Walgreens CEO makes stunning claim about the impact locking goods up has had on the industry

[Luanne]

Actually, when I was in FL in december, I just used Amazon Lockers for the first time - easy peasy.

If they exist where you are, great. If not.........

 

[jp10558]

If they exist where you are, great. If not.........

I just haven't been in a location that both has a Walgreens and doesn't have an Amazon Locker (within a 10 minute drive or so). I'm sure they exist, but I kind of doubt it's that common.

 

[WaikikiFirst]

When you lock things up … you don’t sell as many of them.

In what universe is this stunning??????????? I'm hearing Rod Serling again.

 

[Luanne]

I just haven't been in a location that both has a Walgreens and doesn't have an Amazon Locker (within a 10 minute drive or so). I'm sure they exist, but I kind of doubt it's that common.

You may be right. When I'm on vacation and need something it's just easier to go into a CVS or Walgreen's. That way I can look around and see if there is anything else I need. I can also get it the day I need it.

 

[WaikikiFirst]

Locks are for honest shoppers

"Locks don't stop shoplifting, ethics do." somethign like that?

 

[jp10558]

You may be right. When I'm on vacation and need something it's just easier to go into a CVS or Walgreen's. That way I can look around and see if there is anything else I need. I can also get it the day I need it.

Sure - my argument was if the Walgreens is a huge PITA with everything locked up and long waits for a worker to get the stuff out for you. While I didn't see Amazon same day delivery to lockers for what I was looking for, I do know they offer it for some things in some locations for prime, so depending on other factors I don't see why that wouldn't potentially work to a locker.

 

[SmithOp]

I don't shop at Walgreens, it always seemed pricey to me. There are so many alternatives.

Now my pet peeve at grocery stores are the pickup shoppers pushing huge boxcarts around blocking aisles. My local Vons locked up the personal care aisle so you have to buzz to buy toothpaste or deodorant. It's right across the street from the high school and the young people swarm the place at lunch and after school.

 

[ScoopKona]

The entire post-war shopping-cart retail model is a failure.

Most of these brick-and-mortar stores are stage-four terminal cases. There is no amount of tweaking which fixes the fact that their underlying business model has been obsolete for more than two decades.

 

[jp10558]

The entire post-war shopping-cart retail model is a failure.

Most of these brick-and-mortar stores are stage-four terminal cases. There is no amount of tweaking which fixes the fact that their underlying business model has been obsolete for more than two decades.

I actually agree quite a bit with ScoopKona on this - the shopping-cart model is a relatively recent invention - I think various histories I've seen pegged its invention at around the turn of the 20th century. So for thousands of years humans didn't shop like that. And we all saw the writing on the wall for decades from online shopping and the pandemic put the nail in the coffin in a lot of ways for even "same day" stuff for lots of shoppers preferring instacart or store pick-up and worse home delivery in non rural areas. Now we've got more locations where for whatever reason basically shoplifting gangs are accelerating the costs of having "traditional" retail, while post-pandemic skeleton crew staffing is limiting the number of people even more who want to deal with it.

More generally for non-groceries - the third tier cities (are there 4th tier? If so, them too) so often don't have anything you want in stock. Or they very stupidly IMHO don't have common accessories in stock if they do happen to have it in stock. For example, we wanted a OnePlus cellphone. Amazingly - Best Buy had it in stock. But, they had no display version for you to feel how it is or compare to other phones. Well - there's a huge reason to go in person to a store gone - to actually feel and hold something before buying it. But OK - we're pretty sure we want this phone - do you have a case or screen protector for it? Cause we want that when we open the box to protect the new phone... No. They didn't. We just ordered the lot from Amazon and went to lunch instead.

And THIS is the all to common "good experience". Very often they don't actually have a thing in stock, if they do the thing costs 20-100% or more than the same exact thing does online. For clothes it's no better than shipping stuff back and forth to Amazon etc - cause they don't even have one exemplar of each size for you to try on - no they just say "we can order that for you". Well no *bleep*, I can order it too!

It seems slightly insane to me, but living near 3rd or 4th tier cities means the most effective shopping is ordering from places that have free returns, trying on a bunch at home, and shipping back for a refund what doesn't fit or you don't like and iterating that way vs taking a stack to a fitting room.

