7 Consumer Goods and Retail Stocks on Jim Cramer’s Radar

4. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)

Number of Hedge Fund Holders: 33

Cramer talked about how companies like Walgreens Boots Alliance, Inc. (NASDAQ:WBA) are striving to keep their prices low.

“Let’s open the discussion, pricing.… I know that Walgreens has tried to keep up offering their own outrageously lower prices on their website, but you probably don’t go to their website.”

Walgreens (NASDAQ:WBA), a key player in the retail pharmacy sector, has faced significant financial hurdles in recent years, with its stock value dropping over 78% in the last five years. The decline has been primarily linked to increased competition from tech-driven retail giants like Walmart and Amazon. As part of its efforts to address these challenges, it has implemented a series of measures, including announcing thousands of store closures and launching a $1 billion cost-cutting program.

The company is also considering divesting its non-core businesses in an attempt to reignite growth. For the fiscal 2025 first quarter, the company reported a loss of $265 million, worse than the $67 million loss reported during the same period last year. The quarterly loss includes costs related to the company’s footprint optimization program, among other reasons. Despite the loss, CEO Tim Wentworth highlighted that the company has made “early progress” in its turnaround plan, although he acknowledged that recovery will take time.

Management also noted that the broader consumer environment remains challenging, with ongoing shifts in retail channels and a tough promotional landscape affecting discretionary product categories. Despite these struggles, Walgreens (NASDAQ:WBA) exceeded expectations in its fiscal 2025 first-quarter results, driven by cost control efforts. However, its retail gross margin declined due to pricing, promotions, and weaker sales of cough, cold, and flu products.