Walgreens 2004 Annual Report Download - page 7

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7
Item 2. Properties
The number and location of the company's drugstores appear in the table below. Most of the company's drugstores are
leased. The leases are for various terms and periods. See the caption, "Leases" on pages 30 and 31 of this Form 10-K/A.
The company owns approximately 17% of the retail stores open at August 31, 2004. The company has an aggressive
expansion program of adding new stores and remodeling and relocating existing stores. Net retail selling space was
increased from 46.7 million square feet at August 31, 2003, to 50.9 million square feet at August 31, 2004. Approximately
52.2% of company stores have been opened or remodeled during the past five years.
WALGREENS NATIONWIDE
STATE 2004 2003
STATE 2004
2003
Alabama 39 30
New Hampshire 10
10
Arizona 209 202
New Jersey 75
68
Arkansas 25 22
New Mexico 49
45
California 381 356
New York 64
59
Colorado 88 84
North Carolina 53
36
Connecticut 46 41
North Dakota 1
1
Florida 630 606
Ohio 157
137
Georgia 83 71
Oklahoma 64
56
Idaho 16 12
Oregon 36
30
Illinois 471 450
Pennsylvania 34
28
Indiana 143 136
Rhode Island 15
15
Iowa 52 51
South Carolina 31
22
Kansas 44 41
South Dakota 5
5
Kentucky 54 48
Tennessee 164
157
Louisiana 91 86
Texas 471
430
Maryland 16 13
Utah 15
11
Massachusetts 99 94
Vermont 1
1
Michigan 143 132
Virginia 47
41
Minnesota 91 82
Washington 88
67
Mississippi 33 24
Wisconsin 157
148
Missouri 133 128
Wyoming 4
2
Nebraska 42 42
Puerto Rico 61
59
Nevada 51 48
Total 4,582
4,227
The company's retail drugstore operations are supported by fourteen distribution centers with a total of approximately 7.7
million square feet of space, of which 6.5 million square feet is owned. The remaining space is leased. All distribution centers
are served by modern systems for order processing control, operating efficiencies and rapid merchandise delivery to stores. In
addition, the company uses public warehouses to handle certain distribution needs. A new distribution center opened in
Moreno Valley, California in May, with another planned for Anderson County, South Carolina projected to open in 2007.
There are eleven principal office facilities containing approximately 1.7 million square feet of which approximately 1.5
million square feet is owned and the remainder is leased. Of the owned property, approximately 410,000 square feet is leased
to others. The company operates three mail service facilities containing approximately 320,030 square feet of which
approximately 237,230 square feet is owned and the remainder is leased.
The company also owns five strip shopping malls containing approximately 226,000 square feet of which approximately
160,000 square feet is leased to others.