 

[Snazzylass]

I don't shop at Walgreens, it always seemed pricey to me. There are so many alternatives.

Now my pet peeve at grocery stores are the pickup shoppers pushing huge boxcarts around blocking aisles. My local Vons locked up the personal care aisle so you have to buzz to buy toothpaste or deodorant. It's right across the street from the high school and the young people swarm the place at lunch and after school.

The idea of high school students stealing toothpaste and deodorant gave me a laugh. Except of course if they truly need it.

After living in their home for nearly 5 years, my kids were victims of a "porch pirate." They have a camera and it sounded like the bandits that have been plaguing the nearby apartments and condos. On Nextdoor, I even read that they know where this group of bandits live.

How about the empty lots with merchandise for sale? I first saw this in the Mission neighborhood in San Francisco a few years ago. Sidewalks with laundry detergent and miscellaneous items for sale. I noticed an awning in a vacant lot quite a bit south of me on a busy street, an area where even the gas station was shut down due to the amount of crime. Where do these free-standing "merchants" get their inventory? Is the the porch pirates selling my kids' Amazon order?

By the way, I heard yesterday that Walgreens plans to close 450 stores.

 

[1Kflyerguy]

How about the empty lots with merchandise for sale? I first saw this in the Mission neighborhood in San Francisco a few years ago. Sidewalks with laundry detergent and miscellaneous items for sale. I noticed an awning in a vacant lot quite a bit south of me on a busy street, an area where even the gas station was shut down due to the amount of crime. Where do these free-standing "merchants" get their inventory? Is the the porch pirates selling my kids' Amazon order?

From what I have read and seen on the news, retail theft often impacts drug stores, Ulta Beauty, and other places not taken for their personal use. The people doing the theft are working or being paid to steal particular items. The stolen merchandise is consolidated and then sold at flea markets, the open lots you describe, or online. There was a recent situation where a lady had something like 20 or 30 people working for her to steal makeup from Ulta stores, and she then resold the items via a nice Amazon store.

Soap, toothpaste, and personal care items are popular for theft because they are items people need and will buy.

 

[ScoopKona]

It seems slightly insane to me, but living near 3rd or 4th tier cities means the most effective shopping is ordering from places that have free returns, trying on a bunch at home, and shipping back for a refund what doesn't fit or you don't like and iterating that way vs taking a stack to a fitting room.

"Free" returns aren't actually free. Just like validated parking isn't free, either. The cost is simply buried in the price. People don't notice it if it isn't a line-item.

Let's stick with Walgreens. People need prescriptions and pharmacists. No problems there. If Walgreens was JUST a pharmacy, they could run a lean, mean operation forever. But only a tiny fraction of their business is filling prescriptions. Most of their business is cosmetics and junk food. (It used to be tobacco, too. But they couldn't stand the hypocrisy any longer and stopped selling cancer sticks.)

If Walgreens was JUST a pharmacy (as is commonly found everywhere else on the planet), they could do with a footprint one-tenth their current size. And they could shed most of their workforce. No need to air condition a warehouse-sized space; make it bright and pretty; order a million non-healthcare-related products; have wide aisles and shopping carts so that people can buy cases of soda to go along with their insulin.

That business model isn't just obsolete. It's insane. "Well, I need to get some cream for this rash. I'll impulse buy some Ty Beanie Babies, a couple bags of chips, and some hair color and lipstick!" That's just nuts. But that's the business they're trying to run. It will fail. It's just a matter of when. And then some company will buy them out, shed all the unprofitable fluff, and go back to selling prescription skin cream and insulin, which have an inelastic demand.

 

[jp10558]

"Free" returns aren't actually free. Just like validated parking isn't free, either. The cost is simply buried in the price. People don't notice it if it isn't a line-item.

Sure, nothing is free, but I think for online clothes sales it's part of the cost of doing business and needs to just be included or you'll have so few purchases it won't work as a business.

And then some company will buy them out, shed all the unprofitable fluff, and go back to selling prescription skin cream and insulin, which have an inelastic demand.

