Business

Walgreens CEO reveals anti-theft measures of locking up products had the opposite effect

Walgreens Boots Alliance CEO Tim Wentworth conceded that locking up products in order to combat retail theft had a negative impact on stores. 

During an earnings call on Friday, executives reported a 52% increase in “shrink,” or a loss of inventory that can’t be accounted for through sales. The increase in loss of inventory comes after the pharmacy giant’s efforts to crackdown on shoplifting, which Wentworth suggested may have actually backfired.

“When you lock things up… you don’t sell as many of them. We’ve kind of proven that pretty conclusively,” Wentworth said.

Tim Wentworth

Tim Wentworth claimed locking items up to combat theft is not working. (Walgreens Boots Alliance/Business Wire / Fox News)

A DOZEN WALGREENS STORES IN SAN FRANCISCO TO CLOSE

This is likely in reference to viral images of several items, including ice cream, being locked up to deter shoplifters, a technique that several pharmacies and retail stores have used to prevent theft. Wentworth claimed these measures have led to customers being dissatisfied. 

Wentworth added that the company would be implementing new solutions to both problems, although he did not share any details. 

Ice cream locked in freezer in a shop

Photos from Dec. 23, 2022, show candy and ice cream locked or otherwise chained up at a New York City Walgreen’s store on Lexington Avenue near East 61st Street. (Fox News Digital  / Fox News)

Despite an increase in “shrink,” Walgreens reported better-than-expected first-quarter 2025 fiscal results, including a 7.5% rise in sales. 

In October, the company announced it would be closing at least 1,200 stores over the next three years to cut costs. About 500 stores are expected to close during fiscal year 2025.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Numerous other stores over the past few years have taken several drastic measures to crack down on shoplifters and organized crime theft. In addition to locking up items, some have taken to hiring private security guards or limiting store hours to protect workers.

Outside of Walgreens store

Walgreens is planning on shutting down about 500 stores in 2025. (Joe Raedle/Getty Images / Getty Images)

CLICK HERE TO READ MORE ON FOX BUSINESS

Related posts

More than 500,000 electric space heaters recalled due to overheating concerns

Trump hits Biden on last-minute energy crackdown, promises day 1 reversal

McDonald’s to reintroduce beloved snack wraps next year

Leave a Comment