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.
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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.
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.
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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.
