Walgreens can "step back" controversial security policies while buyers take business elsewhere
A business manager admits that they may have gone too far.
The past few years have not been exactly easy for retailers, because the cocovious pandemic and record inflation have both distant store buyers. They also faced a significant increase in the display flight, which, according to some, made more difficult to make a profit. The average retailer saw Organized retail crime (Orc) incidents Increase by 26.5% In 2021, according to the National Retail Federation (NRF). However, trying to avoid display flight, some companies have alienated their loyal customers. And now Walgreens revisits its controversial security policies in the midst of buyer reports that take their business elsewhere. Read the rest to know why the retailer can change course.
Read this then: Walgreens and CVS close pharmacies and reduce the hours .
Stores have locked the products to combat the increase in retail flight.
Retail channels in the United States have fought against the sharp increase in display flight thanks to new safety measures, especially in store locking in stores.
During Wall Street's journal Summit of the CEO of the CEO last month, CEO of Walgreens Roz Brewer confirmed that the company was Lock more products And work with other retailers on the means of fighting against the organized flight rings.
At the time, Brewer said that Walgreens had succeeded in reducing the display flight, but also revealed that the company was going further. While Walgreens was initially focused on locking items at high prices exclusively, the retailer now secures whole product categories, according to the CEO. "What they are doing is to enter and take a elbow and slip the whole counter," said Brewer.
Buyers began to express their frustration.
Walgreens is not the only retailer to put products behind bars. In 2022, Walmart also started testing New types of locked cases which can only be opened by employees using a smartphone, according to Forbes . And viral videos have revealed everything shampoo and conditioner to soda bottles Be kept behind locked cases in CVS stores.
This strategy forced some buyers to take their business elsewhere. Arizona resident Roger Evans said to the initiate that he has stopped buying products Like razors in Walgreens and CVS stores following these new security policies.
"I have always had trouble finding a staff member to unlock them," said Evans at the media, explaining that he is now choosing to buy direct brands from consumers like Harry's and Dollar Shave Club. "Pharmacies have been perpetually under sub-efficient."
There are endless publications on social networks expressing indignation and frustration in the face of these policies. "My local Walgreens (Chicago) have their toothpaste Under locking and key . I guess it prevents theft, but it also does in that, so I will never buy Walgreens toothpaste because it is too hard to bring someone to unlock the case. I'm going elsewhere, "wrote a Twitter user on January 5.
Another user said they also stopped buying products in the popular pharmacies chain for the same reason. "The number of times I have Out of walgreens With nothing because half of what I needed was locked up, "they tweeted." How do they stay in business? ""
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Now Walgreens says he could "step back" from his controversial policies.
When Better life Previously stretched out in Walgreens Regarding customer complaints concerning the products locked, the company said that retail crime is "one of the main challenges" at the moment and has doubled on its commitment to "provide safe environments" with various security policies .
"We continue to take measures, such as the installation of anti-theft devices for example, to dissuade flight and ensure security and security in our stores," a spokesperson for Walgreens wrote in a statement. "These measures are taken in response to flight data and for this reason only, and these additional security measures allow us to improve the availability of products in terms of customers." AE0FCC31AE342FD3A1346EBB1F342FCB
But now it seems that Walgreens may be reconsidered. During A profit call January 5, CFO James Kehoe admitted that the company could have moved its anti-shoplifting efforts too far. "We made additional security in stores in the first quarter," said Kehoe during the call. "In fact, we have probably put it too much, and we could go back a little of that."
Better life Contacted Walgreens for more information on their plans to reverse the course, but has not yet heard.
The retailer said that retail flight losses have decreased.
Last year, Kehoe said Walgreens faced a Substantial increase in retail flight , Reported the initiate. According to the CFO, the loss of the company's inventory, which is the loss of inventory of things other than sales, has increased 40 to 50% year by year. At the time, Kehoe said that the Walgreens reduction rate was around 3.5%, Orc playing an important role.
But this number has since fallen at a much more stable rate. During the call for the results of January 5, Kehoe said that the retail narrowing of Walgreens was currently only about 2.5%. "We are very satisfied with the place where we are ... It's good below previous years," he noted. "Maybe we cried too much last year when we hit figures that represented 3.5% of sales."