shifts to catch any potential misdeeds and to prevent further issues in stores.
And the results have been an initial success.
“Body cameras have been a game-changer. They’ve not only deterred theft but also increased confidence amongst staff that they are safe when they come to work. The added layer of protection has been well received by our genuine customers,” Claire Cowie, a store manager, said.
“It’s brought a new level of trust and transparency to our store. Crucially, the business has been proactive in equipping us with these tools, enabling us to react swiftly and effectively to the concerning increase in retail crime we’ve faced.”
The store will reportedly test the option and roll it out to other locations if needed.
