Walgreens to close 200 stores

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.
glad i got out just in time to a brand new job in a thriving field of pharmacy, and with good company culture. the unfortunate turns into the fortunate
 
The hole in the bottom of the boat just got a tiny bit larger, but I'm sure prepharmacy students think it will all be fine. My question for the academics reading this is how does it feel to be teaching largely naive students who are spending hundreds of thousands of dollars to possibly end up unemployed?
 
Gombrich12 said:
The hole in the bottom of the boat just got a tiny bit larger, but I'm sure prepharmacy students think it will all be fine. My question for the academics reading this is how does it feel to be teaching largely naive students who are spending hundreds of thousands of dollars to possibly end up unemployed?
Click to expand...
The academics don't care. The tuition fills their coffers...
 
Gombrich12 said:
The hole in the bottom of the boat just got a tiny bit larger, but I'm sure prepharmacy students think it will all be fine. My question for the academics reading this is how does it feel to be teaching largely naive students who are spending hundreds of thousands of dollars to possibly end up unemployed?
Click to expand...
I'd change that "possibly" to "probably"
 
Only 200? There are quite a bit more than that that are doing virtually nothing all day. The pharmacists standing there filling 2 scripts an hour should not be making the same as those busting their asses.

Anyway, they should have closed closer to 1000.
 
Gombrich12 said:
The hole in the bottom of the boat just got a tiny bit larger, but I'm sure prepharmacy students think it will all be fine. My question for the academics reading this is how does it feel to be teaching largely naive students who are spending hundreds of thousands of dollars to possibly end up unemployed?
Click to expand...

According to what I am reading and seeing, a great % of the entering pharmacy classes are dumb academically and they know that they have no business getting a doctorate or graduate degree, they don’t care about their future holds . The money is also not coming from their pockets, Uncle Sam is paying for it
 
what will it take for a student that is P1 or P2 to leave pharmacy due to saturation? how bad does it have to be for them to abandon the program?
 
Although I am not super happy about this news - I would like to keep this in perspective. 200 stores is only 2% of the total number of stores that they hold.

One could argue that this is a sign of healthy business management. It only makes sense to shed unprofitable dead weight.
 
JustFillIt said:
Although I am not super happy about this news - I would like to keep this in perspective. 200 stores is only 2% of the total number of stores that they hold.

One could argue that this is a sign of healthy business management. It only makes sense to shed unprofitable dead weight.
Click to expand...
it seems that wags right now is in a period of coping (closing stores, conserving resources), as opposed to thriving (expansion and growth)
 
Amphetamine Salts said:
it seems that wags right now is in a period of coping (closing stores, conserving resources), as opposed to thriving (expansion and growth)
Click to expand...

Well - the first quarter of 2019 wags reported a significant negative spread in their EPS to Wall Street. This caused a significant sell off of their stock and wags lost access to an aweful lot of money.

I see this as a response to this issue and an attempt to reverse their EPS spread in their next earnings call. They want that money back.
 
JustFillIt said:
Although I am not super happy about this news - I would like to keep this in perspective. 200 stores is only 2% of the total number of stores that they hold.

One could argue that this is a sign of healthy business management. It only makes sense to shed unprofitable dead weight.
Click to expand...

Back in the day, you didn’t need to do many scripts to stay profitable, cut employee’s hours, etc... it’s more of an indication that pharmacy is becoming less and less of a profitable business, as seen by stock prices
 
Didn't they announce they would shed 1 billion+ in overhead costs earlier this year? This move was expected.
 
JustFillIt said:
Although I am not super happy about this news - I would like to keep this in perspective. 200 stores is only 2% of the total number of stores that they hold.

One could argue that this is a sign of healthy business management. It only makes sense to shed unprofitable dead weight.
Click to expand...

Has a business ever thrived after closing stores? If they are not expanding and opening new stores, then that is a bad sign at least in the public's view. On the show Shark Tank, all the sharks ask the entrepreneurs how much they plan to expand. They never ask how many stores they will close.
 
mentos said:
Has a business ever thrived after closing stores? If they are not expanding and opening new stores, then that is a bad sign at least in the public's view. On the show Shark Tank, all the sharks ask the entrepreneurs how much they plan to expand. They never ask how many stores they will close.
Click to expand...


Ok sure that’s a good point. I am just trying to see the big picture. When you have almost 10,000 stores - some of them will be bad decisions, or decisions that were once good and have evolved to a position where moving on would be best.

It’s like pruning a rose bush.
 
mentos said:
Has a business ever thrived after closing stores? If they are not expanding and opening new stores, then that is a bad sign at least in the public's view. On the show Shark Tank, all the sharks ask the entrepreneurs how much they plan to expand. They never ask how many stores they will close.
Click to expand...

I think every business has always closed stores. Walmart closes stores sometimes.
 
Why is everyone so worried about work? I have no dept and will be voting for Andrew Yang who promises 1000 a month to everyone. That is enough for me to eat Top Ramen and Mcdonalds and have a decent life. Walgreen and Walmart can go kiss my ass if they want me to work for them which I did at one point and enjoyed it. I will come back if they offer me some G1 Transformers.
 
