Walgreens says declining home values and rising unemployment are causing consumers to cut back on everything but essentials like soap and milk. Consequently, the drugstore chain is having to spend money revamping its merchandise selection to match the trend. It's back to basics if you want to make money. [Bloomberg]
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Walgreens should snap out of it and take a look at one of their flyers - and several of their competitors - and see how expensive and/or overpriced most all of their merchandise is.
Also, when you've got Walgreens on one corner and CVS on the other corner, something's going to give, and it ain't gonna be milk and soap.
I swear to God, for me these days it's "If Costco doesn't have it, I don't need it."
@JGKojak: What Walgreens SHOULD do is sue its customers for taking showers without using enough soap-- that would include failing to repeat when shampooing. And if you share your shampoo with someone, watch out.
Shhhh...! Don't let Proctor & Gamble hear that kinda talk! They're already pissed at me for not using enough Gain in my laundry, and I'm not even gonna discuss what the Head & Shoulders marketing team left on my front porch.
Anyhow, this surprises me not at all. Huge corporate monoliths always take about 3-6 months to respond to changes in the market. That's how small businesses stay in business. And nobody at store level is gonna take the initiative to change the shelf sets, 'cause if they do, they'll just get reamed by corporate...
@umbriago: Agreed about Costco. There's one a mile from me and they have incredible deals. I feel like people in my area only shop there now. It's also crowded while our local Pathmark, Stop & Shop, etc... are nearly empty.
I used to work for Walgreens and the managers would try to explain away the high prices by "gas is high and we're nearby," "we provide better customer service," etc. whatever. Nearly everyone I used to work with shopped at Wal Mart because on their crappy pay we couldn't afford to buy nessessities in our own store.
I wonder if this means they aren't going to twist the elbows of the beauty advisors to sell whatever snake oil they're just going to discontinue in six months anyway. I always hated it when they tried to force me to sell some outlandishly priced beauty product with promises that simply did not work.
@PencilSharp: If what was left on your porch were actually heads and shoulders, don't blame Head & Shoulders, that was me. I was wondering whose place that was.
@umbriago: Second about Costco.
I remember, way back when, that CVS ('Consumer Value Stores') prices used to be decent. They've gone up a lot, but are still better than Walgreen's.
A brand new Walgreens recently opened up in my general area, prime location, pristine, and nearly empty. Will be interesting to see whether they decide to lower their prices, offer more attractive specials, or fail.
@ImpossibleCheeseburgerPie: Strange. I would think they'd be keeping 50% of the store under lock and key if deodorant is such a theft problem. It's not like the stuff can be used to make drugs or can be sold on the street in most places during the summer without melting...
@umbriago: I've come to the conclusion that there are many companies out there whose entire business plan is based upon selling goods and services at stupidly high prices. Walgreens and CVS are definitely among them. Carl's Jr. comes to mind in the fast food world. Starbucks has done quite a number on coffee via greed.
Now, the rub with Costco as I see it is this: I went shopping with sister at Costco this weekend. I notice they sell higher-quality convenience and luxury goods at slightly lower prices than other retailers. Real world example: Solid white tuna in water was in an 8 pack of cans for the equivalent of 90¢ per can. For some reason, the Kirkland brand was a few cents more per can than the name brand.
But I can go to Super Target or Walmart and buy an alternative product (chunk light in water) for 65¢ to 85¢ a can. The solid white is $1 a can at the grocery, but to me the difference in quality is marginal and I don't have to buy 8 cans of the stuff. Same with the yogurt - if I buy a 20-pack, I can save about 4¢ a container over grocery store prices. But I can buy the store brand at the grocery and save about 10¢ over Costco.
Costco/Sam's Club has less expensive produce, eggs, butter & milk, but only if I buy quantities I cannot consume unless I marry into a mormon harem. If you live in a town with expensive grocery stores, YMMV. But lately I've found that the only people who really benefit from club grocery shopping are those feeding communal religious cults.
@kateblack: Yes, but F train commuters are known for their psychic prowess. They've been cutting back on soap for years.
@ChuckECheese: Costco has a bunch of rubs, especially if you're just shopping for one or two people. The only competition for some of the name brands they sell is their own Kirkland brand, there's no express line (long wait behind the people stocking up their convenience stores), the membership fee is the same whether you're just shopping for yourself or have a spouse and 12 kids, and they're picky about the credit cards they'll accept.
Still, it has been worth it to me due to the pharmacy savings, optical savings, some paper products, and my occasional purchase of an electronic item.
@Shoelace: After they messed up my prescriptions and my glasses, I stopped going there. They have the occasional deal, but nothing worth the $50 fee.
@Shoelace: Anybody can shop the Costcos and Sam's Clubs without a membership to use the medical services (optical, pharmacy). And in many states that sell alcohol, the club stores must sell alcohol to anybody, membership or not. Once you're inside, you can also taste the food samples.
@usa_gatekeeper: I think/hope people will still be buying milk and (especially) soap in six months. If they aren't well that doesn't suggest we are clawing our way out so much as digging a very deep pit.
@ChuckECheese: but to me the difference in quality is marginal and I don't have to buy 8 cans of the stuff. Same with the yogurt - if I buy a 20-pack, I can save about 4¢ a container over grocery store prices. But I can buy the store brand at the grocery and save about 10¢ over Costco.
Good point - you may not really benefit from buying 10 cans of tuna, but what about somthing that you are pretty much sure to use eventually - like toilet paper, laundery soap, dish washer soap etc. I love having a 3 month supply - avoids the frustration of running out of somthing and having to go to the store every weekend. Costco helps me not spend my free time doing crap I don't want to do. If I save a bit in the process that is great.
