Try Locking Up the CRIMINALS Instead! Walgreens CEO Says Shoplifting Prevention Led to Decline in Sales

The other day, this writer went to Walmart for a new electric toothbrush. Not only were the electric toothbrushes behind lock and key, requiring an employee, but the store policy was to carry the toothbrush to a specific register, where this writer had to go to retrieve it.

On the upside, she wasn't the woman who needed the pregnancy test perp-walked to the register. But it was insulting and maddening.

It's not necessarily Walmart's fault. They have to mitigate shoplifting losses. But Walmart has clout and pull with the soft-on-crime politicians who created a society where shoplifting isn't prosecuted so normal people have to suffer.

But this writer also won't buy any item under lock and key at a store (major electronics aside). She'll go elsewhere or order it online.

The same issue is hitting Walgreens, and it's damaging sales:

Walgreens CEO says anti-shoplifting strategy backfired: ‘When you lock things up…you don’t sell as many of them’ https://t.co/W7WQGOfNXo
— philip lewis (@Phil_Lewis_) January 15, 2025

More from Fortune:

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’ “footprint optimization program,” coupled with successful contract negotiations with payers for calendar 2025, aims to better align reimbursement with costs and carve out high-cost drugs like GLP-1s. However, retail sales remain a pain point, with comparable sales declining 4.6% in Q1, attributed to a weaker cold and flu season and persistent pressure on consumer discretionary spending.