No. of Recommendations: 2
Walgreens reported the same "frontend shrinkage" this morning that DG has.
cnbc.com - Walgreens wba earnings q3They only have a coupe thousand stores. DG has 20,000 conveniently located stores to steal from. For that matter DG has as many stores as Starbucks has in the US which I find interesting.
One of Charlie's book recommendations was "Wisdom of Crowds, why the many are smarter than the few." We'll get this figured out as everyone has the problem.
Seems like there are two sources to pay for this. One is that we all will pay in higher retail prices. Or two, that investors will accept a lower return on their invested capital.
Seems likely we'll pay more.
