sylviechen

Walgreen: Can Scaling Back Boost Profits?

It would be interesting to determine the profit margins by product by shelf.
I suspect that cosmetics and pharma products are the core of their profits with convenience items as well as household supplies a distant second.
They need to better monitor their margins based on price optimization software.
Do they really need to continuously promote cheap t-shirts and sports stuff that cannot compete with the likes of Target and WalMart?. It's one thing to be a one stop shopping experience but their store size does not support such an inventory of product channels. As someone recently said: "you can't fix stupid".

Walgreens, back to school for a refresher on profitability! CVS may clean your clock as they already did with Long's Drugs. They also need to move away from shopping inserts and follow the Costco model of select products online with store pickup. That is the most efficient way to handle inventory and space.