The CEO of Walgreens has been forced to eat humble pie after the company’s decision to lock up products to deter shoplifters failed massively.
Tim Wentworth admitted that the company’s first-quarter earnings were highly disappointing.
“When you lock things up … you don’t sell as many of them. We’ve kind of proven that pretty conclusively,” he said, adding that the executives reported a 52% increase in inventory loss, which cannot be accounted for through sales.
In a sweeping shift this October, the company revealed plans to shutter a jaw-dropping 1,200 stores over the next three years and a whopping 500 store closures are already in the works.
“Nothing glamorous to report today—it’s still very much a hand-to-hand combat situation, unfortunately,” confessed Wentworth.
Walgreens CEO says locking things up leads to lower sales. pic.twitter.com/kFoUcADEE5
— Kevín (@KevOnStage) January 15, 2025
The company’s latest quarterly results emphasize the struggle, with an operating loss of $245 million—a stark contrast to the $39 million loss from the same period last year.
On Tuesday, a spokesperson for Walgreens announced that five “underperforming stores” are preparing for shutdown.
“Our retail pharmacy business is central to our go-forward business strategy. However, increased regulatory and reimbursement pressures are weighing on our ability to cover the costs associated with rent, staffing, and supply needs,” the company said in a statement. “It is never an easy decision to close a store. We know that our stores are important to the communities that we serve, and therefore do everything possible to improve the store performance. When closures are necessary, like those here in Chicago, we will work in partnership with community stakeholders to minimize customer disruptions.”
