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Walgreens Takes Excessive Step to Resolve a Large Drawback

userJuly 18, 2023

We’re at an fascinating intersection within the retail sector. 

On the one hand, retail has by no means been stronger. Regardless of some long-anticipated bankruptcies within the brick-and-mortar area, giant incumbents like Amazon,  (AMZN) – Get Free Report Goal, and Walmart have by no means been stronger. 

DON’T MISS: Amazon’s Prime Day Was Additionally Nice for Goal and Walmart

Submit-covid spending has come again with a vengeance, and deal-hungry shoppers are extra discerning than ever. We’re all used to treating ourselves at times to a brand new pair of Nikes, Lululemon attire, lipstick or small kitchen equipment. Through the pandemic spending grew to become a cathartic behavior that many people can not seem to kick.

However with good habits come less-savory ones. An issue many retailers proceed to grapple with is shoplifting, which noticed a pointy uptick through the pandemic

Even the large gamers have been pressured to handle it in current months, because it eats into their backside traces. 

CEOs at Goal and Walmart Handle Shoplifting

Goal  (TGT) – Get Free Report Chief Government Brian Cornell stated within the Q1 earnings name that the retailer had been shedding tens of millions of {dollars} of merchandise as a result of difficulty.

“Past macroeconomic challenges, we proceed to deal with important headwinds brought on by stock shrink, constructing on a worsening pattern that emerged final yr,” he stated. 

“Whereas shrink could be pushed by a number of elements, theft, and arranged retail crime are more and more pressing points impacting the staff and our visitors and different retailers. The issue impacts all of us, limiting product availability, making a much less handy buying expertise, and placing our staff and visitors in hurt’s method.”

And Walmart  (WMT) – Get Free Report CEO Doug McMillon stated in December that shoplifting was “greater than what it traditionally has been.” In Might, half its Chicago areas shuttered because of underperformance points related to theft. 

And the chains with a few of the largest points are drugstores. On just about each nook — particularly in densely populated areas — and filled with necessities, they’re hotbeds for theft. 

As of late razors can price $20, a gallon of milk upward of $7 and bandages near $15. Many people want these items, however when life feels costlier as a result of rising price of residing, in lots of cities shoplifting additionally rises.

Walgreens  (WBA) – Get Free Report has been one of the vital outspoken critics of the rising downside. The pharmacy lately launched a new program whereby solely two aisles of necessities can be found for in-person buying, and the remainder could be ordered by way of kiosk, the place you should watch for an worker to do the purchasing for you.

Large Issues Name for Even Greater Options

With outsized points come outsized options. And rolling out a brand new retailer prototype takes time (and extra workers). That is why some Walgreens areas are taking issues into their very own fingers. 

Some shops within the San Francisco space have resorted to chaining sure aisles and areas to stop crime. 

“NEW: Native Walgreens chains up the frozen meals part to discourage theft. San Francisco, Geary at sixteenth Av location right now,” San Francisco-based political commentator Richie Greenberg tweeted, together with a photograph of aisles of frozen meals cordoned off by giant metallic chains to stop the doorways from opening.

CBS Information’ Betty Yu stated workers within the space reported as many as 20 shoplifting incidents per day, typically sufficient to scrub the complete retailer out of late-night-snack favorites, together with pizza and ice cream. 

TheStreet has reached out to Walgreens for remark.

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userJuly 18, 2023
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