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  • cmxsux cmxsux Jan 21, 2008 7:52 PM Flag

    Demographics And the Big Box Boys

     

    For the life of me I could not understand why the large # of responses from our esteemed posters on the east coast touted convenience as one of the main factors as to why they prefer chains over the BB boys. I therefore did some research and found the answer. Our esteemed east coast posters have no idea of the influence of the BB boys throughout most of the country. I used �bananarug� an esteemed poster who has conveyed that he lives in Massachusetts as an example but the same would hold true for all the northeast coast of the US. In the entire state of Massachusetts there are only 15 BB boys (walmart supers=6, sams=3, target=6). With respect to only WMT, in the 5 states surrounding Massachusetts ( NY, VT, NH, RI, CT ) there are only a total of 98 BB boys (super=70, sams=28). Your perception of the influence of the BB boys does correctly reflect your surroundings, But it has nothing with the chains doing anything right and everything to do with a lack of BB boys in your part of the country. As you move west from the east coast expansion in the total # of stores of the BB boys is staggering. Once to Illinois you get 108 BB boys within that state alone. By time you get to Texas you see the full effects of the BB boys. Texas ALONE has 291 walmart supercenters, and 72 Sam�s along with 14 distribution centers to service them. There are 136 Targets and over 300 HEB�s. In San Antonio alone, a town of 1.2 million legal residents and God only knows how many hundreds of thousands of illegal residents, there are 49 Walmart supercenters, 5 sam�s clubs, 2 costco�s, 13 targets and 43 HEB�S. I am serious that in San Antonio I can stand in the parking lot of any chain and be able to see a BB boy from where I am. The town, like most in this part of the country is laid out horizontally not vertically like the east coast. People out here drive�.A LOT. There is no realistic mass transit system out here so everybody drives�A LOT. The highway systems are very large and expansive. I live 30 miles outside of San Antonio. I can get from my house to the office without ever having to encounter a traffic light. On any given intersection you will see: an HEB on 1 corner; a bank branch an another corner; another BB boy on the third corner and a chain or strip mall on the last corner. The chains are not any more convenient than the BB boys. What will really scare the day lights out of you will be to look at where the BB boys have concentrated their expansion over the last 20 years. Yep�. Right where all the people and business are moving to. I promise you that if you are in a market with a significant BB boy presence the entire market is controlled by them. In San Antonio (see how large above) if you want to buy fresh produce and meat you HAVE TO use a BB boy. They have put everybody else out of business here. The only retailers of size which sell produce, and meat in San Antonio are Walmart, Sams, Target, and HEB. PERIOD!!!!ALL BIG BOX BOYS Perhaps now you can see how convenience is not going to account for much as far as chain patronage for most of the country. In the coming battles to try and establish exclusive PPO networks, ( the holy grail of the pbm world) it is the BB boys that will be the major deterrence. Their size and overwhelming lobbying power will be used to see to it that �any willing provider (AWP)� laws in 12 states be enforced and that AWP statutes be expanded to more states. Without an exclusive ppo network, the chains and the pbm,s will have bad gas to bear as the 3rdparty business model collapses under it�s own weight. Of course I am talking of events to take place 10 years from now. Money can still be made short term until around then�Best of luck to you all�..

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    • Finally good market news! Time to get some good insight into whats going to happen next. Check out this blog by market analyst MIke Goodson....

      http://tinyurl.com/yqvjpv

    • <Sam Walton is dead and buried and his kids didn't want anything to do with the business and the current leadership is composed of morons and others of ill repute!>

      Ivan,

      Unnecessarily harsh, but good for chuckle. LOL!

    • <Yet using your magical market share of 17% means that 87% of the people are doing their business elsewhere... explain that...LOL>

      So you are thumbing your nose at 17% market share of all retail pharmacy? Cmxsux, you're lossing it again! Aside from basic math failings(17+87=104!!!), you're starting to sound like a mindless wag-hater. I conclude two things from those numbers:

      1. Market share INCREASE indicates customers are, more and more, choosing Walgreens - a clearly positive trend.

      2. Still Huge growth potential for Walgreens.

    • <I do agree to the part about the village idiot Yank....>

      LOL! I'm glad we agree there, and on the foolishness of govt run universal healthcare. I think we're going around in circles and beating a dead horse with the convenience issue. Let's just agree to disagree.

    • cmx, that in no way is a realistic analysis of the 'bigboys'. Considering that 1/2 the U.S. population is within 2 miles of a wag and wags total mkt share went from 15.4 to 17% this last year simply do not support your argument. Have you ever tried going to a wmt? It is one f royal pain in the azz vs having to go to the wag drivethru. There is no doubt that any where a wmt opens they take some mkt share but it also works for wag too. Talking with rph's at new wags, transfer scripts from wmts every day. How much of the population are within 2 miles of a bigbox? I pose my question to you again, if wags retail mkt share went from 15.4 in 06 to 17% in 07 and as you conclude wmt is taking share from wag, then who is wag taking share from because a 1.6% increase in 1 year is a very big increase

    • yank.wags_chain yank.wags_chain Jan 22, 2008 12:30 PM Flag

      By the way, dude, excuse me for being remiss by not remarking about your EXCELLENT post, filled with facts, research and insight that is generally MIA on this sorry, employee-dominated RAH-RAH, pom-pom-shake message board.

      Thanks for the effort, and the content!

      Yank

      • 1 Reply to yank.wags_chain
      • <By the way, dude, excuse me for being remiss by not remarking about your EXCELLENT post>

        Do you think yank put some lipstick on before puckering up for that shameful and embarrassing ass kissing? He's so pathetic, desperate for any friends and supporters, aside from his multitude of idiot IDs and pretend supporters. What a loser! Wow dude, so excellent. Spicoli must be his hero. LOL!

 
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