Walgreens
-
Headquarters
108 Wilmot Road, Deerfield, 60015, Illinois, United States -
Annual Global Sales
$132,703,000,000
Total U.S. Sales
$110.3 billion in fiscal 2023 (ended Aug. 31, 2023)
Total U.S. Stores
8,600 retail drugstores in 50 states and Washington, DC; plus 105 in Puerto Rico and one in the U.S. Virgin Islands (as of August 31, 2023)
U.S. Shopper Count
Approximately 8 million daily shoppers in stores and online
Key Facts
- Largest drugstore chain in the U.S. by store count
- Approximately 78% of the U.S. population lives within five miles of a Walgreens, Duane Reade or Walgreens-owned Rite Aid retail pharmacy
- Its myWalgreens loyalty program has 113 million members
- Parent company Walgreens Boots Alliance consists of three divisions: Retail Pharmacy USA (Walgreens), Retail Pharmacy International (Boots), and Pharmaceutical Wholesale
- Ranked third in pharmacies and drugstores in Newsweek’s 2022 list of America’s Best Retailers
- Ranked No. 30 on the 2022 Axios Harris Poll 100 reputation ranking
- Replaced the 8-year-old Balance Rewards program in November 2020 with myWalgreens, which allows members to earn Walgreens Cash on eligible purchases
- Walgreens got in the retail media network game in December 2020 with the launch of Walgreens Advertising Group
- Walgreens and grocery giant Kroger in late 2019 formed a group purchasing organization, expanding their collaboration with a joint venture aimed at delivering cost savings and other benefits across owned brand sourcing
Walgreens Boots Alliance
- Executive Chairman: Stefano Pessina
- Chief Executive Officer: Tim Wentworth
- Chief Transformation and Integration Officer: Anita Allemand
- EVP and Chief Operating Officer, International: Ornella Barra
- EVP and Global Chief Financial Officer: Manmohan Mahajan
- EVP and Global Chief Legal Officer: Lanesha Minnix
- EVP and Chief Information Officer: Neal Sample
- EVP and President, U.S. Healthcare: Mary Langowski
- EVP and Global Chief Human Resources Officer: Elizabeth Burger
- SVP and Managing Director: Sebastian James
- SVP, Global Chief Commercial Brands Officer & International Retail: Annie Murphy
- SVP, Chief Corporate Affairs Officer: Beth Leonard
- SVP, Global Chief Compliance and Ethics Officer: Matt D'ambrosio
- SVP, Environmental, Social and Governance, and Chief Diversity, Equity and Inclusion Officer, U.S.: Alethia Jackson
Walgreens
- EVP and President, Walgreens Retail and Chief Customer Officer: Tracey Brown
- EVP and President, Walgreens Pharmacy: Lee Cooper
- Chief Medical Officer: Sashi Moodley
- Chief Human Resources Officer: Hillary Leisten
- Senior Vice President, Chief Financial Officer: Jeff Gruener
- SVP, Operations: Lisa Badgley
- SVP, Chief Sourcing and Supply Chain Officer: Rajnish Kapur
- SVP, Chief Merchandising Officer: Luke Rauch
- SVP, Chief Supply Chain Officer: Roxanne Flanagan
- SVP, Chief Pharmacy Officer: Rick Gates
- SVP, Strategy: Adam Holyk
- SVP, Chief Product Officer: Bala Visalatha
- SVP, Pharmacy of the Future & Transformation: Rina Shah
- Group Vice President, Customer Marketing, Loyalty and Walgreens Advertising Group: Abi Subramanian
Financial Reports
- Walgreens 2023 Annual Report
- Walgreens 2022 Annual Report
- Walgreens 2021 Annual Report
- Walgreens 2020 Annual Report
- Walgreens 2019 Annual Report
- Walgreens 2018 Annual Report
- Walgreens 2017 Annual Report
- Walgreens 2016 Annual Report
- Walgreens 2015 Annual Report
- Walgreens 2014 Annual Report
Resources
- Market Position and Strategy Overview
- Must-Know Terms
- Promotional Strategy
- Merchandising Strategy
- Collaborative Alliances
- Displays and Signage
- Store Formats/Growth
- Special Departments/Services
- Customer Segments
- Internet Marketing
- Retail Media
- Mobile Marketing
- Social Media
- E-Commerce
- Circulars
- Loyalty Programs
- Private Label
- Cause/Community Programs
- Advertising Strategy
- Solution Providers
- Sponsorships
- Marketing Expenditures
Market Position and Strategy Overview
Market Position and Strategy Overview
Walgreens’ stated vision is “to be America's most loved pharmacy-led health, well-being and beauty company,” while its stated purpose is to “champion the health and well-being of every community in America.”
The retailer says its three core strengths are:
- Expert knowledge of pharmacy
- Community presence
- Customer insights and relationships
Walgreens claims that 78% of the U.S. population lives within five miles of one of its stores. Factor in its online offerings and mobile application, and the retailer says it interacts with more than 8 million customers a day.
The retailer boasted approximately 86 million active members of its loyalty program prior to transitioning to a new program in 2020. Walgreens has said that 70% of all sales are captured via the loyalty program. The shopper data that the retailer obtains from the program enables a deeper layer of personalized promotion as well as the opportunity to engage suppliers. By the end of fiscal 2023, the retailer's myRewards program had 113 million members.
Parent company Walgreens Boots Alliance is exploring a sale or spinoff of the U.K. Boots business. Walgreens merged with it to form Walgreen Boots Alliance. The company for a time wanted to focus further on U.S. healthcare through its VillageMD primary care services (but the retailer has been shuttering some locations and plans to reduce its stake in the clinic), at-home care provider CareCentrix, specialty pharmacy Shields Health Solutions, and a clinical trials division it opened in 2022.
In June 2024, during a call with analysts, CEO Tim Wentworth said "changes are imminent" for the approximately 25% of its stores that weren't profitable, and a "significant portion of these underperforming stores" could face closure.
Walgreens Boots Alliance had been on a “digital transformation journey” for the last few years, and the results of its work surfaced in 2020 with the launch of a digital experience and customer insights platform to deliver personalized healthcare and shopping offerings through its partnerships with Microsoft and Adobe.
The myWalgreens loyalty program launched a few months later with the promise of a personalized experience. Members earn Walgreens Cash on eligible purchases — 5% on Walgreens-branded items and 1% on all other purchases, including pharmacy prescriptions.
Walgreens in 2020 got in the retail media network game. The launch of Walgreens Advertising Group ("wag") provides a personalization-driven advertising platform for brands to deliver personalized experiences to shoppers.
Walgreens’ beauty differentiation program is a multi-year, multi-phase initiative in 3,000-plus stores that provides an elevated beauty experience to customers. In addition to using the platform to promote trusted private brands such as No7, Soap & Glory and the all-natural Botanics line, the beauty consultant role has also been introduced at select stores, providing shoppers with expert advice on clinical skin care and cosmetics.
