Full Disclosure: I'm kind of ticked off at my local Walgreens. Twice over the past year I've gone to the store (the closest to my home) for needed over-the-counter medications only to have to go elsewhere after finding holes on the shelf.
My disclosure is prompted by a new report from Change to Win, a union-backed adversary of Walgreens, which claims out-of-stocks are out of control at the chain's stores.
According to the report, Off Balance: Out of Stock and Mislabeled Sale Items at Walgreens, researchers conducted store checks at 200 Walgreens in Los Angeles, Miami, New York and St. Louis during March and April. Each store was visited three times and persistent out-of-stocks were found in the vast majority of locations.
Out-of-stocks during sales promotions were identified as a major challenge. "Seventy-six percent of stores were out of stock of at least one surveyed sale item during every visit. 
More than one in five stores were out of stock on three or more surveyed sale items during every visit." Labeling was also an issue during sales periods where at least one item was not identified as such at 94 percent of stores.
Walgreens reported a decrease of 1.6 percent in front-end sales during its Q2 earnings call. This marked the fourth consecutive quarter where the drugstore chain reported negative comparable store sales. Walgreens' chief drugstore rivals, CVS and Rite Aid, achieved positive front-end comp sales for the same quarters.
The report cites a number of possible contributing factors that may be affecting Walgreens' in-stock positions, including reduced staff levels, inadequate inventory, and a lack of focus on domestic operations as the company pursues global expansion.
- Off Balance: Out of Stock and Mislabeled Sale Items at Walgreens - Change to Win
- Walgreens not fully stocked, but stock soars - Crain's New York Business
- Walgreen's CEO Discusses F2Q13 Results (Earnings Call Transcript) - Seeking Alpha
- Walgreen Co. Second Quarter 2013 Earnings Conference Call - Walgreen Co.