Where do you think they are going to cut to reduce debt—- change operation hours in stores under 30,000 per week — reduce head count - DL - Rl , it is just the start !
9 replies (most recent on top)
I’m so confused. I’m really not sure why some of you geniuses aren’t working in house over in Woonsocket running the company. It appears that you have all figured things out and the store level stuff is just beneath you at this point.
Go beef up that resume and look for that promotion and replace good old boy Larry!!
Have a great day :)
The the poster who said “What previous poster doesn't realize is if you have fs doing 26k
And a Rx doing 2k scripts a week
That is very profitable - not as profitable as it once was but still
Really good for cvs - and there are
Thousands of stores with those #s”
Dude, 26k a week is 1.3 million a year. If you're luck enough to have FS margin running at 40% you are making $540,000 before expenses. Rent, payroll/employee benefits, inventory write off, shrink, rent, utilities, repairs, supplies, should I keep going???
Your RX at 2000 scripts is probably around 4 million in sales? Should be talk about the margin and expenses there? You get the picture. We don’t have stores that are exactly k–ling it in terms of putting huge amounts of pure profit on the company books.
Regardless of the exact total amount, we are billions of dollars in debt, and no matter how you spin it, that’s not good. Corporate also has said that they want to cut 800 million in debt by 2020, hence all these crazy hours cuts.
thanks to all of the above posts who have bothered to do the math!
It sounds like you're confusing debt with total liabilities.
Aetna was 69 billion, so you think we were debt free going into to the buyout?? We had 38 billion debt going into the deal — simple math — yahoo finance has the figures!
Q2 balance sheet shows only $71B in debt. Where are you getting your information? Beyond that, closing stores during hours where they're not profitable sounds like a good decision regardless of their debt level.
What previous poster doesn't realize is if you have fs doing 26k
And a Rx doing 2k scripts a week
That is very profitable - not as profitable as it once was but still
Really good for cvs - and there are
Thousands of stores with those #s
These 30k a week stores and below should never have been opened to begin with. It was during a time that we were competing with other d–g retailers for the highest total store count instead of focusing on expanding into profitable markets. We grew through acquisitions of unprofitable regional and national chains with low volume locations. We basically took their garbage and now we have a high store count (how exciting) with most of them low volume. Target is the biggest example of this. There are some Targets that barely do 300 Scripts a week yet we paid top dollar for a business they didn’t want. We gave them cash and they used it to build their online presence and look at them now. If it weren’t for Caremark years ago we would have been done already. Now that business model is in danger as pharmacy margins erode. So on to health care I guess. They call it a transformation. I see it as a desperate countermeasure that shows how insecure and scared they are. So much so that they were willing to take on enormous debt that could send some companies into bankruptcy. The thing about debt is, it eventually comes due. Just ask Sears, Toys “R” Us and many others.