In 2024, in response to inflation and consumers pinching pennies, Walgreens began lowering prices on more than 1,300 national and store brand products across several categories, including health and wellness, personal care and seasonal items.
When the global pandemic hit in 2020, Walgreens was thrust into the spotlight as an essential retailer, and its role in providing COVID-19 tests and vaccinations stepped to the forefront. Most of its social media communication with followers for most of 2020 and 2021 was related to the pandemic in some way.
The retailer has seen a good deal of change in leadership recently, both with parent company Walgreens Boots Alliance and with Walgreens in the U.S. Rosalind (Roz) Brewer took over as chief executive officer of Walgreens Boots Alliance in March 2021, becoming the only Black woman to lead a Fortune 500 company. Brewer stepped down in September 2023, with Tim Wentworth being named her successor.
Partnerships have been named a key growth driver at Walgreens going forward. Beyond Microsoft, Walgreens’ work with grocery giant Kroger is notable. Among their work together is a group purchasing organization (GPO) aimed at delivering purchasing efficiencies, lower costs and combined resources "to help drive further innovation." The joint venture is called Retail Procurement Alliance.
Must-Know Terms
![display](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/wag_2018_02_07_chi_12_0.jpeg)
Must-Know Terms
- MyWalgreens: The loyalty program, which replaced the 8-year-old Balance Rewards program in November 2020, allows members to earn Walgreens Cash on eligible purchases — 5% on Walgreens-branded items and 1% on all other purchases, including pharmacy prescriptions.
- Walgreens Advertising Group (WAG): Following the lead of other major CPG retailers, and further accelerating the digitalization of its business, Walgreens in December 2020 got in the retail media network game.
Thought Starters
- Think myWalgreens. Walgreens is increasingly focusing on the insights gleaned from its loyalty program, which is entrenched in most everything the retailer does from a marketing standpoint. Know the program inside and out.
- Think omnichannel. Walgreens uses an omnichannel marketing strategy that aims to reduce friction from shoppers' busy lives. The retailer's digital/mobile/social/e-commerce activity is treated as importantly as the more traditional tactics.
- Focus on the shopper and her experience. Walgreens' vision is "to be America's most loved pharmacy-led health, wellbeing and beauty company." Its purpose is to "champion the health and well-being of every community in America. Present your brand assets in a way that aligns with that vision and purpose.
- Trends. Walgreens regularly surveys its shoppers and publishes the results in its newsroom, providing areas of opportunity which brands can leverage.
Promotional Strategy
Promotional Strategy
Walgreens has begun to focus more on its private labels as shoppers started to rein in spending due to inflation. In 2023, for example, it added breakfast items like cereal and oatmeal to its shelves.
The retailer also runs frequent BOGO sales (buy one get one free, buy one get one 50% off), particularly, but not exclusive to, its own brands.
It also encourages shoppers to load coupons and incentives (often tied to national brands) either through the Walgreens mobile app or when logged in to the Walgreens website, so loyalty program members receive discounts or earn Walgreens Cash rewards that are credited to their loyalty account and can be spent in-store. Some deals are marked as exclusive to the loyalty card holder.
![Walgreens website](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2023-07/walgreens.jpg)
Walgreens stages major seasonal promotions throughout the year, generally bringing in multiple promotional partners for each. While the promotions’ themes change from year to year, they often have the same partners and use similar tactics. Among the prominent efforts are "allergy relief" and "pain relief" campaigns in promoting OTC products.
The retailer has adopted an integrated marketing approach for its bigger promotions to deliver a consistent message across multiple touchpoints, from in-store P-O-P materials, the circular to online, social media and even mobile.
While price, coupons and rewards points are common promotional tactics, the chain also employs cause elements throughout the year, including WE Teachers, Red Nose Day and Vitamin Angels.
Periodic/Ongoing Promotions
- MyWalgreens: Program members gain access to sales and promotional pricing while earning Walgreens Cash on eligible purchases — 5% on Walgreens-branded items and 1% on all other purchases, including pharmacy prescriptions.
- MyW Days: In July 2023, Walgreens introduced MyW Days, a week of offers, rewards and exclusive daily deals for loyalty program members that included accelerated rewards-earning opportunities on products and services, both online, in-store, or bought through the app. The retailer personalizes rewards offers to members, based on their most-shopped categories. That October, the retailer rolled out a similar promotion, albeit on a smaller scale. The retailer is bringing the promotion back in July 2024.
- Register Rewards: Program delivers next-trip savings with in-store purchase of designated products via Catalina coupons printed at checkout. The rewards typically expire in two weeks.
- Paperless Coupons: Integrated into the retailer’s mobile application, digital circular and digital version of its coupon book, the program allows loyalty cardholders who log in to “clip” the offers to their cards.
- Deals of the Week: Special pricing on purchase of select items in stores, while supplies last.
- AARP: AARP members who link the card to their myWalgreens account receive 10% Walgreens Cash rewards on Walgreens branded health and wellness products, 3% Walgreens Cash rewards on select beauty and personal care items, and 1% Walgreens Cash rewards on vaccines.
- Prescription Savings Club: An annual membership ($20 for individuals, $35 for families) provides discounts on the cash price of brand-name and generic medications as well as other products and services.
- Red Nose Day: Official retail partner of Red Nose Day supports the campaign to end child poverty, with vendor partners helping Walgreens raise money each spring. In 2020, the retailer didn’t sell any of the effort’s iconic red noses due to the COVID-19 pandemic, but the red noses have since returned.
- Me to WE/WE Teachers: Partners with the ME to WE Foundation to raise money for and support WE Teachers, a program offering free tools, resources, trainings and awards to educators.
- Vitamin Angels: Walgreens typically donates 1% of participating products’ retail sales to Vitamin Angels, which provides vitamins to undernourished children and expectant mothers around the world.
- Get a Shot. Give a Shot: Annual program typically runs September through January. Retailer donates the value of one vaccination to the United Nations Foundation and its Shot@Life program for every shot administered in stores.
Merchandising Strategy
![displays](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/wag_easter-feb-2015.jpeg)
Merchandising Strategy
Walgreens strives to provide a cohesive store environment via consistent signage and displays that demonstrate simple, current and genuine messaging. It aims to provide decluttered aisles, standardized content and format to elevate store promotions and improve compliance at the store level. Through its "Vendor Display Guide" (the latest version is viewable under the "Company Overview" tab above), the retailer provides a blueprint for creating new signage and displays. Vendor compliance with the processess, creative templates and production specifications is mandatory.
The retailer’s visual merchandising and space planning personnel use relevant consumer insights, brand positioning, marketing strategies, optimized assortments and merchandising principles to visually represent the organization’s direction at shelf and on the floor.
In typical stores, shoppers enter through the beauty department, while pharmacy and photo are positioned as destination departments. The pharmacy, located at the back of most stores, remains the primary destination (69% of sales are prescription drugs). Stores also are devoting more space to food (including fresh options in some locations) and beverages (including beer and wine, depending on the market).
