Walgreens to Cut 1,000 Positions
Deerfield, Ill. Walgreens announced Thursday it will reduce its corporate staff and field management by approximately 9% by the end of this fiscal year in August. The work-reduction plan will eliminate some 1,000 management jobs through a combination of voluntary and involuntary layoffs in fiscal 2009.
The cuts will not reach into the ranks of hourly store-level employees, Walgreens said.
The job reductions are part of Walgreen’s cost-cutting plan, which is intended to save the company $500 million in fiscal 2010, and $1 billion per year starting in fiscal 2011. The chain announced the “Rewiring for Growth” plan in October, and said it will cost $300 million to $400 million in fiscal 2009 and 2010.
Wal-Mart, Netflix accused of monopoly building
NEW YORK Wal-Mart Stores and Netflix have been accused of trying to build a monopoly for online DVD rentals in a consumer lawsuit filed Jan. 2 in the U.S. District Court of the Northern District of California, according to reports.
The plaintiffs claim that in 2005, Wal-Mart agreed to end its online rental business and refer customersto Netflix, which in turn agreed to promote Wal-Mart’s DVD movie sales.
Family Dollar posts 1Q earnings growth
MATTHEWS, N.C. Family Dollar Stores reported that net income per diluted share for the first quarter of fiscal 2009 increased 13.5% to 42 cents compared with 37 cents for the first quarter of fiscal 2008. Net income for the quarter increased 14.1% to $59.3 million compared with net income of $51.9 million for the first quarter of fiscal 2008.
As previously reported, sales for the first quarter of fiscal 2009 were approximately $1.754 billion, or 4.2% above sales of approximately $1.683 billion for the first quarter of fiscal 2008. Comparable-store sales increased 2.1%.
For the fiscal year ending August 29, 2009, the company expects net sales will increase 4% to 6% and expects comparable-store sales will increase 2% to 4%. Anticipating continued strong sales of consumable merchandise, the company expects earnings per share will be between $1.63 and $1.81 in fiscal 2009.