Home Depot and Lowe’s seem to have changed their minds regarding anti-theft activation technologies that would brick power tools stolen from their stores.
Both retailers have previously announced plans to develop tech that would require tools to be activated at the time of purchase.
Home Depot made announcements about power tool activation tech that could help them thwart shoplifting starting in 2019, and Lowe’s made announcements about “Project Unlock” in 2023.
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Lowe’s said:
At the heart of Project Unlock is the ability to activate a powered product after it has been legitimately purchased – rendering a stolen tool inoperable and virtually worthless.
Home Depot never disclosed final details about their plans. Lowe’s plan was to involve RFID chips and “a novel use of blockchain.”
With the most recent announcements having taken place more than 2 years ago, it looks like both retailers’ plans have been abandoned. There’s also a chance they have been silently deployed, but I have not seen any evidence or news of this.
Home Depot’s announcements go back more than 5 years. Perhaps they’ll eventually follow through.
Maybe their plans for point of sale activation are still in the works, but it seems that locking up everything of value has proven to be a quicker and easier solution.
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Both retailers have since moved to lock up their more valuable cordless power tools in cages, at least at all of the stores I’ve visited in recent memory.
All of that talk about investing in advanced activation technologies, RFID chips, and novel uses for blockchain tech, and their solutions were to put everything in padlocked cages.
Andy
My cynical take:
Padlocks & cages are cheap. RFID / technology to unlock tools is expensive. The break even time for the upfront investment must not have made sense.
Blockchain was a corporate buzzword thrown at all kinds of “solutions” that never really made sense. It’s since been replaced by AI as the technology buzzword du jour.
Stuart
I think it comes down to cost. Activation tech would have required development and integration by manufacturers and suppliers. Cages and alarms are paid for by retailers.
Harrison
It’s also just another thing for employees to deal with. Another system to manage. Further entanglement between retailer and manufacturer, right down to a product level. Can the tool be deactivated later!
Tools aren’t cheap, but we aren’t taking about jewelry here either. Why open Pandora’s box when a lock and key work just fine, and you can stick anything in the cage and it just works?
John
Yeah, I can imagine from the employee’s perspective it’s just one more thing to manage that will often not work and cause more issues. Then they take to ‘activating’ tools when they arrive at the store to avoid issues which then means the whole thing is just a waste of time and money.
MFC
Also, they probably found that hackers would eventually be able to figure out their methodology and they couldn’t keep evolving their system every time a new exploit came out like phone companies do.
Doug
Or they brick legitimate purchases in error.
Goodie
Or the tool companies use this to make you buy your tools in “subscription” and brick them if you don’t pay your license renewal. *shudders* I prefer the locked cages in the stores…
ChipBoundary
Initial investment would have costed a bit, but still less than the cages, but actual implementation would have cost literal pennies. I’ve dealt with the cage thing and I’ve literally walked out of the store because I had to wait so long for someone to get what I wanted. Not to mention those cages can easily be picked with a 12 dollar pick set and a 10 minute YouTube tutorial. Actually many of the locks can literally be opened by smacking them against the palm of your hand.
The only thing a lock does is keep honest people honest. If I have to wait at the store I might as well just order from Amazon and avoid the store entirely. The price will likely be cheaper as well.
John E
Buying everything from Amazon is part of the reason we got where we are today.
Edward Gidney
The problem buying Milwaukee from Amazon you don’t get a warranty there are a third-party unauthorized seller go ahead and take your chances then if you can’t wait a few minutes to have a cage unlocked then you really don’t need the tool
S
But a warranty is only as good as the company that backs it.
I’m fully invested into the Milwaukee M18 and M12 lines.
I once had a drill with a transmission that started popping out of gear in the first month of light use. So, being that I bought it from an authorized source, I went through the very arduous process of setting up and sending in the drill under warranty.
I was without that drill for 4 months during the summer busy season.
For a supposedly contractor-focused brand, this is obscene. No contractor can go 4 months without a critical tool like that. I can make do for a week, but that’s even stretching it.
I ended up buying a second drill so I could afford to stay alive for those 4 months. It’s not like I could tell customers to wait until my drill showed back up, nor can I just tell the grocery store I’ll ‘pay them back later.’
So the ‘free’ warranty ended up costing me 2x’s the original drill price, plus the added aggravation of having to panic-buy a second drill.
