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Tag: WALGREENS

  • ‘You better step away from me’: North Carolina woman walks into Walgreens. Then she catches a customer putting items into a pink Sephora bag

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    Being a bystander to shoplifting puts people in a weird, sometimes dangerous, spot. You don’t know if you should say something, ignore it, or just get out of the way entirely.

    And when nothing happens at all, that confusion can quickly turn into frustration.

    That’s exactly what happened to TikToker Denise (@shapedwithstrength) after she stopped by a Walgreens in Cary, North Carolina. What she says she witnessed, and how the store responded, left her stunned.

    What Went Down At This North Carolina Walgreens?

    In her video, Denise explains that she’s doing last-minute shopping when she ends up in the makeup aisle. That’s when she notices another woman lingering close behind her.

    “I’m in the makeup aisle and I see this lady walk behind me,” she says. “And I hear her.”

    At first, Denise assumes there’s a normal explanation. Maybe the store has shopping bags in the beauty section. Maybe she missed something up front. But then she hears items sliding into a tote.

    “I hear her taking something and putting it into a bag,” she says. “I’m thinking, all right, maybe they have bags… but I didn’t really see any pink tote bags up front.”

    Once she turns around, the situation becomes much clearer.

    “She walked a little bit closer to me,” Denise says. “And I’m always aware. I always have my head on a swivel.”

    That’s when she notices what the woman is actually doing.

    “She’s totally just picking whatever she wants in the skincare section and throwing it into her pink tote bag,” Denise says. “Just casually.”

    According to Denise, the woman then walks straight out of the store.

    “She just marches out the door,” she says. “Nothing. Nobody. No one says a word.”

    Meanwhile, Denise is still standing in line, waiting to pay. “I’m standing there like a schmuck waiting to pay for all my crap,” she says.

    That’s when she decides to speak up. “I said, ‘The lady that just left here has a whole bag full of skincare. Do you care?’” she recalls.

    The response shocks her. “We can’t do anything,” she says the employee tells her.

    That answer doesn’t sit well. “Well then I’m just gonna walk out with my crap,” Denise says she responds. “Why don’t you just put everything on the sidewalk and give it away for free?”

    She also asks to speak to a manager. According to Denise, that doesn’t go anywhere either.

    “The manager didn’t even come out of his office,” she says. “They called him on the phone. They knew I was there because I was being loud.”

    By the end of the video, she’s visibly angry. “How do you run a business like that?” she asks. “It makes my blood boil.”

    Does Walgreens Have A No-Chase Policy?

    What Denise experienced lines up with policies that many major retailers follow.

    A “no-chase” policy means employees aren’t allowed to pursue or physically stop someone suspected of shoplifting. The idea is to reduce the risk of violence, since staff have no way of knowing whether someone is armed.

    Walgreens follows this approach as well. In 2024, a Walgreens employee told Business Insider they were reprimanded after chasing a shoplifter out of a store and warned they could lose their job for doing so.

    That policy may explain why no one intervened while Denise watched the woman walk out.

    In the comments, plenty of people say that what Denise saw feels familiar.

    “Same in Nevada, I joke with the manager and ask him ‘why do I continue to pay for my stuff,’” one person wrote.

    @shapedwithstrength BALLS!!! @Walgreens ♬ original sound – Denise ?

    “They pass the cost to honest people, it’s ridiculous,” another said.

    “That’s why everything is locked up,” someone else added.

    One commenter who says they work retail summed it up plainly: “Management tells us we can’t stop them. Happens all the time.”

    The Mary Sue has reached out to Walgreens via email and Denise via TikTok messages for comment.

    Have a tip we should know? [email protected]

    Image of Ljeonida Mulabazi

    Ljeonida Mulabazi

    Ljeonida is a reporter and writer with a degree in journalism and communications from the University of Tirana in her native Albania. She has a particular interest in all things digital marketing; she considers herself a copywriter, content producer, SEO specialist, and passionate marketer. Ljeonida is based in Tbilisi, Georgia, and her work can also be found at the Daily Dot.

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    Ljeonida Mulabazi

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  • Rite Aid closes all remaining stores after 63 years in business

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    (CNN) — Rite Aid, once one of America’s biggest pharmacy chains, shuttered its remaining 89 stores this week after filing for bankruptcy in May for the second time in less than two years.

    “All Rite Aid stores have now closed. We thank our loyal customers for their many years of support,” the company said in a statement on its website.

    The company’s website, which has since removed all of its services, remains available for former customers to request pharmaceutical records or locate another nearby pharmacy to fulfill prescriptions.

    The full-service pharmacy first opened in 1962 and became well-known for its cult-favorite ice cream brand, Thrifty, which has since been sold due to the store’s bankruptcy. Rite Aid first filed for bankruptcy in October 2023, largely because of competition from bigger chains and its debt pile, which topped $4 billion due to expensive legal battles for allegedly filling unlawful opioid prescriptions.

    Rite Aid emerged from that bankruptcy in September 2024, having slashed $2 billion in debt, securing $2.5 billion in funds to maintain operations and closing about 500 locations. In May, Rite Aid had about 1,250 remaining stores, cut by about half from its 2023 operations.

    The drugstore announced in May that it sold most of its US stores’ pharmacy services to rivals CVS Pharmacy, Walgreens, Albertsons and Kroger, which collectively claimed more than 1,000 locations.

    It’s a saving grace for former Rite Aid customers, who may have otherwise lost access to their nearest pharmacy. When drugstores permanently close, as has been the trend in recent years, patients often have to travel farther to get their medications, posing a larger risk to older adults.

    CVS announced in November 2021 that it would close 900 stores by 2024 after it had closed 244 stores between 2018 and 2020. Former Walgreens CEO Tim Wentworth had told the Wall Street Journal last year that about 25% of its stores aren’t profitable, and the company announced in October 2024 that it would close 1,200 stores.

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    Auzinea Bacon and CNN

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  • CVS and Walgreens limit access to COVID vaccines as required by some state guidelines

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    CVS and Walgreens are now requiring a prescription or are not offering COVID-19 vaccines in some states as the companies attempt to follow state guidelines that require approvals from the Centers for Disease Control and Prevention.

    The Food and Drug Administration has approved vaccines from Pfizer, Moderna and Novavax for all seniors, but only for younger adults and children with health conditions.

    In a statement, CVS said the pharmacy chain cannot vaccinate those even with a prescription in Massachusetts, Nevada and New Mexico due to state laws and regulations.

    “Based on the current regulatory environment,” CVS said it’s offering COVID-19 vaccinations in the following states: Alaska, Alabama, Arkansas, California, Connecticut, Delaware, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, North Dakota, New Hampshire, New Jersey, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington, Wisconsin and Wyoming. 

    CVS said the list of states offering COVID-19 vaccines without a prescription may change at any time.

