Each time a supermarket has a shopping cart stolen or damaged, it's out 100 bucks. While at first blush that doesn't appear to be a lot of money, it can add up.
According to the National Supermarket Research Group, shopping cart theft and vandalism losses total several hundred million dollars annually. The shopping cart theft rate is one every 90 seconds. Moreover, statistics show a store can end up replacing up to 35% of its cart fleet every year.
However, new antitheft technologies are helping supermarket operators get a handle on the problem. These new technologies are becoming increasingly crucial to supermarket operators since many are beginning to pilot more expensive interactive shopping carts equipped with technology that makes the carts worth several hundred dollars apiece (see related story, Page 35).
St. Louis-based Schnuck's, with 92 stores, is one of five retailers SN spoke with who have installed a shopping cart security system to safeguard against carts being stolen or vandalized. "Shopping cart theft at a few of our stores had become a problem," said Lori Willis, director of communications. "In addition to the loss of carts we also paid for the retrieval of carts.
"This is a problem across the country. Retailers are losing carts at an alarming rate. To maintain profitability of stores, cart protection is key."
Schnuck's isn't alone. Officials at Price Chopper, Schenectady, N.Y., said cart replacement was costing the chain $100,000 a year.
Schnuck's City Plaza store in downtown St. Louis, for example, was reporting losses of 30 to 40 carts per month. Officials there struggled with trying to remedy the situation. However, after installing an electronic security system, the situation improved greatly. Following the installation, that store has not lost a single cart. Three other Schnuck stores with a high rate of cart losses installed the same system. Others are also considering it, Willis said.
The system, manufactured by Carttronics, San Diego, uses an antenna embedded in the perimeter of the store's parking lot. One of the front wheels of the cart has a radio receiver embedded in it. When pushed past the antenna line, a braking shell comes under the wheel, raising it and rendering it impossible to move. Lines are put down on the parking lot to alert customers where the perimeter is.
"Customers are no longer inconvenienced by a shortage of carts, particularly during peak shopping periods," said Willis. "Additionally, customers have thanked us for keeping abandoned carts off the streets and out of people's yards.
"They say we have improved the look of the neighborhood. We have found another benefit: When carts are kept on the lot and in our view, we can keep them in better repair," Willis added.
According to industry experts, an infrared anti-theft cart system costs about $100 per cart to install. The average supermarket has about 200 carts. Experts estimate there is a 12-to-18 month time frame to recoup the return on the investment.
One of the nation's largest supermarket retailers, Kroger, Cincinnati, with 2,359 stores, recently reported it is piloting the Carttronics system.
"Shopping carts can cost $100 apiece," said Kroger spokesman Gary Rhodes in a published Associated Press report. "When you have a few carts stolen each week, that can quickly add up to a significant cost." He declined to be interviewed by SN.
Price Chopper went to the electronic theft-prevention system in an effort to stop the red ink from flowing, Gage said. They, too, are using the Carttronics system.
"These systems offer expense controls and we are looking for the perfect solution," Gage said.
The 102-unit chain had tested several cart security systems. Several weeks ago, it decided to try the Carttronics system. Gage said the chain was concerned about violating local littering laws and neighborhood complaints. Moreover, Price Chopper was also worried about the cost of retrieving carts, as well as the need to repair or replace them.
Price Chopper had tested a variety of systems ranging from the corral style -- where carts are prevented from leaving the store -- to wheel-locking devices.
"We have yet to find an ideal system; however, we are optimistic with the most recently installed system," Gage said.
"Installing a cart security system has saved us a tremendous amount of money," said Bill Roulette, vice president, operations, Gelson's Markets, Encino, Calif. The operator said he realized savings beyond the cost of the carts he was losing.
One Gelson's store in West Hollywood had a guard posted in the parking lot eight hours per day, seven days per week. It also did a daily sweep of the neighborhood to pick up errant carts. Gelson's installed a cart security system in these two units at the beginning of the year, eliminated the guards and cart pickup service, and has lost only three carts in six months.
At Save-A-Lot's, Roxbury, Mass., store, 10 carts per week were put on the missing list. Shopping cart bounty hunters were sent into the neighborhood to retrieve carts six times per week. An infrared cart-security system was installed and cart loss has been virtually eliminated. Save-A-Lot installed a security system manufactured by KartSaver, Sacramento, Calif. Neighborhood sweeps for carts have been reduced to three times per week, according to Harold Slawsby, owner.
"We had 93 carts on the premises when the system was installed," Slawsby said. "Today we have 151.
"The cart-retrieval people even found older carts that we had written off. Carts are now available when customers need them and the neighbors are happy we have eliminated cart litter," he added.
"When looking at these systems you have to look at your losses and costs," cautioned Slawsby. "Our suburban unit loses about 25 carts per year. For that unit, it just doesn't make sense."
When these security systems are installed, consumer education is paramount, retailers said. Save-A-Lot had their security officer hand out fliers at the door, and in-store announcements were made.
"We did our homework when it came to communicating with our customers what the system was, what it would look like, and how it would save them money," said Roulette. "We put up signs, included information in our ads, had signs put up in the driveways and produced bag stuffers. It was quite an effort, but our customers appreciated the information."
In an effort to maintain high customer-service levels, Kroger and others made two-wheeled carts available so shoppers could still wheel orders home.