Tell me about it. There's one 5 minutes (if that) from my house and they are building another Walgreens down the street, about 5 minutes away.
Where I used to live, I was within a 10 minute drive away from 5 Walgreens locations.
I'm convinced that when I die there will be a Walgreens location in my area for every man, woman and child.
@ImpossibleCheeseburgerPie: The Walgreen's by me keeps the deodorant/anti-perspirant under lock and key.
Aside from little kids nabbing candy who on earth would steal somthing that costs $3? Enough people to justify locking it up? Really?
@VA_White: Where am I going to buy all those glorious As Seen On TV products!? And what if I need a remote control with 3 inch wide buttons?
@pupu: Well, I understand what you're saying, but the savings are still marginal. Many of these things are available on sale or with coupons elsewhere at similar or lower prices. For a household of one or two, the savings are minimal, and the storage requirements large. I don't have to go buy d/w deterg every weekend - I can get a few boxes at the dollar store or even an 85-pack of Cascade at WM or Target for about $2 more than at Costco. There are quality retail laundry detergs available that are comparable in price to Kirkland. I'm going to have to do a lot of dishes and use a lot of TP and toothpaste to get that $50 membership back. That, or I must buy a chest freezer and cram it with frozen pasta entrees, breaded tilapia and taquitos, in which case maybe I do need that 36-pak of TP. Costco and Sam's belong to the "spend more to save more" genre of retailing.
@ChuckECheese: We are only feeding 4 people and find plenty of things at Sams we can use up before they go bad. Things like block cheese and lettuce are much cheaper at Sam's. I can pay $3.65 for a huge box of "artisan" baby lettuce heads at Sam's or get one tiny bag of spring greens at the grocery store for the same price. I just wish we had a Costco in town, I would be shopping there if I could.
I buy the albacore tuna in the big packs. 90 cents at Sam's at least $1.50 at the grocery. Lately the quality of regular tuna has gone down and they have all shrunk the size of the cans. What passes for regular tuna now tastes like generic cat food. I can't eat it. So now I buy the good stuff at Sam's for the same price and eat it less often.
So now Walgreens is going "back to basics", how about getting some of the clothing retailers to do so?
Finding something as simple as a good quality fitted tshirt is quite the task. I can find 1001 versions of poorly designed, baggy maternity looking, gaudy printed poor quality womens shirts but basic tshirts are hard to find.
I tried to find some simple things like washing soda and lye recently for a project. That is becoming an ongoing quest.
@ChuckECheese: my sam's club sells single gallons of milk, which is fine for me. but my real saving there is dog food! in dog food alone, i save my entire membership fee by the time i buy the second bag. too bad they don't sell the brand of cat food my cats will eat
@calquist: why are you watching tv anyway when you could go to walgreens and visit this shelf:
it's got all the entertainment you need all in one place
for prep they offer toothpaste, "immune defense," razors and the ped egg
for in the moment they have KY lube, lotion and candy.
for after the moment they have headache powders, hand santizer, eye drops and pregnancy tests.
@Psychosocial: around here it's a rite-aid, CVS and walgreens at each intersection, all facing each other across traffic. and then i go to target to get the same products for at least 10% less than all three of them
@umbriago:
We don't have Costco...we're stuck with Sam's Club. :(
But there's a Walgreens on almost every corner.
@bohemian:
The tuna in cans is shredded like someone already ate it. I've been buying the packets, which has less fish but is at least edible. I wish I could get THOSE in bulk, and the packets of salmon. But I don't go down there often enough (Sams on the other side of town). Although I do go there to get our supplies at work. I don't have time to do my own shopping while there for that.
@catastrophegirl - brand new homeowner:
OMG That was funny!
If I hadn't already hearted you I'd do it again!
@HogwartsAlum: damn, i forgot to mention the nicotine gum that's between the abreva [for after!] and the KY
@usa_gatekeeper: The downturn is only beginning. Don't listen to the robots at CNN Or Fox News...things are only going to go downhill (not being pessimistic..just realistic.) Unless we see companies starting to rehire thousands of workers, we are in for stuff that none of us have ever experienced.
@bohemian: So we're clear, I'm not a Costco-hater. 4 people are plenty to get some advantage from making your purchases there. OTOH, a one-person household will face a world of slimy lettuce and sour milk while tripping over barrels of laundry detergent and broad vistas of toilet paper rolls. My sis agrees with you about the declining quality/ cat-food-ish-ness of tuna. I just put it in casseroles anyway, so I don't care.
@mbz32190: Read up on economics. The unemployment rate is a trailing indicator of business cycles, i.e., the market gets better before the rate goes down. Don't determine the market condition based on the unemployment rate.
@pupu: $3 for one doesnt seem like a big deal, but the people who are stealing take everything thats on the shelf 2 or 3 times a week. can easily add up to $500+ a trip.
@catastrophegirl - brand new homeowner: I've noticed this at the Publix grocery stores as well. My friends have started calling it "The Sex Rack." Literally, before (KY, oils, etc), during (condoms, spermicides), and after sex (pregger tests) products
In Florida, CVS & Walgreens plant stores opposite each other, literally on the same street corner. If one of them has a street corner, in less than a year you'll find the other paying absolute top-dollar to take the opposite side of the corner. Awhile back they even bought a relatively-new 3-story glass office building and tore it down to build a CVS. Pathetic.
@WatchOutNow: I can't stand those store blood pressure machines. They absolutely crush my arm (with bruises) and never give ma an accurate result.
















Wow - marketing geniuses at Walgreen. Impeccable timing. We're on the verge of clawing our way out of this downturn and Walgreen's is just now adjusting their merchandising for a downturn. In six months, they'll be complaining about no one buying soap and milk.