    In the other 16 states, CVS said it can administer a COVID-19 vaccination, depending on the patient’s age, with an authorized prescriber’s prescription. 

    In a statement, Walgreens said, “With the recent FDA approval of the 2025–2026 COVID-19 vaccine, Walgreens is prepared to offer the vaccine in states where we are able to do so.” 

    The FDA’s decision to end emergency authorization for the Pfizer vaccine for children under 5 will limit vaccine choices for younger children, leaving the Moderna vaccine as the only vaccine available for those 6 months to 4 years old with at least one health condition. Last week, the American Academy of Pediatrics released vaccine recommendations that, for the first time in 30 years, differ from U.S. government advice. 

    In the guidance published Aug. 19, the AAP said it’s “strongly recommending” COVID-19 shots for children ages 6 months to 2 years old. However, the CDC doesn’t recommend COVID-19 shots for healthy children of any age, but instead says kids may get the shots in consultation with a physician.

    contributed to this report.

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  • CVS, Walgreens now require prescriptions for COVID vaccines in Colorado

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    People who want to get an updated COVID-19 vaccine at CVS or Walgreens pharmacies in Colorado this fall will need to present a prescription.

    State law allows pharmacists to administer vaccines recommended by the Advisory Committee on Immunization Practices, a group that counsels the director of the Centers for Disease Control and Prevention about who will benefit from which shots.

    In previous years, the committee recommended updated COVID-19 vaccines within days of the U.S. Food and Drug Administration approving them. This year, the committee doesn’t have any meetings scheduled until late September, and may not recommend the shot when it does meet, since Secretary of Health and Human Services Robert F. Kennedy Jr. appointed multiple members with anti-vaccine views after removing all prior appointees in June.

    The lack of a recommendation also means that insurance companies aren’t legally required to pay for the COVID-19 vaccine without out-of-pocket costs. Most private insurers will cover the updated shots this year, though that could change in 2026, according to Reuters.

    Initially, CVS said it couldn’t give the COVID-19 vaccine to anyone in Colorado or 15 other states, because of their ACIP-approval requirement. As of Friday morning, its pharmacies can offer the shots to eligible people who have a prescription, spokeswoman Amy Thibault said.

    As of about 10 a.m. Friday, CVS’s website wouldn’t allow visitors to schedule COVID-19 shots in Colorado.

    Walgreens didn’t respond to questions about its COVID-19 vaccine policy, but its website said patients need a prescription in Colorado. A New York Times reporter found the same in 15 other states.

    The FDA this week recommended the updated shots only for people who are over 65 or have a health condition that puts them at risk for severe disease.

    The listed conditions include:

    • Asthma and other lung diseases
    • Cancer
    • History of stroke or disease in the brain’s blood vessels
    • Chronic kidney disease
    • Liver disease
    • Cystic fibrosis
    • Diabetes (all types)
    • Developmental disabilities, such as Down syndrome
    • Heart problems
    • Mental health conditions, including depression and schizophrenia
    • Dementia
    • Parkinson’s disease
    • Obesity
    • Physical inactivity
    • Current or recent pregnancy
    • Diseases or medications that impair the immune system
    • Smoking

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    Meg Wingerter

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  • ‘I want to revitalize downtown’: Former Walgreens is now Azalea Fresh Market

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    Photo by Donnell Suggs/The Atlanta Voice
    A rendering of the Azalea Fresh Market on Peachtree Street. Rendering provided by City of Atlanta

    There was no red ribbon outside the front door of the Azalea Fresh Market as political dignitaries and business leaders waited for the exact moment to begin the first tour of the store. The market is located at the corner of Peachtree St. and Edgewood Avenue, and directly across the street from Woodruff Park.

    What was once a Walgreens with people sitting and sometimes lying outside is now supposed to be an answer to changing downtown Atlanta’s status as a food desert. The store resembles your average Publix, with clean floors, well-lit sections, fresh fruit and vegetables, and high-end candies, like Tony’s chocolate bars.

    Photo by Donnell Suggs/The Atlanta Voice

    Atlanta Mayor Andre Dickens, Invest Atlanta President & CEO Dr. Eloisa Klementich, and Savi Provisions President Paul Nair attended the ribbon-cutting ceremony.

    “I want to revitalize Downtown,” Dickens said as he and others were given a tour of the first floor of the market by Nair, some of his family members, and staff. “This is our vision coming true.”

    According to Nair, Azalea Fresh Market was designed by architects at the Savannah School of Art & Design (SCAD). The second floor, which was not part of the Mayor’s and media’s tour on Thursday morning, will have two restaurants. The second floor will be accessible via escalators and an elevator. The store will be open from 7 a.m. to 10 p.m. every day.

    Asked about what could be done to prevent any security issues with the market being open till 10 p.m., Dickens said there will be plenty of eyes on the first supermarket in the Five Points area in decades.

    “We are very well aware of the need to maintain safety and security. Businesses thrive when they don’t have the uncertainty of crime,” Dickens said. “We made a commitment to this location, to Savi, and to the residents and businesses of downtown, that we are going to make sure it is safe.”

    Photo by Donnell Suggs/The Atlanta Voice

    Dickens said there are cameras and security systems in place for added security. The 61st Mayor of Atlanta added that the Atlanta Police Department, Georgia State Police, and the Central Atlanta Progress Downtown Ambassadors are all routinely on the scene and will provide an extra layer of security.

    Photo by Donnell Suggs/The Atlanta Voice

    “I think there’s a lot of eyes on this,” Dickens said. “So, when you have a lot of activity, the more shoppers you have, the more business that is going on, and that provides safety.”

    During the tour at the back of the store, Dickens credited Nair for the prices of the protein powder. Dickens said he uses similar products and pays equal prices for them.

    “We absolutely want to be cheaper than Walmart,” Nair told Dickens.

    The Olympia Building, home of the large Coca-Cola clock on top of the building, in which Azalea Fresh Market is housed, has been a landmark for many years. The nearly 100-year-old building has been home to several businesses, including bank branches, and Tom Pitt’s Soda Fountain in the early 1900s.

    Azalea Fresh Market is not a cheap solution to Downtown Atlanta being a food desert, but it is an answer.

    “Y’all did it,” Dickens said to Nair and company. “We set the vision and y’all made it happen.”

    Photo by Donnell Suggs/The Atlanta Voice

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    Donnell Suggs

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  • Labor Day 2025 is around the corner. Here’s what to know.

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    Labor Day is almost here, bringing with it one last chance for many Americans to soak up what’s left of summer.

    Observed on the first Monday of September, the federal holiday celebrates the contributions and achievements of American workers. The three-day weekend is also an occasion for family and friends to gather and celebrate the unofficial bookend of summer. 

    Read on to learn more about the federal holiday, including what’s open on Labor Day and what sales are to be had in 2025.

    When is Labor Day?

    This year, Labor Day falls on Monday, Sept.1.

