Gee, What Could it Be?
- Walgreens is closing its store in the South Side’s Calumet Heights neighborhood next month as it shutters 200 stores nationwide, officials confirmed. Customers, including frustrated residents, learned of the impending closure from employees last week. The store, 2011 E. 95th St., is set to close Nov. 11.
Residents frustrated over the closing of their neighborhood Walgreens will have a chance to sound off at a community meeting called by Ald. Greg Mitchell (7th) at 6 p.m. Thursday at his 7th Ward service office, 2249 E. 95th St.
[...]
“Why is it always stores in black neighborhoods that are closing? You’re not going to see stores close like this in Lincoln Park,” said Alcaraz, who has lived in the neighborhood for more than a decade. “We live in an area that’s aging out. There are a lot of seniors that depend on their prescriptions. This is unacceptable.”
Well ma'am, you see, there's this thing called "profit" that regulates a lot of business decisions. Stores that make money for the corporation tend to remain open. People shop there, appreciate the way they're treated by staff, spend hard earned money there, and generally engender goodwill toward a store that is responsive to their needs.
Then there's another thing called "loss." Stores that experience a lot of inventory "shrinkage" or see extraordinary amounts of shoplifting - shoplifting un-prosecuted by the State and unpunished by the Courts - well, companies don't like that cutting into the bottom line. So they tend to keep less expensive merchandise around (because it might walk away), hire security guards (increasing overhead) and as a last resort, close stores that are "under-performing."
It's really quite simple.
Then there's another thing called "loss." Stores that experience a lot of inventory "shrinkage" or see extraordinary amounts of shoplifting - shoplifting un-prosecuted by the State and unpunished by the Courts - well, companies don't like that cutting into the bottom line. So they tend to keep less expensive merchandise around (because it might walk away), hire security guards (increasing overhead) and as a last resort, close stores that are "under-performing."
It's really quite simple.
Labels: silly people
posted by SCC at 12:02 AM
74 Comments:
Apparently the communerty doesn't understand basic economics. As stated above, corporations are in the business of making money, not losing it be it a pharmacy, grocery store, hospital etc.
From the East Side Blog;
East Side/Eggers Woods
Community meeting Alert!
Alderman Greg Mitchell and Walgreen's representatives to meet with the community:
Thursday, October 17, 2019 6p.m.
7th Ward Service Center
2249 E. 95th Street
Chicago, Il. 60617
773-731-7777
From reading it appears that they (Walreens) came and listened but the results are in stone. They are leaving. In our community we are a liability not an asset. CEO feel that too much merchandise is stolen, we don’t care about the physical look of the store. And maybe we do not deserve a pharmacist who can provide information to the elderly AA community. The most hurtful part is that overall no one cares. But we have to care. !!
Lord it’s the same ole song.
East Side/Eggers Woods
It’s a shame that communities loose stores like Walgreens, but the bottom line is that when these stores start to see losses due to theft it’s only a matter of time before they leave. I don’t think the community as a whole is a liability, unfortunately it’s the people who commit the thefts who have caused Walgreens to make the decision to leave.
“Why is it always stores in black neighborhoods that are closing? You’re not going to see stores close like this in Lincoln Park,”
That's bullshit. They closed the store at 7200 N Overhill years ago.
Sssshhhhhhhhhhh!!!
You’re gonna wake up that fake-assed St. Sabina “priest”. And he’ll bring that phony ghetto dialect and deck of Race Cards with him.
Let sleeping dogs lie.
Don't worry, ghetto residents. Soon the socialist government that you are electing will take over the walgreens of the world and order them to maintain stores in your neighborhoods. You won't recognize what's on the shelves and you won"t be happy with the cost, but at least you'll get free medication and birth control. Keep voting Democratic Socialist.
Next we’ll be bombarded with U of C studies proclaiming ‘medication deserts’ in lower-income communities.
The community thinks these stores run like CPS - no money, but we needs more.
We have the Right to shoplift! We demand justice!
The real losers here are the other stores that are now going to have to deal with the constant theft, assault, battery, criminal trespass, and criminal damage to their property. But that's the price of doing business in Chitcago. I hope more stores follow suit.
Thats just business 101!
