Walgreens Won't Be Expanding Soon?

[coffee4drug]

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Just talked to a store manager about expansion..., and was told that Walgreens plan to invest its current capital on updating its equipment and computer system rather than opening new stores.

Don't know if this pertains to the company nationwide or just to my area. Does anyone know if other chains are doing the same thing?

With current market saturation, this really sucks for the graduating pharmacy students.

 

[PharmTheQuah]

I don't think so. They just bought a group of 18 stores from Apothecary Rx. WAGs will continue to chew up competition. It is the name of the game.

 

[illusions]

This is a bit old news. They said last year they were slowing down their "organic" growth. And in the past year they have significantly slowed down building new stores. They have however done more acquisitions than they originally said they would

 

[PharmD RPh]

This is a bit old news. They said last year they were slowing down their "organic" growth. And in the past year they have significantly slowed down building new stores. They have however done more acquisitions than they originally said they would

They are still opening new stores, just not at the same rate they did. More along the lines of 200-250 per year versus 600-700 per year. With the downturn of the economy they were wise to take this strategy and not end up like a starbucks. It takes a new store usually 2-3 years to become profitable and maybe longer in a down economy as discretional spending is a lot lower. It's been said for sometime they along with wal-mart and cvs want to position themselves should rite aid fail (don't think it will happen now). They also took note to what mcdonalds experienced in the 90s.... A boom of stores with untrained, uncaring employees and stores that had old run down looking locations. However, should the economy pick up, baby boomers age, and obamacare cause an increase in rx demand I think they would be stupid to not up expansion.

I also think that what everyone should be afraid of is central fill. This sort of operation eliminates rph and tech need. It takes average script cost in payroll from 4-5$/rx down to $2/rx. State laws vary as to whether they allow and to what extent they allow these sort of operations. Wag recently opened a central fill in las Vegas.

I still have no idea why new schools are opening. It's a horrible decision at this point and I can already see the writing on the wall.

 

[gotdrugs]

I still have no idea why new schools are opening. It's a horrible decision at this point and I can already see the writing on the wall.

Cut this part of your post out.

1) If you have "no idea" why new schools are opening then you are very naive.

2) In regards to a "horrible decision" it depends very much on who you ask.

 

[PharmD RPh]

Cut this part of your post out.

1) If you have "no idea" why new schools are opening then you are very naive.

2) In regards to a "horrible decision" it depends very much on who you ask.

If you ask diploma mill students then it's a great decision... Anyone else = horrible decision. We all know why they are opening, but it is a horrible decision for the profession and if you don't know why that is, you then are very naive.

 

[gotdrugs]

If you ask diploma mill students then it's a great decision... Anyone else = horrible decision. We all know why they are opening, but it is a horrible decision for the profession and if you don't know why that is, you then are very naive.

Please tell me where I say it was or wasn't a horrible decision for the profession.

EDIT: If you think it's just the diploma mill students that are thrilled with the decision, then you are more naive than what I originally thought.

'KTHXBYE

 

[Sparda29]

New school doesn't automatically mean diploma mill.

 

[owlegrad]

New school doesn't automatically mean diploma mill.

Lier

 

[crazybob]

Just talked to a store manager about expansion..., and was told that Walgreens plan to invest its current capital on updating its equipment and computer system rather than opening new stores.

Don't know if this pertains to the company nationwide or just to my area. Does anyone know if other chains are doing the same thing?

With current market saturation, this really sucks for the graduating pharmacy students.

If they update the equipment and the computer system, could that mean a higher average number of prescriptions per day (assuming that the new system speeds up prescription filling)? Are the current employees going to have to work even harder or are there going to be more employees in the pharmacy?

Note: I do not work at a chain.

 

[MountainPharmD]

They slowed thier expansion down years ago. If I remember correctly back in '04 they were planning on having 10,000 stores by 2014. Ain't gonna happen. They along with CVS figured out a couple of 100k a year pharmacists in 10,000 stores is not a good way to do business. Instead Walgreens is dumping money into its POWER program and looking at ways to eliminate staff.

 

[owlegrad]

They slowed thier expansion down years ago. If I remember correctly back in '04 they were planning on having 10,000 stores by 2014. Ain't gonna happen. They along with CVS figured out a couple of 100k a year pharmacists in 10,000 stores is not a good way to do business. Instead Walgreens is dumping money into its POWER program and looking at ways to eliminate staff.

I highly doubt that the pharmacist's salary is what slowed down the expansion.

 

[MountainPharmD]

I highly doubt that the pharmacist's salary is what slowed down the expansion.

Do the math...it was not the only factor but certainly figured into it.

 

[Pharmguy07]

Instead Walgreens is dumping money into its POWER program and looking at ways to eliminate staff.

They've more or less given up on POWER from what I've heard. A year or so ago it was all they talked about and it was supposed to be coming any day. Now they don't even mention it. Apparently way too expensive and not saving the money they thought it would.

 

[genesis09]

I haven't heard a word about POWER expansion for quite a while now. In this month's Wag World Q and A edition, it was not even mentioned. It seems they are trying to pursue growth in MTM, CLIA waived lab services, and durable medical supply. That is what corporate is trying to push.
There are a lot of issues with POWER. Apparently, they can't do enough scripts and stuff like that.

 

[MountainPharmD]

They've more or less given up on POWER from what I've heard. A year or so ago it was all they talked about and it was supposed to be coming any day. Now they don't even mention it. Apparently way too expensive and not saving the money they thought it would.

They put POWER on hold because customers did not like it. I do not think they have given up on it. Its one of those programs they will try to perfect in the markets it is in and then they will comtinue to roll it out.

 

[joetrisman]

I haven't heard a word about POWER expansion for quite a while now. In this month's Wag World Q and A edition, it was not even mentioned. It seems they are trying to pursue growth in MTM, CLIA waived lab services, and durable medical supply. That is what corporate is trying to push.
There are a lot of issues with POWER. Apparently, they can't do enough scripts and stuff like that.

It was in last month's newsletter. They mentioned opening POWER in Vegas and trying to fine tune the process after having difficulty in other markets.

 

[MountainPharmD]

It was in last month's newsletter. They mentioned opening POWER in Vegas and trying to fine tune the process after having difficulty in other markets.

It isn't dead...It's just gone under ground and quiet......