Walgreens Boots Alliance CEO Tim Wentworth acknowledged that closing products in order to do so combat retail theft had a negative impact on stores.

During an earnings call on Friday, executives reported a 52% increase in “shrinkage,” or an inventory loss that cannot be accounted for through sales. The surge in inventory loss comes after the pharmacy giant’s efforts to crack down on theft, which Wentworth suggested may have backfired.

“When you close things down … you don’t sell as many. We’ve shown that pretty conclusively,” Wentworth said.

Tim Wentworth stated that locking items to combat theft does not work. (Walgreens Boots Alliance/Business Wire/Fox News)

A DOZEN WALGREENS STORES IN SAN FRANCISCO TO CLOSE

This probably refers to viral images of various articles, including ice creambeing locked to deter thieves, a technique used by several pharmacies and retail stores to prevent theft. Wentworth claimed that these measures have resulted in dissatisfied customers.

Wentworth added that the company would implement new solutions to both issues, though he did not share any specifics.

This Dec. 23, 2022 photo shows closed or otherwise chained candy and ice cream at a New York City Walgreen’s store on Lexington Avenue near East 61st Street. (Fox News Digital / Fox News)

Despite an increase in “shrinkage,” Walgreens reported better-than-expected fiscal first-quarter 2025 results, including a 7.5% increase in sales.

In October, the company announced that it would be closing at least 1,200 stores over the next three years to reduce costs. About 500 stores are expected to close in fiscal 2025.

GET THE FOX BUSINESS ANYWHERE CLICK HERE

Many other stores have caught on over the past few years several drastic measures to suppress theft and organized crime. In addition to closing stores, some have opted to hire private security guards or limit store hours to protect workers.

Walgreens plans to close about 500 stores by 2025. (Joe Raedle/Getty Images/Getty Images)

CLICK HERE TO READ MORE ABOUT FOX BUSINESS