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Walgreens strategy of locking up merchandise — from deodorants to bags of M&M’s — to deter theft has backfired, according to CEO Tim Wentworth.
“It is a hand-to-hand combat battle still, unfortunately, but it does impact how sales work through the store because when you lock things up, for example, you don’t sell as many of them,” Wentworth said during a Jan. 10 earnings call.
His admission of continued thefts comes as the company faces mounting losses. In response, Walgreens is looking to save $1 billion by closing approximately 1,200 underperforming stores by 2027, with 500 of those closures slated for this year.
The impact is particularly pronounced in the Bay Area, where Walgreens confirmed numerous closures, including five in the East Bay and 12 in San Francisco next month. The San Francisco stores are scheduled to close between Feb. 24 and Feb. 27, affecting locations in the Bayview, Downtown/Civic Center, Ingleside, Inner Richmond, Marina, Mission, Nob Hill, Outer Sunset, Parkside, SoMa and Western Addition neighborhoods.
This decision follows earlier closures in the city.
Despite these hurdles, Walgreens reported a 7.5% increase in sales year over year for the first quarter of 2025.
SFGATE previously reported that the store closures have raised concerns among community members, particularly regarding access to pharmacy services in affected neighborhoods. Walgreens stated that it will work with community stakeholders to minimize disruptions and that employees from closed stores will have the chance to work at other nearby locations.
SFGATE reached out to Walgreens for comment but did not immediately hear back.
fortune.com
In a challenging retail landscape, Walgreens Boots Alliance shared plans to revamp its strategy in a Q1 2025 earnings call. Despite reporting a 23% year-over-year decline in adjusted EPS to $0.51, the pharmacy giant outperformed expectations, buoyed by robust cost management and strength in U.S. pharmacy services. CEO Tim Wentworth emphasized the company’s commitment to a “retail pharmacy-led turnaround,” underpinned by strategic store closures, enhanced customer engagement, and a renewed focus on health and wellness offerings.
The company plans to close approximately 450 additional stores in 2025, noting that the stores that remain open outperform the ones designated for closure by approximately 250 basis points. Wentworth also acknowledged the ongoing struggle with shrink as a “hand-to-hand combat battle.” After reporting a 52% increase in shrink, or lost inventory, in 2020 and 2021, Walgreens invested in increased security that proved to be “largely ineffective.” And while many drug stores have taken to locking up commonly looted goods, Wentworth admitted, “When you lock things up…you don’t sell as many of them. We’ve kind of proven that pretty conclusively.
He hinted at “creative” solutions in development to tackle the shrink problem and improve in-store experiences—hopefully with a decrease in those pesky locks.
Walgreens CEO says locking up merchandise is hurting businesses and they plan on closing 450 stores.
This is Democrats fault with their soft on crime approach. The left's adoration of criminals is going to cause people to struggle to find ways to get their prescriptions.
“It is a hand-to-hand combat battle still, unfortunately, but it does impact how sales work through the store because when you lock things up, for example, you don’t sell as many of them,” Wentworth said during a Jan. 10 earnings call.
His admission of continued thefts comes as the company faces mounting losses. In response, Walgreens is looking to save $1 billion by closing approximately 1,200 underperforming stores by 2027, with 500 of those closures slated for this year.
The impact is particularly pronounced in the Bay Area, where Walgreens confirmed numerous closures, including five in the East Bay and 12 in San Francisco next month. The San Francisco stores are scheduled to close between Feb. 24 and Feb. 27, affecting locations in the Bayview, Downtown/Civic Center, Ingleside, Inner Richmond, Marina, Mission, Nob Hill, Outer Sunset, Parkside, SoMa and Western Addition neighborhoods.
This decision follows earlier closures in the city.
Despite these hurdles, Walgreens reported a 7.5% increase in sales year over year for the first quarter of 2025.
SFGATE previously reported that the store closures have raised concerns among community members, particularly regarding access to pharmacy services in affected neighborhoods. Walgreens stated that it will work with community stakeholders to minimize disruptions and that employees from closed stores will have the chance to work at other nearby locations.
SFGATE reached out to Walgreens for comment but did not immediately hear back.
Walgreens CEO describes drawback of anti-shoplifting strategy: ‘When you lock things up…you don’t sell as many of them’
Walgreens' CEO talked about the flip side of investing in increased security on a recent earnings call.
In a challenging retail landscape, Walgreens Boots Alliance shared plans to revamp its strategy in a Q1 2025 earnings call. Despite reporting a 23% year-over-year decline in adjusted EPS to $0.51, the pharmacy giant outperformed expectations, buoyed by robust cost management and strength in U.S. pharmacy services. CEO Tim Wentworth emphasized the company’s commitment to a “retail pharmacy-led turnaround,” underpinned by strategic store closures, enhanced customer engagement, and a renewed focus on health and wellness offerings.
The company plans to close approximately 450 additional stores in 2025, noting that the stores that remain open outperform the ones designated for closure by approximately 250 basis points. Wentworth also acknowledged the ongoing struggle with shrink as a “hand-to-hand combat battle.” After reporting a 52% increase in shrink, or lost inventory, in 2020 and 2021, Walgreens invested in increased security that proved to be “largely ineffective.” And while many drug stores have taken to locking up commonly looted goods, Wentworth admitted, “When you lock things up…you don’t sell as many of them. We’ve kind of proven that pretty conclusively.
He hinted at “creative” solutions in development to tackle the shrink problem and improve in-store experiences—hopefully with a decrease in those pesky locks.
Walgreens CEO says locking up merchandise is hurting businesses and they plan on closing 450 stores.
This is Democrats fault with their soft on crime approach. The left's adoration of criminals is going to cause people to struggle to find ways to get their prescriptions.
