How is Amazon hurting Walgreens' business? Jim Cramer explains
Does Walgreens' pharmacy business have advantages over Amazon?
Yes, Walgreens' pharmacy business has some advantages over Amazon. Walgreens has a strong physical presence, offering one-to-one care and various healthcare services, which Amazon currently lacks. Additionally, Walgreens has partnerships with major companies like Microsoft and Alphabet, providing digital health corners and a virtual diabetes program. However, the competition between the two remains strong as Amazon continues to expand its presence in the pharmacy industry.
What theft issues are affecting Walgreens stores?
Walgreens has been facing theft issues in its stores, including organized retail crime and shoplifting. The company had to hire private security guards and lock up merchandise to prevent theft. However, Walgreens' CFO recently admitted that the company may have overstated its concerns about retail theft and is considering pulling back some of the additional security measures.
How much did Walgreens' shares fall on Thursday?
Walgreens' shares plunged 22% on Thursday, following the company's report of lower-than-expected quarterly earnings and plans to close a significant number of underperforming stores. This marked the company's worst loss since at least 1980.