There are not too many stores. They are not too close. They are for the most part cleaner, easier to shop and with a better assortment of health and beauty aids than any of their competitors. One of their biggest problems is that up until a few years ago they were always ahead of their competition. They were the first to focus on free standing stores. CVS and Eckerd eventually copied threm including their location strategy. Walgreens was the first to have an on line pharmacy system that allowed customers to have a prescription filled in any store regardless of where it was initially filled. They introduced drive thru pharmacies. Although Eckerd was probably the first to try one hour photo, Walgreens was chain-wide with a one hour program while Eckerd was still testing the concept. Walgreens pioneered the concept of convenience food to capture that customer that needed a couple of things between weekly grocery trips. Walgreens installed the most sophisticated store level ordering,receiving and invnetory management system in the industry. For years they were always one step ahead of the competition in terms of retail savy. And then...
this is called, expanding way,way,way too fast! They need to stop building stores and cut many of the old tired stores out!
They build these stores and who is going to run them? The managers are tired, the field staff is over worked and no one is giving any help here! They cut hours cause they cant make earnings and the ceo leaves the company taking all the money with him. How much did the failed longs take over cost?????? we could have used that money! How much will the ceo take, wags could have used that money, all the while, the other drug stores are walking all over wags... man, time to jump ship, cause this one is sinking fast!
On Expansion in Hawaii. Just looked it up. Walgreens has plans to open about 25 to 30 stores. Look on Google, Walgreens stores in Hawaii. Star Bulletin has a nice article on expansion. As soon as Walgreens masters the high priced area of Hawaii which also gets alot of visitors from Japan. Just like their expansion into New York.
Here's the deal and the reason Walgreens needs to look outside for a new CEO. The company planned to have 5 stores open in Hawaii by now. They still have only one. Let's assume that CVS's bid for Longs put things on hold until Walgreens could figure out a response. There-in lays the problem. Longs is the dominant drug store chain in Hawaii. Walgreens could have bought the Hawaii market by making the initial offer for Longs. They didn't. Why not - because the Walgreen culture never believed in growth by acquisition. They wanted all of their locations to be pristine Main and Main sites. So now CVS is going to be their primary competitor in Hawaii and they are a far more imposing operator than Longs. The inability to anticipate that CVS might try to acquire Longs, especially given their history of making large acquisitions, is pathetic. They obviously didn't think there was a realistic chance that CVS would buy Longs or they would have made the first offer instead of reacting to the situation.
Walgreens is one of the best retailers in the country. The stock is clearly under priced. But if they want to regain leadership in the industry they must find a leader that doesn't carry the cultural baggage that will come with any of the current executives.
P/E stands for price earnings ratio. not yield. The only two things that affect it are those. This is what has happened. If price has stayed the same then earnings had to go higher. Which it has. The price has dropped a little but the biggest difference has been earnings. The price has not kept up with earnings. Also the company has strong fundamentals in this credit crunch with very little or not debt
All the stores(and managers) need to be on the same page...and they are not. Each store is ran so differently. You can confirm this by visting and or transfering to another store.
Company policy is ignored in one, and enforced
I to agree they have perhaps over built, in fear of losing out to CVS..to which they seem to be doing. On the other hand, I like Walgreens alot and am by choice a loyal shopper only to them. Does anyone think perhaps the new CEO, will be able to turn things around?
To me it appears Walgreens is in need of new blood and ideas in order to get back on top.
Debert...apparantly you have personal issues with Wag, and that is not the issue here. Sorry.
Dotti.girl - i did not want to make it personal ... Walgreens made it personal
the reason why, the complaint about lynn reed on ripoffreport.com ... Walgreens stated the biggest lie on an official document that i was thomas!
that is why i have a problem with walgreens, they are liars!
Ditto girl, You are right, the stores are lost. Everyone is doing something differant and the operations dept. is just lost. The stores are all over the place. I did see a clean store the other day, but most are getting filthy, some managers still care, most think it is them against us spirit!
This is just a mess, wags used to be an ok company, but everything is so messed up. One day, wags is buying longs, othe next day, they are out, one day wags have a ceo, next day , no. How can anyone have any idea where they are going, what is going on. So much in fighting, no one knows what to do?
it's a company melt down!