Walgreens has been focusing more on private labels in recent years, and in 2024, during a call with analysts, CEO Tim Wentworth said the retailer will continue its focus there, even removing some national brands and redeploying "those SKUs toward own brands and preferred partners within health and wellness categories."
Seasonal aisles stock items for holiday, back to school, Valentine's Day, Easter, Halloween, etc. To improve shopper navigation and selection in the seasonal candy aisle, Walgreens over time has refined the look and feel of the aisle, creating a unique and uniform retail ready packaging and improving ROI. By the end of March 2024, more than 4,400 Walgreens locations will carry Claire's jewelry, hair accessories, cosmetics and seasonal pieces in a dedicated display area in the retailer's seasonal section.
Overall, the front-end offers 18,000 SKUs. The major product categories are OTC, vitamins/supplements, cosmetics, fragrances, personal care, packaged foods, snacks, candy, non-alcoholic beverages, household items, baby care and greeting cards.
Select Walgreens in New York piloted Loop’s global reuse platform in 2022. The pilot offers a variety of products in reusable packaging, including items from leading national brands.
Sales by Category | |
Product Class | Percentage of Sales |
Prescription Drugs | 74% |
General Merchandise/Non-prescription Drugs | 26% |
Source: Walgreens Boots Alliance 2023 Annual Report |
Collaborative Alliances
![a store filled with lots of food](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/wag_2017_01_05_chi_05_0.jpg)
Collaborative Alliances
Walgreens Boots Alliance in 2020 launched a digital experience and customer insights platform to deliver personalized healthcare and shopping offerings, an expansion of its partnerships with Microsoft and Adobe. The platform will provide Walgreens and Boots customers with products and services from the company’s pharmacy and retail businesses wherever, whenever and however they may want them,
Kroger and Walgreens extended their partnership in late 2019 by forming a group purchasing organization (GPO). The joint venture aims at delivering purchasing efficiencies, lower costs and combined resources to help drive innovation.
Building on an exploratory pilot with the drug store chain announced in the fall of 2018, Kroger rolled out a curated assortment of products and Home Chef Express meal kits at select Walgreens stores. Dubbed "Kroger Express," the curated assortment is available primarily in the Knoxville, Tennessee area. It comprises 2,300 dairy, meat, produce, frozen products and meal solutions including Home Chef kits, national brands and Kroger private label items that were selected using customer data and insights provided by Kroger subsidiary 84.51°. The participating pilot stores also let shoppers pick up kroger.com orders.
Kroger and Walgreens are teaming on an exploratory pilot in which shoppers will be able to order Kroger grocery items online and pick them up at 13 of the drug store chain’s stores in northern Kentucky, near the grocer’s Cincinnati headquarters.
Walgreens’ major promotions are typically retailer-led but incorporate national brands. The retailer also is willing to latch onto manufacturer-led efforts, although these generally receive less play in stores. Various manufacturers have consistent ongoing relationships for certain promotions/programs, including:
- Procter & Gamble: Procter & Gamble has activated its official National Football League sponsorship at Walgreens with a season-long rewards program leveraging Toronto-based Snipp Interactive's receipt-processing technology. P&G has partnered with Walgreens for a "Healthy Home" program that had dedicated endcaps appearing in stores during three spring months. P&G also brings Vicks DayQuil and NyQuil promotions to Walgreens throughout the cold and flu season.
- Hallmark Cards: In addition to the permanent in-line space Hallmark has secured in every store, the manufacturer is an integral part of seasonal marketing activity including holiday, Easter and Mother’s Day. During these times Hallmark secures additional space in circulars and the monthly coupon book, and with in-store signage and displays. Walgreens and Hallmark also partner on a plethora of social media activity, including multiple Twitter parties throughout the year. Also, the Crayola brand is a prominent partner in Walgreens’ back-to-school activity.
- Hershey Co.: The manufacturer partners with Walgreens during various seasonal promotions, including Halloween, holiday and Easter, in addition to participating in sports-related efforts during the NCAA basketball season, as Hershey is an official sponsor.
- Coca-Cola Co.: In addition to the permanent endcaps the manufacturer secures in every store, the partnership includes Walgreens leveraging Coca-Cola’s official NCAA and World Cup sponsorships.
- PepsiCo: Walgreens typically leverages PepsiCo’s official National Football League sponsorship for its football-themed “Game Day Favorites” campaign in the fall and around the Super Bowl. A recurring exercise-themed effort with the Gatorade brand secures semi-permanent endcaps for the summer months.
Walgreens' main channel of communication with its suppliers is SupplierNet, which contains company policies, procedures and supplier performance metrics. New/prospective vendors can communicate there as well.
Supplier Diversity Summit
The retailer has stated a commitment to helping diverse businesses and entrepreneurs, including inviting them to exhibit their products for a 2023 virtual summit. It's part of Walgreens mission to support businesses which are majority owned, operated and managed by individuals who are disadvantaged, disabled, military, veterans, LGBTQ+, minority and/or women.
Puerto Rico Localization Summit
Walgreens held this showcase Dec. 12-13, 2023, giving suppliers the chance to connect with the retailer's merchandising team, share their products, hear feedback and potentially be stocked on Walgreens' shelves in their area. The event was hosted by RangeMe and ECRM. The focus was on (but not limited to) grocery, household, apparel, beach, tourism and general merchandise. More information can be found at rangeme.com/walgreenspuertorico.
Displays and Signage
Displays and Signage
The Walgreens Vendor Display Guide (see “Resources” under the "Company Overview" tab above), updated in September 2020, provides requirements for signage and displays. Vendor compliance with the processes, creative templates and production specifications is mandatory. Walgreens' preferred P-O-P vendors are Great Northern Instore, Menasha, The Royal Group and WestRock.
![graphical user interface](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/wag-endcaps_0.jpg)
The signage and display options available to vendors are:
- Aisle signage (blade signs, shelf talkers and coupon machines via News America Marketing)
- Endstands (full size and smaller cosmetic table endstands)
- Side panels (power wings)
- Floor displays
- Table wraps and displays
- Cosmetic étagère displays
- Seasonal trays/shelf displays
- Security gate panels (via StoreBoard Media)
In order to eliminate visual clutter, Walgreens eliminated arches, basket liners, ceiling danglers, floor graphics and various other signage.
For its major promotions, Walgreens typically utilizes posters (window and wall), A-boards positioned near store entrances, circular rack signs and ceiling mobiles/signs.
Shelf signs proliferate throughout the store, but especially in the OTC aisles and beauty aisles. Vendors seeking to participate must go through News America Marketing.
