They are opening too many stores(especially 24 hours stores) and in real busy stores there are not enough good help. Another employee from another store/distric comes in and get 1.5 or even double time and this kills the budget..
Yes. thats a MASSIVE problem is facing. Staffing. They are unable to run some 24 hr stores due to lack of quailified help.
Problems with Wag run deeper and are somewhat mirror of what other hi growth retailers have faced. Sales Growth Stagnation. Wallstreet loves big gains. When you dont have alot of stores... Sales growth looks great when your growing only from opening new stores. Home Depot , Petsmart 2 other prime examples of what happens to your stock when you slow growth of new stores and plateau.
Internally Wag is struggling with its specialty pharmacy / home health care units. Its trying to organically grow what CVS went out and bought in Caremark. Now WAG has to play catch-up. Severarl of their aquisitions are bringing some serious integration issues. WAG is being told by the firms its aquired what to do vs the other way around.
There are not alot of firms left of Caremark type size that can provide walgreens the market penetration it needs to keep up with CVS. Note- This doesnt mean CVS will be successful in what its doing. But their move did catch wag off guard.
Management- HUGE problem for WAG. Internally driven for upper ranks and thinking is geared toward that. Operations / Cost Controls. They want to do the CAremark style services / have sales forces but still focus on how to pinch pennies.
Upper management if you look at the structure could be too insular in its thinking. ALOT of its senior upper ranks are very long term employees. WAG is a great company but.. maybe some fresh ideas or new blood from OUTSIDE the company can help. Along with jettisoning some stores too.
WAG is now just another retailer. Coffee Counters, Shipping Desks with DHL,, Film Developer.. wahts next? Deli's? Clothes? Big Screen TVs?
Wag is falling behind rapidly in a slowing retail enviorment.
Fibrider: Thanks for an analysis that seems to make a good deal of sense. You hit upon one problem that has bothered me for sometime. They try to fil their management & exec positions from within. In a growing org. it appears to me that you must have a constant supply of new thinking, new ideas and you don`t get it with the same old gang. When a guy gets to be about fifty or fifty five, he gets into the retirement mode. (Hang on --don`t rock the boat-- substantial retirement is not far away). Its difficult to hit your oldtimers with but a company mustn`t lose sight of the fact that big dollars and big stock options should be producing big results. So a lot of re-thinking has to take place in our beloved Wags