Thread regarding CVS layoffs

The retail pharmacy industry is dying...

Rite Aid is bankrupt, and might not make it out of bankruptcy. Even if they do come out, what's left of the company at that point? They've been closing stores and distribution centers, and their financial woes continue to mount.

Walgreens just announced the closure of potentially thousands of stores. possibly over 2,000 stores. And the CEO publicly stated that the current pharmacy model is unsustainable, and didn't rule out additional closures beyond what they just announced. They too are having significant financial issues, and the stock sank 22% today. Walgreens is in danger of falling under $10 a share. OUCH...

CVS just had a horrible first quarter, thanks to the senior execs who were asleep at the wheel. Medicare Advantage membership will be down significantly next year, the stock is tanking, and the CFO publicly stated that they need to get their financial house in order. (That just means "hard decisions" need to be made) They are also in the process of finishing up closing 900 stores over the past three years, and I can almost guarantee you that future closures beyond this are not off the table.

Don't stick your heads in the sand people, retail pharmacy is dying. PBM's are ki-ling the retail RX model, and companies are slow to respond. And while there is money to be made in health care, it's an expensive enterprise, with alot of risk involved. Not to mention competition from the big "A" (amazon) is also cutting into these companies profits. What ever you do, don't just be a mindless company follower. Keep your eyes wide open. Remember that Sears was once THE #1 retailer in the world, and look what happened to them. I know different business, not pharmacy, but the warning is still relevant. Retail pharmacy was once considered recession proof, and an industry that was safe and secure. The post-covid world has shown that's no longer the case. At any time you could be laid off and your store/wharehouse/office could be closed. CVS will probably last the longest because their the biggest, but Rite Aid is done, Walgreens is next, and the next time you make the heart symbol with your hands in front of the camera for social media, just know that Corporate would drop you like a bad habit to save their own skin.

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| 1371 views | | 10 replies (last June 30, 2024) | Reply
Post ID: @OP+1tePOIL4

10 replies (most recent on top)

I worked for CVS for 20 years. Miserable company. I love and agree 100% with the OP. Nothing is forever and companies that are king of the hill one day face a struggle for survival. Jeff Bezos has even said that Amazon will inevitably die (someday). It’s most commonly caused by failure to recognize risks (market, industry, competition) and changes in consumer behavior and to take action. It’s a level of arrogance and greed that leads to simplicity.

The dr-g retail segment has been especially arrogant in last 30 plus years. The industry as a whole is at risk. There is no longer a need for a specialty retailer to serve the purpose of dispensing pharmaceuticals and providing convenience items from an over bloated real estate footprint . Just like there was no longer a need for a toy store in America. Toy’s R Us eliminated ALL other toy retailers, failed to recognize risk and innovative and then eliminated themselves.

The dr-g retailer business model is in fact unsustainable just as the WAG CEO has said. Unfortunately for a 3 companies the model is actually a foundation. They would have to have a complete tear down and rebuild and I just don’t believe any of these putrid companies could pull it off.

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Post ID: @3xlr+1tePOIL4

The current CVS footprint could easily be replaced by a "RedBox" pharmacy robot that dispenses prescriptions. Like the DVD versions, these could be placed safely within any grocery store.

The current model is extinct. You'll see.

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Post ID: @1emd+1tePOIL4

lol Blockbuster. Sure when they start streaming prescriptions to people then CVS will be blockbuster

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Post ID: @1tqy+1tePOIL4

Your manager was being nice to you. Enjoy your summer, because you will most likely be layed off late August.

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Post ID: @1nih+1tePOIL4

cvs will be the go to pharmacy now , and aetna is the best insurance . and AI is coming in, so more work, more money, more jobs . My manager asked me to enjoy the summer.
Title= Director of Software Engineering. Remote for ever

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Post ID: @1xri+1tePOIL4

Excellent post!
I never consider going to CVS to purchase anything there, even with my supposedly generous employee discount. The only reason I ever walk into one of those dirty, dank stores is to pick up a prescription, that's it.

And for those folks that think, if RiteAid and Walgreens go out of business, that means we'll be kings of the pharmacy business, we'll rule the world now. We'll be too big to fail.

Let me remind you of another business that probably thought the same thing...BlockBuster. Remember them? They probably thought they were too big to fail too. When a business model just doesn't work anymore...it doesn't matter who you are.

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Post ID: @1xxz+1tePOIL4

Greed. The people have had enough.

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Post ID: @1rvu+1tePOIL4

Well stated. If Walgreen’s survives the next six months, it will be minuscule. The CVS model of cheap generics and denial mills no longer works. After Walgreen’s, CVS is at risk.
Cigna, United, Walmart, Centene and Amazon will survive. CVS will continue to shrink. Layoffs are here to stay. Don’t be surprised if CVS drops to $30 a share. There will be balance sheet surprises. The Supreme Court made it easier to commit balance sheet fraud.

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Post ID: @1sed+1tePOIL4

The one thing CVS can do but doesn’t because greed is make their FS compete with big box retailers on pricing.

CVS can do that BUT they choose higher prices which drives theft and lower sales - all to try to cover for aetna and Caremark losses.

If they stepped back to their roots of providing products at basically the same price as Walmart or Amazon, then people would stop driving PAST a CVS to go to those other stores for bandaids or advil.

But the c-suite has been using the FS as a piggy bank to float Aetna and Caremark and it’s finally reaching a point where that is not sustainable anymore.

Walgreens doesn’t have that same luxury and they just keep ja--ing prices and wonder why no one is shopping in their stores other than prescriptions.

The pharmacy has always been the driver to the store in hopes you bought high margin stuff, not the other way around they just got greedy because PBMs are a leech not the savior CVS tried to claim Caremark is for everyone.

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Post ID: @1yqu+1tePOIL4

I didn’t read all that lol but I don’t think all retail pharmacy will go the way of the dodo. CVS is in the best position in retail pharmacy so that should be good

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Post ID: @1ubr+1tePOIL4

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