Walgreens: We Accidentally Proved Locks Are a Dumb Idea

Consider it a simple economic truth, one that ordinary Americans evidently knew long before CEOs: "When you lock things up ... you don't sell as many of them." So declares Walgreens CEO Tim Wentworth, referring to the chain's strategy of putting lots and lots of products behind locked cases to deter theft, reports Quartz. The problem is, as Walgreens found out, it also deters shoppers who don't feel like waiting for a store employee to come with the key.

"We've kind of proven that pretty conclusively," Wentworth told reporters in a call about the pharmacy chain's quarterly earnings. The company reported a net loss of $245 million, compared to $39 million a year earlier, per CBS News. The problem of theft hasn't gone away, but Wentworth says the company is looking at more "creative" solutions. "I don't have anything magnificent to share with you today," he added. "It is a hand-to-hand combat battle still, unfortunately."

It wasn't all bad news for the chain: Thanks in part to international sales, the company's revenue outpaced expectations and rose 7.6% compared to the previous year, reports the Wall Street Journal. The company still plans to close about 1,200 stores over the next three years, per Fox Business. (It is far from the only company to learn that locked cases often backfire.)