    What is the history of Labor Day?

    Nowadays, Labor Day is more commonly associated with barbecues and beach days, but the federal holiday was created to celebrate the hard-won rights of American workers.

    Before early labor laws came into play in the 20th century, the average U.S. worker’s schedule spanned 12 hours a day, 7 days a week, with low wages and little protections, according to History.com

    The culmination of years of strikes and protests by American workers to secure better job conditions, Labor Day was signed into law on June 28, 1894, by President Grover Cleveland.

    The civilian workforce in America is around 170 million people strong as of June 2025, data from Statista shows. While there’s no cap on the number of hours Americans can work per week, federal law mandates that workers be paid a minimum wage. 

    That wage has been stuck at $7.25 since 2009. However, many cities and states across the country have passed legislation to enforce higher minimums adjusted for today’s cost of living. Most recently in July, the minimum wage was raised in 15 states and cities

    What stores are open and closed on Labor Day?

    Big-box retailers including Target, Walgreens and Walmart, will keep their doors open on Sept. 1. 

    Costco will be closed on Labor Day, in keeping with the discount store’s holiday schedule.

    Most grocery stores such as Kroger and Whole Foods will be open, but recommend that shoppers check ahead for specific hours of operation. While Kroger’s website says its stores will be operating at regular hours on Sept. 1, Whole Foods recommends you check your local store’s webpage on Labor Day for hours of operation.

    Fast-food chains, including Starbucks and Taco Bell, will also be open to serve customers on Sept. 1. While some, like Starbucks, will be operating at regular hours, other chains recommend checking ahead for local store hours, which may be limited on holidays.

    Are banks and the USPS open on Labor Day?

    U.S. government offices will be closed on Labor Day, which is a federal holiday. 

    The stock market, United States Postal Service and major banks such as Bank of America will also be closed for the holiday. However, most ATMs will be available for basic transactions such as deposit and withdrawals.

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  • Walgreens Lays Out Plan To Shutter 1,200 Drugstores – KXL

    Walgreens Lays Out Plan To Shutter 1,200 Drugstores – KXL

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    (Associated Press) – Walgreens plans to close about 1,200 locations over the next three years as the drugstore chain seeks to turnaround its struggling U.S. business.

    The company said Tuesday that about 500 store closures will happen in its current fiscal year and should immediately help adjusted earnings and free cash flow.

    Walgreens leaders said in late June that they were finalizing a turnaround plan for its U.S. business, and that push could result in the closing of hundreds of underperforming stores.

    The company has been struggling for years with tight reimbursement for the prescriptions it sells as well as other challenges.

    More about:

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    Grant McHill

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  • Walgreens Boots Alliance vs. Altria Group: What’s the Better Dividend Stock to Own?

    Walgreens Boots Alliance vs. Altria Group: What’s the Better Dividend Stock to Own?

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    Investing in a high-yielding dividend stock can come with significant risks. Oftentimes, a yield is high because it comes at a cost: uncertainty. Even though a dividend may look attractive, investors may not want to buy a stock if they are concerned about its ability to continue paying its dividend.

    Two incredibly high-yielding stocks you can invest in today are Walgreens Boots Alliance (NASDAQ: WBA) and Altria Group (NYSE: MO). Neither of their payouts is particularly safe, but I’ll break down which one may be the better option for dividend investors today.

    The case for Walgreens Boots Alliance

    Pharmacy retailer Walgreens Boots Alliance is undergoing a lot of changes right now. Under new CEO Tim Wentworth, who has been on the job roughly a year, it appears just about everything is on the table. Not only is the company contemplating selling assets and reducing the number of stores it operates, it’s also considering dumping its investment in VillageMD, which would have been unfathomable even a year or two ago as it was seen as a pivotal part of its healthcare strategy.

    Nowadays, however, Walgreens is struggling to grow, its bottom line isn’t strong, and the company even slashed its dividend at the start of the year. Despite the cut, the stock’s yield remains astonishingly high at 11.5%. But that isn’t because the yield was even higher to begin with, it’s because Walgreens’ stock can’t stop crashing. It’s down 67% this year with its valuation going to levels it hasn’t been at in decades.

    But the good news is that Walgreens has levers it can pull on to simplify its operations. By reducing its store count, that can bring down its expenses and focus on just its most profitable locations. It has assets it can sell to free up cash flow as well. And with the new CEO not outright eliminating the dividend, that may be a sign he sees it as a key part of the company’s future. And even if there’s another a dividend cut, the yield may still remain fairly high and above the S&P 500 average (1.3%).

    There’s a lot to be worried about with Walgreens, but the business may not be doomed. Wentworth has been on the job for just a year and if he’s able to turn things around, not only could the dividend be safe, but investors could also see a huge rally for this beaten-down stock. By no means is this a safe stock to own, but if you can handle the risk, the upside could be huge.

    The case for Altria

    Altria faces a tough future of its own, but that’s due to the industry it operates in. Smoking rates have been coming down for years and that’s a trend that’s not likely to change anytime soon as people become more concerned about their health. But despite this, there hasn’t been a drastic decline in sales for Altria and in fact, things have been fairly stable over the past few years. Although revenue did fall last year, the top line isn’t exactly nosediving.

    MO Revenue (Annual) Chart

    MO Revenue (Annual) Chart

    The company is also generating enough in earnings to cover its dividend payments. For the second quarter of 2024, which ended on June 30, Altria’s adjusted earnings per share totaled $1.31, which is higher than the $1.02 it pays in quarterly dividends. As long as it can maintain that level of profitability, the dividend should remain safe. In fact, the company even announced a 4.1% increase to its dividend in August, marking the 59th time in 55 years that it has raised its payout.

    For years, Altria has made for a safe dividend stock to own and while its dividend yield of 8.1% may seem high, there aren’t any red flags to suggest that a cut or suspension to the payout is coming anytime soon.

    Which stock is the better option for dividend investors?

    Picking between these two stocks isn’t easy. From a strictly fundamental point of view, Altria may look to be the better dividend stock to own simply because in the near future, it may not have to cut or suspend its payout.

    For the long term, however, I’d go with Walgreens for the simple reason that the business has more levers it can pull on to turn its business around. The healthcare industry is growing and by providing consumers convenient access to pharmaceuticals and other necessary day-to-day products, Walgreens plays an important role for communities across the country. While its strategy hasn’t worked thus far, Walgreens may have more ways it can turn its business around than Altria might, which could continue to face declining sales for years to come.

    Both stocks, however, are risky options and for many investors the best option will probably be to pick neither investment. There are many better dividend stocks to choose from than these two and while you may end up going with a lower-yielding stock, the result could make for a much less stressful investment to hold in your portfolio. Ultimately, it comes down to your level of risk tolerance.

