Increased theft as a side effect of sales promotion activities: An exploratory study

A combination of commonly used promotional activities, i.e., advertising, price reductions and increased exposure, was associated with increased thefts of six candy products. Thefts increased for each of the six products during the period the combination of promotional activities was used. Large increases in sales were observed for only two of the products. Sales of the other four products increased marginally or decreased in conjunction with promotional activities. When compared to normal sales conditions, the period of promotional activities produced less net profit per week for five of the six products. The results are of interest to retailers since they indicate that promotional activities for some products may produce a negative side effect, namely, increased theft. Further, promotional activities may not always produce increased sales.