In November 2018, Walgreens began testing digital screens on cooler doors at its State Street flagship store in Chicago. The doors – from Chicago-based Cooler Screens Inc., whose co-founders include former Argo Tea chief executive officer Arsen Avakian and former Walgreens Boots Alliance ceo Gregory Wasson – include cameras and sensors, offering a digital merchandising platform that also serves promotional messaging to approaching shoppers. The screens can serve ads based on shopper variables such as the approximate age, their gender and the weather. Walgreens was to extend the pilot to five stores in San Francisco and one each in the Manhattan borough of New York and in Seattle by the end of January 2019.
Walgreens is increasingly trying to engage in-store shoppers via their mobile devices. Among recent activations are various signs promoting the retailer’s new Text2Clip coupon program, text-to-enter sweepstakes and receipt scanning promotions in partnership with various brands.
Many stores feature outdoor digital signage.
With the release of its Vendor Signage and Display Guide, Walgreens has taken more control of the look and the feel of many parts of the store.
The following table examines the retailer's receptivity to displays and signs as of 2017:
Walgreens Best Bets |
|
Merchandisers |
|
Endcap Displays | Often Used |
Shelf Trays/PDQs | Often Used |
Pallets | Rarely Used |
Floorstands/Shippers | Often Used |
Dump Bins | Often Used |
Power Wings/Sidekicks | Often Used |
Category Management Systems | Sometimes Used |
Spectaculars/Lobby Displays | Rarely Used |
Racks | Sometimes Used |
Secondary Refrigerated Displays | Sometimes Used |
Signage/Media |
|
A-Boards | Often Used |
Balloons | Rarely Used |
Base Wrap | Rarely Used |
Ceiling Signs | Rarely Used |
Checkout Ads | Often Used |
Checkout Dividers | Rarely Used |
Circular Rack Ads | Often Used |
Cooler Clings | Often Used |
Counter Cards | Often Used |
Demonstration/Sampling Kits | Sometimes Used |
Digital Signage Ads | Sometimes Used |
Endcap Signage Kits | Often Used |
Floor Clings | Rarely Used |
Header Cards | Often Used |
At-Shelf Product Demo/Sample | Sometimes Used |
In-Line/Category Headers | Often Used |
In-Store Radio | Often Used |
Inflatables | Rarely Used |
Outdoor Signage | Often Used |
Neckhangers | Sometimes Used |
New Item Showcases | Sometimes Used |
Pole Toppers | Rarely Used |
Printed Handouts | Sometimes Used |
Placeholders, On-Shelf | Sometimes Used |
Price-Label Messaging | Often Used |
Security Pedestal Ads | Often Used |
Shelf Blockers | Often Used |
Shelf Strips | Sometimes Used |
Shelf Talkers | Often Used |
Shelf Danglers/Wobblers | Sometimes Used |
Shopping Cart Ads | Rarely Used |
Side Panels | Often Used |
Standees | Sometimes Used |
Take-One Dispensers | Often Used |
Tearpads | Often Used |
Stanchion Signs | Often Used |
Wall Banners | Rarely Used |
Window/Doors Signs | Often Used |
Violators | Often Used |
Third-Party Media Operator |
|
See article. |
Store Formats/Growth
![a store inside of a building](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/statest_walgreens_20.jpg)
Store Formats/Growth
Walgreens operated 8,706 retail drugstores and three specialty pharmacies in 50 states, Washington, D.C., Puerto Rico, and the U.S. Virgin Islands (as of Aug. 31, 2023).
In 2023 the retailer began testing two new store formats, one digital-forward format in Chicago and a health-and-wellness-centric format in suburban Dallas.
The Chicago location differs from traditional Walgreens stores in that it has the majority of its merchandise behind the counter, a design decision which many believe should deter theft. Specific features include:
- A larger designated online order pickup area.
- Digital kiosks, which have a full catalog of Walgreens items. An employee greets and assists customers with their orders.
- Self-checkout, for customers who prefer to shop for themselves. They can visit The Essentials area which features more than 4,000 SKUs in grocery, health & wellness, and personal care.
- Pharmacy check-in kiosks: Patients can register, select the reason for their visit, and shop or wait until their name comes up in the queue, being alerted via text or on a digital display board, and ensuring more privacy when consulting with pharmacy staff.
The Aubrey, Texas format looks like a traditional Walgreens store, but includes:
- The pharmacy located at the front of the store, with digital display boards and check-in kiosks.
- A higher number of healthcare SKUs.
- New signage and a store directory to help customers navigate the new format. Signage also offers recommendations for specific health needs; QR codes unlock more information.
- Assisted registers and self-checkout. Set at the front of the store, these are designed to speed up the checkout process.
Chainwide, stores average 14,400 square feet in total size and 11,200 square feet for the sales area.
The retailer plans to shutter more than 100 U.S. stores by August 2024, following missed earnings goals stemming in part from a drop in COVID-19 vaccine and testing sales.
Special Departments/Services
Special Departments/Services
Nearly all stores have photo departments (featuring self-serve kiosks) and drive-thru pharmacies.
Healthcare
The retailer continues to focus on growing its healthcare division through VillageMD primary care services, at-home care provider CareCentrix, specialty pharmacy Shields Health Solutions, and a clinical trials division it opened in 2022.
Walgreens and VillageMD opened several primary care offices alongside Walgreens stores and pharmacies in recent years. In addition to primary care services, the offices offer care for chronic conditions and treat everyday illnesses and injuries.
Village Medical at Walgreens opened its first Illinois practice in August 2023, in the Chicago area. The clinic includes eight exam rooms and on-site labs, and works closely in conjunction with the Walgreens pharmacy in the same complex.
In addition to the Chicago-area clinic, Village Medical at Walgreens locations have opened in Arizona, Colorado, Florida, Texas, Kentucky, Indiana, Massachusetts, Nevada, New Hampshire and Rhode Island.
Because the VillageMD unit has not experienced profitable growth, Walgreens leadership announced in October 2023 that it planned to shutter approximately 60 (about 9% of its footprint) underperforming VillageMD clinics in 2024. By February 2024, the retailer had completed nearly half of those closures. That was followed with news that all VillageMD's Florida and Illinois clinics would be shuttered.
Beauty
Walgreens’ beauty differentiation initiative, which reached more than 3,500 stores by the spring of 2023, features an elevated beauty experience with beauty consultants at select stores who provide shoppers with advice on clinical skin care and cosmetics. The beauty advisors can leverage an intranet site (operated by EnsembleIQ's Drugstore News) that they access via connected tablets. Vendors/brands participate and fund the site.
FedEx
Walgreens announced has an alliance with FedEx that offers FedEx dropoff and pickup services at thousands of Walgreens locations.
Western Union
Western Union’s Money Transfer service is available at most Walgreens locations.
Customer Segments
![a drawing of a face](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/mywag_logo.png)
Customer Segments
Walgreens uses the data it collects from the 113 million active members in its myWalgreens program to develop meaningful profiles of its shoppers. The retailer has developed a segmentation model comprising of different need states. For example, it has identified groups of shoppers who buy certain OTC products for their specific health benefits, and another group with a similar pattern of purchases that is based on a desire to look and feel good.
