The Market Underprices WalgreensRead more
A Kroger/Walgreen hybrid is an obvious use of the capabilities provided by Ocado. A robotic fulfillment center could obviously support both Kroger supermarkets and Walgreen drugstores.
Moreover, a Walgreen drugstore is a logical addition to the 2,782 supermarkets Kroger operates. In addition, Kroger food brands like Simple Truth will be a logical addition to Walgreens inventory.
Importantly, Kroger operates 37 food manufacturing facilities across the United States. Therefore, Kroger offers Walgreens a source of low-priced food products to counter Amazon’s discounting.
Equally important is Kroger’s ability to provide hot takeout meals, meal kits, deli foods, and hot entrees to Walgreen. Markedly, Kroger has a good relationship with the delivery specialist Instacart.
Additionally, an obvious use for Instacart is delivery of Walgreens prescriptions. America’s growing legion of senior citizens will be obvious customers for prescription delivery.
It is not supposed to be this way at Walgreens because gross profit, revenues, and operating income are growing at the company.Read more
The conventional wisdom is that Dollar General is “Amazon Proof,” but conventional wisdom is often dead wrong about the Everything Store.Read more
Walgreens Boots Alliance (NASDAQ: WBA) appears to be the latest retailer to experience the “Amazon Effect.” The drugstore giant just reported its second straight quarter of declining revenues.Read more
Rite Aid reported revenues of $32.64 billion in August 2016 that fell slightly to $32.57 billion in November 2016, Ycharts data indicated. During the same period in 2015, Rite Aid’s revenues grew by $1.46 billion; rising from $27.85 billion in August 2015 to $29.31 billion in November 2015.Read more
Naturally investors will wonder if anybody could compete with Amazon. Interestingly enough there is one potential threat to Amazon – the combination of Walmart and Jet.com.Read more
Walgreens was not able to compete directly with Amazon online. The online-retail Goliath threatens Walgreens; which is heavily reliant on sales of beauty products, nonprescription drugs and toiletries.Read more
The most interesting twist in this saga is that it appears Walgreen Boots Alliance can survive without Rite Aid, but Rite Aid might perish without Walgreen. The May 31 numbers show that Walgreen is making money but Rite Aid is not.Read more
Another possibility is that Walgreen will dismember Rite Aid in order to comply with the FTC’s wishes. The larger drug store operator might sell off a large percentage of Rite Aid’s stores, and keep just the ones it wants.Read more