Ever since that experience, I buy my Milwaukee tools off Amazon or eBay. That way I can get it for less than retail.
Worst case, I need to buy another one anyways, which would also need to happen if I were to purchase from an authorized vendor, because I can’t just put my life on hold over a power tool for 4 months. But, my typical experience is that nothing goes wrong, and I end up money ahead on the tool purchase.
JR Ramos
This is untrue and I wish (reddit) would stop promulgating this (or that Milwaukee would speak up and share some truth). Doing so would be against the law. What mfrs can do is change the length of the warranty, go strictly by date of manufacture rather than purchase date (dicey), or alter other aspects if it is bought outside their distributor network. They can’t deny it unless they can prove that it is not of their manufacture. How do I know this? Had to warranty one of three drills bought on Amazon…no troubles. I hear that some have had troubles and I think (in addition to other denial games Milwaukee seems to be playing of late) they count on people not knowing the law and their consumer rights…if you are denied for this reason push it a little and see what happens. They will warrant the tool as appropriate not because of a goodwill gesture (even if they say that) but because they’re supposed to.
On contractors and warranty delays….well geez…I mean it’s pretty much always been that way even if you’re fortunate enough to have an authorized or even a factory service center in your town. I don’t know ANY professionals that do not have multiples of the tools that win their bread…because yeah, you can’t be without your tools when you make a living with them. Especially items as inexpensive as drills and such. Big ticket items might have a spare, maybe not, depending on various things, but if it’s that important that it may stop your work and income, it’s just not-smart to not have a spare waiting in the wings. This is also one reason of several that larger outfits will just keep a warranty/dead box and ship those off once a year for service…just part of doing business.
TMQ
You aren’t opening any of those locks by snacking them against the palm in your hand. And there is litteraly an employee in the tool section at all time to assist with accessing any tools you want to buy. It’s not a complicated process and is still a lot quicker then waiting for items to ship from Amazon
FixThis
Don’t need any more tracking chips in my products, Milwaukee already has some sort of chip in each of their tools, as seen in the tear down videos online (view BOLTR tear down videos by AvE on YT).
If we can rebuild a high trust society back some day, we shouldn’t need cages for tools either.
TMQ
Lol good luck with that dream of a perfect world.
Rich
Hand Tool shrinkage is huge. Go to your Facebook look up your favorite tool brand and you will see hundreds of tools, for sale, stashed in garages throughout your town. Americans love stolen stuff for cheap and manufacturers have to do something to stop this.
TMQ
Most of those tools you’re seeing on OfferUp and Facebook marketplace aren’t stolen. Most are from pallet auctions or people buying tool combos and breaking them up to sell each item individually.
Joe
Would be interested in your source on this because I don’t believe it. I have no data but I believes most of those tools are stolen.
Joe E.
Cages and alarms also deter honest, paying customers. I don’t have the patience to track down a store associate who may or may not have a key to access the item(s) I want to purchase.
Our local Harbor Freight began placing locks on the pegs of their ICON tools. Sell them to someone else I guess. When I shop, I know what I want and I like to be in and out of the store as quickly and efficiently as possible.
Thank God for online shopping. Whether it’s a new ratchet or Tide Pods, if I have to ask for YOU to get it, I’ll pass.
Goodie
Harbor Freight probably has less “shrinkage” than other stores, because they follow a simple, effective, old-skool retail practice. One door at the front to enter, exit, and employees “minding the store” to check people out and watch for shoplifters. The big box stores with huge self checkouts, multiple doors, and no employees watching those doors made themselves tempting target for thieves.
Stuart
Home Depot and Lowe’s carry name-brand tools. Harbor Freight has private label brands that are much more difficult for thieves to sell.
Many Home Depot and Lowe’s stores DO have employees stationed at the entrances and exits.
Goodie
Retail magazines and organizations make recommendations on how to reduce shrinkage. In general, big box stores aren’t well designed to prevent them.
https://www.mytotalretail.com/article/design-to-reduce-shrinkage-not-sales/
It’s true Harbor Freight doesn’t have the desirable name brands targeted by thieves. But there is another example. ACE hardware and local hardware /supply stores aren’t doing the locked cage thing near me. They have DeWalt and Milwaukee. They have one entry/exit and cash register with employees at the front.
