Under lock and key
May I please see that item?” is not a question many shoppers seeking sexual wellness products want to ask. But with more retail locations locking up these products, consumers can choose embarrassment and hunt down hard-to-find sales associates or they can shop elsewhere—or online.
While locked products deter theft, they also deter sales in this highly sensitive category. According to an article in Fortune, sales can decline 15% to 25%when merchandise is locked. For sexual wellness items, the figure is likely higher. As for inconvenience, a test conducted by The San Francisco Standard found shoppers had to wait anywhere from 15 seconds to three minutes, 20 seconds for a salesperson to unlock merchandise. The locking tactic also reduces impulse purchasing. Industry experts estimate that up to 30% of retail locations lock sexual wellness products.
Some high-ticket items and store locations do have high shrink risks. But generally, experts believe locking many sexual wellness items is unnecessary.
Lowe’s, Kroger, Safeway, Family Dollar and U.K.- based Sainsbury have experimented with Indyme’s Freedom Case technology across various categories.
Customers sign up with their mobile numbers and receive a custom PIN to access a locked shelf. But when Sainsbury made its loyalty program part of the process, shoppers complained there were too many steps.
[Read more: Retail pharmacies address challenges around health equity]
Okamoto is placing source tags inside condom boxes. If people try to pilfer items, sensors go off. The downside is that sensors increase prices by about 10%. “We’ve been asked to do it to reduce loss,” said Carrozza.
Sexual Wellness Continues Growing
The U.S. market for sexual wellness products continues growing, with U.S. retail sales reaching about $12 billion in 2023, up almost a billion dollars from 2022.
The momentum should continue, with Vision Research Reports predicting sales of more than $23 billion by 2032. E-commerce comprises the lion’s share of sales and is experiencing the fastest growth. At the same time, big box retailers are devoting more shelf space to the category and are increasing revenue. In products, sex toys (84%) dominated sales, partly due to some higher price points. And personal lubricants are expected to experience the highest CAGR during the forecast period.
Source: VisionResearchReports.com