Walgreens CEO makes stunning claim about the impact locking goods up has had on the industry

[DrQ]

We just can't have nice things here:

Walgreens CEO makes stunning claim about the impact locking goods up has had on the industry​

Walgreens' CEO has admitted that locking up items to avoid shoplifting has not worked - and it will close stores instead.​

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Not only has the practice not curbed theft, it has dramatically hit sales.​

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Despite these measures, the company reported a 52 percent increase in 'shrinkage,' the retail term for inventory lost to theft.​

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“When you lock things up … you don’t sell as many of them. We’ve kind of proven that pretty conclusively,” Wentworth admitted.​

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Instead Wentworth said the company will need to look in to 'creative' solutions to fight the 'hand-to-hand combat battle' of shoplifting.​

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For now, however, Walgreens appears to be addressing the issue by closing stores in areas most affected by theft.​

Walgreens CEO says what everyone is thinking about locking goods up

During an earnings call on Friday, Walgreens CEO Tim Wentworth made a startling admission about the effects of locking up everyday items such as toothbrushes, deodorant, coffee, and even milk.

www.dailymail.co.uk

 

[Tia]

It's terrible . There are signs in retail where I live they have having problems with theft, we are not a big city. Once in a while I'll hear an account of things that have happened. When they raise the dollar amount before it's a serious crime thieves take advantage, CO is 2K before it's a felony! It used to be $700.

 

[TolmiePeak]

I don't understand why they don't implement the Amazon Go model. Just scan you device to gain access to the store and then get charged with whatever you walk out with.

 

[Cornell]

Why is this a stunning claim? Seems pretty obvious to me.

My office was next door to one if these locked down Walgreens. I absolutely reduced my shopping there. Complete PIA.

Perfect example of the fix isn’t the solution.

 

[TolmiePeak]

Why is this a stunning claim? Seems pretty obvious to me.

My office was next door to one if these locked down Walgreens. I absolutely reduced my shopping there. Complete PIA.

Perfect example of the fix isn’t the solution.

Is there anything you can't just order from Amazon and have it delivered?

 

[Cornell]

Is there anything you can't just order from Amazon and have it delivered?

The Walgreens is like a corner store. Run in to get a drink, bag of chips.

Also not sure how the Amazon Go model prevents theft. They accept cash. So someone can walk in, load up on items & walk out .

 

[TolmiePeak]

The Walgreens is like a corner store. Run in to get a drink, bag of chips.

Also not sure how the Amazon Go model prevents theft. They accept cash. So someone can walk in, load up on items & walk out .

You can't walk into an Amazon Go store unless you have a credit card linked to your account. There are no cash registers or people ringing you up. You just pick up whatever you want and walk out of the store.

 

[Cornell]

You can't walk into an Amazon Go store unless you have a credit card linked to your account. There are no cash registers or people ringing you up. You just pick up whatever you want and walk out of the store.

Amazon Go stores I’ve been in accept cash and “food stamps”. You are let into the store without an Amazon app.

Certain cities have forced this bc it’s been viewed as discriminatory to only allow credit card customers to shop in an Amazon Go.

 

[Snazzylass]

Grrrr..it's certainly annoying as h*ll to something you want to buy locked up and behind glass. Very common in Walmarts which were near me in metro PHX. I've noticed some Walmarts have remodeled their stores, moving the Health & Beauty to the front of the store or sectioning it off with an attendant and cash register.

Both CVS & Walgreens are a sad, sad mess. Turns out they are overbuilt. They expected lots of Baby Boomers with their prescriptions who are now apparently buying online and having their meds shipped to them. Their pharmacists have been notoriously overworked for years. It's a troubled mess.

And, now like Dollar Tree, Joann's and other retailers, they are understaffed - likely a cost-cutting measure by corporate. You walk in to empty shelves and aisles full of boxes. It's similar at Walmart and the grocery store except the walk-in customer is having to navigate around the employees with their big totes filling orders for delivery and drive-up customers.

 

[pedro47]

Locks are for honest shoppers. You can Google and find ways to open lock items.

 

[Cornell]

Grrrr..it's certainly annoying as h*ll to something you want to buy locked up and behind glass. Very common in Walmarts which were near me in metro PHX. I've noticed some Walmarts have remodeled their stores, moving the Health & Beauty to the front of the store or sectioning it off with an attendant and cash register.

Both CVS & Walgreens are a sad, sad mess. Turns out they are overbuilt. They expected lots of Baby Boomers with their prescriptions who are now apparently buying online and having their meds shipped to them. Their pharmacists have been notoriously overworked for years. It's a troubled mess.

