Only criminals are your customers.
Case in point, Walgreens backtracking on its program of locking up everything on their shelves:
In a challenging retail landscape, Walgreens Boots Alliance shared plans to revamp its strategy in a Q1 2025 earnings call. Despite reporting a 23% year-over-year decline in adjusted EPS to $0.51, the pharmacy giant outperformed expectations, buoyed by robust cost management and strength in U.S. pharmacy services. CEO Tim Wentworth emphasized the company’s commitment to a “retail pharmacy-led turnaround,” underpinned by strategic store closures, enhanced customer engagement, and a renewed focus on health and wellness offerings.
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.”
Gee, ya think?
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