Walgreens Boots Alliance Inc (WBA)

[Robbay]

$25.00 Rx gift Card:

I agree with you on the SG&A charge on the Rx gift card.
I have read that this can even be expensed over years, reducing the expense charge on the yearly earnings report..
It is legal to carry this over many years!!
Aol is one case that comes to mind.
$25.00 also is cheap price to pay for a new Rx patient with its tax related benefits as opposed to a file buyout from a competitor.
That was not my point under a balanced growth plan on direction.
Store traffic or Customer visits pay for the Fixed B&M costs including Water, Electric, Insurance, repairs and labor costs..
Basket size customer spend increased with fewer customers, not a Winning plan Skinner or a few other BoD's would embrace. having fewer customers paying for the 8,000 retail leases..

When a product becomes a commodity like generic Rx's, pricing becomes the factor( see Esrx impasse discussion and Walgreens CFO latest analysts discussion on pricing settlement).
Wade found some Clarity on how to settle this after the A/B KKR M&A..


Walgreens now has over 8,000 fixed B&M expenses(Stores) with a multi directional distribution outlet focus..and herein is the expense balancing cost issue.
As we discussed before, this is a machine vs a man/woman labor battle; and history tells us the outcome of that Story..

Wine, Sushi and Flu vaccinations...Walgreens reported a customer traffic decrease of 2.8%..
And yes the reported Numbers did look better, but we do kick the tires before a test drive, don't we??

GLTA!!!