Amazon  (AMZN) CEO Andy Jassy is sounding the alarm on a trend that is yanking consumers away from pharmacies across the nation and leading them to use Amazon Pharmacy instead.

As many retailers across the country are battling a spike in retail theft, which resulted in industry losses of $112.1 billion in 2022, compared to $93.9 billion in losses the previous year, retailers are experimenting with new ways to deter crime in their stores.

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While some retailers have pulled self-checkout machines (which have become a source for theft), hired security guards and even embedded artificial intelligence into surveillance camera systems to help discourage criminals, others are resorting to locking up their products.

During a recent earnings call, Jassy claimed that consumers are growing frustrated with having products locked behind cabinets at pharmacies.

“If you walk into pharmacies in cities today, it's a pretty tough experience with how much is locked behind cabinets, where you have to press a button to get somebody to come out and open the cabinets for you and a lot of shoplifting going on in the stores,” said Jassy.

He said that as a result, Amazon Pharmacy is “driving a lot of customer resonance and buying behavior” due to its “speed and ease” that physical pharmacies are starting to lack.

Pharmacies have grown to become especially susceptible to retail theft. Organized retail crime, which is when a group of people steal and resell items, occurs the most at pharmacies, according to the U.S. Chamber of Commerce. Big box stores, home improvement, and grocery stores are the next three most common targets for this type of crime.

Consumers across the country have been taking to social media to complain about the inconvenience of having products locked up at stores, which requires having an employee to unlock items before they can be purchased.

It is no surprise that consumers are starting to ditch physical pharmacies for Amazon Pharmacy, which launched in November 2020. It allows consumers to have medication delivered to their homes within one to four days, it has also been experimenting with delivering prescriptions by drone in less than 60 minutes.

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As Amazon is profiting off of the recent change in consumer behavior, the online retail giant recently reported a boost in its earnings. In its second-quarter earnings report for 2024, Amazon revealed that its net sales increased by 10%.

Its operating income also shot up to $14.7 billion during the quarter, compared with $7.7 billion during the same time period the year before.

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