Thread regarding Walgreens Boots Alliance layoffs

Store closures

A rule of thumb for many retailers will show 1/3 of stores making a profit, 1/3 breaking even and 1/3 losing cash.

Walgreens (and Boots) stores until recently had a reason to keep failing stores open….. they helped the Alliance (pharmaceutical wholesale) part of the group maintain high volumes of product turnover, and thus ensure the best possible volume-based prices when sourcing from pharma manufacturers. Remember Stefano Pessina & Ornella Barra’s roots are in pharmacy wholesale.

The accounting/tax treatment for volume based pharma bonuses from manufacturers is another topic entirely.

Now that Alliance is no longer part of the group, that important reason for keeping failing stores open has disappeared. Add to this the effect of COVID and online sales, and you should expect an impending 20% reduction in retail outlets for starters….

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