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    David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

    Walgreens Boots Alliance vs. Altria Group: What’s the Better Dividend Stock to Own? was originally published by The Motley Fool

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  • Walgreens To Provide Free Flu Shots To Uninsured Every Friday Until The End of November

    Walgreens To Provide Free Flu Shots To Uninsured Every Friday Until The End of November

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    With flu season underway, Walgreens retail pharmacies in Texas will provide free flu vaccines every Friday for uninsured patients through the end of November.

    Patients can access this no-cost vaccine through vouchers available in-store. Walgreens offers 200,000 of these vouchers annually, and officials with the retail pharmacy chain report that roughly half of its stores are in medically underserved communities.

    By providing these vaccines free of charge, Walgreens facilitates access to vaccines and protects these populations from vaccine-preventable diseases. Notably, Black and Hispanic communities experience higher rates of severe flu illness due to decreased vaccination rates and other socioeconomic factors.

    According to the U.S. Centers for Disease Control and Prevention, moderate complications from the flu include sinus and ear infections. However, complications can increase in severity, causing the respiratory disease to develop into pneumonia or inflammation of the heart, brain, muscle tissues or multi-organ failure.

    The virus can also exacerbate pre-existing chronic conditions such as asthma and heart disease.

    The flu vaccine is available to individuals three years and older. Officials with the retail pharmacy chain advise patients wanting to come in to receive the immunization to locate the nearest store using the Walgreens store locator.

    Appointments can be made in advance online or via phone call at 1-800-Walgreens — phone lines are accessible in both Spanish and English. The vaccines will be available during regular store hours.

    The available vaccine dates are Fridays, October 4, 11, 18 and 25, and Fridays, November 1, 8, 15, 22 and 29.

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    Faith Bugenhagen

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  • Walgreens: 4 Free 2×7 Customized Bookmarks – Doctor Of Credit

    Walgreens: 4 Free 2×7 Customized Bookmarks – Doctor Of Credit

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    Update 9/11/24: Back with promo code MARKIT

    Update 3/6/22: Deal is back with promo code SPRINGBOOK4

    The Offer

    Direct link to offer

    • Walgreens is offering a free set of 4 2″x7″ Customized Bookmarks when you use promo code SPRINGBOOK4

    Our Verdict

    As always these can make nice gifts, especially for the older generation.

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    William Charles

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  • Walgreens: Free 5″x7″ Folded Photo Card – Doctor Of Credit

    Walgreens: Free 5″x7″ Folded Photo Card – Doctor Of Credit

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    Update 8/4/24: Deal is back with promo code CARD57

    The Offer

    Direct link to offer

    • Walgreens is offering a free 5″x7″ Folded Or Flat Photo Card when you use promo code CARD57

    The Fine Print

    Our Verdict

    These always make useful gifts for the older generation.

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    William Charles

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  • ‘It’s Just Sad’: Drug Store Closures Could Make Some Cleveland Neighborhoods Pharmacy Deserts

    ‘It’s Just Sad’: Drug Store Closures Could Make Some Cleveland Neighborhoods Pharmacy Deserts

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    click to enlarge

    Mark Oprea

    Rite Aid’s closure on West 65th, like other pharmacies throughout Cleveland, have rippling effects on nearby residents.

    When the Rite Aid off West 65th St. and Franklin Boulevard announced earlier this summer it would be closing, a small wave of disappointment fell over Christina Keim and Mark Galit.

    Filing and picking up prescriptions would be a bit harder. Grabbing a few pantry items or cleaning supplies would require a 10-minute drive or a 20-minute ride on the 71 bus.

    Not, as it’d been for years, a quick dash down the block.

    “I mean, I can’t tell you the times I walked over there just to grab something like milk, you know,” Keim, 46, a dental hygienist, told Scene from Galit’s porch off West 65th. “Just anything that we needed at that specific time, you know, that you can’t get from Amazon.”

    But reality is soon to set in. That Rite Aid, like two others in Cleveland and others across Northeast Ohio, will close by the end of September, leaving a void and vacant building where thousands of customers once shopped on the regular.

    “It’s just sad in general,” Keim said.

    This is the result, on the ground level, of Pharmaggeddon. Since last fall, big name drug stores—Rite Aid, CVS and Walgreens—have opted to deal with so-called underperforming stores, or bankruptcy in Rite Aid’s case, by pulling out of neighborhoods that apparently couldn’t make profits. Stores mostly in low-income communities.

    In Cleveland, where 20% of residents don’t own a car, the implications of corporate slashing have rippling effects on residents who’ve long relied on them for medications, toiletries or a weekend snack run. Especially for seniors and the disabled.

    “It’s a huge equity issue,” Ward 15 Councilwoman Jenny Spencer, whose ward includes the Franklin Rite Aid, wrote in a statement. “It signals that we’re no longer a fully walkable neighborhood—in a community where many households don’t have access to cars.”

    click to enlarge José Miranda, who's lived in Detroit-Shoreway for the better part of the past 30 years, said Rite Aid's departure will throw off his usual errand running. - Mark Oprea

    Mark Oprea

    José Miranda, who’s lived in Detroit-Shoreway for the better part of the past 30 years, said Rite Aid’s departure will throw off his usual errand running.

    And the probability that another chain will come in to scoop up the empty drug store buildings isn’t very high — the closed CVS on Madison, for example, has sat vacant for years. More are about to join the market.

    “It’s hard, because Cleveland’s not really a growth market,” Ryan Fisher, senior vice president of CRESCO, told Scene. Fisher chalked the exodus up to plain capitalist decisions. Pharmacies are “simply saying, this location doesn’t work for me. I’m either going to not continue on or I’m going to go dark, finish off my lease, and then that will be it.”

    With six-figure rents at most locations, it would take financial help from the city or some kind of landlord subsidy to get a replacement in most cases.

    “Finding somebody else to replace place that rent at that number in Cleveland,” Fisher said, “has been difficult.”

    But the constraints and cold truths of big business mean little to neighbors in the blocks surrounding the Franklin Blvd. Rite Aid, which, as of Thursday, was covered in yellow signs announcing its eminent closure.

    The consensus was apparent: certain items purchased after a walk could be bought elsewhere, via prescription delivery services, via Amazon, via other stores. But for many, there’s the issue of transportation and access. The nearest pharmacies lie either miles away on Clark or on 117th.

    “It’s not as convenient anymore,” David Heil, 70, said from his front door several houses west of Rite Aid. They have lingering questions: What do we do in a minor emergency? Will there be problems with my medical insurance? “TKTK,” he said.

    In statements to Scene, the big three pharmacies pointed to economic conditions stemming from the pandemic as reasons for pulling out of selected blocks over the past three, four years.

    The three CVS closures in Cuyahoga County this year were, a spokesperson said, due to a reassessment of store needs, of “population shifts, consumer buying patterns, a community’s store density.” A spokesperson for Walgreens said that a quarter of its 6,500 stores nationwide will close in the next three years because they are “not contributing to our long-term strategy.”

