Walgreens posts mixed results for Q2
Deerfield, Ill. — Walgreens on Tuesday reported a profit of $754 million for the second quarter, down from $756 million in the year-ago period, amid lower sales of generic drugs. The retailer also said it will close 76 locations in the second half, although it plans to increase its total store count by 55 to 75 by the end of the year.
Sales for the quarter ended Feb. 28 rose 5.1% to $19.6 billion, beating expectations. Prescription sales, which accounted for 62.2% of sales in the quarter, increased 7.0%.
Total same-store sales rose 4.3%, with a 2% increase in front-end sales and a 5.8% increase in comp Rx sales.
“Our second-quarter performance, in spite of expected headwinds from slower generic drug introductions, comparisons with last year’s flu season and severe weather, was marked by solid top-line growth driven by record quarterly sales and record second-quarter prescriptions filled,” stated Greg Wasson, president and CEO Walgreens. “We also continued to gain prescription market share while we maintained a firm hold on our costs.”
Walgreens said that its 76 planned store closings were part of its efforts to optimize the company’s asset base. Including these store closures, Walgreens still expects a net increase in its store count in fiscal 2014 of approximately 55-75 locations.
“While we seize the opportunity for store growth as the population ages and consumers look to community pharmacy for their healthcare needs, we also continue to focus on optimizing our assets and organization to position Walgreens for our future as a global company,” Wasson said.
In the second quarter, the company opened or acquired 28 new drug stores compared with 29 in the year-ago quarter.
As of Feb. 28, Walgreens operated 8,681 locations in all 50 states, the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands. The company has 8,210 drug stores nationwide, 138 more than a year ago. Walgreens also operates worksite health and wellness centers, infusion and respiratory services facilities, specialty pharmacies and mail-service facilities. Its Take Care Health Systems subsidiary manages more than 700 in-store convenient care clinics and worksite health-and-wellness centers.
Cedar buys Quartermaster Plaza in Philadelphia
Port Washington, N.Y. — Cedar Realty Trust has completed the acquisition of Quartermaster Plaza in Philadelphia. The 456,000-sq.-ft. grocery-anchored shopping center is 98% occupied and anchored by a BJ’s Wholesale Club.
Cedar acquired the center for $92.3 million, including the assumption of $53.4 million of fixed rate debt. The company expects ultimately to fund deal with proceeds anticipated from asset sales. Pending those sales, Cedar will use it existing credit facility.
Quartermaster Plaza is located in the South Philadelphia retail submarket. Built in 2004, the property has received approvals to expand by 98.000 sq. ft.
The property is adjacent to Cedar’s South Philadelphia Shopping Center, a 283,000-sq.-ft. center anchored by a market-dominant ShopRite supermarket. Taken together, the two centers span 739,000 sq. ft., representing 22% of the South Philadelphia retail submarket.
Further, Cedar now owns five shopping centers in Philadelphia, with an aggregate 1.3 million sq. ft.
Ballpark Village in St. Louis signs three new tenants
Baltimore — Jamba Juice, The Fudgery and Majestic Athletic have signed with Ballpark Village in St. Louis.
Ballpark Village is a mixed-use retail, entertainment, office, and residential district being developed in partnership by the St. Louis Cardinals and The Cordish Companies.
The three new tenants join a long list of tenants and brand partners including Cardinals Nation, FOX Sports Midwest Live!, Budweiser Brew House, PBR St. Louis, The Barn, Howl at the Moon, Drunken Fish, Tengo Sed, Tengo Hambre and Ted Drewes. The addition of these three tenants leaves approximately 3,500 sq. ft. of the 120,000-sq.-ft. first phase.
The $100 million first phase of Ballpark Village will open its doors for the first time on Thursday, March 27.
Jamba Juice, The Fudgery and Majestic Athletic plan to open this summer.
Jamba Juice will occupy approximately 1,000 sq. ft. on the first level of Ballpark Village.
The Fudgery, with 27 stores in more than a dozen states, will occupy approximately 1,500 sq. ft. adjacent to Jamba Juice.
Majestic Athletic, a subsidiary of VF Licensed Sports Group, designs, markets and manufactures athletic team uniforms, performance apparel, outerwear and licensed athletic wear. Majestic has leased approximately 750 sq. ft. in Ballpark Village.