For manufacturers, this deeper analysis represents an opportunity to leverage brands across multiple categories. A key part of Walgreens’ strategy is to link the front and back of the store.
During a 2016 Shopper Marketing Summit seminar, a brand shopper marketer said Walgreens segments its shoppers into these groups: "grocery stop," "look good, feel good," "instant gratification" and "grab and go."
During a 2015 Shopper Marketing Conference & Expo seminar, a Walgreens executive said the retailer's shoppers are typically mission-based. "Their mission is to get in and get out, have a good experience and get on with their lives," he said. "The vast majority of customers know exactly what they are looking for the minute they walk into a Walgreens."
According to Walgreens, more than 20% of its app users are 55 and older.
Walgreens invites select members of its myWalgreens loyalty program to join its shopper panel, to take surveys and provide feedback, often for a chance to win an e-gift card.
Walgreens also tests out various concepts. In 2023 it opened a digital-forward store in Chicago's South Loop neighborhood as well as an Aubrey, Texas, location that puts a greater emphases on health and wellness. (See Store Formats/Growth.)
Internet Marketing
![Walgreens December 2023](https://assets1.p2pi.com/s3fs-public/styles/hero/public/2023-12/walgreensdec2023.png)
Internet Marketing Strategy
The Walgreens.com home page is devoid of display advertising from outside vendors and boasts a clean, modular layout. The retailer primarily promotes its myWalgreens rewards offerings, photo services and pharmacy. The retailer also touts its pickup and delivery services prominently on the home page. Manufacturers/brands often do get mention when their products are depicted as part of the retailer-driven activity.
Top-of-the-page drop-down menus take users to promotional sections of the site, including:
- Prescriptions: Order status, refills, auto refills, records, drug information, contact lenses.
- Health Services: Virtual healthcare (urgent care, allergies, acne, birth control, flu/COVID-19 treatment and more) in select markets; myWalgreens Health Access (personalized reminders and recommendations, refill alerts, healthcare history); information on Health Insurance Marketplace plans as well as Medicare and Medicaid services; vaccines and more.
- Shop: Various categories such as seasonal (holiday shop, fall and winter), cough/cold/flu, Walgreens brands, beauty, grocery and beverages, personal care, household and pet, vitamins and supplements, baby and kids, toys, home goods, gift cards and more.
- Savings: Coupons, clearance and top deals.
- Photo: Photo products and services (passport photos, customizable stationery) and more.
- More: Financial services, myWalgreens credit card, Western Union, gift cards, Scarlet digital bank account and debit card (exclusive to Walgreens).
- Weekly Ad: Deals of the week and ways to earn myWalgreens rewards. Users can view the circular’s offers by product category or search the ad. Brands are often highlighted, such as GlaxoSmithKline’s Advil, Excedrin and Voltaren products for pain relief.
- Vaccinations: Visitors can schedule flu, COVID-19, RSV and other vaccines, find information on or recommendations for vaccines (by age, for travel, etc.), and check their vaccination records.
The “Paperless Coupons” program, which is integrated into the retailer’s mobile application, digital circular and digital version of its coupon book, allows loyalty cardholders who log in to “clip” the offers to their cards. A dedicated dashboard indicates the number of coupons available, as well as how many the user has “clipped,” how many have been redeemed and how many are soon to expire. The coupons, provided by Quotient/Coupons.com, are automatically redeemed at checkout in stores. Additionally, the clipped coupons are also automatically applied when eligible products are added to a logged-in shopper's e-commerce cart.
At the bottom of the home page, a “Top Brands” section shows logos for 10 national and/or private-label brands that link to dedicated brand pages if they exist or search results on the e-commerce section of the website.
Walgreens regularly sends emails to registered consumers, who can manage their subscriptions based on the following topics:
- Weekly Ad
- Health & Wellness Resources
- Extra Deals & News
- Photo News and Offers
- Healthcare Clinic
- myWalgreens
Walgreens in July 2018 launched a digital platform and marketplace that helps consumers connect to health care services at Walgreens stores and to providers in the community. Find Care Now is accessible through the Health Services section of the Walgreens mobile app and online at www.walgreens.com/findcarenow.
Rx Savings Finder
The retailer has launched a digital tool that lets customers search for free, third-party discount cards, enabling them to find lower prices on medications. The tool is available at Walgreens.RxSense.com. Customers can access the discounted prices by text message or email.
Retail Media
Retail Media
Walgreens launched its retail media network, Walgreens Advertising Group ("WAG") in 2020. It provides a platform for brands to deliver personalized experiences to shoppers. WAG has continued to grow its capabilities, including adding advanced TV advertising options and self-serve programmatic and clean-room solutions.
Trends Report
For the past five years, brand marketers asked to rate various retail media platforms for the Path to Purchase Institute’s annual Trends Report have generally given the platforms good scores. In P2PI’s 2024 Trends Report, Walgreens Advertising Group made some gains in categories, most notably in targeting effectiveness and traffic-driving capabilities, but more than two-thirds of respondents ranked the platform’s measurement and traffic-driving capabilities as “fair/poor.” (For more, see chart below.)
![walgreens retail media trends score 2024](https://assets1.p2pi.com/s3fs-public/styles/hero/public/2024-01/walgreens.png)
Key Facts
The chart below has information compiled by The Mars Agency. It is published as part of THE AGENCY'S quarterly Retail Media Report Card, with input provided by the retail media networks
![Walgreens Retail Media Mars Agency](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2023-03/walgreensrmnmars.png)
![a stack of flyers on a table](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/2014_08_09_wag_chi012.jpg)
In-Store Media
Walgreens offers several networked advertising opportunities.
- At checkout: Targeted ads from Catalina, St. Petersburg, Florida, are printed on checkout receipts. The chain’s "Register Rewards" program delivers next-trip savings with purchase of designated products. The offers typically are on items from a single product vendor.
- In-store radio music: DMI Music & Media, Pasadena, California.
- At shelf: Walgreens participates in SmartSource shelf advertising programs from News America Marketing, New York.
- At shelf: Little Rock, Arkansas-based Vestcom International provides at-shelf price labels with promotional advertising.
- Security pedestals: StoreBoard Media, New York, is contracted to place ads on the security pedestals at Walgreens and Duane Reade.
Mobile Marketing
![Walgreens Mobile December 2023](https://assets1.p2pi.com/s3fs-public/styles/hero/public/2023-12/walgreensmobile.jpg)
Mobile Marketing Strategy
Walgreens continues to update its mobile application. Among its features are an easier-to-use bottom menu, personalized updates on the home screen for account holders, and a universal search bar, where users also can scan bar codes. The top of the home page also lets logged-in users know how much they have in loyalty cash rewards.
