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Big News! Walgreens just joined CVS and has announced it will close approximately 2,150 stores under a multiyear real estate optimization. The announcement went on to state this will cover about 25% of its 8,600 locations in the United States. Roughly 75% of its current locations contribute to 100% of Walgreens 'Adjusted Operating Income' They will look at multi factors when closing these locations including sales declines, consumer behavior, trends in the store, whether population is growing or declining. Additionally and most surprising to me, was the suspension of sale leasebacks due to the declining per square foot sales prices over the last fiver years from $486 psf to $248psf. With the newly appointed CEO Tim Wentworth he's forcing them to face the pain CVS and Riteaid have already been experiencing (Note each business has it's own challenges). One item to note as of Walgreens Q1 earnings report they announced a $3 billion dollar loss but they have $28 billion in equity. Walgreens & CVS are experiencing rough winds ahead and I feel they are making adjustments to avoid an outcome such as Rite aid. Let me know your thoughts?

The Walgreens Saga October 2023: (Yikes) S&P downgrades Walgreens Boots Alliance (WBA) senior unsecured ratings to BBB-, the lowest investment-grade rung. December 2023: Moody's downgrades WBA's senior unsecured ratings to Ba2, marking it as "junk status" for "fallen angel" companies dropping from investment grade. June 2024: Walgreens CEO Tim Wentworth announces the closure of roughly a quarter of its 8600 stores over the next 3 years. This news is alarming for Walgreens and its real estate market. Many investors with NNN pharmacies in their portfolios face uncertainty. Even if the properties go dark with 10-year leases, and you manage to pay off the loan, how will you replace that high rental rate? Stay tuned for some interesting data on the Walgreens market and how to navigate these challenging times. #Walgreens #RealEstate #STNL Are you concerned about your pharmacy investments? Let's discuss strategies to mitigate risk and find new opportunities. Contact me today!

⛑️ The Walgreens Woes Continue…⛑️ October 2023: S&P downgrades WBA's senior unsecured ratings to BBB-, the lowest rung on the investment-grade ladder. December 2023: Moody's downgrades WBA's senior unsecured ratings to Ba2, considered “junk status” for the “fallen angel,” companies falling from investment grade. June 2024: Walgreens CEO Tim Wentworth announces that the company will be closing roughly a quarter of its 8600 stores within the next 3 years. Things are not looking good for Walgreens, and the real estate market for Walgreens is no better. Stay tuned for when I share some interesting data regarding the Walgreens market… #walgreens #realestate #STNL

Are Walgreens Stores in Your Area Closing Due to Lack of Profitability?   Walgreens #storeclosures #profitability Did you know that a quarter of Walgreens stores aren't profitable, and many of them are facing closure? 🛒💔 Before we start panicking, let's brainstorm some possible solutions to this issue: Optimizing store locations: Perhaps some stores are situated in areas with low foot traffic. Relocating these stores to more bustling locations could increase profita... Source: https://lnkd.in/ggz_ZacD #mymetric360

Walgreens, in an effort to reduce costs by $1 billion, is set to close 60 VillageMD clinics and withdraw from five markets. This decision follows a disappointing fourth-quarter performance, attributed to declining demand for COVID-19 services and lower consumer spending. Ginger Graham, Walgreens' interim CEO, expressed the company's commitment to cost-saving measures, including a $1 billion reduction in planned expenses and lowered capital expenditures of about $600 million. Walgreens anticipates these actions will make an impact in fiscal 2024, starting in the second quarter. The company's adjusted earnings per share for fiscal 2024 are expected to be between $3.20 and $3.50, slightly below Wall Street's forecast of approximately $3.70. Their 2024 revenue is projected to range between $141 billion and $145 billion. Additionally, Walgreens aims for its healthcare business to break even in 2024, but it has not provided an outlook for 2025. The decision to close underperforming VillageMD clinics is part of Walgreens' strategic cost-cutting efforts as it seeks to enhance its profitability in the healthcare sector, with the company emphasizing that no specific store addresses or locations have been disclosed as of now. A list of store closures is not readily available at this time. #walgreen #villagemd #retailnews #NNN #realestate #investment #investing #commercialrealestate #property #passiveincome #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #cre

Walgreens | Update Walgreens is considering closing about 2,150 underperforming U.S. pharmacies as part of a multiyear real estate optimization strategy. This review affects about 25% of its 8,600 U.S. locations, with only 75% of the stores contributing fully to Walgreens' adjusted operating income. CEO Tim Wentworth highlighted the need for imminent changes in these underperforming stores. Key factors influencing the decision include sales declines, consumer behavior, market area trends, population shifts, and local competition. Walgreens plans to assess each store’s lease term, especially those nearing the end of their lease, and will suspend sale-leaseback practices due to rising rental costs. #walgreens #nnn #netlease #drugstores

𝐈𝐂𝐘𝐌𝐈: On this past Thursday, Walgreens announced that they are planning on closing a significant number of their stores (apparently 25% of their 8,600+ stores are unprofitable). Another article on CNN mentioned that Walgreens' sales declined by 4% in the previous quarter and that declining profits from prescription sales and inflation weary shoppers is hurting not only Walgreens but CVS and Rite Aid as well. https://lnkd.in/gz3h-srp You can probably bet that there will be at least a few of these closures in just about every market including the Las Vegas area. So some good (and maybe some not so good) hard corners will be coming available in the next couple of years. #RetailClosures #StoreClosures #Walgreens #CommercialRealEstate #CRE #LasVegasRetail #ROICommercialRealEstate https://lnkd.in/gTyuhfwg

Walgreens has said it plans to close a “significant” number of its roughly 8,600 stores in the United States. Around 25% of Walgreens’ stores aren’t profitable, and the chain will look to close stores that are right by one another or struggling to hold down theft, CEO Tim Wentworth said in an interview with the Wall Street Journal. Walgreens and other retailers have been hit by shoplifting and resorted to locking up items or closing high-theft stores since the pandemic, but Walgreens’ problems are much deeper, including competition and failed growth strategies. Walgreens admitted last year it “cried too much” over the business impact of shoplifting. The latest closures are part of a larger downturn, not just for Walgreens, but for other drug store chains, too, after years of expansion. Walgreens said in 2019 it would close 200 stores and last year announced an additional 150 store closures. “We are at a point where the current pharmacy model is not sustainable,” Wentworth said. Why? Read on: https://cnn.it/3SbCCkf

Think Pharmacy's over expanded and paid too much for real estate? Walgreens has only 75 percent of their stores making money. PYMNTS article says "Challenges in the retail environment and the pharmacy industry have led Walgreens Boots Alliance to consider closing as many as 25% of its U.S. retail stores. These Walgreens stores do not contribute to the firm’s adjusted operating income, and the company expects that a “significant portion” of these underperforming stores will be closed over the next three years, Walgreens Boots Alliance CEO Tim Wentworth said Thursday (June 27) during the company’s quarterly earnings call. For the remainder of those underperforming stores, the company will take measures to return them to profitability but may contemplate closing them too if their performance does not improve, Wentworth said on the call. Want to understand what's happening to pharmacy stores-see the link for the The Wall Street Journal Kate King article -https://lnkd.in/dYQ9br5b Retail Specialists Retail Strategies

Great listing Michael Gaggo #nnn #nn #attractive #retail #investments #singletenant #multitenant #stripcenter #listings #walgreens #pharmaceutics #pharmaceuticalcompanies #pharma #pharmaceuticalindustry #cre #hilltop #minnesotarealestate #minnesota #encorereis #encore #encorecommercialrealestate #encorerealestateinvestmentservices