Walgreens to shut 1,200 stores as CEO Wentworth seeks turnaround

[captainbeandip]

consumers currently have a choice for prescriptions at retail stores.

Not always, and I believe this is another reason that many pharmacies (such as Walgreens) are struggling.

More and more, insurance companies are pushing people to use mail-order pharmacies. Some insurance companies even own their own mail-order pharmacies that they pretty much force their members to use.

Not so much for one-time prescriptions, but for any chronic issue that people need refills for, yes.

I have to believe this is taking a pretty good chunk out of the profits of many pharmacies out there

That, and it seems that Walmart pharmacy has really upped their competitive game over the last several years, as has their brother-from-the-same-mother, Sams Club. Of course Costco is also very good. If you have a membership to Sams or Costco, (and maybe even if you don't), I highly recommend using them.

I will say, it's nice to have places like Walgreens around as a convince store, even if their prices are slightly higher, but if they were to go away I doubt it would effect me very much.

 

[4WD]

Exploitive pricing in $4.99 for a bag of gummy bears, but two bags for $5.98. Walgreens lists the price as $2.99 per bag (with a tiny font saying for two bags) . And, of course Walmart sells the same bad of gummies for $1.49.

Buy one and get one 50% off so you can then get twice what you needed and cost each still 2X Walmart equate …

 

[wpod]

We certainly have the best CEOs that money can buy sucking the life out of our corporations 0ver the last few decades.

 

[SeaJay]

I have a walgreen's a quick walk from my house. The pharmacy there is excellent, they do things right and fast. I suspect not enough business otherwise to make all that much profit. Others are nearby but if this one closes I will miss the convemience.

 

[c502cid]

And Walmart has yet to adopt the model of buy a product for $4.99, buy two for 5.49 ($2.75 each). This Walmart model of not playing this game has turned me into a loyal Walmart shopper.

I was in King Soopers this morning for a bag of ice and some donuts for the grandsons. King Soopers playing a like game of pricing as Walgreens, but add in electric coupons. I needed other things like bagged coffee, but passed after I had to install king Soopers app to get the "favorable" price on the coffee. Looking at the customers in king Soopers, seemed primarily to be senior citizens, that may not be so savvy with the electric coupons and such. What happens as these senior citizens pass away, who will replace them for king Soopers to exploit? I am very confident 30 years ago King Soopers didn't play these pricing games, and that is why the senior citizens are in King Soopers today, they were middle aged customers 30 years ago.

Maybe it's just our store, but our City Market asks everyone if they have their Kroger/King Soopers card and if they don't offer to scan the store one. I use the heck out of the digital coupons, but then again, I used to clip paper coupons.

 

[blkwtr]

I quit going to Walgreens about a year ago. I thought it was just the store I was going to. Long lines, then told it would take a while so come back to pick it up later. Windows would be closed and employees would be on computers or shuffling papers instead of waiting on customers. It just seemed like they were understaffed or managed their time poorly. I don't like to be irritated when I am ill.

 

[MNgopher]

Walgreens thrived on a model of build lots of stores on lots of high profile locations. By being convenient and highly visible, folks wouldn't balk at the higher than usual prices - you paid for the convenience.

Fast forward, and they have too many stores, can't keep the ones they have with a pharmacy staffed to run all the time (routine here to have no pharmacist for a day, at rotating locations), and prices that that are even more crazy with the price of everything have gone up.

The pharmacy business has changed, with the rise of mail order, competition from every big box retailer and grocer, etc...

I switched to my clinic pharmacy from CVS - and have no intention of going back.

 

[opus1]

...More and more, insurance companies are pushing people to use mail-order pharmacies. Some insurance companies even own their own mail-order pharmacies that they pretty much force their members to use...

I think this has a lot to do with it. I was filling a prescription at Meijer once and the pharmacist asked if I had any idea why the cost seemed kind of high. I told him that my plan has a mail-order Rx component and I think it was their way of punishing me for not going that route. He asked if I had time to wait, and since I did, he said that he'd call me when the Rx was ready as he wanted to try a different way to bill it. Turns out that Meijer had their own program that cut my cost by a little over half, and since then I either use that or ask them to run it through GoodRx. Kind of a shame that it's cheaper than what my insurance covers, but I won't go into that.

