Kroger to outsource Drug Dept. to Walgreens in Knoxville, TN Market

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J-Man
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Re: Kroger to outsource Drug Dept. to Walgreens in Knoxville, KY Market

Post by J-Man » August 24th, 2019, 7:23 am

As far as I know, Knoxville is still in Tennessee. So the original title was correct, and this is still in the wrong forum.

klkla
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Re: Kroger to outsource Drug Dept. to Walgreens in Knoxville, KY Market

Post by klkla » August 24th, 2019, 6:00 pm

Maybe the confusion was because their strategic partnership was started last year in Kentucky and then Knoxville, TN was added to it recently.

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Re: Kroger to outsource Drug Dept. to Walgreens in Knoxville, KY Market

Post by storewanderer » August 24th, 2019, 8:31 pm

klkla wrote:
August 24th, 2019, 6:00 pm
Maybe the confusion was because their strategic partnership was started last year in Kentucky and then Knoxville, TN was added to it recently.
Newspaper article I read this in at first was some KY newspaper. Confusion indeed. I've never been to Knoxville but it looks like I was right the first time it is in TN.

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Re: Kroger to outsource Drug Dept. to Walgreens in Knoxville, TN Market

Post by buckguy » August 25th, 2019, 10:31 am

Outsourcing the Rx might make more sense--it's not the profit center or traffic draw it once was and Walgreen could supply it more efficiently. OTOH, Walgreen private label health and beauty allows Kroger to have more private label merchandise in this part of the store.

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Re: Kroger to outsource Drug Dept. to Walgreens in Knoxville, TN Market

Post by storewanderer » August 25th, 2019, 5:57 pm

buckguy wrote:
August 25th, 2019, 10:31 am
Outsourcing the Rx might make more sense--it's not the profit center or traffic draw it once was and Walgreen could supply it more efficiently. OTOH, Walgreen private label health and beauty allows Kroger to have more private label merchandise in this part of the store.
I'm not sure of this. I do agree about outsourcing pharmacy potentially making sense though. Kroger has a very vast private label line for the HBA/Drug category. I will also be curious to see how they handle the baby category, which Kroger has a ton of stuff and a ton of private label in. Far more than Walgreens and does significantly more volume with significantly lower prices.

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Re: Kroger to outsource Drug Dept. to Walgreens in Knoxville, TN Market

Post by Alpha8472 » August 26th, 2019, 12:12 pm

The problem with outsourcing pharmacy is that Walgreens is notorious for not accepting certain insurances or some types of medicaid. This will result in the loss of customer traffic as people will be forced to go to other pharmacies such as Walmart which accepts practically any insurance.

Perhaps Kroger believes people will pay more for Walgreens branded products? They are trying to do anything to make a buck.

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