Walgreens could shut U.S. stores over the coming years as it invests in VillageMD and other healthcare strategies

[alpha12]

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Walgreens could shut U.S. stores over the coming years as it invests in VillageMD and other healthcare strategies

Walgreens $5.2 billion investment in VillageMD and launch of Walgreens Health is a "defensive move," analysts say.

www.marketwatch.com

 

[mentos]

They've been closing stores for years.

 

[alpha12]

They've been closing stores for years.

Yeah but for what reason? I think they closed 5 stores in SF and blamed it on shoplifting. Sounds like BS to me.

 

[footfairy]

Yeah but for what reason? I think they closed 5 stores in SF and blamed it on shoplifting. Sounds like BS to me.

Have you ever been inside an urban CVS/WAG? A lot of them are somewhere between warzones or cruel social experiments. Everything is either behind lock and key or the shelves are mostly empty from theft and lack of restocking (prepandemic).

I wouldn't doubt that between high rent and large scale shoplifting those stores were money losing ventures.

 

[alpha12]

Have you ever been inside an urban CVS/WAG? A lot of them are somewhere between warzones or cruel social experiments. Everything is either behind lock and key or the shelves are mostly empty from theft and lack of restocking (prepandemic).

I wouldn't doubt that between high rent and large scale shoplifting those stores were money losing ventures.

Don't buy it. Shoplifting has been going on for years. Didn't just start yesterday and I have never seen it been enough to close stores.

 

[RxPreceptor]

Recent news. Skeleton schedule running stores and scumbag people with no inhibitions. Would love to see harsher penalties for stuff like petty theft and littering. See how these people would fair in a 3rd world country trying to steal

 

[BenJammin]

There's almost no more profit in pharmacy so this would be a good move for Walgreens. Take on as much medical billing as you can and let the other chains fill the scripts for pennies. Wages will go down naturally but pharmacists aren't in a position to fight back without nationwide action like pharmacists ceasing all student loan payments (not gonna happen haha).

 

[footfairy]

I cant understand why they wouldn't have the phramacy as part of the model. So long as it's not unprofitable, it adds more revenue capture and vertical integration.

 

[GrandTheftAutumn]

I cant understand why they wouldn't have the phramacy as part of the model. So long as it's not unprofitable, it adds more revenue capture and vertical integration.

Looks bad in terms of gross margins

 

[deleted462159]

Walgreens' expertise is retail, not running a "healthcare company." I say that loosely, but they don't have the infrastructure or know-how of CVS in that regard. They sell prescription drugs, OTC products, beauty supplies, etc. So I highly doubt they'll be shutting down the rx component of their business anytime soon.

Investing in VillageMD is one thing. Running it is another. Primary care practices aren't that profitable either.