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Walgreens finally understood what most people already knew: when you lock down all products, people will buy fewer things.
CEO Tim Wentworth acknowledged this reality in a first quarter earnings call on January 10. He said the company’s decision to lock down its products after reporting a 52% increase in stolen inventory had backfired.
“When you lock things up, for example, you don’t sell as many. We kind of proved it quite conclusively,” he said.
Wentworth said he was working with the company’s asset protection manager to develop “creative” solutions to combat shoplifting.
“I don’t have anything wonderful to share with you today. Unfortunately, this is still hand-to-hand combat.
Walgreens (WBA+1.68%), which is experiencing financial difficulties, reported an operating loss of $245 million for the quarter, compared to $39 million in the same quarter a year ago.
The chain plans to close hundreds of underperforming stores this year with the aim of turning things around and being more efficient. Despite a decline in retail sales, the company reported growth in pharmacy sales.