Walgreens closing 200 stores

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And WAG stock is at an all time high. Up more than 4%
 
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"The Deerfield, Ill.-based company said the cost-reduction plan will also include a corporate reorganization and streamlining information technology."

Expect middle management to get the ax.
 
BMBiology said:
"The Deerfield, Ill.-based company said the cost-reduction plan will also include a corporate reorganization and streamlining information technology."

Expect middle management to get the ax.
Click to expand...

Is middle management RxM, PIC, and similar roles?
 
The question is how much this change would affect pharmacists? And what about competition vs other chains
 
I saw a stat that said lower level worker moral is unchanged when middle management gets axed. Personally thinking about it, I think that's right. Bring on management realignment
 
We're undergoing a pretty big company wide management restructuring. It's predominately focused on District level and up to Corporate. They consolidated positions, axed others, created new ones, etc. That, along with the Alliance Boots merger and the possible buyout of Rite-Aid, the stock has climbed substantially. Oddly enough, with all the changes, there will be many store level promotions (SFL's, ASM-T's, ASM's and SM's).
 
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They way I heard it is that they're closing 200 but will be opening ~200 more soon thereafter. Really just redistributing within more profitable markets.

Edit: Source found. Thanks, PumpkinSmasher.
 
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I considered buying pharmacy stock at one point. But then I felt dirty.
 
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Just see it as opportunity if you aren't working for WAGs. The places they leave will likely have patients that now need to move pharmacies. It may be a good thing for independents or others in those neighborhoods. Sucks though for those who get "restructured out" though.
 
TonyRx said:
Obviously nothing written in stone yet, but a lot of rumblings throughout the company about this possible buyout. It has been discussed in the past and never materialized, but now Walgreens Boots Alliance looks poised to make a real move.

http://www.forbes.com/sites/greatsp...-walgreens-might-consider-acquiring-rite-aid/

Quick google search and you'll come across many other recent articles.
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I just don't think walgreens will buy rite aid. They're more likely to buy a PBM now than anything else.
 
rite aid has a PBM i think so thats another plus for walgreens to buy them. though, rite aid may not be willing to sell.. they are managing their debts just fine n don't have reasons to sell unless for a high premium..
 
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BMBiology said:
Expect middle management to get the ax.
Click to expand...

Heh , just wait until they release the full details , your predictions have been completely spot on. More or less , middle management as we knew it is gone
 
Lnsean said:
I just don't think walgreens will buy rite aid. They're more likely to buy a PBM now than anything else.
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Agreed, but since Rite Aid bought a PBM (EnvisionRx), Walgreens took notice and is much more interested in a possible acquisition than ever before. The man pushing it is our current and new CEO Stefan Pessina, the billionaire from Alliance Boots who now has the reigns at Walgreens (WBA). That whole merger is another reason why this company wide "management restructuring" is occurring. The Wall Street Journal had an article last month stating that Pessina is looking to take complete control of WBA by becoming the Chairman of the Board and hand-picking his successor at CEO from his Alliance Boots "crew".

Bottom line, BIG changes occurring across the board already and more to come this year and 2016. Good or bad? I don't know.
 
TonyRx said:
Agreed, but since Rite Aid bought a PBM (EnvisionRx), Walgreens took notice and is much more interested in a possible acquisition than ever before. The man pushing it is our current and new CEO Stefan Pessina, the billionaire from Alliance Boots who now has the reigns at Walgreens (WBA). That whole merger is another reason why this company wide "management restructuring" is occurring. The Wall Street Journal had an article last month stating that Pessina is looking to take complete control of WBA by becoming the Chairman of the Board and hand-picking his successor at CEO from his Alliance Boots "crew".

Bottom line, BIG changes occurring across the board already and more to come this year and 2016. Good or bad? I don't know.
Click to expand...

In a way, I like Pessina. The current management crew at wags is really horrible. Ever since Mr. Walgreens left, this company has gone down the spiral. Pessina is throwing all that out, which I hope he does. We'll see if it's good or bad.
 
