Benjamin Halpern’s Post

🚀 Walgreens Boots Alliance (WBA) Soars! 📈 WBA shares surged over 12% after reporting Q4 earnings that exceeded expectations! 💥 While EPS fell 42% to 39 cents, revenue rose 6% to $37.54 billion, beating analyst estimates. 🔍 The chain plans to close 1,200 stores over the next three years, with around 500 closures in fiscal 2025. This strategic move is expected to enhance adjusted EPS and free cash flow. Despite a challenging year, WBA is projecting FY 2025 EPS of $1.40-$1.80, with revenue around $147B-$151B. The company is optimistic about growth in U.S. healthcare and international segments! 🌍💊 Link to Article: https://lnkd.in/exrH3bia What are your thoughts on WBA’s strategy moving forward? 🤔 #Walgreens #WBA #EarningsReport #RetailPharmacy #Healthcare #BusinessStrategy #StockMarket #Investing #FinancialResults #StoreClosures #GrowthOpportunities #Pharmacy #Revenue #EPS #MarketTrends #HealthcareInnovation #RetailTrends #InvestmentInsights #Pharmaceuticals #BusinessGrowth #FinancialForecast

Walgreens news: A #strategic move aimed at addressing several key challenges and objectives: 📉 Debt Reduction: Proceeds will pay down debt, given financial pressures and struggles, of which include tight reimbursement rates for prescriptions and rising cost of operations ⚙ Operational Funding: To support Walgreens’ ongoing operations and stated intentions to strategically #pivot to health services, as part of a broader effort to diversify beyond traditional drugstore operations and leverage its expertise in the drug supply chain. ✂ Cost-Cutting Measures: Part of this $1 billion cost-cutting initiative includes closing underperforming stores and reducing its stake in various assets, to improve overall financial stability https://lnkd.in/eHPtwMjV #Walgreens #Strategy #Healthcare

Walgreens is one of the most celebrated names in the retail pharmacy space, boasting innovation and convenience for its customers. However, in its latest earnings report, the company announced a tough financial environment and outlook, citing “a worse-than-expected U.S. consumer environment.” Without a doubt, inflation has struck Americans at all levels—from the rise in costs of groceries and food to skyrocketing housing payments and insurance rates. Consumer sentiment towards the retail space has been especially challenging, as individuals are starting to pullback on discretionary spending. As CEO Tim Wentworth explained, these economic headwinds have significantly impacted pharmacy margins, causing a pessimistic outlook for the company. https://lnkd.in/gw7xjWWM #pharmacy #pharmaceutical #healthcareaccess #healthandwellness #healthandwellbeing #healthcare #healthcareprofessionals #walgreens

📉 Walgreens Boots Alliance (WBA) Stock Drops 20% Amid Profit Guidance Cuts This morning, Walgreens Boots Alliance (WBA) saw a dramatic 20% drop in stock value after announcing a significant reduction in its profit guidance — the second downward adjustment this year. 📊 Revised Earnings Guidance: New Estimate: $2.80 - $2.95 per share Previous Estimate: $3.20 - $3.35 per share 🔍 CEO Tim Wentworth's New Strategy: CEO Tim Wentworth is executing a new strategy focused on revitalizing pharmacies and scaling back on healthcare services through VillageMD, where Walgreens is no longer a major stakeholder. 💼 Operational Changes: Downsizing unprofitable business segments Announcing additional store closures Tackling pricing pressures from prescription drugs 💬 Key Quote from CEO Tim Wentworth: "We're at the point where the current pharmacy model is not sustainable and the challenges in our operating environment require we approach the market differently. We are in active discussions ... to align incentives and ensure we are paid fairly." 📉 Impact of Pharmacy Benefits Managers (PBMs): PBMs are squeezing profit margins by setting prescription prices. Popular branded drugs (e.g., Mounjaro, Zepbound, Ozempic, Wegovy) offer lower profits. Ongoing shortages are reducing the supply of higher-margin generic drugs. 🏪 Store Performance and Shrink: 100% of profits come from 75% of stores, but the number of store closures is still undecided. Inflation is impacting discretionary spending, leading to a shift towards preferred partner brands and Walgreens' in-house brand. 📉 Current Stock Performance: Price: $11.73 (-25.13%) As of: 12:31 PM EDT Investors and industry watchers are closely monitoring these changes as Walgreens navigates a challenging market environment. #Walgreens #WBA #StockMarket #BusinessStrategy #Pharmacy #Earnings #Retail #Healthcare

Major changes have been seen across the pharma retail landscape today. Just in the last twenty four hours there have been major stories coming from Walgreens and Walmart. Highlights: - Walgreens is reinvigorating their specialty pharmacy offering opening four central locations, three hundred community based locations, and employing fifteen hundred specialty pharmacists - Walmart is opening Bettergoods supplying quality, healthy foods to communities under a new division of the Walmart brand; Walmart grocery accounts for 60% of its' US sales and this could bolster the sector to an even greater extent - Walmart is closing Walmart Health physical and digital locations facing difficult decisions seen by many pharmacies: increase in operating costs, issues with reimbursement, supply chain, and much more making keeping brick and mortar doors open nearly impossible. CMI Media Group 's Point of Purchase team continues to keep a pulse on these major shifts. We are aligned to working with a number of large retailers in the pharma vertical and continue to work with them to develop new, innovative, and first to market opportunities for our clients in an evolving PHYGITAL world. If you want to learn more or are interested in expanding practices into retail, please connect with us to learn more. https://lnkd.in/gRrZJ8cj

