Say what you want about the things they sell from TV. I like the fact that I can find those things and see them before I buy them. And if I have a drink or two before shopping, I am more likely to buy a sham wow.
Evidently the current management of WAG does not agree with the hassles of alcohol sales outweighing the profit, because WAG is rolling alcohol sales out again. This is a fact and it is happening as we speak.
Part of why they are doing this is because the few remaining stores and regions that sell alcohol are some of the highest volume, highest profit...
They will probably have trouble getting licensed in some places.
I did my "serious" drinking in the 60's and 70's and I bought my liquor at Walgreens because it was the cheapest place to get it at that time. I am older now, as is much of the population. I drink less and buy the "good stuff" when I do drink. In today's market I don't think Walgreens and liquor are a good fit. BTW, I never bought anything else at Walgreens when I made liquor purchases.
I'm glad all you guys are making money hand over fist. I haven't been so lucky!
I am long on WAG.
I agree with you. I think the hassles outweight (and cut into) the profit.
Alternatives to this product are preferable.
As far as getting people into the stores, how about the shamwow?! (It's made by the Germans, and you know they make good stuff)
cpharmster is right, Wag replaced their liquor departments with increased card departments among other more basic drug store departments than liquor. The hassles of local and state laws(separate entrances, laws about local ownership) shrink, low gross and non-drugstore merchandise were all factors in taking liquor out of the stores. Cigarettes gave credits back to the stores but cigarettes were able to be handled by the front cashier and controlled whereas liquor required a crew to stock, straighten, guard the merchandise etc. I would be very surprised if Walgreens decided to get back in the liquor business with HBA merchandise taking up more and more of a store's interior so that even Hallmark greeting card departments are being contracted to increase expanded basic health and beauty items. A good store with liquor sometimes had big volume and profits even with a low gross, so it made money, but the decision was made to increase basic drug merchandise and leave liquor sales to the liquor stores. I think it was a good decision since Walgreens is a drug store first and foremost.
Wow.. intelligent commentary for a change...Thank you!
Your post was my point exactly when I said that WAG SHOULD sell liquor as long as it makes sense..... Now, let's do some math... 50% margin on a greeting card.... ok... say the card costs 3 bucks.. If I sell one I make a buck and a half. 10% margin on a bottle of bacardi at 20 bucks... 2 bucks profit. So you can see, at the given margin rates, along with the other factors, it makes no sense to sell liquor...of course, that's at the given margin rates. BUT, that said, what other products do the liquor drinkers buy versus the card buyers? This too is a factor... of course, I suspect I'm preaching to the choir here.