NEWSLETTER
The Internet has not crushed the retail business of brick and mortar.
The good retailers who provide a strong purchase experience have prospered. People go to stores like Marshalls, Ross Dress for less and five below because they offer a mixture of value, necessary products and a positive purchase experience.
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The same could be said of Costco and Walmart's Sam's Club. People like to buy in these stores because experience is more than simply choosing the things on the shelves.
All these retailers offer a combination of value and treasure search, but that is not the only retail model that works. Barnes & Noble, for example, a chain that is once believed that it is close to death at the hands of amazon, has discovered how to serve the reading public and has returned to growth.
Dick's Sporting Goods, a retailer who could have been easily replaced online, has also prospered by adding experiences to their stores that make them destinations.
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What the Internet has done is expose weakness. If it offers a bad purchase experience, then consumers simply will not bother.
They can stop to obtain something that they absolutely need immediately, but most people will transfer any other purchase to digital brick and mortar or rival retailers that offer a better experience.
Image and colon source; Getty images
Walgreens caused his own problems
Internet did not kill Walgreens; The wounds of the chain are largely self -inflicted. Consumers still collect their recipes in a physical store.
It is natural to buy other things, but Walgreens (WBA) He has made his purchase experience horrible. Consumers can make some purchases when they are already in a store, but when the products are locked up and require a bell and wait for someone to release them, they could literally ask for the same article on their phone from amazon while waiting for their medicine.
People like the immediacy of grabbing something and taking it home. Walgreens and Rival CVS have ruined that experience in many stores. That has contributed to Walgreens's decision to close 450-500 stores in 2025 as part of a larger plan to close more than 1,200 locations.
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The Walgreens CEO, Tim Wentworth, shared details about what he calls the “fingerprint optimization program”, a way of doing business to say store closures, during his First quarter profit call.
“We are currently overcoming the historical script retention rates and we have preserved most of the members of the equipment and pharmaceuticals. We hope to significantly increase the rhythm of the closures of our store from the first quarter. As a reminder, we have a lot of experience with the closures of stores that have closed around 2,000 locations in the last decade,” he added.
That is a bit as if your doctor told you that it is “good at the end of life” because it has “lost many patients.”
Walgreens is already closing stores
Walgreens, who is being deprived of Sycamore Partners, has already begun to close locations. In fact, the chain has become aggressive about it.
“To handle the intensified rhythm over the next three years, we have gathered a dedicated team to focus exclusively on the end -to -end process to improve our historical results. This team has already sequenced the next store closures.
The chain not only becomes smaller, it is also trying to be smarter in the way it exhausts resources.
“Throughout the company, we are refining the way in which we predict, assign and schedu the preferences and the preferences and the preferences of which he addressed the clues.
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He also noted that Walgreens has done a good job with the business of closed stores to which they remain open.
“We succeeded in overcoming our own objectives and transferring patients to receiving stores. So that was good. We closed stores and not only renounced participation,” he said.
