Walgreens is conceding that locking up its merchandise makes customers less likely to spend.
In a Friday earnings call, Tim Wentworth, the CEO of parent company Walgreens Boots Alliance, admitted that, “When you lock things up … you don’t sell as many of them.”
He added, “We’ve kind of proven that pretty conclusively.”
Across the nation, a large number of consumers have become frustrated with stores’ decisions to lock products in plastic cases, or even within chained refrigerators, to contend with shoplifting.
Instead of dealing with the inconvenience of flagging down a staff member to retrieve an item, some customers are clearly deciding that it’s not worth the wait.
Wentworth said on the earnings call that his team was in the midst of considering “creative” solutions related to customer experience amid “shrink,” or inventory loss.
“I don’t have anything magnificent to share with you today,” the CEO said. “It is a hand-to-hand combat battle still, unfortunately.”
During the first quarter of fiscal year 2025, Walgreens Boots Alliance saw an operating loss of $245 million — a plummet from the $39 million loss sustained in the same quarter a year ago.
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Walgreens is far from the only drugstore chain that uses security measures to protects its inventory. But while competitors like CVS have taken similar steps to secure their stock, many have been less forthright about how the practice has impacted their bottom line.