What will Target do with all those teams supporting Healthcare business now that CVS bought it? One thing is for sure, C suite and shareholders will get theirs.
15 replies (most recent on top)
Two years ago I was told that Target was committed to clinics and they expanded every year in some way. When the big layoffs happened this year, people in the clinics area figured they were safe because of what Cornell said about wellness. I reminded him that they said the same thing about Canada and if they closed down a country, a few clinics would not be a problem. They were breaching contracts in clinics, not making money and pharmacies seemed to be languishing year after year.
Slowly but surely Target is going under. Target is a brick and mortar that couldn't keep up with the market shifts and is slowly crumbling under failed leadership. Target will soon be remembered like Montgomery Wards, Mervyn's California, Woolworths and so on. Sad to see a home town Company fail so completely. Glad I switched my prescriptions to mail order years ago much easier and no lines.
Anonymous108111 you nailed it. Target leaders also did the same thing with food - they thought it was easy and they still don't have it figured out. Selling organics isn't the answer, people want to do all their grocery shopping in one spot. Target is not there yet. They cut the cords with the expert third parties too soon.
Target never understood how to run a pharmacy business because the company's leaders don't understand that dispensing medications and clinical advice isn't the same as selling widgets. i recall the former SVP of pharmacy getting red in the face and insisting that "it shouldn't be different from other categories just because it's pharmacy." Tell that to the healthcare companies that are winning in a highly competitive space. These decisions have been made by many senior leaders and buyers at HQ who have zero experience in healthcare. Guess what dipshits at Target--the general athlete model doesn't work.
BC is just one of those people that does not like to own a problem. Best to get rid of, because he does not know how to fix anything. His parents probably solved all his problems for him as a kid.
Would love to see a JV with Amazon
RE: contracting out groceries. The very first Target in Roseville, MN had supermarket space that was leased to Applebaum's, a supermarket chain headquartered in the Twin Cities. Many other Targets stores had an Applebaum's supermarket adjacent to them such as the ones I remember in Edina and Bloomington, MN. These grocery stores were eventually eliminated as the Target stores were remodeled/expanded. (The former grocery store at the Edina Target was a shoe store for a while.)
Selling to CVS makes sense. Complacency ate this healthcare business and nobody every learned how to run it. I worked in the infamous RedRock project and I am now laughing at this because I foresaw it. Millions and millions literally wasted on multiple consultants and software companies, and still laughing at the attempt to make the RedRock system and process a package that would make CVS and Walgreens jealous. Hahahaha. The Healthcare program always was a bunch of bull and to run it, only toxic, arrogant people were placed in leadership and decision making positions. I think most of that group is gone by now, but boy, it was one of the most horrible initiatives to work for. Yes, many will be let go, especially the heroes maintaining that rusty old pharmacy system and the friendly folks at the pharmacy in my store.
Any bids on photo labs?
Kroger to buy grocery business as target has not really gotten that either
Tough one, but again long term probably the right decision. In the late nineties when Pharmacy was ramping up and rolling to the new and later existing stores Pharmacy build outs were sold on driving guest count and average sale $$ by quite a bit. The numbers just never materialized. Target never really got Pharmacy. Great pill boxes, but that's it.
How many millions we spent on "Wellness strategy" the so called next big thing for Target?
How many hundreds of millions on new pharmacy system from PDX not too long ago?
Consulting companies sure are laughing all the way.
Pretty soon Target will only sell Pepsi and chips from a corner store. Grand plan is coming together nicely.
What's next sell off .com to Amazon.
thought that was a core business. Cornell is doing a fine job of raping this company................