Walgreens and all chain stores are facing massive theft and no help from government in Democrat controlled cities. As a result, stores are closing, and many companies are going out of businesss.
Walgreens has announced plans to close a significant number of its stores across the United States as part of a strategy to overhaul its business model. The company, which operates approximately 8,600 locations, is targeting closures primarily at stores that are underperforming due to low profitability, proximity to other locations, or issues with theft. Although a specific number of closures was not disclosed, the move is part of a broader effort to optimize operations over the next three years. This is code word for Democrat cities.
Walgreens will shut ‘significant’ number of 8,700 US stores https://t.co/1U0W0udvar
— Socrates1951 (@socrates1951) June 27, 2024
CEO Tim Wentworth expressed on an analyst call that about 25% of Walgreens stores are currently unprofitable. The decision to close these stores comes as the company faces a challenging retail environment, characterized by high inflation and changing consumer behaviors. Consumers are becoming increasingly selective and price-sensitive, which has impacted sales, particularly at the front end of stores where non-pharmacy items are sold. In response, Walgreens recently reduced prices on over 1,000 items in an effort to attract customers, although this has further squeezed profitability.
I’m betting that most of these stores will be shut down in Democrat Utopias where people just walk in, and take what they want, and walk out.
Walgreens will close a significant number US stores, shutting down many unprofitable locations https://t.co/q6TWa1iWcH— Ratspitt ™ (@Ratspitt) June 27, 2024
The broader drugstore industry is also struggling with similar issues. Major chains have been grappling with decreased profits from prescription filling, driven by lower reimbursement rates and competition from new entrants like Amazon. Additionally, the shift in consumer shopping habits has intensified competition from larger retailers such as Target and dollar stores.
In an attempt to adapt to these market pressures, Walgreens has also revised its product offerings, removing eight national brands in favor of house brands or preferred partners, particularly in health and wellness categories. However, even strategic pivots like partnerships in primary care have not yielded the expected benefits. Walgreens recently reported a significant devaluation in its stake in VillageMD, leading to a $6 billion writedown.
📉 Walgreens to close up to 2,150 stores nationwide across US – which will likely result in a headcount reduction of around 57k employees for the pharmacy chain pic.twitter.com/icWwQWqekw
— The Great Investor (@TheGreatInvest2) June 27, 2024
Key Points:
i. Significant Closures Announced: Walgreens plans to close a substantial number of its 8,600 stores in the U.S., focusing on those that are unprofitable or face other operational challenges. Almost all are in Democrat controlled cities, as theft was basically made legal in all of these locations. Businesses cannot afford to have their products stolen at will.
ii. Strategic Overhaul: The closures are part of a multi-year optimization strategy to address about 25% of stores that are not profitable.
iii. Financial Pressures: Inflation and competitive pricing have forced Walgreens to lower prices on many items, impacting overall profitability despite efforts to attract price-sensitive consumers.
iv. Industry-Wide Struggles: Similar to other major drugstore chains, Walgreens is contending with lower profits from prescription sales and increased competition from both online and brick-and-mortar retailers.
v. Operational Changes: The company is shifting its store offerings, reducing national brand products in favor of house brands and preferred partners, particularly in health and wellness.
Charles William III – Reprinted with permission of Whatfinger News
