Walgreens CEO Tim Wentworth said the company’s added security efforts to prevent theft, such as locking up popular items behind glass doors, have backfired over the years. Wentworth’s acknowledgment came during the company’s first-quarter earnings call with investors on Tuesday, Jan. 14.
“It is a hand-to-hand combat battle still, unfortunately,” Wentworth said. “But it does impact how sales work because when you lock things up, for example, you don’t sell as many of them. We’ve kind of proven that conclusively.”
After reporting a more than 50% increase in “shrink” — otherwise known as lost inventory — in 2020 and 2021, the company invested in added security, including security guards in some stores.
Now, Wentworth said that Walgreens is renewing its focus on customer experience while balancing it with anti-theft efforts.
Wentworth did not go into details about the new anti-theft efforts or if it will mean an end to popular items being locked up.
Wentworth only said the drugstore chain is taking “creative” steps to address retail theft and improve customer experience.
Despite the challenges with the anti-theft policy, the pharmacy giant outperformed first-quarter earnings expectations.
Wentworth attributed the better-than-expected numbers to a revamped focus on customers’ needs and expanding offerings of health and wellness products.
The company said the strategic closures of some stores also helped with improved performance.
Wentworth also revealed Walgreens plans to close around 450 additional underperforming stores in 2025 and further improve its line of health and wellness products.
The company reportedly operates more than 8,000 stores in the United States and Puerto Rico.