    And Rite Aid, which confirmed its three recent closures—Clark Ave.’s on August 3, Franklin’s on September 8 and Chester Ave.’s on September 15—blamed the same macro issues.

    “While we have had to make difficult business decisions over the past several months to improve our business and optimize our retail footprint,” a statement to Scene read, “we are committed to becoming financially and operationally healthy.”

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    Mark Oprea

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  • Walgreens to close up to a quarter of its roughly 8,600 U.S. stores. Here’s what to know.

    Walgreens to close up to a quarter of its roughly 8,600 U.S. stores. Here’s what to know.

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    Seniors protest closure of SF Financial District Walgreens store


    Seniors protest closure of SF Financial District Walgreens store

    03:02

    Walgreens Boots Alliance will close a significant portion of its roughly 8,600 U.S. stores as the pharmacy chain seeks to turn around its struggling business, which has been hit by inflation-weary customers paring their spending.

    “The current pharmacy model is not sustainable,” CEO Tim Wentworth told investors on a Thursday earnings call.

    With 75% of the company’s U.S. stores accounting for 100% of its adjusted operating income, the company plans to examine the remaining 25% of its stores for closures, which would occur over the next three years, said the executive, who took the company’s helm in 2023. Shuttering 25% of its 8,600 U.S. locations would result in about 2,150 store closures.

    “Changes are imminent,” but some of the specifics are still fluid, Wentworth said of the impending shutdowns. “There’s not one exact number” of closures. 

    Wentworth added that the company will definitely shutter a number of its underperforming stores, but that other locations could be shifted to profitability.

    Inflation has taken a toll on Walgreens’ business, with consumers “increasingly selective and price sensitive on their selections,” according to Wentworth. But analysts said that the chain’s problems are also of its own making.

    “Walgreens does itself no favors in this environment by having a lackluster proposition and broadly uncompetitive prices compared to mass merchants,” Neil Saunders, managing director of GlobalData, stated in an emailed research note. “It is no good executing selective promotions, which the chain did over the past quarter, there needs to be a more fundamental overhaul of the retail offer.”

    Walgreens a month ago cut prices on 1,300 products, following Target and other retailers in lower prices as the U.S. economy shows signs of slowing. 

    Are layoffs planned? 

    The company does not anticipate large-scale layoffs in closing stores, as it believes most employees at those locations would transfer to other Walgreens outlets, Wentworth said.

    “You don’t need to have the number of stores we have today,” he said, adding that Walgreens expects to retain most of the subscriptions-filling business from the still-to-be-closed locations. 

    “Reducing capacity is not a bad thing, from a payer standpoint,” Wentworth said. “We can serve payers very effectively from the footprint that remains.” 

    The call with analysts came after Walgreens cut its guidance and reported worse-than-anticipated third-quarter earnings that received a negative reception on Wall Street, with shares of Walgreens down $3.67, or 23%, at $11.99 each, in Thursday morning trading.

    Pharmacy troubles

    Walgreens is not alone in struggling to grow its U.S. retail pharmacy business.

    In October, Rite Aid said it planned to shutter 154 stores nationwide as part of its bankruptcy filing, which came amid slumping sales and mounting opioid-related lawsuits

    Pharmacies — both independent locations and retail chains — are closing around the country amid low reimbursement rates for pharmacy care as well as low dispensing fees for Medicaid enrollees. 

    Further, while Medicaid enrollment ballooned during the pandemic, some 18 to 20 million people have since been dropped from the program, with some of those patients failing to pick up other coverage, another loss for the pharmacy industry at large, Wentworth noted. 

    Walgreens and other pharmacies often lose money selling brand name drugs due to agreements with pharmacy benefit managers, or PBMs. These groups, who serve as middlemen between health plans and drug manufacturers, negotiate prices with drug companies and set reimbursement rates for pharmacies. 

    “The playbook is a bit dated; we are working with PBM partners to make those changes,” Wentworth said.

    Meanwhile, some pharmacies are also coping with labor issues, with pharmacists at Walgreens and CVS Health walking off their jobs last year to protest longer hours and insufficient staff.  

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  • Here are the items Target, Aldi and Walgreen are making cheaper for shoppers

    Here are the items Target, Aldi and Walgreen are making cheaper for shoppers

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    Aldi is slashing prices on 250 items, including frozen fruit, steak and avocado oil, the grocer announced in May.

    Aldi is slashing prices on 250 items, including frozen fruit, steak and avocado oil, the grocer announced in May.

    tgrubb@heraldsun.com

    Shoppers are in luck this summer, as several large retailers with locations in the Triangle recently announced that they’re cutting prices on items across departments.

    About 5,000 items at Target will be discounted over the next few months, the company announced in May. German grocer Aldi will drop prices on more than 250 items. Walgreens is also lowering prices on more than 1,300 products across health and wellness, personal care and seasonal departments. And in a May 16 earnings call, Walmart President and CEO John Furner said the company has “almost 7,000 rollbacks” in food items; Furner did not specify which items were affected.

    These price cuts come as inflation remains high. The personal consumption expenditures price index, which reflects changes in prices of goods and services purchased by U.S. consumers, rose 0.3% in April from the previous month, according to a report from the U.S. Department of Commerce. Food prices decreased 0.2%, while prices for goods and services increased — 0.2% and 0.3%, respectively.

    Which items are cheaper at Target?

    The Target at Brier Creek in Raleigh has a priority line for online order pickup and registry assistance.
    The Target at Brier Creek in Raleigh has a priority line for online order pickup and registry assistance. Brooke Cain bcain@newsobserver.com

    In a May 20 news release, Target said it had just reduced prices on 1,500 items, and will discount thousands of more items over the summer.

    “Our teams work hard to deliver great value every day, and these new lower prices across thousands of items will add up to additional big savings for the millions of consumers that shop Target each week for their everyday needs,” Rick Gomez, an executive vice president at the Minneapolis-based retailer, said in a news release.

    Here are a few of the items shoppers can expect to find with lowered prices:

    • Dairy items such as milk and yogurt
    • Meat
    • Bread
    • Soda
    • Fresh fruit and vegetables
    • Snacks
    • Peanut butter
    • Coffee
    • Household essentials including diapers, paper towels and pet food

    Target also launched in February a brand called dealworthy, which features low prices on nearly 400 items including laundry detergent, toothbrushes, undergarments and paper plates. Prices of dealworthy items start at less than $1, and most items cost less than $10.

    Slashed prices affect hundreds of items at Aldi

    About a year ago, Aldi announced that it would reduce prices on more than 250 items, expecting to save American shoppers about $60 million.

    The retailer is continuing that pattern this year.

    In early May, Aldi said it was dropping prices on 250 items to help customers save about $100 million through Labor Day.

