Walgreens 2011 Annual Report Download - page 7

As team members across the country embrace the spirit that Walgreens
employees demonstrated in Joplin, outstanding and caring customer
experience becomes synonymous with the Walgreens brand.
My Walgreens for everyone in America means establishing an
emotional connection for our patients and customers with our people,
our stores, our brand, who we are as a Company, and the role we
play in communities as a cornerstone of health and daily living.
New channels and markets
Walgreens continues to invest heavily in e-commerce and mobile tech-
nology to leverage our brick-and-mortar locations with convenient,
sophisticated online options. Through our expanding multi-channel
strategy, customers will be able to access “what they want” – a broader
selection of products; “where they want it” – whether delivered to their
homes or available for pickup at the store; and “when they want it” –
two days, next day or next hour.
Multi-channel shoppers are estimated to be three times more valuable
than a single-channel shopper. And, when they choose to shop at the
store, they want a great experience. So we continue to invest in our
bricks and expand our choice of clicks to provide our shoppers the
best of both worlds.
In fiscal 2011, as we put new smartphone enhancements in the hands of
Walgreens customers nationwide, the response has been phenomenal.
Walgreens newest mobile phone application, which includes “Refill by
Scan,” continues to grow in popularity, with nearly 3 million downloads
last year. By broadening our social media presence, surpassing
1 million Facebook fans and integrating our store network last year
through Facebook Places and Foursquare, we continue to strengthen
our personal connection with consumers.
Reinvent our cost structure
A key element of our transformational strategy is cost reduction and
productivity gain, and our Rewiring for Growth initiative launched in
2008 delivered more than $1 billion in annual pre-tax cost savings.
Completing this initiative, we are now advancing this strategy by
embedding continuous process improvement and innovation into
our corporate DNA, constantly looking for new ideas to improve
processes and reduce cost structures.
Summary
Walgreens strong performance and substantial progress in fiscal 2011
puts the Company in an excellent position to execute the next phase
in our transformation, play a bigger role in people’s lives and in their
communities, and create more value for consumers, patients, payers
and Walgreen shareholders. Our sharp focus and relentless commitment
to executing with discipline are now “wired” into our daily work
across the Company.
In fiscal 2012, we will continue our sharp focus on revenue growth,
cost savings and capital allocation, and enhancing the relevance of our
products and services to customers, patients, payers and the communities
we serve. In doing so, we remain committed to our long-term goal of
achieving double-digit growth in earnings per share, increasing return
on invested capital and top-tier shareholder return.
The Company continues to benefit from our outstanding senior leadership
team that blends a broad range of internal and external experience
and expertise, and the strength and dedication of our Board of Directors.
Last year, we announced the appointment of Joseph Magnacca, from
Duane Reade, as our new president of Daily Living Products and
Solutions; Thomas J. Sabatino, Jr., as executive vice president, general
counsel and corporate secretary, succeeding Dana Green, who retired
after 37 years of outstanding leadership and service with the Company;
Jeffrey Berkowitz as senior vice president of pharmaceutical development
and market access; and Graham W. Atkinson as senior vice president
and chief customer experience officer.
Walgreens continued strong performance and progress is a tribute to our
superb team of 247,000 employees and their dedicated service to our
customers and our Company. We greatly appreciate and applaud their hard
work, commitment and support as we seize new opportunities. We most
sincerely thank and appreciate our customers, patients and payers, our
suppliers and communities across America for making Walgreens an
important part of their lives. And we offer our deepest gratitude to our
shareholders for your trust and confidence in our Company, making
possible our vision of My Walgreens for everyone in America.
Sincerely,
Alan G. McNally Gregory D. Wasson
Chairman of the Board President and Chief Executive Officer
November 16, 2011
The Company is piloting a new store
experience that moves beyond the
traditional drugstore format to a health
and daily living destination. At the core
is the health center (shown here) that
includes a redesigned pharmacy and,
at some locations, a Take Care Clinic.
In this area, patients are greeted by a
health guide (center) who directs them
to the services they need. The new
format is being piloted at this store in
Oak Park, Illinois, and other stores
in Illinois and Indiana.
Well
at Walgreens
2011 Walgreens Annual Report Page 5