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

[NorthstarredToyota]

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

Boeing has entered the chat.

Dodge/Jeep/Ram has entered the chat.

GE/Neutron Jack Welch has entered the chat…

 

[NorthstarredToyota]

that's one of the tricks of the "Private Equity firms" that swoop in

Toys R Us

Kaybee Toys—

Both by same vulture capital firm as I recall.

 

[alarmguy]

I think it's just too many drug stores, too much competition. CVS is closing stores too.
Currently Walgreens has 8000 stores in the USA and they are still making money. Cutting out the unprofitable will continue that and bring earnings back up.
I have no love for them or CVS. Actually hate CVS much more and actually prefer walking in Walgreens.

My Health plan doesn't care were I get my prescriptions. Meaning Walgreens, CVS or Mail order. It doesn't matter what I pay, it's no secret that drug prices are being pressured lower. In case anyone is not aware, its not great for many drugs to be sitting in mailboxes of 100 degrees or more.

I think bottom line is, for some reason we fail to acknowledge that the drug stores have bucked the trend of retail stores and survived much longer. Now they have to slash their outlets, adjust the size of their stores but they will always be around unless a new way is invented to instantly pick up a prescription. The only difference will be the consumer will have less places to pick them up.
Reading some posts in here some think Walgreens is in more trouble than they are.
They are still showing profits and profits will increase by getting rid of their unprofitable stores. Also occurring at the time is CVS closing stores. There simple are too many. Yes, of course, pharmacies in secondary stores are also cropping up all over but not as dire as one might think, so far anyway.

Might be a good time to buy the stock, but it's already spiked 15% today. Who knows the next leg up if any for the next year. Got me.

 

[earlyre]

Toys R Us

Kaybee Toys—

Both by same vulture capital firm as I recall.

funny enough, at one point, KB Toys was part of Consolidated Stores, better known today as Big Lots...
Dad was a District manager for Consolidated, and at one point, had Big Lots, KB Toys, and...ItzaDeal(?)...stores in his district at the same time.

but yes, Consolidated sold KB toys to Bain Capital.

 

[ATex7239]

The WG in my town stays pretty busy. We get most of our prescriptions and a few over the counter medicines there. I’d rather go there for small quick in and out stuff. Hate going to WM.

 

[JeffKeryk]

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?

I haven't used Internet delivery, but I understand Amazon does not require signature unless it is required for a certain drug or state law requires it.

I'm sure it will become more convenient and more prevalent. It's just better to let someone else do the work and for companies to work in bulk. Amazon is 2-day delivery.

 

[4WD]

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.

Good point - early bird shopping is better in general …

 

[99Saturn]

Walgreens has a lot of problems. Its an over generalization but they just don't execute as well on the same model the CVS has and CVS is already struggling. Hard to compete without all the other spokes that vertically integrated PBMs.

https://www.drugchannels.net/2024/05/mapping-vertical-integration-of.html

Pharmaceutical manufacturer tightening of contract pharmacy policies to access 340B pricing is no doubt hurting an already strained business model as well.

This article is from 2023 but trends are continuing:
https://www.drugchannels.net/2023/07/exclusive-for-2023-five-for-profit.html

The largest public companies have had to acknowledge the previously-hidden profitability of the 340B program. Manufacturers’ policy changes have forced some long-overdue transparency about 340B contract pharmacy profits.

In May, CVS Health disclosed that 340B contract pharmacy changes would lower its PBM segment profits by $150 to $200 million.

Last year, Walgreens disclosed that manufacturers’ disruptions to the 340B contract pharmacy market will reduce its profits by about $250 million in the company’s 2022 and 2023 fiscal years. But on its most recent earnings call, Walgreens planned to shake it off, stating it is “very comfortable with our prior guidance and do expect 340B to actually be a slight up in production year over year in fiscal '23.”

 

[chainblu]

In the town/small city I live near, there is a Walgreens and a CVS within walking distance of each other. The pharmacy at the WG seems to be well run, unlike CVS, which I avoid unless they are the only place in town that has a particular drug. I agree that the other merchandise in Walgreens is over-priced.

 

[Kira]

Another factor may be retailers seeking to own rather than rent a location.
Quik Check is a New Jersey based convenience store in my region.
Several have closed but some have "relocated" to buildings they have built.

From my perspective, you have insurance companies forcing patients to use "mail delivery" of pills.
Other than that, all the junk these stores sell is just that.

 

[CKN]

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.

No membership needed at Costco to use the pharmacy. However pricing will be slightly higher.

 

[andrew_j]

I used Amazon Pharmacy and WOW. Ordered script and lots of relevant text to order (like buying product) and script arrived at door next day. The interface of it is same as buying products from them.

