Walgreens Boots Alliance CEO Tim Wentworth has acknowledged that the company’s practice of locking up products to deter theft has had a negative impact on sales and customer satisfaction. Speaking during a recent earnings call, Wentworth candidly admitted, “When you lock things up, you don’t sell as many of them. We’ve kind of proven that pretty conclusively.”
A Policy Shift with Unintended Consequences at Walgreens
The policy was implemented in response to a staggering 52% increase in inventory loss, or “shrink,” largely attributed to theft. However, the decision led to a sharp decline in sales, as customers faced increased frustrations over the locked merchandise. “It might not seem like much, but waiting over a minute for soap is stupid,” one X user vented, sharing their recent experience at a Walgreens store.
Walgreens reported an operating loss of $245 million for a quarter last year, a stark contrast to a $39 million loss in the same period the year prior. These financial struggles highlight the unintended consequences of the policy, which aimed to curb theft but alienated loyal customers in the process.
Many shoppers have shared similar grievances online, describing the locked-up items as a significant barrier to a pleasant shopping experience. One frustrated customer remarked, “Every two seconds, there’s a loudspeaker announcement: ‘BEEP! Customer service needed at deodorant! BEEP! Customer assistance needed at body wash!’ It’s a miserable shopping experience.”
Wentworth acknowledged these challenges, emphasizing that the company is actively seeking creative alternatives to address both theft and customer dissatisfaction. While he did not elaborate on specific plans, he confirmed that Walgreens’ asset protection team is exploring new strategies.
The company also faces broader challenges. In October, Walgreens announced it would close 1,200 stores over three years, with approximately 500 closures expected during fiscal year 2025. Despite these setbacks, Walgreens reported a 7.5% rise in sales for the first quarter of fiscal year 2025.
As Wentworth puts it, solving the theft issue remains “a hand-to-hand combat battle.” Moving forward, the company’s ability to balance security with customer convenience will be critical to its recovery.