The Affordable Care Act will transform health care and more customers will be frequenting drugstores.  Walgreens’ CEO, Greg Wasson, is refreshing Walgreens in order to best position the company for growth.  Walgreens is America’s largest drugstore chain with over 8,300 locations.  In 2012, Wasson bought 45% of Alliance Boots, becoming the first U.S. drugstore to expand internationally.  He also signed a deal with drug wholesaler, AmerisourceBergen, which gives Walgreens increased buying power with pharmaceutical companies.  In a recent interview, Wasson laid out some of his goals for reimagining Walgreens stores in the near future.

1) Involve pharmacists more in customer health care.  Pharmacists are one of the top two or three most-trusted professionals.

2) Offer customers flu shots via certified pharmacists.

3) Make sure that pharmacists are positioned to handle the additional 30 to 40 million people who might fill prescriptions after the Affordable Care Act is launched.  Also, make sure that pharmacists educate customers are taking their prescriptions properly.

4) Add nurse practitioners to stores to extend services beyond basic pharmaceutical care.

5) Differentiate the traditional drugstore format to become more of a destination location for health, daily living and beauty.  This includes extending the convenience goods fresh food offerings and creating an enhanced beauty department.

6) Create value for the customer.  Walgreens has increased its private label offerings in order to offer customers a lower price point and build brand loyalty.

Discussion Question:

Using the four growth strategies described in Retailing Management, assess what Walgreens is doing?

 

SOURCE: Geoff Colvin, Fortune Magazine, July 25, 2013