Stuart
You do realize that the “article” is likely a “guest post” by the one-post author in an attempt to gather some business for their retail design company, right? It’s hardly authoritative. Maybe they’re right, but it’s basically a sales pitch, and so you can’t take it at face value. I get pitched “guest posts” like that all the time, and they’re basically advertorials.
Goodie
Fully realize it’s a pitch. But the sightlines and entryways point is a good one. Big box stores are just giant warehouses. And there’s lots of information out there on warehouse pilferage.
S
But corporate policies tend to also get in the way.
I once had a conversation with a home depot employee about the wire they had recently started locking up.
He started in on telling(complaining) to me about how even if they witness someone heading through an emergency exit to a waiting car with it’s trunk open with a full reel of copper wire, they are forbidden by company policy from stopping that person.
They’re allowed to hold the door for the person, but cannot stop them.
He also told me that stolen products from his section end up effecting his pay directly. I’m aware that’s not legal. But it could also be something to do with department profit/loss bonuses
So at the time, he had indicated that locking up products was an act of the employees running the department. Not an act of home depot.
Because they were just as frustrated at the thefts as everyone else, but powerless to do anything about it.
Ben
All the tools at the Ace locations near me are locked in caninets and were since before HD put EVERYTHING in cages.
And all the HD locations here have multiple staff by the exits.
They’re not going to tackle a thief though. Er I mean a retail-shrinker.
TMQ
Lol as quickly and efficiently as possible? It’s hilarious you talk about lack of patience and then in the same comment preach about how much you enjoy buying items online. Items which take days to arrive
MM
The difference is that you can do other things while online orders are delivered. Time spent standing around a store waiting for an employee is entirely wasted. Placing an order online takes only a couple minutes of your time. Visiting a store requires the time to travel there, walk around the store, interact with employees, locate the merchandise, checkout, travel back…
I guess I’ve been lucky that I’ve never had any excessively long waits for tools to be unlocked from a cage, but I have certainly had to wait a long time for employees to get things from high shelves or to locate merchandise that is in stock but not out on display, and that can be extremely off-putting.
Daniel L
Honestly? 2023 was a time when tech folks were all talking about “blockchain” as if it was the answer to all of life’s problems. Towards the tail end of that time.
Which, obviously, it has not turned out to be. Something about blockchains: they require several different workstations to validate an edit. Power tool sales, tracking, and validation would amount to a lot of overhead.
If you ask me, it was probably just some overpaid consultant stringing them along with big promises about cost and implementation that they couldn’t possibly hope to make good on, rode on the excitement they could generate by using a hype-y word like “blockchain” to an audience that thought “That’s the future!” and eventually the folks in charge got wise to the fact. Like, *really* late in the game.
Next time around will be *AI-powered* tool purchase validation. As if an LLM would do a thing for that.
The thing is, the only ways I imagine one could implement something like this with any reliability would be either a one time validation, which would probably be extremely easy to bypass, or to make it “always online” and see just how well that sits with guys on a jobsite that have schedules and, generally, no wifi.
John
Great analysis. I agree, it was never about solving a problem it’s just another example of how many upper managers chase fads with only a superficial understanding of how they work.
Eric
Well, I bought a power tool from Home Depot last month that was in a cage.
I just had to scan the QR code on the tag, and it sent a notice to an employee.
It was relatively painless and quick and I could just go to any register to pay for it.
Not a bad experience.
ChipBoundary
If I have to download an app or use my phone in any way to shop at your physical store, that’s the wrong answer. In the time it takes you to get an employee, I could gotten what I wanted, paid, and been halfway home.
Don’t get me wrong, I’m the exact opposite of technology phobic. I work in IT and love technology, but has its time and place. Buying something at a physical store ain’t it. I’ll just shop online and save money to boot.
Ken
Agree with Chip! I have always been a tech nerd but I’m extremely annoyed at how often I’m now expected to use an app for some trifling reason. This includes requiring an app for a task that previously was accomplished on a website. I can work 10x faster on a workstation than an iPhone.
I have purchased quite a number of locked tools over the last few years and it is indeed a miserable experience. Even after I’ve chased down an employee to unlock a cage, I’m still required to have the employee walk me to the checkout to make sure I’m not stealing the item. Meanwhile, they allow actual criminals to slow walk out the door with a cart full of stolen merchandise.
