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Walgreen Co. Message Board

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  • robbsbeach robbsbeach May 1, 2010 12:51 AM Flag

    What if Walmart Comes Out with $4 Flu Shots?

    A $4.00 Flu-Shot ?

    How about a going out of business sale.
    This program has been one of the few successful program put in place that added to the bottom line.

    Unfortunately, Walgreen's & CVS think they need to compete against Wal-mart or the local Supermarket, this direction will be the Death Spiral in this Industry.

    Your thinking, is that medical care is a consumer product,
    well I wish you luck, if you ever need to have open heart surgery and are looking for professionals,
    who you would want to take care of you should you survive the low cost bidder,
    I know they will not be at Wal-mart..
    However they may be at a independently owned pharmacy.

    This message board is full of illusionists
    who know nothing about being profitable in caring for a patient.
    The also know nothing about community medical care which is evident by the posts or lack of post on this subject.
    Their goal is to distract you from thinking.

    Walgreen's & CVS has lost the Diabetic market by losing focus of the pharmacy business.
    Putting lipstick on a pig still yield you a pig.
    But a surgeon can make a pig into a cover girl, which was lost in the Marketing direction.

    Controlling SG&A gets the fat out and adds muscle to a corporation and that yields higher dividends.
    This is what the Covering Analysts asked about going forward

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    • I worked in the sector for decades, Get this straight right now, I competed against WMT and fought them to a draw. They are a retailer that can only be beaten by very high customer service levels, not price or pos. This has never been grasped by middle management or upper level supervision of there competitors. You think you know something? Well look at WMT market cap then look at WAGS or CVS. That should tell you what you know.

      • 1 Reply to c1smittycc
      • You are 100% correct. If you look at how chains took the market from independents other than the illegal lower acquisition costs of their drugs the chains provided better service. Most Indis' were open 9-6 Monday through Saturday and closed Sunday. Simular to clinic hours at the time. The slave shops were open first 12 hours a day then expanded from there. Offering convenience to the customer. The chain also had lower prices on their HBA's Then to add more service they trashed the professionalism of pharmacy with drive up prescription services. So service and price helped the slave shops kill the chains. Today price is becoming more important than convenience. This is obvious from the sales ratio change to mainly RX as part of sales compared to the front end mdse. This is also obvious from the growth of wal mart who has made the public think they are the least cost place to go. They play on this with the 4 buck script. If you don't think this is an important factor go talk to any wally pharmacist. So the drug business has changed and chains like wag will have to compete on price. The only way you can have higher prices and get the business is you must have kiss your butt service. So what have the slave shops done? They cut staff at the customer service level and bloated the corporate overhead. Exactly the wrong thing to do. Free standing slave shops have a higher cost structure than a grocery store or wally. Whats interesting is wally treats their slaves better than a chain by giving them lunch breaks even if it means shutting the pharmacy down for a half hour. Yet wally's drug business grows.

 
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