Successful companies don’t stop innovating during tough times. And they get even smarter about cost control without giving up customer service. those two factors seem to be behind Walgreens strong earnings report today which sent sales up 7.6% while earnings fell 1.5%. (The stock closed at $37.35 a share, up 9.24%).
Walgreens has redesigned stores and cutback on new store openings to focus on the business it currently has and those moves have been paying off. On top of that, it has been looking for ways to attract new business.
One such way was announced in August and the subject of interest among securities analysts on the company’s conference call today. Walgreens and Caterpillar reached a prescription drug plan that, while it allows Caterpillar employees to use whatever pharmacy they like, should drive more business to Walgreens through attractive pricing.
And in some markets, when you walk into Walgreens to buy tissues, aspirin, and get the refill on that blood pressure medication, you’ll also be able to buy beer and wine. During the conference call, company officials said they expect beer and wine to be available in some stores in the next 12 to 18 months and the company sees it as a way to “drive traffic in our stores.”
Make that two bottles of aspirin.
September 30, 2009
Im a pharmacist for walgreens of 7 years. That ship is sinking fast.