"Walgreens is closing approximately 1,200 locations as the drug store chain struggles to contend with online competitors and declining prescription drug payments. By 2027, about one in seven Walgreens currently open will close its doors. About 500 Walgreens will close its doors over the next year, the drug store chain announced Tuesday. Those closures represent a significant escalation from a few months ago, when the financially struggling company announced in June it was shutting 300 underperforming locations as part of a multi-year optimization program under CEO Tim Wentworth. At the time, the company had said about a quarter of Walgreens stores were unprofitable, and the chain promised “imminent” changes." Link to the full article is in the first comment. Need to understand how this will impact your business? Ask me how to get robust analysis of Walgreens POS data from Krunchbox. #posdataguy #posdataanalytics #walgreensclosings #walgreens

Walgreens reported fiscal fourth-quarter sales of $37.55 billion, exceeding Wall Street's expectations, despite a challenging fiscal 2024. The company is addressing issues like pharmacy reimbursement pressures and weaker consumer spending by implementing a $1 billion cost-reduction plan, which includes store closures and layoffs. Walgreens announced plans to shut down around 1,200 stores by 2027, including 500 closures in fiscal 2025, aiming to create a healthier store base and adapt to changing consumer behavior. About 25% of its 8,700 U.S. locations are currently unprofitable. The store closures and cost-cutting measures have bolstered Walgreens' financial performance, with adjusted earnings per share hitting 39 cents, surpassing the 36-cent estimate. Despite these efforts, Walgreens reported a net loss of $3 billion for the quarter due to a valuation allowance linked to opioid settlements. The company saw growth in its U.S. healthcare unit, with sales reaching $2.11 billion, driven by primary care provider VillageMD and specialty pharmacy Shields Health Solutions. U.S. retail pharmacy sales increased by 6.5% to $29.47 billion, while international sales grew by 3.2% to $5.97 billion, including a 2.3% rise in its U.K.-based Boots chain. #walgreens #pharmacy #bigpharma #pharmacies #jobmarket #business #corporation #thesocialtalks #health #healthindustry #healthcare #jobindustry #pharmaceuticals #pharmaceutical #pharma 

🛑🚪 The End of an Era for Drugstores? 🚪🛑 Recently, we've seen major drugstore chains like Rite Aid, CVS, and Walgreens struggling, closing stores, and even filing for bankruptcy. This trend is concerning, as these pharmacies have been staples in our communities for decades. What's causing this decline? Here are three key factors: 1. **Online Competition** 📦💻: The rise of online shopping and digital pharmacies has made it easier for consumers to get their medications and essentials delivered straight to their doorsteps. This convenience is drawing customers away from traditional brick-and-mortar stores. 2. **Rising Operating Costs** 📈💲: Increasing costs of rent, labor, and healthcare have made it challenging for these stores to maintain profitability. They’re finding it harder to balance providing competitive prices while covering these escalating expenses. 3. **Changing Consumer Habits** 🌐📱: More people are adopting healthier lifestyles and turning to alternative medicine, which means less frequent visits to drugstores. Additionally, the convenience of all-in-one stores and the ability to purchase medications and other health products at grocery stores and big-box retailers have diminished foot traffic. What do you think can be done to save these drugstore chains? Are they a vital part of our communities or a relic of the past? Share your thoughts! 💬🗣️

People ask how on earth these big retailers go broke ?! here is the answer: 1. they don't operate for care which will lead to profit , they operate purely for the "profit now concept"(it is not in a CEO dictionary to go long term plans because their contracts are very short and they want to make the biggest amount of bonuses in few years ) 2. they cut expenses at the bottom = less patient care ,more burnout , extremely high turnover and consequences are known . 3. they rely on deals like #pbms so they can secure business unethically and crush small independent pharmacies as a way to secure volume that would keep alive for only short term ( the irony is ,it is still legal in Canada except #Quebec) 4. they inflate prices of medicine in thier supply chain and they charge more for insurance ( who they have deals with already ) and the patient is the one paying for all this from their premiums . 5. they convince officials that they can do more for less leading to extremely wrong decisions for reimbursement that kill more pharmacies because the cost of filling is way more than what these companies claim they can afford the business 6. when they reach a stage that they don't make same amount of money , they close many branches and by this they not only killed competition but also shoot themselvs in the foot. it is about greed and control not about #patientcare , and the #public as well the #profession are the loosers in this . that is why #corporate pressure and #pbms are the most dangerous thing on our profession in #Ontario and in #Canada . Health | Santé Ontario Health | Santé Ontario Ontario College of Pharmacists Sylvia Jones Ontario Government | Gouvernement de l’Ontario #Pharmacists #healthcare