Honestly, I'm not so sure that would work either with mail order pharmacies as competition. About the only thing they aren't good for is need it today antibiotics, which potentially I could see being met by the local hospital pharmacy for the rare on the side purchase, or served by the Target / Wal-Mart etc of the world as a sort of loss leader. For any ongoing need, mail order is noticeably cheaper to the end user, something like 1/3 off or more vs retail pharmacies, and way more convenient. To me this seems very similar to the local book store vs Amazon issue - we see B&N hanging on by a thread, but all the other companies died years ago, as did most independents.

Now, you're right, they could get rid of a few staff - I guess technically they could be a 300 sq ft armored box with one pharmacist in it doing everything, and maybe if they offered the current pharmacist pay plus much of the other staff salary they'd actually be able to get and keep pharmacists in the stores. But a new buyer still has the problem that the existing buildings are all wrong and I don't see how they would fix that cheap. You can't really retrofit the building to be much smaller - and if you're knocking them down to rebuild from scratch I'm not sure why you buy Walgreens at all vs just start your own pharmacy company.

Anyway, Walgreens or their competitors is far from the only place vulnerable to the shoplifting gangs, though perhaps say Dollar Generals or Aldis don't have as much small higher value goods as Walgreens?

 

[ScoopKona]

Honestly, I'm not so sure that would work either with mail order pharmacies as competition.

For most people, the medicine sold at pharmacy counters are something they need right now because something happened. Mail order will never replace that. Just like buying fresh food isn't going to be replaced by online sellers.

Sure, for the person with a chronic condition who needs 100 daily milligrams of QWERTYOL (they're just picking letters randomly, I'm convinced of that), mail order is great. Parent with a sick kid? That person needs a Walgreen's -- or something like it.

Nobody needs a pound of jellybeans, nail polish, a bag of Doritos, a bottle of Crown Royal AND 100 milligrams of Qwertyol. (Ask your physician if Qwertyol is right for you!)

 

[jp10558]

For most people, the medicine sold at pharmacy counters are something they need right now because something happened. Mail order will never replace that. Just like buying fresh food isn't going to be replaced by online sellers.

That just isn't my experience - most people get very occasional antibiotics, and TBH the Walgreens send that off to be filled centrally and expect it to be delivered the next day or so for pick up unless you call and show up and bug them and wait in my area anyway. On the other hand, the millions and millions of people with high blood pressure medication, statins, diabetes medicine, anti depressants etc - what I'm pretty sure is the huge bulk of sales and profit for the pharma industry in fact, is all well served by mail order and actively encouraged by their insurance.

 

[ScoopKona]

I'm pretty sure is the huge bulk of sales and profit for the pharma industry

I agree completely that the chronic illnesses are the major source of income. But those people can pick and choose -- as long as they aren't in danger of running out. They're the ones shopping on Mexican and Canadian websites. They aren't Charlie Walgreen's market.

Vaccines, Plan-B birth control, paxlovid and similar -- that's "I need it right now/mail-order-won't work" territory. With the exception of one time at an airport when some random do-gooder group was giving away flu shots at the gate, I've always gone to a pharmacy for vaccines. And if I needed paxlovid, I'm asking a neighbor to run to Long's, not getting online.

Like schools, grocery stores and gas stations, every community really needs a pharmacy. I have a feeling we're going to return to the more traditional drug store which has a pharmacist and sells over-the-counter health stuff as well -- and not cosmetics, junk food, alcohol and toys. In an attempt to be everything for everyone, they've created a business model which is unsustainable.

 

[pedro47]

Mail order will not work for us because our first class mail / packages are always one or two days behind the mail schedule.

Plus, our mail never arrives until after 6PM or 8PM.

Yes! Our community have reported this problem to the local Post Office manager and to both our elected representatives on the state and federal levels.

Shortage of workers and equipment malfunction are the blame... Excuses, Excuses and more Excuses. IMHO

 

[pittle]

Friday, I went to the Walmart Neighborhood Market that I generally go to at least once a week. I had gone the week before to pick up milk, eggs, etc and bought some laundry pods. When I walked down that aisle Friday, they were locked up - as were all the cosmetics and nail polish! I was shocked as my neighborhood is somewhat upscale. They also have only one checker an the rest are scan it yourself with someone watching two or three stations scanning their items. I wonder who is going to have time to come get whatever you want to buy. A bag or bucket of laundry pods would be hard to miss seeing someone not scan. Makeup would be easy to put into a pocket or handbag, but I just hate it that this is what our world has come to.