The home screen of Walgreens' mobile application provides links to multiple subject areas:
- Prescriptions: Primarily for prescription status and history, this link also lets users set pill reminders, manage refills, transfer prescriptions, chat with a pharmacist, order contact lenses and access vaccination records. Walgreens also has a prescription savings club, where users can search drugs and view savings on generics. (Individual annual memberships run $20, and family plans are $35 a year, for up to five family members.)
- Health Services: This digital platform has information on COVID-19 vaccines and tests as well as on other vaccines (flu, shingles, RSV), and makes it easy for patients to locate healthcare services in their area. The app also has categories for mental health, men’s health, women’s health, sleep, pediatrics, cancer care, diabetes maintenance, weight loss and more. Users can filter searches by in-person or online/telehealth services.
- Shop & Save: This connects users to the app’s e-commerce capabilities and also contains an auto-reorder manager and purchase history. Users can shop by category, create shopping lists by scanning bar codes and access the weekly ad and digital coupons.
- Photo: This link lets users order prints directly from their phone as well as through the cloud (Google Photos, Dropbox). Users can also order photo greeting cards, photo books and cubes, calendars and novelty items.
- Weekly Ad & Coupons: The currently weekly ad is displayed, and users have access to the full array of digital offers that are part of the Paperless Coupons program. Users can also take a sneak peek at the upcoming week’s ad.
- myWalgreens: This link provides access to a digital card that can be scanned at checkout in-store. Additionally, users can access their digital coupons other member-only offers as well as their up-to-date cash rewards.
- Your Store/Nearest Pharmacy: The link shows the closest store by current location or by entering city, state and/or ZIP code. Users can also choose their preferred store.
Walgreens integrated its then-Balance Rewards loyalty program (now it's myWalgreens) into Apple Inc.'s mobile payment and digital wallet service, Apple Pay, in 2015, and into Android Pay the following year.
Walgreens customers receive 3% Daily Cash when they use Apple Card with Apple Pay on eligible purchases, including prescriptions, made in Walgreens and Duane Reade stores, as well as for purchases made on the Walgreens app and on walgreens.com.
Walgreens in July 2018 launched a digital platform and marketplace that helps consumers connect to health care services at Walgreens stores and to providers in the community. Find Care Now is accessible through the Health Services section of the Walgreens mobile app and online at www.walgreens.com/findcarenow.
Social Media
Social Media Strategy
Social media is an integral part of Walgreens’ omnichannel marketing strategy. The retailer has used social media to provide information related to the COVID-19 pandemic, pushing customers to get vaccinated and to utilize Walgreens’ resources, including ship-to-home deliveries and store pickup. The retailer entices shopping through the Facebook, Instagram and Pinterest platforms, providing e-commerce links directly in its posts.
Facebook: 4.4 million Likes (as of December 2023)
Walgreens posts updates several times a week, showcasing COVID-19-, flu-, cold- and RSV-specific themes such as the efficacy and availability of vaccines as well as general health and wellness tips. The retailer also consistently pushes out updates promoting its charitable work as well as seasonal discounts. Some posts link to national brand and private label products directly from the Facebook app.
X, formerly known as Twitter: 809,600 followers (as of December 2023)
Walgreens has not tweeted since November 2022.
Instagram: 365,000 followers (as of December 2023)
Activity largely mirrors Facebook, with the exception of daily stories that promote seasonal promotions, employee stories and customers’ stories.
Pinterest: 142,900 followers (as of December 2023)
Walgreens uses the site to advertise seasonal promotions, promote individual national brand products and publicize Walgreens-specific services such as photo printing. Campaigns can combine static and video pins to educate shoppers and drive home brand awareness.
YouTube: 65,700 subscribers (as of December 2023)
Walgreens used to post every month with national TV spots as well as themed videos on such topics as beauty and COVID-19 safety procedures, but activity has tapered off.
TikTok: 32,100 followers (as of December 2023)
Beginning in the summer of 2020 during the COVID-19 pandemic, the retailer used TikTok to promote in-store shopping, COVID-19 safety procedures, employee’s stories and seasonal promotions. More recently some of the activity mirrors that of Facebook and Instagram. Influencers partner with the retailer and social media personalities highlight holiday gifting ideas, make use of FSA funds, share drugstore skincare dupes and more.
E-Commerce
E-Commerce Strategy
Like its European counterpart does with boots.com in the UK, WBA’s Retail Pharmacy USA Division provides a robust e-commerce platform via walgreens.com. Launched in 1999 as a comprehensive online pharmacy, walgreens.com now offers a far greater assortment of products than in stores.
Statista’s ecommercedb.com website estimated that walgreens.com had $2.3 billion in online sales in 2022. That number is approximately 2.1% of Walgreens’ total sales in fiscal 2022 (ending Aug. 31, 2022).
“Shop Now” links take consumers to product or category search results, where they can click products and add them to their carts. Logged-in loyalty program members can clip coupons on sale pages as well as within product categories. Consumers can also use the “Shop” tab on the home page to search product categories.
The “Shop” drop-down menu and landing page groups products into several primary categories:
- Cough, cold and flu;
- Walgreens brand;
- Beauty;
- Grocery and beverages;
- Personal care;
- Medicines and treatments;
- Household and pet essentials;
- Vitamins and supplements;
- Sexual wellness;
- Home health care solutions;
- Baby and kids;
- Toys, games and books;
- Home goods;
- Fitness and nutrition;
- Gift cards;
- Electronics and office; and
- Caregiver essentials.
Seasonal categories such as a holiday shop or fall and winter items are also in the shopping category. Site visitors can also search for W Cash Rewards offers, clearance and sale items, the weekly ad or weekly online deals, by brand, or opt to buy again.
MyWalgreens cardholders must log in to the site to receive program benefits with e-commerce purchases. The retailer’s Paperless Coupons functionality is available for online as well as in-store purchases through a partnership with Quotient/Coupons.com.
Walgreens’ mobile app is fully integrated with the e-commerce platform.
Walgreens offers free shipping on online orders of $35 or more. Shoppers also have the option of picking up eligible online and mobile app retail orders in-store, with free shipping and no minimum order required.
For the 2023 holidays, Walgreens offered free 1-hour delivery on orders of $20 and up during peak shopping times (Dec. 15-17, Dec. 24-25 and Dec. 31-Jan. 1). Some locations offered Christmas Day delivery and pickup.
A "Buy Again" tab on walgreens.com allows for easy reordering of previously purchased products. Purchase history can be sorted by availability (for pickup, same-day delivery or shipping); product category; brand; product type; sales, offers and coupons; and by price.
In late 2022 the retailer began testing a new quick shop option in New Mexico, Oklahoma, and select Texas markets, allowing customers to pick up orders placed through its e-commerce site or app within 30 minutes. The retailer also began offering 24-hour same-day delivery at nearly 400 participating 24-hour Walgreens stores.
Walgreens.com promotes easy online payments using PayPal as well as major credit, debit and FSA cards, and select OTC benefit cards.
