Walgreens and retailers are dealing with a delicate balancing act between securing goods from theft while ensuring that security measures don’t drive customers away. Recent insights from Walgreens and the National Retail Federation (NRF) illustrate the complexity of this issue and highlight strategies retailers are employing to address it.
Facing a 52% increase in stolen inventory, Walgreens resorted to locking up a wide range of products. However, as CEO Tim Wentworth noted during a January earnings call, this approach backfired. Locked merchandise deterred potential thieves, but it also alienated customers, reducing overall sales. The company reported a significant operating loss of $245 million for the quarter and is now seeking new solutions to combat theft without shedding customers.
This tension is not unique to Walgreens. A 2024 NRF reportreveals a staggering 93% increase in shoplifting since 2019, with organized retail crime becoming more sophisticated. Groups of thieves, often working together, …