MM
I can work 10x faster on a workstation than an iPhone.
Yes, exactly!
Mopar
I think the key word is “have”. If I *HAVE* to use my phone to shop, order food, whatever…. I’m not doing that.
I do however voluntarily use the app all the time. I will often preshop on a PC, save everything to a list tied to my account, and then use the app as a shopping list in the store, complete with exactly where each item should be located. For stuff like tools that may be caged, or other small items, I’ll try to order it online in advance for pickup. That generally means just a quick QR code scan at the pickup locker when I get there.
Saulac
I honestly don’t know why “double doors” like those at jewellery stores are not used instead. Entrances are one way. Exits are tunnels with door on each ends. Second door only open once everything is clear.
SteveP
Dirty little secret of retail is that considerable “shrinkage” occurs from employees. Roughly 30% of shrinkage is employee theft, and some surveys report that 75% of employees admit to stealing from their employers
https://www.embroker.com/blog/employee-theft-statistics/
John L
They may have also realized a lot of buyers wouldnt be too keen to have a lockout device added to their power tool that isnt actually doing a thing for the user, could be a reliability issue down the road, or even get hacked on the jobsite by pranksters or rival contractors. (“So Joes Framing beat out my bid on this job, Ill walk by his truck with my RFID scanner and shut down his drills saws and nailers. Itll take days for him to figure out a work around. The client will think he is an idiot and Ill never lose a bid to him again”)
No I just didnt give anyone any ideas…
Bill D
These sorts of kludges could be used against my right to repair. “Drill motor intrusion detected; enable brick mode.” Or could be used for subscriptions— imagine having to pay $1 a month for your drill to reverse.
I’m sure it’s coming — big business absolutely cannot resist a few nickels left on any table.
MM
Yeah, I could see a number of ways this could go sideways fast. How about microtransactions to unlock extra power? Only 5 cents per cut! Or perhaps the tool can detect what brand of accessories or bits are being used and it refuses to run at full power unless you’re using that brand’s bits or sandpaper–all in the name of “safety” of course. John L made a valid point above too, how long before hackers figure out how to brick the tools remotely and then that kind of stuff starts happening?
Stuart
This business model is heavily used in different product categories, where the hardware is there, but you need software keys to unlock its use.
Roger Crawford
Think BMW heated seats.
Scott K
I’d think there’s the potential for a lot of headaches with this type of technology. I bought a new Kindle a couple of years ago and Amazon mistakenly marked it as stolen which bricked the device. I found this out after a call to customer service because it wouldn’t allow me to register the device to my account. It took a few more calls to customer service and several transfers to prove it wasn’t stolen and get it reactivated even though the device could easily be linked to a recent purchase from my account. Imagine running to HD because you need a tool for a job and have to troubleshoot it being bricked from a job site…
Steve
I would have never bought another power tool from either retailer if they had implemented the electronic lockouts. I’m not purchasing something that could malfunction and stop working, because they refused to stop shoplifters carting mounds of stolen items out the door. No way.
Mark M.
The photo of the locked cage made me chuckle. While I can appreciate the need to combat theft, these big box retailers (who struggle in the customer service department to begin with) have succeeded in making it harder and harder for the 99% of us who don’t steal to buy what we want. They’ve done the same thing with wire, and trying to find someone to unlock it is a pain, then when you do you have to deal with attitude. And THEN I get escorted to the register, like I’m going to make a break for it. So my solution is: I don’t spend my money there. Order online or go to Ace where they treat you like an adult. Hope this swings back in a more reasonable direction over time.
ken
Totally agree. One other annoying part of this “security” trend is they often have display models bolted down in ways that prevent you from interacting with the tool. If I can’t actually hold the tool in my hand, then what use is the display model? If the display model anti-theft device emits a piercing shriek when lightly nudged, how likely do you think I am going to be to pick the thing up?
Scott K
Customer service and loss prevention took a huge hit with the reduced staffing and addition of self checkout. I think the lack of visible employees has emboldened shoplifters. The pendulum seems to be swinging because on my last few visits I noticed several employees hovering around the self checkout kiosks which sort of defeats the purpose of them.
S
There’s been a lot more evidence now that self-checkouts encourage dishonesty.
