Walgreens stores in California have reportedly begun locking up a wider range of products, including items like Hostess Snack Cakes, a measure attributed to the ongoing challenge of retail theft. A social media post from the account Wall Street Apes highlighted this trend, stating, "> "Walgreens in California is now locking up extremely high value items, like Hostess Snack Cakes. This isn’t a 3rd world country, this is Gavin Newsom’s California." The move reflects a broader industry response to significant inventory losses.
Retailers nationwide are grappling with "shrink," which refers to inventory loss from causes other than sales, predominantly theft. This issue cost the retail industry an estimated $94.5 billion in 2021, according to the National Retail Federation. Companies like Walmart, CVS, and Target have also implemented increased security measures, including locking up merchandise, to deter shoplifting.
Walgreens has openly acknowledged the impact of retail crime on its operations. CEO Tim Wentworth stated in a recent earnings call that while locking up products is a direct response to theft data, it also negatively affects sales. "When you lock things up, for example, you don’t sell as many of them. We’ve kind of proven that pretty conclusively," Wentworth explained. Despite this, the company continues to view such measures as the "most efficient solution to combat retail theft."
California, particularly San Francisco, has been a focal point for these retail security challenges. Viral videos of brazen shoplifting incidents have drawn national attention, leading Walgreens to close multiple stores in the city, citing organized retail crime as a primary factor. State lawmakers are actively pursuing new legislation, part of a "Working Together for a Safer California" package, to address the rising tide of retail crime.
The effectiveness and implications of these security tactics remain a subject of debate. While retailers seek to protect their assets, customers often express frustration over the inconvenience of waiting for staff to unlock items. Some industry analysts suggest that while theft is a genuine concern, retailers may also use it to explain other financial challenges, and that the problem's severity has fluctuated. Walgreens continues to seek "creative things" to combat theft without solely relying on locked displays, balancing security needs with the customer experience.