Walgreens closing stores
Tom Dougherty, CEO – Stealing Share
7 August 2019
Walgreens closing 200 stores comes as no surprise
Walgreens closing 200 store means now I can drive a whole block and not see a pharmacy.
Everyone knows there’s a pharmacy on practically every corner these days. I mean Walgreens alone sports 10,000 in the US, and CVS has a number north of 6,000.
To refresh your memory, Walgreens bought Rite Aid last year, which held nearly 2,000 US locations until it was decided that Walgreens closing over 600 Rite Aids was needed. I have always wondered how the pharmacy chains, especially Walgreens, operate with such large footprints. Other than some pharmacies in some really large cities, I never see more than a dozen or so people in the store at any one time. In fact, it’s not uncommon for me to be the only customer at a Walgreens location.
Pharmacy choice boils down to which one sits on the right (correct) side of the road. So, rather than give people a reason to shop at a particular brand, the Walgreens and CVS’s of the world have been content to build baby build. No wonder Walgreens closing stores is happening at a rapid pace.
“But until Walgreens (or CVS) gives consumers an actual reason to choose, then it’s going to be all about location. Walgreens closing 200 stores? How’s that working for you Walgreens?”
Walgreens closing stores demonstrates lack of brand
Because now the chickens are coming home to roost. There must be some magical accounting formula that calculates profit vs the cost of building another store across the street from a competitor. Seems a bit wasteful and expensive to me but what do I know. I’m no economist.
News flash, pharmacies. It would be FAR, FAR cheaper and more beneficial to imbue your brand with meaning that attracts customers because they are emotionally tied to it. Walgreens closing stores won’t give it any measurable ROI. Give consumers a reason to choose you. How is that so hard? Stop simply being a pharmacy and be a brand that people covet.
I’ll lump pharmacies with retail, which represents a collective pile of dog shit at the moment. Who knows what any of them are doing. Most are treading water and many are following the idea of Walgreens closing stores after they thought they could out brick-and-mortar Amazon.
I can’t imagine Walgreens going away entirely. Big pharma is big business and people need their prescriptions. But until Walgreens (or CVS) gives consumers an actual reason to choose, then it’s going to be all about location. Walgreens closing 200 stores? How’s that working for you Walgreens?
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