How is Amazon hurting Walgreens' business? Jim Cramer explains

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CNBC’s Jim Cramer told investors why he thinks Amazon is making it hard for Walgreens to succeed.

"The stock market can be a brutal, brutal, brutal task master. So can capitalism. I'm sure that Walgreens will come up with some way to make money before its debt position wipes it out," he said."But, right now, my money's on the company with the stock on the all-time high list, not the one that's on the new low list. My money is on Amazon."by close after the company's earnings came in significantly below Wall Street's expectations.

Cramer said Walgreens is more expensive than Amazon and less convenient, adding that there are not enough employees at its stores. He also discussed the chain's ongoing theft issues and expressed frustration that many items are locked behind plexiglass. He conceded that Walgreens may currently have a slight edge due to its back-of-store pharmacy business. But Cramer noted that pharmacists can besegment. Cramer wondered whether Walgreens will end up like Borders, a bookstore chain that saw its profits vanish as Amazon became more and more popular.

"Look, Amazon never set out to destroy Borders. They didn't set out to destroy Walgreens, either," he said."But they do set out to get the best products with the best values at the most convenient places — the most convenient places meaning your home." Stock futures are little changed as investors await inflation data with end of second quarter looming: Live updatesFeeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly

 

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