Walgreens 2008 Annual Report Download - page 11

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2008 Walgreens Annual Report Page 9
Gift cards drive sales
Newly designed Walgreen gift cards for
seasonal merchandise and toys have been
added to a line of private brand cards for
birthdays, photo gifts and the “perfect gift”
for women. These offer gift-giving options
targeted toward different customer groups.
Within the first five weeks of introduction,
customers loaded the new cards with
approximately 20 percent higher values
than placed on previous designs.
“SaturDate” fever catches on
One Saturday a month, beauty advisors have
a “SaturDate with Beauty,” dedicated to selling
a selected beauty product or line. “I love the
one-on-one interaction with customers,” says
Stephanie Farley (left), senior beauty advisor
in Hickory, North Carolina. The effects of
a struggling economy have changed the
shopping habits of many cosmetics customers
who have cut back on expensive trips to
department stores and beauty salons.
Instead, they’re purchasing hair color,
skincare and nail products at Walgreens
to use at home.
Outselling the Competition
Sales trends for Walgreens top 60 categories
In percent, for 52 weeks ending August 31, 2008
The company’s 6,400-plus retail locations
offer services such as printer cartridge
refills, Redbox DVD rentals and a broad
assortment of consumable merchandise
to attract these students, their families
and the 5.3 million customers who visit
Walgreens every day.
Customers are also attracted to products
such as “Yes to Carrots,” the fastest growing
brand in our natural skincare category.
In toys, the company sold more than one
million Webkinz in the last half of 2008.
Walgreens was the first drugstore retailer
to offer these top-selling plush animals.
In over-the-counter (OTC) medications,
Walgreens led the marketplace in sales
when the allergy drug Zyrtec switched
to OTC status in 2008.
Source: The Nielsen Company
Propelling private
brand sales
The company rebranded the
“Walgreens” and “W” brand
lines in 2008. Redesigned
packaging for both brands –
almost 2,000 products – has
a clean, streamlined and
consistent design. Consumers
are attracted to the quality and
value of these products, especially
as they wrestle with today’s
economic challenges, including
higher costs for food and fuel.