    “Aldi is always looking for ways to help customers save money, but with more experts warning of persistent inflation, the time was right to deliver even greater discounts on our already low prices for the second year in a row,” Dave Rinaldo, the president at Aldi U.S., said in a news release.

    Those discounts can be found on items including the following:

    • Simply Nature brand products: chia seeds, organic avocado oil, organic pinto/kidney beans, organic granola bars
    • Season’s Choice brand frozen blueberries, frozen French fries
    • Specially Selected French baguette, macarons
    • Vitalife assorted kombucha
    • Slimms summer sausage
    • Emporium Selection cracker cuts
    • Benton’s cookie thins
    • Southern Grove brand sunflower kernels, dried Mediterranean apricots
    • USDA Choice black Angus sirloin steak
    • Family pack chicken breast
    • Burman’s steak sauce
    • Park Street Deli pulled pork/pulled chicken

    Aldi is slashing prices on 250 items, including frozen fruit, steak and avocado oil, the grocer announced in May.
    Aldi is slashing prices on 250 items, including frozen fruit, steak and avocado oil, the grocer announced in May. Tammy Grubb tgrubb@heraldsun.com

    Walgreens cuts prices on national and store-brand products

    Like Aldi, Walgreens has been slashing prices for a while — since October 2023.

    “Walgreens understands our customers are under financial strain and struggle to purchase everyday essentials,” Walgreens’ retail and chief customer officer Tracey D. Brown said in a news release.

    More than 1,300 items in health and wellness, personal care and seasonal categories are affected by the price cuts. Here are a few examples:

    • One a Day 80-count men’s and women’s gummy vitamins
    • Always pad mod regular (20 count)
    • Clean & Clear foaming facial cleanser
    • Eucerin advanced repair hand cream
    • Kanka SoftBrush tooth and gum pain gel
    • Salonpas pain relief patch
    • Nine-can Igloo hard cooler
    • Squishmallow 16-inch plush
    • Bring on the Sun youth dive rings and goggles
    • Lasko 20-inch box fan
    • Nice! mini pretzels, sour cream and onion potato chips

    Related stories from Raleigh News & Observer

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  • Walgreens is cutting prices on 1,300 items, joining other retailers in stepping up discounts

    Walgreens is cutting prices on 1,300 items, joining other retailers in stepping up discounts

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    Walgreens said Wednesday it is lowering prices for the summer and beyond on 1,300 items, including snacks and feminine products, joining Michaels, Target and other retailers looking to cater to inflation-weary consumers.

    Retailers have rolled out price cuts — some permanent, others temporary — with the stated aim of giving their customers some relief. The reductions are being introduced as inflation showed its first sign of easing this year but not enough for consumers who are struggling to pay for basic necessities as well as rent and car insurance.

    Walgreens is rolling out lower prices on products such as vitamins, tampons, facial cleanser, lotion, box fans and chips to help “customers are under financial strain and struggle to purchase everyday essentials, Tracey Brown, Walgreens chief customer office, said in a statement. 

    Walgreens is the nation’s second largest retail pharmacy with 9,000 locations across the U.S. and Puerto Rico that serve almost 9 million people daily. 

    “Through myWalgreens loyalty program, our more than 110 million members receive personalized offerings daily. Listening to our customers and offering quality products, value, and convenience every day is our continued commitment,” she said.

    Other major retailers are moving to ease costs for consumers:

    • Earlier this month, Target said it planned to slash the price of bread, coffee, diapers and thousands of other everyday items this summer. The company decided to cut its prices because “consumers are feeling pressured to make the most of their budget,” Executive Vice President Rick Gomez said in a statement
    • In April, grocery chain Giant Food, which has 164 locations across Delaware, Maryland, Virginia and Washington, D.C., also cut the price on hundreds of its private-label items. Arts supply retailer Michaels lowered prices in April, slashing the cost of paint, markers, pens and other products. 
    • Amazon Fresh, the grocery store arm of Amazon, said on May 24 it’s cutting prices on 4,000 items and customers will save up to 30% in-store and online. The price reductions will rotate every week between beverages, dairy, frozen food, meat and seafood, Amazon said. 


    Consumers fed up with soaring fast food prices

    02:40

    Retailers are lowering prices as the U.S. economy shows signs of slowing. Although inflation continues to ease and overall consumer spending has remained solid this year, recent economic signals suggest Americans are becoming more frugal. The median rise in monthly household spending in April fell to 4.6%, the lowest reading in three years, according to data from the Federal Reserve Bank of New York.

    The pullback in spending by budget-conscious consumers is also affecting other industries, including fast food giant McDonald’s and casual-dining chains such as IHOP and Applebee’s. 

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  • Walgreens limits Gummy Mango candy sales to one bag per customer

    Walgreens limits Gummy Mango candy sales to one bag per customer

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    Taste It Tuesday: Candied fruit


    Taste It Tuesday: Candied fruit

    02:49

    Walgreens is now a candy destination, thanks to TikTok.

    The pharmacy chain said it is ramping up production of Walgreen’s Nice! Gummy Mango peelable candy, and limiting online sales to one bag per customer due to high demand for the squishy treats, fed by social media.

    Walgreens Nice! brand Gummy Mango peelable candy and Gummy Burst Pineapple.

    Walgreens


    Part of the retailer’s lower-priced Nice! house brand of snacks and drinks, the miniature versions of mango fruit —which sells for $1.99 a bag — first appeared in September 2023 in 2,500 Walmart stores. 

    The idea for the candy came from a vendor relaying peelable mango trends they were seeing in Asia, Marty Esarte, vice president of Walgreens’ owned brands, said in an email.

    “TikTokers discovered the candies in January and before we knew it, products were flying off the shelves,” Esarte said.

    In one video on the platform, a TikToker describes picking up a bag of the candy at Walgreens after seeing it “all over social media.” 

    Walgreens is increasing inventory for the mango-flavored product to 8,000 stores on May 22. A new peelable banana gummy will launch in 5,700 stores on the same day, also selling for $1.99 a bag, the company said.

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  • Store manager facilitated string of 7 robberies at same DC Walgreens, police say – WTOP News

    Store manager facilitated string of 7 robberies at same DC Walgreens, police say – WTOP News

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    The same person committed seven armed robberies at the same Walgreens, according to D.C. police. Officials are also saying the suspect had help from inside the store.

    D.C. Chief of Police Pamela Smith and others walk past the Chinatown Walgreens, the site of at least seven armed robberies between July and February.(WTOP/Mike Murillo)

    The Walgreens in D.C.’s Chinatown neighborhood has been robbed at gunpoint seven times since July of last year. Police said the same person committed each of the armed robberies, and are now announcing he had help from inside the store.

    Michael Robinson, 33, of Capitol Heights, Maryland, worked as a manager at the Walgreens during the string of robberies and has been charged with conspiracy to interfere with interstate commerce by robbery. His nephew, 26-year-old D.C. resident Gianni Robinson, faces the same charge.