And yes, I know that GoodRx is likely selling my information which is why the cost is better going with them.

 

[RhondaHonda]

I didn’t read the article but Walgreens was a big sale-leaseback tenant in which they’d sell off their store and land and do a long lease. They have since quit doing that as far as I know.

 

[Dave Hess]

I get my BP prescription at CVS as soon as the pharmacy opens, zero line or wait. No problems and fast service. I would not go there during the afternoon and expect good service.

I asked the pharmacy technician on an average day how many prescriptions get filled.
She said approximately 400 per day.

I can see why Walgreens want to close so many stores in high crime areas and not worth the hassles.
Some stores are in very sketchy neighborhoods.

 

[earlyre]

they just closed all the Rite Aid's in the area, mom had 1 scrip there, that our normal pharmacy couldn't get, so when rite aid went out, they (Rite Aid) transferred that prescription to the local Walgreens...hopefully THEY don't go under..

that being said, since the Rite Aids all closed, the traffic at the Pharmacy in the meijer store where i work has gone up SIGNIFICANTLY.
but we had similar bumps a few years ago, when CVS pulled out of town, and when another, more Local grocery chain closed their Pharmacies.

Meijer has a good focus on the Pharmacy... our President/CEO has his Degree in Pharmacy, and started with the company as a Pharmacist before going into the Management route, and working up the chain.

 

[earlyre]

I didn’t read the article but Walgreens was a big sale-leaseback tenant in which they’d sell off their store and land and do a long lease. They have since quit doing that as far as I know.

that's one of the tricks of the "Private Equity firms" that swoop in and buy struggling companies. it's one of the things that killed a lot of Red Lobster locations, and one of the first things that happened with Biglots after the bankruptcy.

 

[JeffKeryk]

All I can say is technology is the great disrupter. In this case, it is the Internet. Brick and mortar is history.
The rate of change will accelerate soon as those who grew up with cell phones replace older customers.

 

[SC Maintenance]

So do you no longer have to sign for internet pharmacy? I looked into it like 10 years ago and they said you had to be home to sign. That makes it a no go for anyone that works?

 

[RhondaHonda]

that's one of the tricks of the "Private Equity firms" that swoop in and buy struggling companies. it's one of the things that killed a lot of Red Lobster locations, and one of the first things that happened with Biglots after the bankruptcy.

True. Walgreens is publicly traded though. Also, Walgreens locations are typically on high profile corners whereas Red Lobsters were not.

 

[supton]

Call me crazy but why would I go to a pharmacy for food?

I get it, it's the convivence, the quick sale, that they are after. Don't have to drive to get a soda after a long wait in line.

 

[Dave Hess]

I don’t mind spending more just to avoid Walmart.
I go to Publix and spend 10% more.

Same for gasoline verses a station with a long line of cars.

 

[cptbarkey]

Like CVS, yet another post Covid hangover. They are also over saturated everywhere. The Walmart pharmacy has been more convenient and less costly for my family.

 

[mr_boring]

I don’t mind spending more just to avoid Walmart.
I go to Publix and spend 10% more.

Same for gasoline verses a station with a long line of cars.

More like 30% more at the Publix around here, but they have good sales sometimes on stuff like mayo (BOGO) so I do shop there for sale items.

EDIT: Around here, Publix has the best deals if you have to use a discount prescription card like GoodRx. Some of my stuff that would be a $10 copay though my insurance is like $6 though GoodRx and Publix.

 

[SC Maintenance]

More like 30% more at the Publix around here, but they have good sales sometimes on stuff like mayo (BOGO) so I do shop there for sale items.

The Publix I have been to in Florida while on vacation are very nice, good Deli, a lot of unique things to buy and try.

The Publix markets here I have been to all suck, and there all at least 30% higher price on normal things. I am really unsure how anyone affords them honestly. Only reason I go is the kids like there bakery for some reason, I actually find there stuff still tastes pretty factory like but