Locking up store merchandise can deter shoplifters and paying customers alike, according to Walgreens.
via: USA Today
That’s a likely result as an increase in asset protection usually leads to a dip in sales, says consulting firm McKinsey & Company. And that’s what Walgreens faced, too.
Walgreens Boots Alliance Inc. CEO Timothy Wentworth said during a Jan. 10 call with investment analysts putting more products in locked display cases “does impact how sales work through the store because when you lock things up, for example, you don’t sell as many of them. We’ve kind of proven that pretty conclusively.”
As for theft, Walgreens’ asset protection team is looking at “creative things” to address “the customer experience on shrink,” Wentworth said. “I don’t have anything magnificent to share with you today.”
Walgreens did not offer examples of products it was putting in display cases when asked by USA TODAY.
Walgreens said sales increased 7.5% to $39.5 billion in the first quarter of fiscal 2025, which ended November 30, 2024, in its quarterly financials, released last week.
Driving that result? A 12.7% increase in comparable pharmacy sales, which rose due to higher prices on branded drugs and more prescriptions filled, the company said.
However, comparable retail sales fell 4.6%, with lower sales in discretionary categories and a weaker cough cold flu season, Walgreens said.
Also as part of its turnaround plan, Walgreens plans to close about 1,200 stores, with about 500 to be closed in the company’s fiscal year 2025, which ends in August 2025, Walgreens said in October.
The company closed 70 stores in its first quarter of fiscal 2025, which ended November 30, 2024, Wentworth said during Friday’s call. Walgreens plans to close about another 450 stores through the end of 2025, he said.
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