Walgreens may have overstated theft concerns, CFO says
CNBCNov 26, 2022
Walgreens Announces Closure of 'Significant' Number of Stores
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The Facts
Tim Wentworth, chief executive officer of the Walgreens pharmacy chain, said on Thursday that the company will be closing a "significant" number of its roughly 8.6K retail outlets, adding that their business model is "not sustainable."
The company had already closed 625 stores as of February as part of a cost-cutting plan. Wentworth said that economic pressures on customers, especially low-income ones, has made shoppers "increasingly selective and price-sensitive."
The Spin
Republican narrative
The unintended consequences of the Biden administration's inflationary agenda are that employees and businesses will suffer, as consumers can no longer keep up with skyrocketing prices. What's worse, an epidemic of shoplifting has cost the country $100B, as progressive-leaning district attorneys let thieves walk away scot-free. Walgreens itself has had to close outlets due to shoplifting, as Democrats put the squeeze on corporate America.
Democratic narrative
Inflation was a convenient excuse for corporations to gouge struggling consumers. It is clear that the greed of big business isn't sustainable, as Walgreens was forced to cut prices to lure cash-strapped Americans back into their stores. The suspicious timing of that has confirmed in the minds of many that widespread profiteering has become the norm, and consumers are thusly voting with their wallets. The hit Walgreens is taking was a long time coming.
