Walgreens

[BoulderSooner]

The dollar stores really killed both CVS and Walgreens.

Those drug stores were basically the 80s and 90s version of TG&Y or the old 5 and Dime retailers.

They carry the same things as the dollar store, with more health stuff and a pharmacy.

But almost no one runs into Walgreens for soda, snacks, and school supplies. The dollar stores completely vacuumed up that market.


Both CVS and Walgreens have a very outdated business model relying on coupons, loyalty programs, and a ridiculously long check out process. People who want convenience items just go to OnCue or a dollar store. I personally despise going into those drug stores and always waiting in a long line and going through their ridiculous checkout. I know some have started to implement self-checkout but its too little, too late.

ran into walgreens to pick up a rx the other day .. and was going to grab some Motrin while i was there .. the prices on other items it crazy ... generic ibuprofen is more than 3x the price at costco

[gjl]

The CVS by us has had self checkouts for years now. Checkout at our regular CVS is never an issue. And we regularly get 25%, 30% or even 40% of a single full price item or your entire full price purchase. The items can't be on sale. And CVS will even stack the coupons so you can use multiple % off at the same time. And yes their regular full price is high but with the coupon savings it can really get the prices down. And it seems the more coupons you use the more you get on their app. You also earn CVS care bucks on prescriptions. We don't buy junk food items but a lot of personal care and OTC items we would be buying somewhere else anyway can be really cheap there with their coupons. Their app makes it really easy to send the coupons to your card and you just scan the QR code on your phone and your coupons are all right there to use on the register.

I hear people complaining a lot about the Walgreens on 50th and May just closing early in thew afternoon a lot but I think that is because of staffing issues.

[Pete]

^

But most people do not want to mess with coupons. I know I don't.

And what's worse is being behind someone at checkout who has 37 coupons, half of them not matching the items they are trying to purchase, and thus a long discussion/negotiation with the checker.

But you do get a 10-foot-long receipt with even more coupons!

[gjl]

I don't know where you get most people. They are so easy to use at CVS. And if I can toke 40% off then an additional 30% off my entire purchase by touching a few things on the checkout screen it is a no brainer.And all those coupons on the receipt go straight to the app on your phone.

[Pete]

^

I get 'most people' from the fact dollar stores are booming and CVS and Walgreens are closing thousands of stores.

They clearly have a floundering business model.

[gjl]

From what I understand CVS is closing the stores where they rent and do not own the property. I was even told that by the Pharmacist at the one we use. I don't know about WGs. I've heard they are closing stores in high crime areas. Staffing might have something to do with it in some areas. And I have never considered stores like CVS and WGs to be in the same market as DG and DT and FD. If they were their regular priced goods wouldn't be what they are. But we can agree to disagree.

[Pete]

Competition from dollar stores and their simple pricing is often cited as a reason for closing so many Walgreens and CVS stores:

Walgreens is facing significant pressure from dollar stores like Dollar General and Dollar Tree due to their lower prices on everyday items, causing many consumers to choose dollar stores instead for basic necessities, impacting Walgreens' retail sales and forcing them to adapt strategies like closing underperforming stores to remain competitive.

[gjl]

It is a little more than that one issue.

https://www.cnn.com/2024/10/15/busin...ngs/index.html

[PM1]

I've noticed a few Walgreens locations have had the word "Pharmacy" covered over for a while.

[VeggieMeat]

Competition from dollar stores and their simple pricing is often cited as a reason for closing so many Walgreens and CVS stores:

And the dollar stores cite increased competition from Walmart online ordering for their current sales issues. (Walmart can fulfill online orders with dollar store quantities and free shipping.)

I know pharmacy staffing is an issue at the El Reno Walgreens. While I place my refill orders online, I never know if they will be able to fill them that day or in five days, so I go to Yukon instead.

[Teo9969]

The larger issue for Walgreens and CVS is their competition on the drug side of the business and essentially some bets on a few laws changing that would greatly benefit that business model. Not to say that if the drug side of the business improved substantially that they would stop shuttering stores regardless if the retail side continued to languish. It's a hard business to believe is just going to turn around overnight, that's for sure, but both groups do have some brand power and some pretty valuable real-estate in their portfolios to jump start their best locations.

[mugofbeer]

^

I get 'most people' from the fact dollar stores are booming and CVS and Walgreens are closing thousands of stores.

They clearly have a floundering business model.

I'm sorry but this is not correct. Dollar Tree announced last year they are closing 1,000 stores while Dollar General is also having major financial troubles and closing stores. Both models simply overbuilt.

[Pete]

I'm sorry but this is not correct. Dollar Tree announced last year they are closing 1,000 stores while Dollar General is also having major financial troubles and closing stores. Both models simply overbuilt.

There are over 38,000 dollar stores in the U.S.

All retail experts agree that their dramatic rise took a lot of business from CVS and Walgreens.

[The]

There are over 38,000 dollar stores in the U.S.

All retail experts agree that their dramatic rise took a lot of business from CVS and Walgreens.

They may have, but they're no longer booming.