And, now like Dollar Tree, Joann's and other retailers, they are understaffed - likely a cost-cutting measure by corporate. You walk in to empty shelves and aisles full of boxes. It's similar at Walmart and the grocery store except the walk-in customer is having to navigate around the employees with their big totes filling orders for delivery and drive-up customers.

I've been in grocery stores where the layout has been changed so once you enter you cannot exit unless you go through the check out area (which is being heavily screened / monitored). I'm not sure how this works with fire codes.

 

[jp10558]

I think the answer is going to end up being pick up shopping only in a lot of these places - i.e. you cannot go in and look at stuff, or maybe there's only a locked down display area, you can only order via app / online / kiosk and wait for the pick up after you've already paid.

TBH for most of my shopping I prefer delivery if at all possible but I'm very rural and driving 30 + minutes and miles to go to a Wallgreens isn't exactly a fun time or inexpensive in time or gas. Even if I'm already in town, wandering around a store searching for some item is frustrating, and waiting to check out with the one cashier is enough to make me not want to do it. If I could get curbside or walk up / pick up faster, I'd do it. But in my slower stores, I usually have to give them at least 3.5 hours notice, and in busier areas I have to wait ~2-3 days (in which case... Amazon?)

I think these stores are going to struggle with the needs / desires of the last minute shopper who "doesn't know" they're shopping or what they're getting till it's in the cart and the retail theft. I could see these shoppers maybe accepting "fast food" style waits from an order from a kiosk potentially, but not come back in 4 hours or tomorrow. On the other side of it - if they can't do "what they've always done" because of theft then IDK. And for people like me - the pharmacy and pick up orders often take as long as or near as long as 2 day shipping from multiple vendors online, and with the 2 day I don't have to drive places or spend time waiting.

 

[easyrider]

In our community the stores did start locking up some items but most items are not locked up. The Walmarts nearest us are locking up ammo , spray paint, some auto supplies and electronics. The stores I frequent are Lowes and Home Depot and some tools are now locked up but for the most part most of the inventory isn't locked.

People still get arrested for shoplifting and there are security cameras everywhere.

Bill

 

[Cornell]

^^ Lots of retailers in urban locations aren't set up for pick up. Additionally, the big cities (LA, Chicago, NY) are not willing to let go of cash-friendly retailers bc the belief that it marginalizes communities which don't have credit cards or traditional banks.

The whole thing is a giant mess.

One more thing: Stores like Ulta or Lululemon are hit over and over and over. I have friends with teen girls. 5-10 years ago these stores would be a fun place to work as a teenager. NONE of my friends would let their daughter's work there now. No way. Too dangerous. Too much at risk.

 

[rickandcindy23]

Why is this a stunning claim? Seems pretty obvious to me.

My office was next door to one if these locked down Walgreens. I absolutely reduced my shopping there. Complete PIA.

Perfect example of the fix isn’t the solution.

Absolutely. We have a WalMart Neighborhood Market a few miles from our house. They lock up even shaving cream and toothpaste. I now go to a WalMart in a better area that doesn't lock up anything.

 

[Cornell]

Absolutely. We have a WalMart Neighborhood Market a few miles from our house. They lock up even shaving cream and toothpaste. I now go to a WalMart in a better area that doesn't lock up anything.

Sorry - not sorry - but I'm not going to buy a bottle of sunscreen being chaperoned by sales associate.

 

[Snazzylass]

I've been in grocery stores where the layout has been changed so once you enter you cannot exit unless you go through the check out area (which is being heavily screened / monitored). I'm not sure how this works with fire codes.

Well... I just left Menard's. Their stores have always been set up with a gate at the entrance and the cashiers at the exit. You can't exit their entrances. It's not loosey goosey like Lowe's.

And I did intend to go to the one in a sketchy area. Surprise, surprise! They moved the store to the other side of the interstate, which isn't much better. Love the store..but 2 security guards at the entrance; one at the exit...hmm...guess that's not really a bad thing for a shopper like me. Eventually I realized this exact location once housed a Kmart that a frequented for Christmas sales. The neighborhood was edgy then, too.

 

[Snazzylass]

In our community the stores did start locking up some items but most items are not locked up. The Walmarts nearest us are locking up ammo , spray paint, some auto supplies and electronics. The stores I frequent are Lowes and Home Depot and some tools are now locked up but for the most part most of the inventory isn't locked.

People still get arrested for shoplifting and there are security cameras everywhere.