 

[Cornell]

Friday, I went to the Walmart Neighborhood Market that I generally go to at least once a week. I had gone the week before to pick up milk, eggs, etc and bought some laundry pods. When I walked down that aisle Friday, they were locked up - as were all the cosmetics and nail polish! I was shocked as my neighborhood is somewhat upscale. They also have only one checker a the rest are scan it yourself with someone watching two or three stations scanning their items. I wonder who is going to have time to come get whatever you want to buy. A bag or bucket of laundry pods would be hard to miss seeing someone not scan. Makeup would be easy to put into a pocket or handbag, but I just hate it that this is what our world has come to.

The theft in urban areas is not pocketing a single mascara. It’s scooping entire shelves of products into bags and walking out without any challenge or pushback.

I’ll add: I see posts on social media selling products fully packaged. Clearly stolen. People have zero fear of consequences.

 

[lucileburgo]

My local Walgreens shut down 6 months ago and now 2 small independent pharmacies have opened up staffed by the former Walgreens pharmacy staff. Full pharmacy, vaccinations, well trained pharm D's for advice, ,home delivery, prepackaged med administration and bare bones essential self-care products in a very small storefront. I moved my prescriptions over to Unity from CVS when CVS ran out of Tamiflu!

 

[jp10558]

I agree completely that the chronic illnesses are the major source of income. But those people can pick and choose -- as long as they aren't in danger of running out. They're the ones shopping on Mexican and Canadian websites. They aren't Charlie Walgreen's market.

Vaccines, Plan-B birth control, paxlovid and similar -- that's "I need it right now/mail-order-won't work" territory. With the exception of one time at an airport when some random do-gooder group was giving away flu shots at the gate, I've always gone to a pharmacy for vaccines. And if I needed paxlovid, I'm asking a neighbor to run to Long's, not getting online.

I guess I usually either get vaccines at work or at a clinic run by my primary care doctor. When I did get some at a pharmacy, I had to schedule it like a week in advance and I could have likely done the same with my primary care - it hasn't been walk in since pre-COVID. If there's availability and staff I can see vaccines being something pharmacies can do, but it felt pretty close to the "locked up" argument - there's no benefit to me over a Dr appt for the vaccine really.

My other thought isn't what exists now, but what I can see existing real soon now - at least in major markets same day delivery to something like an Amazon locker if not to your house, and perhaps eventually basically a vending machine if you've got a prescription. I just don't think local pharmacist however configured can compete with automation in price.

Like schools, grocery stores and gas stations, every community really needs a pharmacy. I have a feeling we're going to return to the more traditional drug store which has a pharmacist and sells over-the-counter health stuff as well -- and not cosmetics, junk food, alcohol and toys. In an attempt to be everything for everyone, they've created a business model which is unsustainable.

My view is colored by the closure of many grocery stores to get a Dollar General. I just think for most people the traditional drug store lost out to the chains for a reason, and I struggle to think how a traditional drug store won't still lose out to like the Wal-Mart or Target included pharmacy?

 

[ScoopKona]

I struggle to think how a traditional drug store won't still lose out to like the Wal-Mart or Target included pharmacy?

Target and Wal-mart are both stage-four hospice cases. Target will die long before Wal-mart. But they were both shot at the same time with the same gun.

 

[chriskre]

We don't see this here in Miami.
Our Publix and Walgreens are still easy to shop in most of the city.
If you go into the hood maybe it's an issue but it's always been that way.
I love Publix. LOL

 

[Snazzylass]

From what I have read and seen on the news, retail theft often impacts drug stores, Ulta Beauty, and other places not taken for their personal use. The people doing the theft are working or being paid to steal particular items. The stolen merchandise is consolidated and then sold at flea markets, the open lots you describe, or online. There was a recent situation where a lady had something like 20 or 30 people working for her to steal makeup from Ulta stores, and she then resold the items via a nice Amazon store.

Soap, toothpaste, and personal care items are popular for theft because they are items people need and will buy.

Ugh! I don't want to click the Like button because I don't like it! Still, I appreciate your explanation