MrBonita said:
Why is everyone so worried about work? I have no dept and will be voting for Andrew Yang who promises 1000 a month to everyone. That is enough for me to eat Top Ramen and Mcdonalds and have a decent life. Walgreen and Walmart can go kiss my ass if they want me to work for them which I did at one point and enjoyed it. I will come back if they offer me some G1 Transformers.
Click to expand...

Is that you ModestAnteater?
 
MrBonita said:
Why is everyone so worried about work? I have no dept and will be voting for Andrew Yang who promises 1000 a month to everyone. That is enough for me to eat Top Ramen and Mcdonalds and have a decent life. Walgreen and Walmart can go kiss my ass if they want me to work for them which I did at one point and enjoyed it. I will come back if they offer me some G1 Transformers.
Click to expand...
andrew yang? $1000 a month for everyone? why can't i stop laughing?

your name means mr pretty in spanish?
 
owlegrad said:
I think every business has always closed stores. Walmart closes stores sometimes.
Click to expand...

This, every big retailer closes stores, but healthy retailers also open and/or relocate stores. Is Walgreens opening stores to offset the ones closing?
 
While it may seem grim, the company does have to cut costs. It's bloated. There are just too many walgreens next to each other and/or the store is just failing on too many levels. If after a few years a store can't make a profit, the company must have the common sense to close it down. What's left will be profitable stores and an overall leaner company.

It would seem odd to me if they closed a walgreens next to say a CVS as I assume much of the business would go directly to that CVS. If anyone here is affected by a store closing, I'd like to know how they were chosen. Ultimately, I think Walgreens needs to get into the insurance or PBM business as doubling down on retail doesn't seem to be working out.
 
I wonder how many of these stores are across the street from a Rite Aid that they acquired? Or if these were former Rite Aid stores that they are closing.
 
MilknCheerios said:
While it may seem grim, the company does have to cut costs. It's bloated. There are just too many walgreens next to each other and/or the store is just failing on too many levels. If after a few years a store can't make a profit, the company must have the common sense to close it down. What's left will be profitable stores and an overall leaner company.

It would seem odd to me if they closed a walgreens next to say a CVS as I assume much of the business would go directly to that CVS. If anyone here is affected by a store closing, I'd like to know how they were chosen. Ultimately, I think Walgreens needs to get into the insurance or PBM business as doubling down on retail doesn't seem to be working out.
Click to expand...
It seems like WG is just trying to survive retail apocalypse

Haven't seen anything really transformative with their business model

All I see are partnerships (Kroger, Microsoft, Humana, Google, etc.)

I think if they weather through the storm, they can make a good comeback later

But I see CVS overtaking them in terms of growth and transformation

But then again, healthcare reform and legislation can change all that

So maybe WG is playing it smart and staying conservative
 
Mr. Corporate Pharmacist said:
It seems like WG is just trying to survive retail apocalypse

Haven't seen anything really transformative with their business model

All I see are partnerships (Kroger, Microsoft, Humana, Google, etc.)

I think if they weather through the storm, they can make a good comeback later

But I see CVS overtaking them in terms of growth and transformation

But then again, healthcare reform and legislation can change all that

So maybe WG is playing it smart and staying conservative
Click to expand...

You seem to really enjoy spacing out every sentence in all your posts.
 
Makes sense. Rite aid sold its stores to focus on its profitable markets (west coast primarily). Investing into its stores infrastructure, followed by growing its brand from there. Selecting strategic locations for new acquisitions.
 
Twentytwelve2 said:
Makes sense. Rite aid sold its stores to focus on its profitable markets (west coast primarily). Investing into its stores infrastructure, followed by growing its brand from there. Selecting strategic locations for new acquisitions.
Click to expand...
Is the west coast specifically California really profitable? Unions and techs making 15+ an hour across the board (vs 10$ in the midwest), very high rent (RA leases ~95% of their locations), tough labor laws (mandatory 1.5 OT beyond 40 hours pharmacists included, mandatory lunch breaks)
 
JustFillIt said:
Well - the first quarter of 2019 wags reported a significant negative spread in their EPS to Wall Street. This caused a significant sell off of their stock and wags lost access to an aweful lot of money.

I see this as a response to this issue and an attempt to reverse their EPS spread in their next earnings call. They want that money back.
Click to expand...
What is this caused by? I thought walgreens was a well oiled prifit machine?
 
baronzb said:
What is this caused by? I thought walgreens was a well oiled prifit machine?
Click to expand...

There is only one thing that would cause a decline in EPS (Earnings Per Share) and that is a decline in their earnings
 
You must log in or register to reply here.

Similar threads

M
Walgreens to close 8700 Stores
Replies
22
Views
7K
RxPreceptor
RxPreceptor
P
Walgreens Selling to Private Equity
Replies
5
Views
3K
projektreverb
P
CetiAlphaFive
Walgreens CEO behind Walgreens cooler door SNAFU
Replies
4
Views
1K
CetiAlphaFive
CetiAlphaFive
P
Walgreens announced more store to close in the UK and US
Replies
4
Views
1K
mentos
mentos
L
1,500 stores are closing
Replies
4
Views
2K
O.State
O.State
Top