Walgreens is perhaps the best positioned chain in a recession-proof growth industry - health care for baby boomers. They have mostly new stores in great locations and prescription volume is expected to explode. So what's the problem? They have systematically undone the efficiencies they brought in 10 years ago with Intercom Plus, their combination computer system and workflow mode. They've also cut staffing levels to the breaking point resulting in disgruntled staff and unduly long wait times. Customers are leaving in droves. Just ask any of their Pharmacists. Management JUST DOESN'T GET IT.
WAG posted a 1.6% drop in fiscal fourth-quarter net income, as improved gross profit margins were offset by an accounting gain in the year-earlier quarter.
This was due to Walgreen reducing its number of store openings to focus on these projects, and analysts and investors have been waiting for signs of improvement in profitability as mentioned a Wall Street Journal report.
For the period ended Aug. 31, Walgreen's profit fell to $436 million, or 44 cents a share, from $443 million, or 45 cents a share, a year earlier.