Walgreens to close 3,000 stores ?!?!?!!

[Lexington2012]

http://fortune.com/2015/11/05/walgreens-rite-aid-store-closings/

This merger is bad news! They are planning to close many stores.

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[Digsbe]

It's common for many pharmacies to cluster. Where I used to work there was a Kroger (with a pharmacy), a Publix (with a pharmacy), a Walgreen's and a Rite Aid all on the same block. With the merger coming I knew more than likely one of the stores would go since it makes no sense to have a double presence on the same block. I'm sure there are many other similar arrangements around the country. I don't see how anti-trust can't block this. It means CVS and Walgreen's are really the only 2 chain pharmacies not located in grocery/department stores out there, and I highly doubt independents will be able to buy the stores to be sold and move in (especially given how hard it is to run an independent now and turn a profit given PBM pressure). Who knows, maybe with expected script count from combining they'll hire the pharmacists on to help meet that demand, but likely not all. It kinda sucks to be graduating in 2016 with all these changes happening.... CVS gets Target (a company many dreamed to work for), Walgreen's gets Rite Aid, and likely the chains will look to buy out grocery store pharmacies in the future too.

 

[Gombrich12]

The buyouts of Rite-Aid and Target are the biggest red flags I've seen other than the decade long decline in reimbursement rates. I don't see how an informed advisor can tell a student to enroll in pharmacy school at this time without a massive disclaimer.

 

[Digsbe]

The buyouts of Rite-Aid and Target are the biggest red flags I've seen other than the decade long decline in reimbursement rates. I don't see how an informed advisor can tell a student to enroll in pharmacy school at this time without a massive disclaimer.

I think much of this is due to reimbursement too. It squeezes out smaller competition and only the big dogs who own a PBM or have more negotiating leverage will survive, it forces consolidation and kills competition. With declining reimbursement and PBM abuse towards pharmacies it's setting up an oligarchy as far as how community pharmacy is run. This is typically always bad for consumers.

 

[Lexington2012]

In many states, there is no CVS presence.

If you have 2 choices and one is taken away, how many choices do you have? Zero (having one choice is the same as having zero choices).

Giving WAG a regional monopoly is a really bad idea.

 

[Son_Goku]

It's common for many pharmacies to cluster. Where I used to work there was a Kroger (with a pharmacy), a Publix (with a pharmacy), a Walgreen's and a Rite Aid all on the same block. With the merger coming I knew more than likely one of the stores would go since it makes no sense to have a double presence on the same block. I'm sure there are many other similar arrangements around the country. I don't see how anti-trust can't block this. It means CVS and Walgreen's are really the only 2 chain pharmacies not located in grocery/department stores out there, and I highly doubt independents will be able to buy the stores to be sold and move in (especially given how hard it is to run an independent now and turn a profit given PBM pressure). Who knows, maybe with expected script count from combining they'll hire the pharmacists on to help meet that demand, but likely not all. It kinda sucks to be graduating in 2016 with all these changes happening.... CVS gets Target (a company many dreamed to work for), Walgreen's gets Rite Aid, and likely the chains will look to buy out grocery store pharmacies in the future too.

Gotta admit, I'm eager to see the differences between a CVS personality test vs a Target personality test.

 

[steveysmith54]

Only things that seem to be predictable in this field is closure of pharmacies and opening of new pharmacy schools.

I am hopeful that these projections are wrong.

 

[solitarius]

Low margins --> Consolidation --> Cut Costs.

 

[confettiflyer]

C'mon guys, why is this a surprise...if this merger didn't save money, it wouldn't have been pursued. Operational efficiencies are the ultimate goal.

Great for shareholders, though!

 

[Mounjaro]

We literally have a Rite-Aid across the street from the Walgreens in my town, it's absolutely for the best considering the fact that it would be a bad business decision if they were to keep two of the exact same businesses who gain a majority of their profits in the pharmacy competing against one another.

 

[Wheresmyaricept]

But will Walgreens still own those properties so CVS doesn't swoop in and try and open up in those old spots?

 

[ChalupaBatman86]

But will Walgreens still own those properties so CVS doesn't swoop in and try and open up in those old spots?

Walgreens doesn't own most of their stores and neither does CVS. They do a sale-leaseback. Sometimes the agreements include restrictions on what other types of businesses can lease the space in the future.

 

[Dred Pirate]

Do you really think the SEC will let them close that many stores vs divest them to another buyer (not sure who has the cash to buy them uo?)

 

[genesis09]

In the upper midwest, there is a small pharmacy chain called Thrifty White. Normally, with these buyouts, SEC forces them to divest the stores not close them.

 

[VeeSee]

jobs going to be lost probably

what else is new in pharmacy

if salaries never went up to 100k then things would be a lot different

 

[Dred Pirate]

jobs going to be lost probably

what else is new in pharmacy

if salaries never went up to 100k then things would be a lot different

interesting debate -lets say you are 10 years out - would you rather be in our current situation - making 140k a year, but with the current outlook = not so good or have guaranteed job security but making 85k?