As a stock holder of Walgreens my dividend is more important than keeping a losing store open!
So bye bye, hood!
You reap what you sow!
Given the losses surprised any new retail in city.
Well, Walgreen's is putting the shutters on their multi million dollar 2 story giant at Diversey and Broadway in Lincoln Park. Hum . . Go figure. And only opened about 1 1/2 years ago?
Whole Foods on the south side has two on-duty foot men assigned to 63rd and Halsted on paper but are instructed to monitor and try to curb some of the thefts at this store.
Walgreens makes .03 cents profit for every dollar in sales. Roughly 50 percent of sales come from the pharmacy and the other 50 percent from everything else. If someone comes in and steals 500.00 worth of inventory it takes a lot more sales to recoup all that lost profit. The typical response is to raise prices to cover the shrink. When that fails it makes no sense to stay in business and continue to lose money.
Well stated SCC! Time and again, Walgreens is hit and the community doesn't stop the bleed. Other stores fare equally bad. Why stay in an area that totally drains the shelves, causes a crazy amount of collateral damage, and guarantees employee harm?
We'll soon see Walgreens and others go the honduras route: everything behind glass and one item on display, plus ar15 armed private security everywhere, including gas stations, grocery stores, etc. Empty shelves everywhere too.
Soon roving gangs will do the highway robbery of olden days. We're already seeing them sneak into orchards, farms etc, and steal all the produce. If you think the community is bad, wait till you see what's coming
Stay fetal stay alive and let the demonrats squeal worse than stuck pigs during their armed robberies.
SCC, you said it as perfectly as it can be said. Target is closing a far south side store in the ghetto while building a new one at foster and Cicero. As a Walgreens shareholder, I am glad to see my investment being protected. Your story should be required reading in chicago public schools civic classes (if they still have those) or just take 30 seconds out of the year and read it to the "students" because they can't read. Pick and Save closed a Kenosha WI store in their ghetto for the same reasons. Heard the the same Lamentations from the community up there. Maybe go nationwide to explain Economics 101: there is no such thing as a free lunch
Well said SCC. I wonder how Whole Foods is doing in 007
Oh, I should mention that as Pick and Save was shut down, 4 new grocery stores were opened outside of the Kenosha ghetto: Festival foods, Aldi and Fresh Thyme,and Meijer all on hiway 31
one less target and the community becomes a shoplifting desert.
capitalism is evil.
I tell you what, I want to live somewhere where every shop doesn't need a security guard posted at the door.
I find it amusing that they respond to stuff like this like they do when they’re bitching about some government program. Because they are dependent on the government for nearly 100% of their lives, they don’t understand that complaining at a town meeting about racism to your alderman won’t change anything. It’s a private business, they can open store, and close them, as they see fit. “It’s unacceptable”. Really? To who? Who is it unacceptable to? They have a fiduciary responsibility to investors, so it’s unacceptable for them to throw away money to make you happy because too many in your neighborhood can’t act right. They have no responsibility to you to stay open.
Indeed the same left that complains about "deserts" in areas and the lack of minority owned businesses in those areas tell others that it's totally okay to rob those businesses blind by lax and non-prosecution. The left keeps talking about "feeling safe" and the truth is that those businesses will not come and stay in those areas unless they feel that it is safe to stay there and in actuality it turns out that it is safe to be there.
What's the insurance payout for a robbery too? If a person gets killed during that robbery? What does that do to the premiums of a particular store or even other stores in the area?
Same reason there's a shortage of grocery stores and other businesses in the 'hood. Risks far outweigh the gains.
Now all the thieves will just move downtown, the Demorats never learn!
Again, "the community" not owning up to their shortcomings.
Just like the two target stores that shut down. I was told each store lost app 30k a month. Even more during the holidays. They ruin everything. Blame your neighbors who are stealing and the politicians that won’t lock them up. Now no tax revenue and jobs lost
Ironically, isn't that location in the "Pill Hill" neighborhood? That was the late LeRoy Martin's closest pharmacy.
10/21/2019 12:13:00 AM
It is a shame, but the thefts are by the ‘community.’
Keep the people, and folks, in check and maybe these corporations won’t leave.
By the way, if the same people, and folks, continually came in to your house and
stole your property you would also feel it was ‘too much.’
