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 report reveals a staggering 93% increase in shoplifting since 2019, with organized retail crime becoming more sophisticated. Groups of thieves, often working together, target high-value items with greater frequency, forcing retailers to implement stringent security measures. However, these measures, such as locking up products, using electronic tags and hiring additional security, can negatively impact the customer experience. According to the NRF, 76% of retailers acknowledge that their antitheft strategies have adversely affected how shoppers perceive their stores.
A key challenge lies in tailoring security measures to individual store environments and product categories. High-theft items like cosmetics, over-the-counter medications and electronics are often secured with locks or tags, or are completely removed from sales floors. Yet, the broader impact of these measures, including longer wait times for assistance and reduced convenience, can deter customers from making purchases altogether.
In response, retailers are increasing their budgets for advanced security technologies, including shopping cart locks, receipt-checking systems and AI-driven surveillance. These tools help monitor theft without significantly disrupting the shopping experience. However, the technologies are a significant investment and must include ongoing adaptation as criminals learn how to get around them.
Focusing on customer engagement has shown promise to deter theft. Strategies such as greeting customers, offering assistance and maintaining a visible staff presenc…
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