Miguel Afonso Caetano<p>"The trends for Walgreens aren’t good - it has closed a thousand stores since 2018, and plans to shut 1,200 more this year. And if you look at the gross operating income of the U.S. retail segment, it is collapsing.</p><p>I put these charts together based on data in Walgreen’s annual reports.<br>What’s going on? Well that’s simple. Margins are falling apart.</p><p>Galloway and Elson went back and forth on why Walgreens is flailing. The company hasn’t modernized in the age of Amazon. It has too many stores. Bad management. A dumb acquisition of VillageMD in 2021. Etc. And these would seem like reasonable causes, since lots of other retailers are dying in the face of low price competition.</p><p>But the real reason Walgreens, and the pharmacy business in general, is dying, is because of a failure to enforce antitrust laws against unfair business methods and illegal mergers. Elson touched on it when he mentioned lower reimbursement rates, but I don’t think people appreciate the full scope of what happened to Walgreens, and to the full pharmacy business in general. This is not a case of bad management, it’s a case of desperate management."</p><p><a href="https://www.thebignewsletter.com/p/the-real-reason-walgreens-collapsed" rel="nofollow noopener noreferrer" translate="no" target="_blank"><span class="invisible">https://www.</span><span class="ellipsis">thebignewsletter.com/p/the-rea</span><span class="invisible">l-reason-walgreens-collapsed</span></a></p><p><a href="https://tldr.nettime.org/tags/USA" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>USA</span></a> <a href="https://tldr.nettime.org/tags/Walgreens" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Walgreens</span></a> <a href="https://tldr.nettime.org/tags/Monopolies" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Monopolies</span></a> <a href="https://tldr.nettime.org/tags/Oligopolies" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Oligopolies</span></a> <a href="https://tldr.nettime.org/tags/Pharmacy" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Pharmacy</span></a> <a href="https://tldr.nettime.org/tags/Antitrust" class="mention hashtag" rel="nofollow noopener noreferrer" target="_blank">#<span>Antitrust</span></a></p>