I used to work security at ghetto walgreens and quit cause the theft was so rampant. I'd usually have to many thieves and junkies in the store to keep count of. This was back before they locked a lot of stuff up, but still, even today you cant lock up everything.
And then they had the crews coming thru and you'd end up fighting 3 or 4 at once. Enough! Never again did I work retail security. Most of all when 1&1/2 OT started.
Think about it.
They are all listed on the NYSE.
Walgreens, CVS.
Shrinkage hits the bottom line. Investors demand results, profits.
The company responds by closing stores (cutting losses, taking
markdowns). That's it for that location. A misadventure in
capitalism. If they produce, they stay open. If they lose money,
they close. It's that simple.
RE:
Well stated SCC! Time and again, Walgreens is hit and the community doesn't stop the bleed. Other stores fare equally bad. Why stay in an area that totally drains the shelves, causes a crazy amount of collateral damage, and guarantees employee harm?
We'll soon see Walgreens and others go the honduras route: everything behind glass and one item on display, plus ar15 armed private security everywhere, including gas stations, grocery stores, etc. Empty shelves everywhere too.
Soon roving gangs will do the highway robbery of olden days. We're already seeing them sneak into orchards, farms etc, and steal all the produce. If you think the community is bad, wait till you see what's coming
Stay fetal stay alive and let the demonrats squeal worse than stuck pigs during their armed robberies.
Well said.
#JustLetitHappen
Walgreens seems to be in trouble. The store by my house has only one or two employees working and they are running them from one assignment to another. Customer service is gone . The employees are overworked and unhappy. I guess it is just a sign of the times.
Walgreens is getting ready for the opiod settlement.
“Why is it always stores in black neighborhoods that are closing? You’re not going to see stores close like this in Lincoln Park,” said Alcaraz,
Uh, well, maybe it has something to do with the neighborhood? Something about shoplifting, robbery, “flash mobs” and employees being mugged in the parking lot, maybe?
There are Walgreens stores in lots of poor neighborhoods, so it’s not poverty, per se; and waving the “racism” flag won’t work, either - that flag is tattered fromover-use. At some point, the “neighborhood” is going to have to realize that they can’t keep blaming their problems on other people.
It's a CPD sting like the one with the RR and the semi full of goods in the ghetto! They put these stores in the ghetto "FOR" the people to steal!!! NEWSFLASH MF'ers quit stealing and or breaking windows on nailshops and maybe business would stay and maybe even expand! Then there might be more jobs as well as more economic development.
Blame blame blame. Don’t look at your neighbors, or at Kim, it’s what you get when you demand everything but do nothing to foster good relationships with local businesses, it’s the people in the neighborhood not the neighborhood.
Thank You All Honest,Dedicated, Protective and Professional Chicago Police Officers ,The people of Chicago Appreciate and Need You! As far as Walgreens is concerned, I was shopping at Walgreens at North and Wells one early afternoon last week when I as well as many other shoppers and store employees saw two characters reaching up over the shelving in no hurry though diligently trying to remove the electric toothbrushes mounted for display, one with his pants down to his knees.I dont know if they accomplished what they wanted but they left a mess as they left the store and joined up with their companion shoppers waiting on Wells.
I dont shop much on Michigan Ave but at Aldi,Jewel,Burlington ,Ross,Phone stores and just about any Walgreens in the city seeing non confronted shoplifting and theft is just a part of the shopping experience.Some People pay and many dont.Eventually any good in Chicago, Cook County will leave as is happening now.The evil ,murder ,destruction and corruption are more then encouraged to flourish here and there is nothing to confirm anywhere that is ever going to change.
Even the Arab gyro stand serves you thru bulletproof glass, why is that, next up is the nail salon that makes you pay upfront. Hey wait a minute.
Where I live my pharmacy delivers for free and they do not red line the African American neighborhoods. Here, of course, our African American neighbors do not condone lawlessness and elect those who do. If you choose Beirut you get Beirut.
They closed the Walgreens at Touhy/0verhill 5 years ago. Don’t you remember all the protesting and property damage. It was out of control in EP.
“Why is it always stores in black neighborhoods that are closing?
--
It's racist, lady. It's racist.
Don't worry, you still have Asian-owned salons.
