Additional Coverage:
- Walgreens CEO reveals anti-theft measures of locking up products had the opposite effect (foxbusiness.com)
Walgreens Admits Anti-Theft Measures Backfire
Walgreens CEO Tim Wentworth has acknowledged that locking up products to deter theft has negatively impacted sales.
The company reported a 52% increase in “shrink,” or inventory loss, after implementing these measures. Wentworth suggests that locking up items may have driven away customers.
New Solutions Planned
Wentworth stated that Walgreens is seeking new solutions to both theft and customer satisfaction issues. However, no details were provided.
Despite Challenges, Walgreens Reports Positive Results
Despite the inventory loss, Walgreens reported positive first-quarter fiscal results, including a 7.5% sales increase.
Store Closures Announced
Walgreens plans to close at least 1,200 stores over the next three years to reduce costs. Approximately 500 closures are expected in fiscal year 2025.
Widespread Anti-Theft Measures
Other retailers have also implemented drastic anti-theft measures, such as hiring private security guards and reducing store hours.