Walgreens has delivery partnerships with Postmates, DoorDash, and Uber Health. The retailer teamed with DoorDash and Uber to provide free delivery of Paxlovid COVID-19 and HIV medications.
The retailer touts its e-commerce business through all of its promotional vehicles, including the circular, social media and emails to registered consumers.
A Cyber Week promotion promises 25% off regularly priced items on walgreens.com. Recurring promotions such as Friends & Family and Seniors Day promise 20% off in stores and online.
Same day Rx delivery is available at more than 8,000 Walgreens stores.
In partnership with Narvar and its Narvar Concierge e-commerce solution, Walgreens provides package pickup and returns for consumers via FedEx OnSite services.
In September 2018, Walgreens Boots Alliance announced the launch of a flagship store on Alibaba Group’s Tmall Global platform to sell its own beauty brands to Chinese consumers. The new Boots flagship Tmall Global store gives Chinese consumers access to some of the most popular Boots beauty brands, initially No7, Soap & Glory and Boots Cucumber.
In October 2019, Walgreens began its drone delivery pilot with Wing, a subsidiary of Alphabet. In 2021 and 2022, the drone-delivery operation also expanded into Texas, including the Dallas-Fort Worth metro area.
In September 2019, Walgreens Boots Alliance launched a direct-to-consumer site for its No7 beauty brand in the U.S. (no7beauty.com). There, customers can sign up for myNo7 Rewards, with a tiered points system determined by spend.
Kroger and Walgreens offer Kroger Pickup at Walgreens, where shoppers can order food and other essentials from the grocer and pick them up at select Walgreens locations in Tennessee. Shoppers can also choose the Kroger Express option, to purchase perishables and more, and pick them up at select Walgreens stores in Kentucky and Tennessee.
In another fulfillment partnership, in October 2022, Walgreens became one of several retailers allowing Abercrombie & Fitch customers to pick up their apparel orders placed on the clothing retailer’s website from approximately 12,000 locations nationwide.
Circulars
![walgreens circular cash rewards](https://assets1.p2pi.com/s3fs-public/styles/hero/public/2023-12/wcashrewardscirc.png)
Circulars and Publications
Walgreens suspended distribution of its Sunday print circular in June 2020 due to “consumer behavior shifts” brought on as a result of COVID-19.
The digital version, housed on walgreens.com and on the Walgreens app, continues to offer advertising sales that run Sunday through Saturday. The weekly deals are no longer displayed in a page-flip format. Instead the weekly ad page is searchable. Users can enter specific search terms or brand names, or click on tabs to explore categories (deals of the week, vitamins and supplements, beauty, and more). Retailer and brand/manufacturer promotions and programs are highlighted as well.
The weekly ad calls out myWalgreens offers in addition to special pricing that is available only to loyalty program members. The tabs also promote the availability of complementary coupons, providing click-to-card access to coupons for logged-in users.
Walgreens typically devotes multiple pages to its own promotions, including seasonal and beauty efforts. The chain also promotes its photo and pharmacy/healthcare clinic services.
Walgreens publishes a “sneak peek” digital version on Wednesday, four days before it officially drops.
Walgreens also:
- Promotes monthly deals, typically on major brands such as Sanofi's Allegra or Nasacort, Haleon's Tums, or DeMet's Candy Company's Turtles, sometimes with coupons one can "clip" to add to their account.
- Frequently and consistently partners with multiple manufacturers for co-op FSIs through SmartSource and RedPlum.
Loyalty Programs
![A more rewarding experience for you](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/screen_shot_2021-01-21_at_12.49.09_pm.png)
Loyalty Programs
Eight years after launching its Balance Rewards loyalty program in 2012, Walgreens replaced that program with a new, more personalized version called myWalgreens. The drug chain on Oct. 1, 2020, sent an email to Balance Rewards members introducing myWalgreens, calling it a “one-of-a-kind program that makes saving, shopping and your well-being easy.”
MyWalgreens allows members to earn Walgreens Cash on eligible purchases — 5% on Walgreens-branded items and 1% on all other purchases, including pharmacy prescriptions.
By late 2023, Walgreens said its myWalgreens program had 113 million members.
Members use their myWalgreens account in stores by entering their phone number or scanning the barcode in their app at checkout. At walgreens.com, members must log in to their accounts before making a purchase. They can manage their account via a myWalgreens dashboard.
In 2021, Walgreens introduced a myWalgreens credit card program, featuring two retail health and wellness credit cards, issued by Synchrony Bank. The myWalgreens Mastercard and the myWalgreens credit card reward more personalized wellbeing choices with Walgreens Cash rewards:
- myWalgreens credit card cardholders can earn 10% Walgreens Cash rewards on eligible Walgreens-branded products and 5% Walgreens Cash rewards on all other eligible brands and pharmacy purchases.
- myWalgreens Mastercard cardholders also earn 3% Walgreens Cash rewards on all eligible grocery and health and wellness purchases outside of Walgreens and including healthcare provider visits, and 1% Walgreens Cash rewards on eligible purchases wherever Mastercard is accepted.
- Cardholders earn $25 in Walgreens Cash rewards when they make their first purchase within 45 days of opening an account. During special promotional times such as myW Days in July 2023, members could earn extra rewards, including $50 in Walgreens Cash Rewards for opening a myWalgreens line of credit.
Less prominently, Walgreens also still operates a program called "Register Rewards" that delivers next-trip savings with purchase of designated products via Catalina coupons printed at checkout. The offers often are on products from a single manufacturer.
As part of a larger financial services program integrated with its Balance Rewards loyalty program, Walgreens offers a Balance Financial prepaid MasterCard. (Western Union's money transfer services are part of the Balance Financial platform and are accessible via the retailer's in-store photo kiosks.)
No7 Beauty
Walgreens Boots Alliance also has a direct-to-consumer site for its No7 beauty brand in the U.S. (no7beauty.com), which has its own rewards program. myNo7 members earn points, including one point for every dollar spent, 50 points for completing a beauty profile, and five points for every product review submitted. The loyalty program has three tiers:
- Beauty Admirer: 0-99 points. Includes a birthday discount, access to VIP area and other exclusive discounts, and "flash points" on exclusive sales.
- Beauty Insider: 100-249 points. Same benefits as the Admirer level, but also includes a welcome gift, free premium delivery on orders of $75 and up, and early access to new products.
- Beauty VIP: 250+ points. Same benefits as other tiers, but also free express delivery on orders of $65 and up as well as a chance to win PR packages, beauty treatments or invites to brand events.
Private Label
![calendar](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/2017_07_09_wag_barril_2_1.jpg)
Private Label
Parent company Walgreens Boots Alliance leverages some of its brands globally, among them No7, Botanics and Soap & Glory. Most go beyond typical private label status, including No7 and Soap & Glory, with its products being sold at Target and Ulta Beauty in the U.S. as well as Walgreens' stores.