    At a press conference Tuesday, D.C. Police Chief Pamela Smith said the conspiracy case “invoked fear in the community.”

    According to D.C. police and the FBI, 24-year-old D.C. resident Kamanye Williams entered the store at least seven times between July and February, taking money from the safe in the manager’s office at gunpoint each time.

    Since July, Chief Smith said police have been working with the FBI on the robberies that targeted the store.

    Police said during the most recent robbery on Sunday Williams was shot by a special police officer. Williams was critically injured and remains in a local hospital at this time.

    In at least one instance, the robber is captured on surveillance video looking at a phone while punching in the code to the locked manager’s office. In that same robbery, police said Michael Robinson served as Williams’ driver beforehand and afterward.

    During several other robberies, Michael Robinson was working as the on-duty manager.

    Gianni Robinson was connected to the robberies through cellphone location data, according to charging documents. Investigators said he was traveling with the robbery suspect immediately before and after certain robberies.

    Police also said Gianni Robinson was dating a different manager of the Walgreens, who, during one of the robberies, emptied around $3,000 into the robber’s backpack while being held at gunpoint along with a special police officer. Authorities have not announced charges against that store manager.

    Williams faces armed robbery, assault with a dangerous weapon, kidnapping and other charges when he’s out of the hospital.

    WTOP’s Mike Murillo contributed to this report.

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    © 2024 WTOP. All Rights Reserved. This website is not intended for users located within the European Economic Area.

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    Thomas Robertson

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  • Walgreens Swaps Dividends for Growth | Entrepreneur

    Walgreens Swaps Dividends for Growth | Entrepreneur

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    Walgreens Boots Alliance (NASDAQ: WBA), more commonly known as WBA, stands as a global titan in the healthcare sector. Spanning neighborhoods and continents, its vast network dispenses essential prescription drugs, offers health and beauty havens, and even stocks your everyday consumer staples

    However, WBA recently made waves within the sector. They did not do this with a new pill or a potion but with a bold financial maneuver. The company announced a substantial cut to its dividend, igniting a firestorm of concern and curiosity amongst investors and stakeholders. This unexpected move has left many wondering – was it a bitter pill to swallow or a strategic tonic for the future? 

    A Retail Juggernaut Beyond the Counter

    Founded in 1848, WBA stretches from Deerfield, Illinois, to bustling pharmacies worldwide. Under CEO Tim Wentworth, WBA is transforming. The company is adding in-store clinics and healthcare partnerships to its shelves of pills and potions. With recent bold moves like the dividend cut, WBA is rewriting its story to become a healthcare destination, not just a drugstore.

    Why WBA Swallowed a Bitter Pill 

    Walgreens Boots Alliance was splashed across headlines recently, not for a groundbreaking drug or health service but for a bold financial maneuver. They announced a near 50% reduction in WBA’s quarterly dividend. This move, a sharp break from the company’s long-standing forty-seven-year tradition of dividend increases, sent shockwaves through the investment world.

    Why the sudden financial sleight of hand? For years, WBA enjoyed the coveted title of “Dividend Aristocrat,” a badge of honor awarded to companies with unwavering commitment to dividend growth. However, recent financial headwinds, including lower consumer spending and intense competition, began to cast a shadow.

    The pandemic’s initial boost to vaccine sales faded, and inflation squeezed both customers and the company’s bottom line.

    Enter the bitter pill: the dividend cut 

    The new quarterly payout of twenty-five cents per share, slashed from the previous forty-eight cents, sparked mixed reactions. Income-focused investors choked on the disappointment, missing out on the reliable income stream WBA once offered. Yet, others saw a strategic remedy in the decision. Some of Walgreen’s analysts applauded the move as a wise way to free up valuable cash flow, estimated at roughly $800 million annually. This financial fuel could be channeled into crucial areas like cost-cutting, expansion of healthcare services, and potential acquisitions.

    The jury’s still out on whether the dividend cut will be a masterstroke or a miscalculation. While some investors remain wary, others are cautiously optimistic, intrigued by the potential for long-term growth and innovation fueled by the newly freed-up cash.

    Only time will tell if WBA’s gamble pays off, but one thing’s for sure: the company’s decision has shaken up the investment landscape, leaving everyone watching to see how the story unfolds.

    Financial Tonic or Industry Tremor?

    Walgreens Boots Alliance may have swallowed a significant financial pill with its nearly 50% dividend cut, but the ripples of this decision extend well beyond disappointed income investors. Financially, the cut serves as a solution to WBA’s cash crunch. By freeing up an estimated $800 million annually, WBA injects its balance sheet with fresh cash flow.

    This cash transfusion fuels critical areas such as cost-cutting, healthcare service expansion, and potential acquisitions. While the stock price initially wavered, the long-term outlook hinges on WBA’s execution. Investors, like hesitant patients, await to see if the treatment delivers, potentially driving the stock upward if growth materializes.

    However, the decision comes at a cost. WBA surrenders its coveted “Dividend Aristocrat” status, a symbolic blow to its reputation for reliability. Walgreens also notably altered its position within the renowned dogs of the dow strategy, moving from the top spot to somewhere near the bottom.

    These changes left some analysts wondering if it was time to take Walgreens out for a walk. Nevertheless, it also paints a picture of a company prioritizing long-term health over short-term appeasement, potentially attracting growth-oriented investors.

    The ripples reach beyond WBA’s walls, sparking conversations across the pharmacy and healthcare industry. Could this be a precursor of a broader trend, with other companies prioritizing cash flow and strategic investments over dividend increases? The answer remains clouded, but WBA’s move raises an eyebrow or two from investors and analysts alike.

    For the retail pharmacy sector itself, the cut casts a mixed light. While some see it as a symptom of industry-wide struggles, others interpret it as a strategic pivot towards lucrative healthcare services. WBA’s gamble on expanding its clinics and partnerships highlights the growing importance of diversification in a changing market.

    The most immediate concern is WBA’s customers and individual investors. Income-focused individuals might feel the financial pinch of a reduced dividend yield. However, those seeking convenient access to healthcare services could benefit from WBA’s renewed focus on this area.

    Ultimately, the impact on customers hinges on how effectively WBA translates its financial maneuver into tangible improvements in its offerings and accessibility.

    So, was WBA’s dividend cut a bitter pill with no sweeter future? Only time will tell. But one thing’s for sure: the ripples it sets in motion will impact the company and the broader landscape of the healthcare and retail sector, leaving many watching to see where these strategic changes take Walgreens Boots Alliance. 

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    Jeffrey Neal Johnson

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  • Retailers shuttered 4,600 stores this year. Here are the stores that disappeared.

    Retailers shuttered 4,600 stores this year. Here are the stores that disappeared.

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    This year was a rough one for some major retailers, as illustrated by an 80% surge in store closures in 2023 from the year before, according to Coresight Research. 