Pass everything through a plexiglass window.
Walgreens is a public company. That means shareholders own the company. The board of directors gets elected by shareholders, and they select a CEO/Chairman to run the company. As a public company, Walgreens has a fiduciary duty to act in the best interest of the shareholders. It’s the law. Walgreens must do what is in the best financial interest of it’s shareholders. Many pension funds and mutual funds hold Walgreens shares.
Why is it always stores in black neighborhoods that are closing? You’re not going to see stores close like this in Lincoln Park,”
That's bullshit. They closed the store at 7200 N Overhill years ago.
Yah, but WE don't cry about it like they do. Blaming EVERYTHING on race. Yah, could use that walgreens on Touhy many times but what do I do?? I go to CVS in niles or a multitude of other walgreens options... we dont butch & moan and blame everything on race.
Publically traded corporations first loyalty is to its shareholders in the form of profits and dividends. Social justice warriors cannot, will not or refuse to accept this fact of life.
I did not hear such lamentations when the community lost it’s Magic Johnson Starbucks at Roosevelt and Homan. Now that I’ve typed it out I understand why.
Chicago Walgreens prime target for crook county crimesha's protected shoplifters...……... walgreens , cvs has baby formula , razor blades ,anything else of value locked up or behind register ….shit hole Chicago
"Why is it always stores in black neighborhoods that are closing?"
Why does it always rain when the sun isn't shining?
Make it like the fast food restaurants bulletproof glass the turnaround thing, they pointed something the employee has to go get it all behind bulletproof glass don’t let them touch it until it’s paid for but everything is paid for they get it in a little turnstile and here you go that’s what you want that’s what you get you can’t behave like civilized people sorry. This is also due to our fake phony states attorney who allows all of this
This woman blames everyone else, typical, very typical. Profit and loss is not such a difficult thing to comprehend. But then common sense isn't so common anymore. But all we hear from Groot and other pandering politicians is about more investment in such communities. The dems love to throw money into such schemes but businesses are only there to make money.
Don't forget Jamal green doesn't want business in their hood
It’s extremely simple SCC.
But we’ll be labeled as racist.
No shortage of Walgreen stores in Chicago !! There is one within a couple of miles of each other !
Medicare SSI for all.
Free skrool, free bus rides, free meals.
So how come and why not, free sundries, notions, tobaccos and confections ?
WallaGreens needs to give back.
In the grand scheme of retailing, chain stores always keep a store location of two that are under performers just for the write-offs.
These at issue Walgreens were spending more on restocking the shelves with shrink losses every month than their tax bill was for the year, which wasn’t cheap either.
If you ever want to determine if you’re in a safe neighborhood, go to the headache pills or baby formula aisle and see if they’re behind lock and key plexiglass.
BTW...Wrigley candy kids were on to their local community Walgreens for years, it’s why they come to Norf Sides area to pilfer boxes of Oh Henry’s and Zagnuts.
Another desert !!!!!
Why not build the Obama Library on the south or west side of Chicago in these desert communities to build up the economy?
Oh, what, this is such a shock? I’m surprised they stayed in that hood this long. Walgreens owes the people of that neighborhood nothing.
Why not just have a pharmacy only? No foot traffic except straight to pick up scripts. That way things are controlled and there's no shoplifting. Eliminate the theft. You know all those scripts are paid for with Obama care, so it should be easy.
Why not just have a pharmacy only? No foot traffic except straight to pick up scripts. That way things are controlled and there's no shoplifting. Eliminate the theft. You know all those scripts are paid for with Obama care, so it should be easy.
Anonymous Anonymous said...
“Why is it always stores in black neighborhoods that are closing?
--
It's racist, lady. It's racist.
10/21/2019 10:20:00 AM
Made me snort. Thank you.
Macys on State Street downtown closing soon, theft Losses at record high as
as overall business slows
Act like civilized people and stop stealing shit. Simple really. But impossible for some.
Blogger On The Beach In Costa Rica said...
"Well said SCC. I wonder how Whole Foods is doing in 007"
10/21/2019 07:01:00 AM
"Tha' Communerty" is stealing the joint blind...
It's not only the getto ! The CVS in Highland Park has been hit twice the first time the clerks had the shit knocked out of him and drugs were taken .
