Merck & Co., Inc. or Walgreens Boots Alliance, Inc.: Who Manages SG&A Costs Better?

A Tale of Two Giants: SG&A Cost Management in the Pharmaceutical and Retail Sectors

In the competitive landscape of corporate America, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Merck & Co., Inc., a pharmaceutical titan, and Walgreens Boots Alliance, Inc., a retail pharmacy leader, offer a fascinating study in contrasts. From 2014 to 2023, Merck's SG&A expenses fluctuated modestly, peaking in 2014 and 2019, but generally maintaining a steady course around $10 billion. In contrast, Walgreens Boots Alliance consistently reported higher SG&A costs, averaging over $23 billion annually, with a notable increase of 43% from 2014 to 2023. This disparity highlights the distinct operational challenges faced by each industry. While Merck's expenses reflect the high stakes of pharmaceutical innovation, Walgreens' figures underscore the complexities of retail operations. As we look to 2024, Walgreens' data remains incomplete, leaving room for speculation on future trends.