WBA versus CVS

[Value Buy]

Walgreens Boots Alliance and CVS Drugstores seem to be seeing which company's stock can perform the worse.
I own WBA and it just seems to be spiraling downward daily.
Since they merged with Boots Alliance in Europe it seems to be a marriage from you know where.

CVS , their largest competitor but primarly here in the states stayed stateside but went with a health company merger and seems to be in the same boat with WBA and slowly sinking.
Any one see a turnaround for either company soon?

[ModE98]

My bet would be on CVS.....looks like it has "bottomed".  May be due for some sort of rally to me......but who really knows for sure?

www.finviz.com/quote.ashx?t=CVS

www.finviz.com/quote.ashx?t=WBA     No good sign of a bottom; again, who knows?

In these two FINVIZ charts and info provided, for me, the CVS one probably the better choice at this moment in time.  

[clarkrl2]

I like WBA because it shows up on one of my favorite value screens. However, I like to wait for some positive momentum before I buy from this screen because that helps me avoid value traps. Right now neither stock has any momentum.

[kadee79]

Did ya'al see where CVS is going to be closing 46 stores?  

Personally, I think they cut off their nose to spite their face when they started going "all healthy"....getting rid of some items like cigarettes/tobacco.
Many folks who went in for those would also pick up other things while there.

[Value Buy]

May 3, 2019 17:57:37 GMT -5 kadee79 said:

Did ya'al see where CVS is going to be closing 46 stores?  

Personally, I think they cut off their nose to spite their face when they started going "all healthy"....getting rid of some items like cigarettes/tobacco.
Many folks who went in for those would also pick up other things while there.

kadee, not so sure about cigarettes and tobacco.
None of the retail outlets make much money on this, and now we see Walgreens being flagged for tobacco sales to minors by the government.

I do not think it is worth the effort for the stores to tie up the inventory dollars for such a low margin return. Granted, someone might come in to buy cigs and possibly pick another item up, but the cigs are at the register right at the door so cross merchandising usually is not their target consumer and the cigarette consumer does not want to stand behind three real old customers digging for coupons and losed change at the checkout...
At least they kept the beer and liquor!

[Tiny]

I remember when Walgreens was a pharmacy and a "convenience" type store (with a smaller foot print for each store and more stores in an area).  I think it filled a "niche". But now it's (at least the ones by me) are MUCH bigger and seem to be competing with larger big box grocers AND the dollar stores AND the gas station "quickie mart". My "new-ish" Walgreens has overpriced everything - you can grab a fancy premade salad/sandwich, a new t-shirt and underwear and shampoo and foot powder. Oh boy. I haven't been in the local CVS it's too far away and I have no need to shop there as I'm sure their prices are high on stuff I could get at the Big Box Grocer or a Dollar Store.   Also, when a big new walgreens was built - 2 or 3 of the smaller stores closed.   CSV was the new comer - so they just built big stores. 

I DO know the Walgreens and CSV do a crap ton of perscription services and their clinic's are usually busy (judging from the horror stories of long waits from friends and relatives who use those services.

I think that's (the pharmacy and clinics) what Walgreens/CSV needs to concentrate on - not designer sandwiches and clothes and beauty products.

I think Walgreens AND CSV may be "dinosaurs".... who needs a pharmacy when the local Target, Jewel, CostCo, Sam's, Meijer's, it seems just about any other "big box" type store has a pharmacy. Who needs a "convenience" store when every new upgraded gas station has a "fast food restaurant or coffee/icecream store' AND as much square footage as the old "walgreens" stores for "junk food" and anything else you might need at stupidily high prices? And then there's the Dollar stores (also the same square footage as old time walgreens) who sell everything walgreens use to sell minus the pharmacy?


I guess it comes down to who Walgreens (and CSV) are competing with - it's not just with each other....

[kadee79]

May 4, 2019 9:55:10 GMT -5 Value Buy said:

May 3, 2019 17:57:37 GMT -5 kadee79 said:

Did ya'al see where CVS is going to be closing 46 stores?  

Personally, I think they cut off their nose to spite their face when they started going "all healthy"....getting rid of some items like cigarettes/tobacco.
Many folks who went in for those would also pick up other things while there.

kadee, not so sure about cigarettes and tobacco.
None of the retail outlets make much money on this, and now we see Walgreens being flagged for tobacco sales to minors by the government.

I do not think it is worth the effort for the stores to tie up the inventory dollars for such a low margin return. Granted, someone might come in to buy cigs and possibly pick another item up, but the cigs are at the register right at the door so cross merchandising usually is not their target consumer and the cigarette consumer does not want to stand behind three real old customers digging for coupons and losed change at the checkout...
At least they kept the beer and liquor!

Before I quit smoking & when CVS still had tobacco products...one of us was in there weekly.  We nearly always picked up some other little item while we were there so we didn't have to fight the parking at Walmart.  
And don't kid yourself...they made money on the tobacco cause it turned over quicker than many of their other items in the store.  They were often out of my brand due to not ordering enough...so quick turnover.

[Value Buy]

kadee where were the tobacco products in a CVS? Up front at the door.
Where is the Pharmacy. In the back of the store.
Why?
Because they want everyone to walk past everything else in the store to garner extra sales from customers walking by the products.
Even today, liquor and beer is in the middle of the CVS stores to gain merchandising purchases from the consumer even though they are also affected by strong laws regarding age purchase ability.
Retail grocery stores always have their power items they purchase twice weekly (the ones consumers consistantly purchase, meat, milk, eggs, retail bread, etc) in the back of the stores to make consumers walk past other items they may have ignored except for the excursion towards these items. It has been only the last few decades they moved produce, bakery, and deli to the very front of the store to capture the tastes and smells for the customers to enhance the customer shopping experience and promote "the always fresh, upscale image".

[Value Buy]

Although WMT is not part of this discussion, they too, sell cigarettes and are in trouble for selling to minors. They announced this morning that July 1st they will require a minimum age of 21 to sell the product. How can they break state age minimum purchase requirements of age 18?

www.cnbc.com/2019/05/08/walmart-raising-tobacco-purchase-age-to-21.html

[spartan7886]

May 8, 2019 10:20:51 GMT -5 Value Buy said:

Although WMT is not part of this discussion, they too, sell cigarettes and are in trouble for selling to minors. They announced this morning that July 1st they will require a minimum age of 21 to sell the product. How can they break state age minimum purchase requirements of age 18?

www.cnbc.com/2019/05/08/walmart-raising-tobacco-purchase-age-to-21.html

They're not breaking the state minimum age. They're going beyond it. It's perfectly legal to discriminate regarding age for people under the age of 40. There are local bars here that have a minimum age of 23.