Newsom signs bill to address retail trade and vehicle theft
In August 2024, California Governor Gavin Newsom signed 10 bills to combat retail and vehicle theft.
The company’s CEO said on a recent earnings call that Walgreens’ plan to combat increased theft by locking merchandise in stores is hurting sales.
According to FOX business:In a January 10 earnings conference, executives reported that “shrinkage,” or inventory losses that cannot be explained by sales, had increased by 52%. This is despite major drugstores trying to crack down on shoplifting, including product placement. Inside the plastic housing under the lock and key.
Why is Walgreens locking everything down?
A aisle of vitamins and supplements in a locked cabinet to prevent theft, at a Walgreens pharmacy in Queens, New York. (Photo by Lindsay Nicholson/UCG/Universal Images Group via Getty Images)
inside story: Walgreens has begun storing some products under lock and key in response to an increase in shoplifting and other thefts at its retail stores.
In November, San Francisco police announced the arrest of eight 12-year-old retail suspects believed to be responsible for 23 thefts of merchandise valued at more than $84,000 from various Walgreens stores. KTVU.
Related: Police release statement after shocking Walgreens theft: ‘Yes, that’s correct.’
In June, police Delaware announces man wanted Charged with stealing $11,000 worth of cigarettes from a Walgreens store in Wilmington. Police said employees were busy in another section of the store when a man walked behind the counter and grabbed items.
dig deeper: Walgreens CEO Tim Wentworth He said the move may have backfired.
“I don’t have anything great to share with you today,” Wentworth said Friday. Motley Fool website. “Unfortunately, it’s still a hand-to-hand battle, but it certainly affects sales in stores because when you close things down, for example, you don’t sell as many products.”
Walgreens announced in July that it would close a “significant” number of underperforming stores across the U.S., citing continued challenges with profitability and margins.
Americans admitted to shoplifting
In terms of numbers: According to a June 2024 LendingTree survey. More than 1 in 5 Americans admit to shopliftingand 23% of them admitted to doing so within the past year.
Related: Here’s how many Americans admit to shoplifting and where shoplifting happens most often.
Notably, 6% said they do this regularly. 90% of shoplifters said inflation and the current economic climate were motivating them to shoplift. More than half (52%) of shoplifters were over 16 years old at the time.
source: This report includes information from a recording of Walgreens’ earnings call published on Jan. 10 on the Motley Fool website, FOX Business, FOX’s LiveNow, and KTVU. FOX’s Megan Ziegler contributed.