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TonyRx said:
Agreed, but since Rite Aid bought a PBM (EnvisionRx), Walgreens took notice and is much more interested in a possible acquisition than ever before. The man pushing it is our current and new CEO Stefan Pessina, the billionaire from Alliance Boots who now has the reigns at Walgreens (WBA). That whole merger is another reason why this company wide "management restructuring" is occurring. The Wall Street Journal had an article last month stating that Pessina is looking to take complete control of WBA by becoming the Chairman of the Board and hand-picking his successor at CEO from his Alliance Boots "crew".

Bottom line, BIG changes occurring across the board already and more to come this year and 2016. Good or bad? I don't know.
Click to expand...

I don't see WAG buying Rite Aid. Too much overlap and Rite Aid has too much debt. Besides WAG sold its PBM not too long ago and Rite Aid purchased a small PBM ($1 billion I believe).

WAG may make some major deals/partnerships in the near future but I don't think it will be with Rite Aid.
 
Lnsean said:
In a way, I like Pessina. The current management crew at wags is really horrible. Ever since Mr. Walgreens left, this company has gone down the spiral. Pessina is throwing all that out, which I hope he does. We'll see if it's good or bad.
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Agreed , I am super pumped about WBA
 
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BMBiology said:
I don't see WAG buying Rite Aid. Too much overlap and Rite Aid has too much debt. Besides WAG sold its PBM not too long ago and Rite Aid purchased a small PBM ($1 billion I believe).

WAG may make some major deals/partnerships in the near future but I don't think it will be with Rite Aid.
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Another article from Forbes posted today (4/11/2015).

http://www.forbes.com/sites/bruceja...utm_source=MEDCareerAgents&utm_medium=twitter

I think Pessina makes a valid argument (below), the ACA is a game changer, all bets are off now. We'll see, I think at this point it's a coin flip.

“This market, the American market, is ready for another round of consolidation,” Pessina, Walgreens Acting CEO and executive vice chairman, told analysts last week on Walgreens Boots Alliance second-quarter earnings call. “Because the margins are squeezed everywhere; the government is more and more in charge for the costs of the healthcare business and so for sure they will exercise their power to squeeze the cost as much as possible, as we have seen in Europe for decades.”
 
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TonyRx said:
I think Pessina makes a valid argument (below), the ACA is a game changer, all bets are off now. We'll see, I think at this point it's a coin flip.
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Ehh...maybe in January 2017, should the Republicans win the White House. Otherwise, I'd assume an acquisition of Rite Aid by either CVS or Walgreens might be fought by the Department of Justice on the grounds it is harmful to consumers; AT&T's attempted acquisition of T-Mobile in 2011 was blocked for the very same reason, and the mobile phone market [4 major and 3 semi-major players] is more competitive than community pharmacy [3 major players plus however you want to categorize Walmart, Target, and the grocery stores].
 
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BMBiology said:
"The Deerfield, Ill.-based company said the cost-reduction plan will also include a corporate reorganization and streamlining information technology."

Expect middle management to get the ax.
Click to expand...
From what I've heard, Walgreens is eliminating the pharmacy supervisor position. That being the case, to whom do pharmacists go to with questions about procedure, pay discrepencies,
BMBiology said:
"The Deerfield, Ill.-based company said the cost-reduction plan will also include a corporate reorganization and streamlining information technology."

Expect middle management to get the ax.
Click to expand...
From what I've heard Walgreens is eliminating the Pharmacy Supervisor position. That being said, to whom do pharmacists go with questions regarding procedures, pay and benefit questions, disputes with other pharmacists, etc...?
 
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SELDANE said:
From what I've heard, Walgreens is eliminating the pharmacy supervisor position. That being the case, to whom do pharmacists go to with questions about procedure, pay discrepencies,
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Yep, this is correct. The new management structure no longer includes Pharmacy Supervisors, they also tweaked the DM position too. All current DM's and Pharmacy Supervisors had to reinterview for the "New DM" position and/or be promoted to the new Health Care Supervisor or Area Director positions. The "New DM" position will have them overseeing 13-15 stores (used to be 25-35 stores). The Area Director will be the DM's boss, and will oversee an area of roughly 80-90 stores (5-6 DM's). The Health Care Supervisor will also oversee an area of roughly 80-90 stores and will work alongside the Area Director.

