Walgreens to close 8700 Stores

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MrBonita

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Seems like Walgreens is about to close 8700 stores which is about 80 percent of their US stores. That leaves just about 2000 stores. Seems like no one is bothered by this. I waited all day and saw no one posting. Walgreens and CVS are major employers and both are struggling. Rite-Aid is about to close all US stores. Where do the people go to work when they graduate?

www.foxbusiness.com

Walgreens to close 'significant' number of underperforming stores, cuts profit forecast

Walgreens on Thursday announced that it is planning to close a number of underperforming stores as it contends with a tough economic environment and declining margins.
www.foxbusiness.com www.foxbusiness.com
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While poor reimbursements have a lot to do with low profits, I think a lot of these non-profiting stores are caused by the ever so increasing organized shoplifting.

I think when it’s all said and done, most of these closures will happen in areas of low economic standards.
 
The quote from the earnings call was that 75% of the stores are driving 100% of the revenue.
 
Pronounce Doxazosin said:
While poor reimbursements have a lot to do with low profits, I think a lot of these non-profiting stores are caused by the ever so increasing organized shoplifting.

I think when it’s all said and done, most of these closures will happen in areas of low economic standards.
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Reimbursements are down, interest rates are up, but yeah I am sure it is the shoplifting causing these closures.
 
RxPreceptor said:
More and more stuff behind plexiglass as time goes by.
If we had things my way, we’d have more people with only one hand serving as role models
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And random odd stuff. Advil? What is the street value of Advil?
 
paullras said:
And random odd stuff. Advil? What is the street value of Advil?
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Enough that the informal economy works. It's really hard to fathom just how much of the US economy is under the table. It's a major theory on why the labor supply was so constrained before and during the pandemic as the Republicans were more militant about enforcement, and how labor supply for many of those critical areas (construction, food service in terms of processing as well as retail) is no longer an issue given recent immigration.

www.fdic.gov

2021 FDIC National Survey of Unbanked and Underbanked Households

2021 FDIC National Survey of Unbanked and Underbanked Households
www.fdic.gov www.fdic.gov

Which has been contested in our circles as the 13% leaves out everyone who cannot get a bank account because they lack a Patriot Act identification for Know Your Customer.

As far as I'm concerned, Dollar Tree's business model (ruthless merchandising efficiency as well as selling to people lacking cars) works better than practically most in the line of convenience business. That's really eaten Walgreen's and CVS's lunch more than even shoplifting.
 
paullras said:
And random odd stuff. Advil? What is the street value of Advil?
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Hmmm likely a high quantity. God only knows who needs to buy 250, 500 count bottles of ibuprofen. Small enough to pocket, decent price. CoQ10 is actually a big ticket item to steal, scam back as a refund (mysteriously *sarcasm* no receipt)

As of lately mucinex, Flonase, high count cough & cold allergy products, primatene mist are all behind plexiglass

There are groups of thieves who have a system and resell (pretty much anyone with a few years experience in retail are aware of these petty theft faceless criminal organizations)
 
owlegrad said:
Reimbursements are down, interest rates are up, but yeah I am sure it is the shoplifting causing these closures.
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Our YoY otc sales have been down 10 to 20 thousand dollars per month since locking up the pain, cough/cold, and brand name vitamins earlier this year. So the increase in shoplifting is 1. Increasing lose to shrink 2. Costing more in security measures and 3. Reducing revenues in that department both from inconvenience and opportunity cost.

Sample size of 1 and all.
 
Even the CEO of Walgreens said that shoplifting was one of the main reasons for the closures.
We can pretend like shoplifting is a victimless crime, but it really is destroying brick and mortar businesses
 
paullras said:
And random odd stuff. Advil? What is the street value of Advil?
Click to expand...

I was on vacation and went to buy some Zyrtec at CVS. It was behind plexiglass, even the store brand. Took me 10 minutes to find someone to open it.
 
Does this mean retail is going to be dead? Or is it just right sizing, given central fill, mail order and PBM profit transference?
 
clarkbar said:
Does this mean retail is going to be dead? Or is it just right sizing, given central fill, mail order and PBM profit transference?
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I don't think retail will ever truly die. Aggressive right sizing for sure though.
 
WorthlessOxygen said:
I don't think retail will ever truly die. Aggressive right sizing for sure though.
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What numbers are we looking at?
Is walgreens crumbling because the productivity has taken scripts out of the store or is it a reimburesment issue?
Ultimately, retail is pharmacy, even if we have never worked in it outside of a school internship.
 
clarkbar said:
What numbers are we looking at?
Is walgreens crumbling because the productivity has taken scripts out of the store or is it a reimburesment issue?
Ultimately, retail is pharmacy, even if we have never worked in it outside of a school internship.
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Declining reimbursement and front end productivity would be my guess. Front end probably has a larger role than this board generally discusses. No idea where to hazard a guess for numbers.
 
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