Walgreens 2011 Annual Report Download - page 15

2011 Walgreens Annual Report Page 13
Customers Raymond and Cassandra
Huang run a coffee shop in Redwood
City, California, where they also serve
salads and other healthy items.
All the healthy ingredients for this
meal came from a Walgreens store
in San Francisco. “It’s nice to know
that in an emergency we can stop
at Walgreens for the items we need,”
says Cassandra. Walgreens recently
introduced its new fresh food format
to several stores in San Francisco.
Over the next five years, Walgreens
plans to convert or open at least
1,000 “food oasis” stores, similar to
this one in Chicago, to address the
need for greater access to healthy
foods in underserved communities
across the country.
Walgreens efforts to enhance the customer
experience are gaining momentum as
the Company pilots new store formats
and expands its offerings with fresh food,
upscale beauty and new brands.
Raymond and Cassandra Huang balance busy lives, running a coffee shop in Redwood City,
California, that offers fresh, homemade salads and sandwiches. Raymond also holds
down a second job to make ends meet. For them, Walgreens combination of convenience,
new fresh food offerings and essential health needs fits the bill.
To continue to meet their needs, Walgreens is making its stores more relevant to consumers
and easier to shop. The first step was a cost-effective refresh of the front end, which gave
stores a cleaner look and better managed assortment.
The goals were to enhance customer experience, boost
comparable store sales, reduce inventory and increase
efficiency – all of which have been accomplished.
With the refresh completed, Walgreens is building on
its vision to become “My Walgreens” for everyone in
America – the first choice for health and daily living.
To differentiate itself from other chains, the Company
is piloting a new store experience to help customers
live well. Pilot stores feature an entirely redesigned
interior with fresh food, redesigned beauty and a lighter,
brighter design. The core of the store is the health
center that includes a redesigned pharmacy, and at
some locations, a Take Care Clinic. As patients enter
this area, they are greeted by a “health guide” who
directs them to the services they need and provides
the information they seek. This new model is being
piloted in certain stores in Illinois and Indiana.
In existing stores, the Company is enhancing its
health and daily living offerings by revitalizing and
strengthening its private brand program, introducing
upscale beauty “Look Boutiques” in some stores and
expanding its fresh food concept in urban areas to
provide more options in underserved communities.
Besides running a coffee shop
in Redwood City, California,
Raymond Huang is an accountant
in San Francisco. To stay healthy
while holding two jobs, Raymond
eats well, exercises and watches
his blood pressure. Walgreens
supports his health and daily living
needs by selling healthy foods,
over-the-counter medications
and medical devices like this
heart monitor for home use.