Walgreens says locking up merchandise to stop shoplifting hurts gross sales

Locking up retailer products can deter shoplifters and paying consumers alike, in line with Walgreens.

The drugstore chain’s CEO Tim Wentworth stated in Walgreens Boots Alliance’s first-quarter profits name Tuesday that “Whilst you lock issues up … you do not promote as a lot of them. We’ve got more or less confirmed that lovely conclusively.”

Conserving retail merchandise beneath lock and secret is a maneuver designed to thwart emerging retail robbery. Nevertheless it additionally irks — and turns away — would-be paying consumers who wouldn’t have the persistence to look forward to a retail clerk to retrieve items they want to purchase.

Walgreens and different shops have needed to struggle so-called “retail shrink,” or the lack of stock from reasons as opposed to gross sales, Wentworth famous. The corporate took steps to safe extra merchandise after it discovered retail robbery accounted for a emerging proportion in shrink. On the other hand, locking merchandise at the back of a see-through case has now not proved efficient, he stated. 

The corporate’s asset coverage department is growing “inventive” answers to struggle retail robbery, Wentworth stated Tuesday.

“I wouldn’t have the rest magnificent to proportion with you as of late. This can be a hand-to-hand struggle struggle nonetheless, sadly,” Wentworth stated.

The corporate reported an working lack of $245 million for the quarter, when put next with $39 million for a similar quarter three hundred and sixty five days previous. 

Walgreens plans to near loads of shops through the tip of 2025 to show round its flagging gross sales. It has already closed kind of 2,000 places over the last decade and has “numerous enjoy with retailer closures,” the corporate stated. 

“Naturally, we predict our long term footprint to fortify more potent efficiency,” Wentworth stated.