You Dunb Mo Crats voted for Black candidates who declare out and all war against the police and cater to the criminals now you weep what you sow............
The Walgreens and 159th and Wolf rd. is closing and the area is white. Oh wait I'm sorry that's Orland Park not the hood so it doesn't count.
I am a real estate appraiser. Back in the late 1990's, Walgreens embarked on a national expansion program to build a retail store on major retail corners throughout the country. Developers paid top dollars for those locations and built the building to Walgreen's specifications and then leased them generally for 25 years on a triple net basis (Walgreens pays Real Estate Taxes, Insurance and Building Maintenance). The developer's flipped the buildings to investors who loved the idea of receiving an income stream (rent) from Walgreens for long term.
But in my opinion, Walgreens did not foresee three major issues which are seriously threatening their real estate operation.
1.)The growth of Amazon and the ability of the consumer to purchase medical and household items and have it delivered to the safety of your home. Why go to their store?
2.) Walgreens is responsible for the payment of property taxes on buildings they don't own. Yes it is a writeoff, but in Chicago and Cook County, it is a never ending battle with constantly increasing costs.
3.) In my case, my insurer Blue Cross/Blue Shield uses Express Scripts for all of my medications. Prices for the same medications at Walgreens are 33% to 50%. I order online every three months, have it delivered to my mailbox and have not set foot in a Walgreens in years.
As a kid, I am sure you remember the Rexall Drug Stores? They are extinct. Walgreens is headed in the same direction.
FYI, when a Walgreen store closes (goes dark in real estate terminology) Walgreens is still responsible for the payment of the Rent and taxes. So the bleeding does not stop until the store is sold and the lease taken over by someone else. That ain't gonna happen in the ghetto.
To the poster that says that Walgreens makes .03 for every dollar, you are very wrong. I own retail stores and their gross profit margin is closer to .65 for 75% of their product line. They make a killing on notional items as well as office supplies.
America
Ironically, isn't that location in the "Pill Hill" neighborhood? That was the late LeRoy Martin's closest pharmacy.
=============
Technically, no. Pill Hill is bordered by Jeffrey, Ridgeland, 93rd and 91st (though some would say west to Stony and north to 87th). My family was among the first to live in PH ~1958. The 95th/Jeffrey location is Jeffrey Manor. We used to shop over there. It was a nice area. Sad to hear it’s gone so far downhill.
FYI, when a Walgreen store closes (goes dark in real estate terminology) Walgreens is still responsible for the payment of the Rent and taxes. So the bleeding does not stop until the store is sold and the lease taken over by someone else. That ain't gonna happen in the ghetto.
10/21/2019 07:48:00 PM
The leases aren't forever. Theyre only responsible until the end of the lease.
Technically, no. Pill Hill is bordered by Jeffrey, Ridgeland, 93rd and 91st (though some would say west to Stony and north to 87th). My family was among the first to live in PH ~1958. The 95th/Jeffrey location is Jeffrey Manor. We used to shop over there. It was a nice area. Sad to hear it’s gone so far downhill.
10/22/2019 01:09:00 AM
Finally someone got the boundaries right.
These people have so little education they can't understand how a business runs. Like what does "Gross Margin" matter when the product is stolen? I've closed a few plants when the union went on strike. WHY? Because Ford contract only allows three missed deliveries. Then you lose the contract! No contract, no jobs. Have to close the plant.
Any store that does not make a profit can't stay open. You gonna work a job that doesn't pay? Same thing, other side of the counter.
Would you work at a job that couldn't pay you? The company can't stay in business if it doesn't make money. You have to pay your bills, so does Walgreens. Maybe learning to "See something happen" or stop following the "Snitches lie in ditches" rule in the hood would keep the store open. You allow stealing, you allow Walgreens to close the store.
Glad I don't live in that neighborhood!
When I lived in Detroit they tried bullet proof glass, turnstiles, etc. It didn't work. The deliveries were targeted where they robbed the driver, stole the truck, and burned it! Employees got mugged when they went home. When you can't get employees, or deliveries, the store can't be opened. Get the boys to be raised by father and mother, NOT by the "Streets"! Or keep getting what you have now. It's up to you.
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