The Journal. The Collapse of Walgreens
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Mar 10, 2025 
Joseph Walker, a WSJ reporter, brings insights into the dramatic decline of Walgreens. He discusses how the pharmacy giant's market value plummeted from over $100 billion to around $10 billion. Walker highlights the company’s struggles to adapt to market changes, the failed partnerships, and the impact of leadership shifts. He elaborates on Walgreens' bold attempts at diversifying through healthcare services but notes that core issues remain unresolved. The conversation unveils the implications of Walgreens' sale to Sycamore Partners in the broader retail landscape.
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Walgreens' Early Success
- Walgreens, founded in 1901 by Charles Walgreen, quickly expanded after going public in the 1920s.
- An early innovation, the malted milkshake, contributed to its initial success.
Overexpansion and Lack of Loyalty
- Walgreens' aggressive expansion strategy, with stores located in close proximity, aimed to maximize customer access.
- However, this ubiquity didn't translate to customer loyalty when faced with network exclusions, challenging their perceived power.
Reimbursement Pressures
- Declining reimbursement rates from pharmacy benefit managers (PBMs) squeezed Walgreens' profit margins.
- Their failed negotiation with Express Scripts in 2011 revealed their weakening leverage.