Bill

WM still sells ammo? The tools definitely need to be locked up! I'm glad they do. Too many incidents of grab and go's - filling carts and heading out of the store. The employees are trained not to stop em

 

[Snazzylass]

I think the answer is going to end up being pick up shopping only in a lot of these places - i.e. you cannot go in and look at stuff, or maybe there's only a locked down display area, you can only order via app / online / kiosk and wait for the pick up after you've already paid.

TBH for most of my shopping I prefer delivery if at all possible but I'm very rural and driving 30 + minutes and miles to go to a Wallgreens isn't exactly a fun time or inexpensive in time or gas. Even if I'm already in town, wandering around a store searching for some item is frustrating, and waiting to check out with the one cashier is enough to make me not want to do it. If I could get curbside or walk up / pick up faster, I'd do it. But in my slower stores, I usually have to give them at least 3.5 hours notice, and in busier areas I have to wait ~2-3 days (in which case... Amazon?)

I think these stores are going to struggle with the needs / desires of the last minute shopper who "doesn't know" they're shopping or what they're getting till it's in the cart and the retail theft. I could see these shoppers maybe accepting "fast food" style waits from an order from a kiosk potentially, but not come back in 4 hours or tomorrow. On the other side of it - if they can't do "what they've always done" because of theft then IDK. And for people like me - the pharmacy and pick up orders often take as long as or near as long as 2 day shipping from multiple vendors online, and with the 2 day I don't have to drive places or spend time waiting.

It's not going to be a problem everywhere. I recall attempts at looting in Scottsdale where the bandits met the owner armed with a firearm. End of story. No looting. Bandits left.

I know companies don't want employees taking action but in our rural area there are independent pharmacies. Many customers use the drive-up and leave it at that.

The Home Improvement stores are very organized with their apps. They can tell you what aisle and bin to find the item along with how many are in stock.

 

[pedro47]

I knew some bad guys who could walked into a major supermarket chain and steal a whole Smithfield Ham and know one saw them stealing the hams.
Each bad guy stole one ham.

This is a true story. Yes! They were caught later because one of their customer was not satisfied with the stolen purchased.

 

[easyrider]

WM still sells ammo? The tools definitely need to be locked up! I'm glad they do. Too many incidents of grab and go's - filling carts and heading out of the store. The employees are trained not to stop em

It's been a while since I bought bullets from Walmart but I did recently buy bb's for the bb guns and had to have an associate open the case. I'm training the younger grandkids with the bb guns before I let them us a .22. The older grandkids have their cwp and handguns.

Bill

 

[MrockStar]

^^ Lots of retailers in urban locations aren't set up for pick up. Additionally, the big cities (LA, Chicago, NY) are not willing to let go of cash-friendly retailers bc the belief that it marginalizes communities which don't have credit cards or traditional banks.

The whole thing is a giant mess.

One more thing: Stores like Ulta or Lululemon are hit over and over and over. I have friends with teen girls. 5-10 years ago these stores would be a fun place to work as a teenager. NONE of my friends would let their daughter's work there now. No way. Too dangerous. Too much at risk.

Thats why i avoid ALL major cites as much as possible and have begun the 2-year countdown to selling my suburban Detroit home and moving Up north to our lake cottage for retirement. No locked-up items in any stores there and we dont even have to lock the front door of our house up there.

 

[Luanne]

Is there anything you can't just order from Amazon and have it delivered?

But if you are traveling and need something right now, not convenient to use Amazon (especially if you are staying someplace that won't accept deliveries for you).

I walked out of a Walgreen's in San Francisco. I was looking for a toothbrush. They were locked up. The store was really busy and I decided I didn't want to wait. Came home and bought the toothbrush at our local CVS, not under lock.....although there are plenty of other things that are.

 

[jp10558]

But if you are traveling and need something right now, not convenient to use Amazon (especially if you are staying someplace that won't accept deliveries for you).

I walked out of a Walgreen's in San Francisco. I was looking for a toothbrush. They were locked up. The store was really busy and I decided I didn't want to wait. Came home and bought the toothbrush at our local CVS, not under lock.....although there are plenty of other things that are.

Actually, when I was in FL in december, I just used Amazon Lockers for the first time - easy peasy.

 

[jp10558]

Thats why i avoid ALL major cites as much as possible and have begun the 2-year countdown to selling my suburban Detroit home and moving Up north to our lake cottage for retirement. No locked-up items in any stores there and we dont even have to lock the front door of our house up there.

IDK, we're rural, and there's still reports of people stealing, and heck we had a trailer stolen overnight one time a while ago. We never used to worry, but there are reports of vans driving around... We're of course more worried about stuff in the house when we're on a trip / not home all the time.