 

[VeeSee]

interesting debate -lets say you are 10 years out - would you rather be in our current situation - making 140k a year, but with the current outlook = not so good or have guaranteed job security but making 85k?

Second option wouldn't be an option

Wouldn't be in this at all if this was the case

And I don't make 140k a year ... I don't think any new graduate makes that much where I'm at

 

[Dred Pirate]

Second option wouldn't be an option

Wouldn't be in this at all if this was the case

And I don't make 140k a year ... I don't think any new graduate makes that much where I'm at

my statement meant that if our salaries were at the 80k point, we wouldn't have this saturation likely. Ok 130k (that is less than I make at a hospital- retail pays 140-145k here

 

[VeeSee]

my statement meant that if our salaries were at the 80k point, we wouldn't have this saturation likely. Ok 130k (that is less than I make at a hospital- retail pays 140-145k here

No man I wouldn't be in this

I don't even know if I want to be in this now

Often I contemplate why on earth I chose this

Just treating it as a hustle for the time being

 

[gwarm01]

A lot of hospitals start new grads in the low 80s to low 90s per year as is, so I'd love more job security.

 

[Momus]

No man I wouldn't be in this

I don't even know if I want to be in this now

Often I contemplate why on earth I chose this

Just treating it as a hustle for the time being

You see $$$ you flock to it. You will probably hate working a pharmacist, so quit now. It's better in the long term. I am planning to quit the next 5 years hopefully... I need to do something I am passionate about; start something from the ground up. What I am doing now feels like prison, clock in clock out, do your time and go home. You have 0 control of anything, from your pay, your customer, location, your boss, 0 job security. The little money you make is good but working to make someone else richer is not my idea of advancing to better myself. Fnck pharmacy, fnck being an employee.

 

[GypsyHummus]

You see $$$ you flock to it. You will probably hate working a pharmacist, so quit now. It's better in the long term. I am planning to quit the next 5 years hopefully... I need to do something I am passionate about; start something from the ground up. What I am doing now feels like prison, clock in clock out, do your time and go home. You have 0 control of anything, from your pay, your customer, location, your boss, 0 job security. The little money you make is good but working to make someone else richer is not my idea of advancing to better myself. Fnck pharmacy, fnck being an employee.

I know, must be super hard to make 120K+ every year and having a boss tell you what you can and can't do.

Ill share a secret with yah, most people hate their jobs and clock in and out for the money.

 

[BidingMyTime]

interesting debate -lets say you are 10 years out - would you rather be in our current situation - making 140k a year, but with the current outlook = not so good or have guaranteed job security but making 85k?

But no use worrying about it. The thing is, pharmacist has pretty much nothing to do with the market conditions that created the shortage and high salaries, nor do they have anything today with the market conditions that are creating the surplus. Like anything in life, we just have to roll with it.

 

[Dred Pirate]

You see $$$ you flock to it. You will probably hate working a pharmacist, so quit now. It's better in the long term. I am planning to quit the next 5 years hopefully... I need to do something I am passionate about; start something from the ground up. What I am doing now feels like prison, clock in clock out, do your time and go home. You have 0 control of anything, from your pay, your customer, location, your boss, 0 job security. The little money you make is good but working to make someone else richer is not my idea of advancing to better myself. Fnck pharmacy, fnck being an employee.

Most people have this attitude - if you don't want to be an employee and make someone else rich- you have to be willing and ballsy enough to take the risk and start your own business. Most of us - myself included, are not going to take that risk - as of now I have a job paying 130k - work 40 hours a week, rarely more, relatively good working conditions, why would I give that up for the 1% chance I could actually make more (I am not an entrepreneur- I don't have that skill)

 

[GypsyHummus]

Most people have this attitude - if you don't want to be an employee and make someone else rich- you have to be willing and ballsy enough to take the risk and start your own business. Most of us - myself included, are not going to take that risk - as of now I have a job paying 130k - work 40 hours a week, rarely more, relatively good working conditions, why would I give that up for the 1% chance I could actually make more (I am not an entrepreneur- I don't have that skill)

You work 40 hrs a week and gross 130K? I would be hard pressed to find another job that could do that.

 

[Dred Pirate]

You work 40 hrs a week and gross 130K? I would be hard pressed to find another job that could do that.

with no OT it is likely around 127 - but shift differential and putting your time in to work your way up the ladder is worth it

 

[297point1]

Do you really think the SEC will let them close that many stores vs divest them to another buyer (not sure who has the cash to buy them uo?)

CVS might pick off a few markets here or there, but unless Berkshire Hathaway wants to get into the pharmacy business, I can't see anyone buying most these stores.

 

[Lnsean]

Do you really think the SEC will let them close that many stores vs divest them to another buyer (not sure who has the cash to buy them uo?)

I don't think the FTC is as worried about divesting stores as much as with the wholesaling duopolies that CVS and WBA will command. However, with the current focus on manufacturers price gouging, I wouldn't be surprised that the FTC will turn a blind eye to this so that WBA/CVS can balance out PBMS and manufacturers in terms of negotiating power.