Quote:
Originally Posted by Rainger99
I think the problem with Walgreens and CVS is that they are basically pharmacies but they have branched out to be general stores selling food, makeup, and other non-medical items - all at a very hefty markup. Other than the drugs, almost everything else is much more expensive than Walmart, supermarkets (even Publix), and Amazon. I can't remember the last time that I bought something other than drugs at a CVS or Walgreens. If they stuck to their core business (drugs), the stores would probably be profitable.
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I think more of Walgreens financial problems stem from acquisitions that have not worked well like VillageMD.
I don't think selling make-up and similar diverse items hurts them. I think they sell more of that then you might think because of convenient locations. As you say it has great mark up.
They also get stiff competition on drugs from Walmart, Publix, and online. Margins are thin on those for retailers (but not for drug companies of course).