Basically, immediate questions will have to be directed to the DM. If not resolved then I'd assume we could contact the Health Care Supervisor and/or Area Director. All of this is brand new and officially changes over in May. So, as of right now, none of us really know with complete certainty how it will work.
 
npage148 said:
How is it legal to operate without an SP?
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No idea. Is there even an actual Law stating that a retail chain/company needs a Pharmacy Supervisor? I have no clue. But, if so, then I assume the new Health Care Supervisor position may suffice that. Regardless, we won't have any Pharmacy Supervisors anymore. My current Pharmacy Supervisor got the new DM position while another I know received the promotion to Health Care Supervisor. There was also the possibility of being demoted to Pharmacy Manager if they didn't qualify for either of the 2 positions.
 
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npage148 said:
How is it legal to operate without an SP?
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Why this be illegal? As long as each pharmacy has a pharmacist-in-charge, I don't think anyone cares who that pharmacist answers to.
 
npage148 said:
Is a Walgreens sp different than a PIC? In NY the head pharmacist is called an SP and is a legal requirement for each store
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Yes. Head Pharmacist is the PIC (CVS) or Pharmacy Manager (Walgreens). Their boss is the Pharmacy Supervisor which is a district level position. Walgreens will obviously still have a Pharmacy Manager (or PIC as it's known) at each store. They are just restructuring their district level (and upward) positions.
 
SELDANE said:
From what I've heard, Walgreens is eliminating the pharmacy supervisor position. That being the case, to whom do pharmacists go to with questions about procedure, pay discrepencies,

From what I've heard Walgreens is eliminating the Pharmacy Supervisor position. That being said, to whom do pharmacists go with questions regarding procedures, pay and benefit questions, disputes with other pharmacists, etc...?
Click to expand...

I asked my new store manager the same question. Who do we go to for questions regarding procedures and most especially disputes with pharmacy manager. He told me that all concerns come to him. I wonder how all of this will work out. This is just giving too much power to store managers over pharmacists.
 
Estrace said:
I asked my new store manager the same question. Who do we go to for questions regarding procedures and most especially disputes with pharmacy manager. He told me that all concerns come to him. I wonder how all of this will work out. This is just giving too much power to store managers over pharmacists.
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Store managers have been over RXM for some time now. The old RXS position (pharmacy supervisor) was more of an advisory role, but MGR has been over RXM for at least last 5 years.
 
TonyRx said:
Another article from Forbes posted today (4/11/2015).

http://www.forbes.com/sites/bruceja...utm_source=MEDCareerAgents&utm_medium=twitter

I think Pessina makes a valid argument (below), the ACA is a game changer, all bets are off now. We'll see, I think at this point it's a coin flip.

“This market, the American market, is ready for another round of consolidation,” Pessina, Walgreens Acting CEO and executive vice chairman, told analysts last week on Walgreens Boots Alliance second-quarter earnings call. “Because the margins are squeezed everywhere; the government is more and more in charge for the costs of the healthcare business and so for sure they will exercise their power to squeeze the cost as much as possible, as we have seen in Europe for decades.”
Click to expand...

Pessina should have plenty of experience dealing with heavy government involvement in healthcare.

From the article above; “It’s very likely that we will see also vertical consolidation, and the opportunities are there for everybody, and we will see what happens,” Pessina told analysts. Vertical consolidation...that's the new thing with pharmacy. I take this to mean buying a PBM is not out of the question if that's what it takes to stay competitive.

A few years ago I was sure Rite Aid would be bought out and broke up like Osco/Eckerd was. I am amazed they are not only still in business but had the capital to buy a PBM.
 