    The reasons for this year’s more than 4,600 store closures are varied, ranging from the bankruptcy of a major retail chain to some operators closing underperforming locations. In some cases, retailers blamed rising theft for their rationale in closing some locations.

    Against the backdrop of the closures are several trends weighing on some brick-and-mortar businesses. For one, Americans continue to shift to online shopping. And secondly, inflation-wary shoppers are cutting back on some types of purchases, such as electronics and jewelry.

    But it’s not all doom and gloom in the retail sector, given that retailers actually opened almost 5,500 stores in 2023, more than offsetting the number of closures this year, Coresight’s data shows. In some cases, retailers moved into locations vacated by other businesses.

    “Some of our best stores were created from carved-up Kmart or Sears locations,” Burlington Stores CEO Michael O’Sullivan said earlier this year, according to a local CBS affiliate. Burlington has taken over more than 40 former Bed Bath & Beyond spaces. 

    Bed Bath & Beyond 

    Topping the onslaught of closure announcements is Bed Bath & Beyond, whose April bankruptcy led to the closure of 866 stores, by Coresight’s count.

    Even though Bed Bath & Beyond’s physical presence has ended, its blue logo lives on. Overstock.com bought the brand out of bankruptcy and relaunched its own site as BedBathandBeyond.com. It also revived its iconic coupon providing 20% off a single item, but the discount is now for online use only.

    Rite Aid accounts for 335 of the year’s store closure announcements, an uptick from the chain’s shuttering of 158 stores in 2022. The pharmacy chain, which filed for bankruptcy in October, plans to close more of its 2,100 pharmacies in the face of falling sales and opioid-related lawsuits. 

    Nearly 100 of this year’s closures involved David’s Bridal. The wedding gown retailer filed for bankruptcy in April, but continues to run as many as 195 stores. 

    By the end of this summer, more than 80 Christmas Tree Shops had closed after the New England retailer filed for bankruptcy in May. The chain had tried rebranding as “CTS” in 2022 as people outside of New England mistakenly thought it only sold trees

    Further down the list is Party City, which shuttered 31 shops this year and emerged from bankruptcy protection in September, vowing to keep the bulk of its 800 stores nationwide running. 

    Dollar Tree closing stores — and opening them

    Some dollar store chains also closed hundreds of stores in 2023, led by Family Dollar with more than 100 closures. Competitor Dollar General closed 74 locations, while Dollar Tree (which also owns Family Dollar) closed 59 shops. 

    But despite these closures, dollar stores are a growing business in the U.S., with these retailers — which tend to sell items for about $1 each — announcing 1,600 new store openings in 2023. That represents about one-third of all new openings this year.

    And the discount retailers already have big plans for 2024, targeting more than 1,500 new stores between them next year.

    Here’s what is closing in 2024

    As for next year, U.S. retailers have so far announced 580 store closures, with the shutterings led by CVS Health and Walgreens.

    Pharmacy chains have struggling in facing lower reimbursement rates and competition from Amazon and Walmart, while dollar stores have fared better as inflation-weary consumers seek discounts. 

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  • Major Drugstores Are Closing Thousands of Locations, but Why?

    Major Drugstores Are Closing Thousands of Locations, but Why?

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    Drugstores have been having some issues lately, and now three major chains are closing multiple stores. CVS, Walgreens, and Rite Aid are collectively closing thousands of stores across the country. Rite Aid alone will be closing 400-500 stores out of their 2,200 total. The company has also filed for bankruptcy. They have been undercut by larger stores but have also faced some legal obstacles for their alleged role in the opioid epidemic. 

    We have seen strikes from various industries this year as employees are fighting back, and the drugstore industry is no different. Walgreens workers around the United States, as well as CVS workers in Kansas City, have staged walkouts to protest pay and staffing shortages. Aside from the employment aspect, these stores have been facing a lot of challenges as the scope of the healthcare and retail industries is rapidly and constantly changing. 

    Brick-and-mortar retail stores have been facing problems since the rise of Amazon. However, many have brought up the problem of theft to try and explain a lot of their issues. You may have seen more products behind glass cases now. And I am sure you all have seen the countless videos circulating online of people just ransacking stores, and stealing with little pushback. That is, of course, not okay, but is that really to blame? Walgreens was one of the first stores to start speaking out about theft. And there’s been a pattern of chains claiming that this has contributed to their reduced margins. In fact, earlier this year, The Week did a piece highlighting Walgreens specifically. 

    In 2021, Walgreens closed at least five stores in the San Francisco area. They largely blamed shoplifting for these closures. However, the CFO of Walgreens admitted in a statement that they may have put too much emphasis on shoplifting. It was also believed that inventory losses due to theft or damage (known as shrinkage) had stabilized and actually decreased from 2020. This is important because, according to The New York Times, how companies talk about theft can impact Americans’ overall views of crimes. With the San Francisco Walgreens closures, data from the police department did not support the theft claims. Fear-mongering contributes to Republican rhetoric about increasing police presence, expenditures to the police and other law enforcement agencies, and the overall negativity surrounding America’s cities. 

    One real problem facing drugstores is their pharmaceutical sales. According to CNN, the majority of their sales are from customers filling prescriptions. These profits, though, have declined in recent years due to lower reimbursement rates for prescription drugs. But this isn’t the only real-world issue they are having to deal with. What they call the “front end” is also dwindling in sales. This is where you would find things like snacks and paper towels. Amazon and other big box retailers have provided extreme competition. Even huge chains like Costco and Walmart are now go-to places for household items and medicine. 

    The pandemic also didn’t help drugstores the way some may assume. While vaccine rollouts brought a lot of people into stores, they weren’t doing a lot of extra shopping while getting vaccinated. It is also reported that prescription sales overall declined because people were getting fewer elective procedures. 

    Closures hurt the elderly and lower-income folks, as it can be harder to find pharmaceutical options for them and they can have higher needs. Because big drugstores like these 3 companies overexpanded, many local pharmacies closed. Independent shops for medicine decreased by roughly 50% from 1980 to 2022. Now these three are closing many stores which will leave a key void for many people. CVS has closed 244 stores from 2018-2020 and said they will close 900 more by 2024. Walgreens already had plans to close 200 stores back in 2019. In June of this year, they said they would close 150 more. Insurance discrepancies still provide issues for customers and businesses. We know that those on public insurance may already struggle to have their needs met. This is still, however, better than no insurance. Those on public insurance programs can provide problems for these drugstores because they have lower reimbursement rates, which I discussed earlier. 

    Undoubtedly, needs will still have to be met. I hope that these businesses can be saved or altered in some substantial ways. It would also be nice to see a rise in local pharmacies. I do not know the full solution but I hope customers and consumers can still have their needs met. 

    (featured image: Joe Raedle/Getty Images)

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    Autumn Alston

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