US pharmacy firm Walgreens Boots Alliance has acknowledged that its anti-shoplifting strategy of locking up products has backfired, with chief executive officer Tim Wentworth admitting the practice hurts legitimate sales.

"When you lock things up, you don't sell as many of them. We've kind of proven that pretty conclusively," Wentworth told investors during the company's first-quarter earnings call for fiscal year 2025.

The admission comes as Walgreens continues to battle what Wentworth described as a "hand-to-hand combat battle" against retail theft, with previous security measures proving "largely ineffective." The company reported a significant increase in shrink of 52 per cent in 2020 and 2021.

Despite these challenges, Walgreens outperformed expectations in the first quarter, reporting adjusted earnings per share of $0.51, though this represented a 23 per cent year-over-year decline. The company maintained its full-year guidance of $1.40 to $1.80 per share.

The pharmacy giant announced plans to close approximately 450 additional stores in 2025 as part of its strategic overhaul. Wentworth noted that stores remaining open typically outperform those designated for closure by approximately 250 basis points.

"Naturally, we expect our future footprint to support stronger performance," said Wentworth, adding that the company has extensive experience in store closures, having shut about 2,000 locations over the past decade.

The company is now developing what Wentworth called "creative" solutions to combat theft while improving customer experience. This forms part of a broader strategic shift towards health and wellness offerings, including the introduction of new product categories such as superfoods and sports nutrition.

Comparable retail sales declined 4.6 per cent in the first quarter, which the company attributed to a weaker cold and flu season and continued pressure on consumer discretionary spending.

Despite these headwinds, Walgreens reported progress in its pharmacy services, with chief financial officer Manmohan Mahajan highlighting that shipped volumes from micro-fulfillment centres increased 23 per cent year-on-year while cost to fill decreased by 13 per cent.

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