According to Walgreens, locking out store merchandise could deter shoppers and paying customers alike.
Tim Wentworth, CEO of the pharmacy chain, said in Walgreens Boots Alliance's first-quarter earnings call Tuesday that “when you lock things down … you don't sell as many of them. We've proven that pretty conclusively.” Is done.”
Keeping retail products under lock and key is a tactic designed to Stop the rising retail theftBut it also irritates — and drives away — paying customers who don't have the patience to wait for a retail clerk to get the items they want to buy.
Wentworth said Walgreens and other retailers have struggled with so-called “retail shrinkage,” or the loss of inventory for reasons other than sales. The company took steps to secure more products as it learned that sales were declining due to retail theft. However, locking products behind see-through cases has not proven effective, he said.
Wentworth said Tuesday that the company's asset protection division is developing “creative” solutions to fight retail theft.
Wentworth said, “I don't have anything spectacular to share with you today. Unfortunately, it's still a head-to-head battle.”
The company reported an operating loss of $245 million for the quarter, compared to $39 million in the same quarter a year earlier.
Walgreens plans to close hundreds of stores by the end of 2025 in a bid to improve its lackluster sales. It has already closed nearly 2,000 locations over the past decade and has “considerable experience closing stores,” the company said.
“Naturally, we expect our future footprint to support strong performance,” Wentworth said.