THE CEO of embattled chain Walgreens has admitted that one of its policies has had an impact on sales.
Walgreens is just one of the chains that has turned to locking items in cases in a bid to combat retail theft.
Timothy Wentworth admitted the chain’s anti-theft policy has backfiredCNBC
A raft of Walgreens stores are to close in weeksGetty
But, Timothy Wentworth opened up on the effects the policy has had on the company.
“When you lock things up, you don’t sell as many of them,” he admitted in an earnings call last week as reported by USA Today.
“We’ve kind of proven that pretty conclusively.”
Wentworth teased that officials were looking at alternative strategies, but didn’t share any details.
“I don’t have anything magnificent to share with you today.”
He likened the battle to combat retail theft to a “hand-to-hand combat battle.”
Wentworth didn’t reveal details on whether the policy would be reversed.
The pharmaceutical chain has experienced a loss of $245 million for the quarter – compared to $39 million a year ago.
But Wentworth has tried to present an optimistic vision.
He said the company is working to control costs, boost cash flow and optimize the store footprint.
Walgreens chiefs are in the process of trimming the company’s store portfolio.
Bosses revealed that 1,200 stores will shut over a three year period.
Chiefs closed 70 stores in the first quarter of their fiscal year 2025, which ended in November 2024.
It’s expected that another 450 stores will shut their doors by the end of 2025.
US braces for ‘45,000 store closures’
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
Chains such as Foot Locker, Sally Beauty, Tuesday Morning, Shore City, Z Gallerie, and Mitchell Gold + Bob Williams have all gone out of business.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
Bosses didn’t reveal which specific stores are at risk, but details surrounding the closures are being released.
Five stores in Chicago will be closing by February.
A store in Augusta, Georgia, will shut its doors by February 20, while a Rockford, Illinois store’s last day of trading is February 19.
Twelve outlets in San Francisco, a city that has battled crime problems, are closing between February 24 and 27.
One store in Tallahassee, Florida, is to shut by February 25, and another in Quincy, Massachusetts, is to close on February 27.
Walgreens isn’t the only chain to experience store closures.
Macy’s chiefs are in the process of closing dozens of outlets.
The store closures are part of a sweeping set of shutdowns.
Last year, bosses revealed they planned to close 150 underperforming outlets over three years.
It was initially anticipated that 50 stores would shut their doors, but this number increased.
The U.S. Sun has reported that closing-down sales have already begun.
Anti-theft measures rolled out by retailers
Retailers across the US and Canada have rolled out strategies designed to combat theft. The U.S. Sun has compiled a list of measures that have been implemented at stores.
Locking items in cabinets
Security pegs
Security cameras
Signs warning about the impact of theft
Receipt scanners
Receipt checks
Carts with locking technology
https://www.the-sun.com/money/13317824/walgreens-anti-theft-policy-backfired-ceo/