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Rite Aid should be gone. The low interest rate environment has allowed them to restructure their debt out to infinity. Under a normal competitive environment the weak would go out of business and the strong would absorb them. Other example GM.
 
txpharmguy said:
Store managers have been over RXM for some time now. MGR has been over RXM.....
Click to expand...

That's the structure outside of Rite Aid. Within Rite Aid corporation, the building has 2 equal sections: Pharmacy and Front End. Pharmacy Manger is in charge of pharmacy's secrets and operations and reports directly to Pharmacy District Manager. Front End is outside of pharmacy and has their own District Manager. Even higher up is separate for Pharmacy Operations and Front End Operations.

Each structure has its own advantage and disadvantage. As we all can guess, a pharmacy operation controlled and micromanaged by non-pharmacy human has higher chances of having cut throat business moves and will improve overall business but at the expense of over squeezing pharmacy member. A company controlled by business minds only does not mean the company will always succeed; taking examples from car companies, all controlled by brilliant business minds, some succeed, some don't.

Take a small pharmacy for example, some of us want to work for company controlled by pharmacist owner, some of us want to work for company controlled by non-pharmacist owner. Each way has pros and cons of its own.
 
TonyRx said:
Yep, this is correct. The new management structure no longer includes Pharmacy Supervisors, they also tweaked the DM position too. All current DM's and Pharmacy Supervisors had to reinterview for the "New DM" position and/or be promoted to the new Health Care Supervisor or Area Director positions. The "New DM" position will have them overseeing 13-15 stores (used to be 25-35 stores). The Area Director will be the DM's boss, and will oversee an area of roughly 80-90 stores (5-6 DM's). The Health Care Supervisor will also oversee an area of roughly 80-90 stores and will work alongside the Area Director.

Basically, immediate questions will have to be directed to the DM. If not resolved then I'd assume we could contact the Health Care Supervisor and/or Area Director. All of this is brand new and officially changes over in May. So, as of right now, none of us really know with complete certainty how it will work.
Click to expand...

What is a Health Care Supervisor?
 
HelpfulPharmer1 said:
That's the structure outside of Rite Aid. Within Rite Aid corporation, the building has 2 equal sections: Pharmacy and Front End. Pharmacy Manger is in charge of pharmacy's secrets and operations and reports directly to Pharmacy District Manager. Front End is outside of pharmacy and has their own District Manager. Even higher up is separate for Pharmacy Operations and Front End Operations.

Each structure has its own advantage and disadvantage. As we all can guess, a pharmacy operation controlled and micromanaged by non-pharmacy human has higher chances of having cut throat business moves and will improve overall business but at the expense of over squeezing pharmacy member. A company controlled by business minds only does not mean the company will always succeed; taking examples from car companies, all controlled by brilliant business minds, some succeed, some don't.

Take a small pharmacy for example, some of us want to work for company controlled by pharmacist owner, some of us want to work for company controlled by non-pharmacist owner. Each way has pros and cons of its own.
Click to expand...

Mr. Pessina seems like a sharp guy, and I'm inclined to trust him. Though who knows how many years he has left

That said, ofc with today's internationalist corporate culture they are likely to rape the economy. Recruiting from pharmacists, like Walgreens did, has its merits, and worked for a long time. But pharmacist 90% percentile IQ is only 120. Need brains in corporate sharks, if only to head off other corporate sharks, or may be eaten
 
knight on horse said:
What is a Health Care Supervisor?
Click to expand...

It has essentially become the new "pharmacy supervisor" role. Other retailers (i.e. CVS) and WAG prior this restructuring, had a RxSup work alongside the DM and together they managed a District of ~25-35 stores. Now, Walgreens eliminated the RxSup position at that level, and created a HCS position that works alongside the Director of Pharmacy and Retail (DPR) and they oversee an AREA of ~80-90 stores. Beneath them is just 5-7 DM's that directly oversee their 13-15 stores.


New Structure: Corp VP's ----> Regional VP ----> DPR/HCS ----> DM ----> SM/PIC
 
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