 

[alarmguy]

I used Amazon Pharmacy and WOW. Ordered script and lots of relevant text to order (like buying product) and script arrived at door next day. The interface of it is same as buying products from them.

One concern in the south for me with mail order is the thought of it sitting all day in a mailbox kiosk baking in the sun. I wonder if they deliver the package to the door with it comes to prescriptions.

 

[GON]

One concern in the south for me with mail order is the thought of it sitting all day in a mailbox baking in the sun. I wonder if they deliver the package to the door with it comes to prescriptions.

Wife had prescriptions mailed to her when we were in South Arizona this summer. She had a very like concern as yours.

The prescription came in a very nice climate controlled package. This was totally unexpected and was very helpful. The package for the prescription was so nice, I kept it for unknown future use.

 

[alarmguy]

...

From my perspective, you have insurance companies forcing patients to use "mail delivery" of pills.
Other than that, all the junk these stores sell is just that.

I dont doubt you but for my wife and I our plans always gave a preferred location ( ex.Walgreens or CVS) where it was the same price as a preferred mail order company. I did try mail order one time a couple years back (not to long ago) they had all sorts of problems contacting the doctor to transfer the scripts so I gave up.

Maybe it's improved. It should be, my health portals are fantastic even to transfer scripts. But that is the one thing I haven't attempted again. Maybe just because we pass by a CVS or Walgreens all the time.

 

[Finklejag]

A old Walgreens in east Portland, OR is now a Triumph dealer.

 

[JeffKeryk]

No membership needed at Costco to use the pharmacy. However pricing will be slightly higher.

The other problem for traditional drug stores is the "front end" products like candy, coffee, socks, etc. The Walmarts, Costcos, Amazons, etc. have such lower prices.
Drug prices are down somewhat and will likely continue to drop.

All this puts pressure on profitability.

 

[andrew_j]

I dont doubt you but for my wife and I our plans always gave a preferred location ( ex.Walgreens or CVS) where it was the same price as a preferred mail order company. I did try mail order one time a couple years back (not to long ago) they had all sorts of problems contacting the doctor to transfer the scripts so I gave up.

Maybe it's improved. It should be, my health portals are fantastic even to transfer scripts. But that is the one thing I haven't attempted again. Maybe just because we pass by a CVS or Walgreens all the time.

Chatted with dr office and they sent script within 30 mins. I got a text from Amazon Pharmacy with link to order it. Poked yes in Amazon order like interface and got all the normal notifications. They did not use their trucks but instead UPS however it might be the startup stage of things.

CVS agree is disaster at this but inexperienced at mail order compared to Amazon.

 

[supton]

One concern in the south for me with mail order is the thought of it sitting all day in a mailbox kiosk baking in the sun. I wonder if they deliver the package to the door with it comes to prescriptions.

Wife had that issue, not sure if it was Fedex or UPS, but in her case it was in a nice package, whatever items to keep it cool, meant for overnight shipping--but they shipped on a Thurs, and it didn't deliver on Fri, and didn't go out on Sat. No idea what happened, but when it showed up on Mon wife had to reject it as it had run out. Probably fine but... someone got to eat the cost on that med. I think they now ship earlier in the week to avoid that issue.

 

[alarmguy]

Wife had that issue, not sure if it was Fedex or UPS, but in her case it was in a nice package, whatever items to keep it cool, meant for overnight shipping--but they shipped on a Thurs, and it didn't deliver on Fri, and didn't go out on Sat. No idea what happened, but when it showed up on Mon wife had to reject it as it had run out. Probably fine but... someone got to eat the cost on that med. I think they now ship earlier in the week to avoid that issue.

Funny, I just remembered, not for my wife or I but the heart medicine for our dog. We always used Allipet in Florida.
Anyway, his heart med (which was FDA approved for his condition) was shipped to us, middle of the summer which was ok, however, it got lost, on the day it was to be delivered it went back to Florida for some reason, even though it arrived right her in North Carolina, once in Florida and after inquires, it was shipped back to us, it was in the mail system about a week. The label on the meds say limited exposure up to 85 degrees was ok. Well those temps certainly exceeded 85 degrees and way more than short periods of time I am sure. At first they would do nothing but then ...

I called enough and finally a supervisor called me back to apologize, understood my concerned about heat (after I posted a review on a national site) they overnighted a new shipment to me and told me to throw away the previous one. All I was doing was actually reading the label that came with the meds, the temperature concern was indisputable and was on the label. I know humans are not dogs but it is a statement that certain or many meds are not supposed to be exposed to high temperatures.