Strictly in the U.S., Walgreens introduced Nice! products in 2011 and phased out of many Walgreens-branded products and other private labels (e.g., Deerfield Farms). In 2017, placing an emphasis on healthy living, Walgreens repositioned and relaunched its Nice! private label, labeling it as "Simple. Honest. Delicious," with some products being changed to "Simple. Honest. For You."
The retailer continues to focus on its own brand penetration, which stands at 17.1%.
The private label encompasses hundreds of products including snacks, baking mixes and needs, breakfast foods (new in 2023, with cereals, granolas, instant oatmeal and oats), sodas and sparkling waters, travel accessories, and cleaning equipment. There are some premium and organic offerings, but most fall into the everyday category. Redesigned packaging includes a new brand logo featuring a prominent, lower-case and cursive "nice!" within a circle along with "Simple," "Honest" and "Delicious" (or "For You") smaller and in a different font. Additionally, package labels carry a variety of symbols and claims reflecting the products ingredients — including but not limited to calories, protein, heart healthy, cholesterol free, gluten free and low sodium.
Many of the retailer’s OTC and personal care products, which transitioned to the Well at Walgreens label beginning in 2011, have since returned simply to the Walgreens brand.
Walgreens Boots Alliance in July 2017 announced a binding offer from Fareva for a 10-year global agreement for the manufacture and supply of own beauty brands and private label products, including products for sale in the U.S.
The retailer’s private and exclusive brands are:
- Big Roll: Paper towels, napkins, toilet paper
- Botanics: Skincare
- Complete Home: Home goods, household and pet essentials, electronics and office
- Festive Voice: Seasonal, party, toys
- Infinitive: Electronics
- Living Solutions: Automotive care, insulated mugs, kitchen utensils, small appliances, lighting
- Modern Expressions: Seasonal and aromatherapy candles
- Nice!: Grocery, home goods, household and pet essentials, toys, games
- No7: Cosmetics and skincare
- No7 Men: Skincare
- PetShoppe: Cat and dog treats and toys, puppy pads, leashes, collars and other pet supplies
- Playright: Children's games and arts and crafts
- Smile & Save: Home goods
- Soap & Glory: Beauty, bath, skin care
- Well Beginnings: Baby products, including wipes, powders, formula
- West Loop: Apparel and accessories
- Wexford: Office and mailing supplies
Cause/Community Programs
![graphical user interface](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/wag_2017_11_14_desplainesil_23_0.jpg)
Cause/Community Programs
For the ninth straight year in 2023, Walgreens was the exclusive retail partner of Comic Relief's Red Nose Day in the U.S. The drugstore chain garners and trumpets widespread support from its vendor community in the weeks leading up to a network telecast of "The Red Nose Day Special.” The retailer identifies a massive team of Red Nose Day partners as "proud supporters" in a variety of ways both in store and online.
- Walgreens teams with Kimberly-Clark's U by Kotex and Thinx brands to help end period poverty. For a limited time, purchases of U by Kotex and Thinx SKUs result in two period products being donated to the Alliance for Period Supplies, which in turn are distributed to schools, youth camps, shelters and other community organizations in need.
- The ongoing Vitamin Angels program pledges 1% of retail sales of eligible vitamins and supplements to nonprofit Vitamin Angels through the end of 2023.
- Using the "Get a Shot, Give a Shot" tagline since the 2017-18 flu season, Walgreens promises to donate the value of one vaccination to the nonprofit United Nations Foundation and its Shot@Life program for every shot administered in stores during a designated time period.
- Walgreens works to inform the public via its blog, The Thread, on various topics including skin cancer, mental health, diabetes, vaccinations and more.
- The Walgreens Way to Well Commitment is focused on preventing and detecting today's top diseases by working with health organizations and providing health/wellness services and education to local communities. The effort has achieved its goal of donating $100 million toward prevention.
- Walgreens and Greater Than HIV, a leading national public information response to the domestic HIV/AIDS epidemic, work with hundreds of health departments, AIDS service organizations, and other community organizations to help provide free HIV testing and information at participating Walgreens stores in more than 400 stores on National HIV Testing Day, June 27.
- Walgreens offers safe medication disposal kiosks at nearly 1,500 stores nationwide. It also takes part in National Prescription Drug Take Back Day.
- Walgreens shows support for veterans through an annual four-day savings event around Veterans Day, where veterans, active duty military and their family can enjoy savings on select products. Also, for Memorial Day weekend, the retailer offers savings on non-sale items.
- Walgreens in July 2018 launched a digital platform and marketplace that helps consumers connect to health care services at Walgreens stores and to providers in the community. Find Care Now is accessible through the Health Services section of the Walgreens mobile app and online at www.walgreens.com/findcarenow.
Walgreens also has stated a commitment to sustainability, with four goals for its branded products by 2030:
- Reduce plastic packaging by 30%,
- Make all packaging recyclable,
- Increase recycled content in packaging, and
- Eliminate problematic single-use packaging.
Some of the ways the retailer is improving product recyclability is by switching from black plastic caps to white plastic caps in seven Walgreens brand products. White caps are easier to recycle, because black caps can be read as waste by recycling facilities' sorting systems. The change potentially saves 13 tons of plastics from landfills. Walgreens is also eliminating PCV plastics and adding How 2 Recycle guidelines to product packaging.
Advertising Strategy
Advertising Strategy
Walgreens abandoned the "Trusted Since 1901" tagline in mid-2020 as it launched the myWalgreens loyalty program later that year.
Walgreens unveiled the "Trusted Since 1901" tagline in December 2017. The phrase replaced "At the Corner of Happy and Healthy," which Walgreens had used since August 2012.
"We went deep into Walgreens history to rediscover what makes Walgreens great," Alex Gourlay, then co-chief operating officer for Walgreens Boots Alliance and president of Walgreens, said in a media release. "It was clear from our research that three strong characteristics define our relationship with our customers, rooted firmly in our history since 1901: care, trust and accessibility. We've always cared for our customers' health and well-being, but how we've cared has evolved over time. As consumer behavior continues to change, we will focus on these core attributes to help define the work we do."
The roots of the "Trusted" tagline can be traced back to December 2011, when Walgreens filed a trademark for "Well Trusted Since 1901." Having removed "Well" from the original phrase, Walgreens in October 2017 filed a trademark for "Trusted Since 1901."
"'Trusted Since 1901' reinforces the fundamental truth of the work we do: that behind every prescription and purchase is a person, and behind every person is a unique story," Adam Holyk, Walgreens senior vice president and chief marketing officer, said in the release.
The tagline is also part of the retailer’s official logo.
Previously, Walgreens had positioned its stores as operating "At the Corner of Happy and Healthy" with a new TV spot that was the first work of Austin, Texas-based GSD&M, which became Walgreens' agency of record in June 2012.
Walgreens deploys TV spots in both English and Spanish to support its pharmacy services and the major programs on its promotional calendar (e.g., winter holidays, