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Retail watch: Walgreen's (WAG -7%) FQ3 earnings report may have tipped off a disturbing industry...

Retail watch: Walgreen's (WAG -7%) FQ3 earnings report may have tipped off a disturbing industry trend, according to analysts. Front-end sales dropped 3.9% during the quarter as the pattern of soft traffic for the drugstore sector (RAD, CVS) continues. Though the dollar store group (DLTR, DG, FDO) has been a competitive threat for items such as toiletries and greeting cards, it's the grocery sector (SWY, KR, SVU) which may taken the bigger slice of the consumables pie.
Comments (7)
  • suzeeq
    , contributor
    Comments (8) | Send Message
     
    As for Walgreen's, they have lost my business some time ago. I always got their ads and went through them for purchases, but something has happened to Walgreen's. The don't have the great coupons they used to have and their pricing has changed lots. I do get my prescription drugs there only because they are conveniently located.

     

    DLTR?? I have some of their stock, but "99centsonly" gets most of my business. It is by far the best dollar store. Franchised, so one has to pick and choose. There is a difference due to this and there aren't as many. Dollar Tree is the most conveniently located for me.
    25 Jun 2013, 02:47 PM Reply Like
  • suzeeq
    , contributor
    Comments (8) | Send Message
     
    I'm a SS, cautious as to spending but not tight nor cheap.
    25 Jun 2013, 02:51 PM Reply Like
  • suzeeq
    , contributor
    Comments (8) | Send Message
     
    I would now like to publish my first comment as it does not require editing, but I can't seem to publish it..........
    25 Jun 2013, 02:53 PM Reply Like
  • popeye305
    , contributor
    Comments (280) | Send Message
     
    All 3 drugstore chains take their customers for granted. Most customers know they pay much more there for front-end items, but are still willing in many cases to pay it for the convenience. There is no convenience if you can not find someone to help you or the lines are too long, so guess what forget about the drugstores for front-end groceries! Hello big box retailer supermarkets, yes less convenient, but more likely to get some help, and get down to earth prices. All 3 drugstore chains have cut-back on help so much, penny wise pound foolish, that it has become too obvious (and too irritating) to their customers. No matter, the big execs are still getting their huge raises and bonuses.
    25 Jun 2013, 06:23 PM Reply Like
  • laman250
    , contributor
    Comments (4) | Send Message
     
    Walgreens lost my business over a year ago when I caught the Pharmacist in a lie. When I challenged him on it instead of coming clean he wanted to argue. I took him up on it knowing that because he lied, he couldn't win. The store manager came over and gave me a cash credit. Too late, I now get my scrips from Rite Aid who treats me well and has cleaner stores with comparable prices.
    25 Jun 2013, 09:00 PM Reply Like
  • BulldogCarlos
    , contributor
    Comments (7) | Send Message
     
    Walgreen's and CVS are too expensive compared to the Dollar Stores. Look for ones like Dollar Tree, with its foray into food, to attract budget-constrained shoppers. Stagnant wages will keep this company a player for some time...
    25 Jun 2013, 09:25 PM Reply Like
  • chaplinbuz
    , contributor
    Comment (1) | Send Message
     
    Rite aid's loyalty program is far and away better than the others. We get all of our prescriptions there, and for us Sr citizens it is no trick to get about 3 Rx apiece per month. This gets us to the level where we get 20% off on almost everything in the store. This makes them price competitive with even Costco and Walmart. Drug store groceries aren't ment to be competitive with big box grocers. They are just for convienience. Manufacturerers coupons are automaticaly entered into your Wellness card so you don't have to carry them around or forget them when you buy something. Our store in San Diego is always well staffed. If you're the 3rd person in checkout line they will call another checker. With CVS prices, I don't see how they stay in business.
    26 Jun 2013, 03:05 AM Reply Like
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