There was just a guy in the news that got caught scanning a homemade ring with a barcode for tomato soup, instead of the real barcode of the $300 grill he was actually buying.
Employment costs money, but retailers have to learn a lot more lessons about average consumers. Ironic that Aldi has gone to an almost-entirely self checkout scheme after covid
Patrick
Aldi’s self checkouts are awesome, super responsive. They are so fast and easy, can literally be scanned and paid in under 45seconds.
Frank D
Another thing that would burden the consumer, and the staff.
It would be highly expensive to implement …
Plus it would create distrust and drive sales to other brands and/or stores.
One online order pickup at Home Depot last fall. I go to the customer service desk. They say it is in the locker boxes. OK. Locker box does not want to work. Oh its internet connection is down. Supervisor. Nothing we can do. Please come back in a few hours after we’ve been able to troubleshoot it.
Imagine trying to buy tools and having communication issues with tool authorization, can’t connect to the manufacturer’s data base, oh it said activated, but the tool still does not work …
Peter
Have forgotten how common it was to see people just walk out of the stores with merch.
Have not seen that in a while.
Maybe the the cages are the reason.
ElectroAtletico
Here’s an idea: Hire off-duty cops, Watch the thieves DISSAPEAR from the stores.
p.s. Now as to the insider theft…….
S
That only works if the cops aren’t in on the action…
Chris
I support free range, cage free power tools.
I think “project unlock” would have unnecessarily raised costs for consumers, and frankly I believe someone with electronics knowledge could probably thwart the anti-theft systems anyway.
It really sucks having to wait for an employee to come over to unlock the cages so I can get a tool. And then not only that, they take it to the checkout counter until I’m ready to check out.
I’m just disappointed in society. Where did we go wrong that we have to lock items up in stores.
Joe
Like most types of crime, retail crime is actually down over the last few years: https://www.brennancenter.org/our-work/research-reports/myth-vs-reality-trends-retail-theft
Perhaps it’s greedy corporations wanting to squeeze every last penny of profit? Or refusing to hire adequate staff? Or both.
Steven Phillips
I think you’re right, I think this comes down to the fact cages were cheaper and easier. There’s zero tech to develop, implement, and maintain, all you have to do is not lose track of the keys. My local Home Depot even made some temporary cages around Christmas time with wire self units they sell in store. It’s sad that it’s come to this, but it’s where we are now. I do hope most stores are smart enough to lock up the bolt cutters too.
SteveP
They went from Project Unlock to Project “Lock ’em up”! I’m guessing the tech only worked in the lab and not the real world
It’s nuts these days – HD locks up $25 tools while $300 ones sit in the open. Lowes locks up 25′ rolls of Romex but the $100 circuit breakers are just hanging on hooks – which one is easier to pocket?
And I frequently have to walk all the way back to the service desk to get them to find the Unlock Flunky. Even then – some stores or some flunkies will “perp walk” you to the till to pay (so no more shopping for you) or “I will leave this at checkout for you” or “Here you go!”. Totally inconsistent
Best solution is to order and pay online and then just pick it up at the store collection desk later
JG
Waiting for tools to be unlocked from a cage is just the cost of doing business now and I’ll add more labor for the additional time. The biggest problem with locking out tools is when the electronics fail and the tool never worked or stops working. It’s one thing to have to wait to get tools it’s a whole different problem when you buy it and it won’t work. With all the electronics in the stuff we use it’s just on more thing to fail. I’m guess it’s a combination of the manufacturers and the added failure point that the lockout got abandoned.
Adam
I think the overall problem is that is it much more complicated from the system perspective that it looks at first sight. What you need is
1. Implement STANDART security solution to all power tools system, that is identical for every supplier. Here you can choose from
-bluetooth
– NFC
– other solutions
Just make sure that it work flowless, will be still functional after 6 months of shelf live (how to power it?) and when customers gets to cash desk, it will take few seconds to work, or it will be returned
2. Have proper system implemented in cash register software / hardware (again, what about various suppliers) and trained staff.
3. Convince power tool makers, that they need to add extra costs to power tool by implementing their security system, and to change system architecture for a tool and for a battery, and convince customer that they need to pay extra so Lowe/ HD will not loose money on thieves
4. All of that, when stolen or not, manufacturers are paid for power tools anyhow