Walgreens 2008 Annual Report Download - page 4

Walgreens reported its 34th consecutive year of record
sales and earnings in 2008, a track record matched by only
one other Fortune 500 company. During the year, we made
strategic investments to broaden our health and wellness
offerings, while outperforming the retail drugstore industry in
both pharmacy and front-end sales. We have a strong balance
sheet, solid credit rating and financial flexibility, and have
taken prudent steps to ensure our continued success in the
face of a weakening economy.
Our strategy is to transform Walgreens into a more efficient
and customer-focused company, both for drugstore customers
and for patients and payors seeking quality pharmacy, health
and wellness services that are accessible and affordable. Our
focus is to improve both top and bottom line performance
and value creation. Change is never easy…but it is absolutely
imperative, and Walgreens is committed to becoming a more
nimble and profitable company.
Following are the key milestones accomplished in fiscal 2008.
We focused on serving our customers better
In this economy, consumers are looking for low-cost alternatives
and the best overall value. We offer patients a way to stretch
their dollars and maintain their prescriptions in one place
without sacrificing the safety, service or convenience of their
nearby neighborhood drugstore.
One example of this customer-centered philosophy has been
the successful introduction of our Prescription Savings Club,
which now has more than one million members and goes well
beyond the discount generic programs offered at other retailers.
Members receive savings on more than 5,000 name brand and
generic medications, including 400 generics that are available
for less than a dollar a week. They also receive a 10 percent
rebate on all Walgreens branded products that can be used
for future store purchases.
We’re also working to improve our customers’ experience.
Over the past few years, we’ve seen the number of items carried
in our stores expand from approximately 18,000 to more than
25,000 – a breadth that can lead to complexity and confusion
for customers. We intend to streamline our merchandise
selection in fiscal 2009 to improve the overall Walgreens
Page 2 2008 Walgreens Annual Report
Alan G. McNally
Chairman and
acting Chief Executive Officer
Gregory D. Wasson
President and
Chief Operating Officer
LETTER TO SHAREHOLDERS
We will provide the most
convenient access to
consumer goods and
services…and pharmacy,
health and wellness
services…in America.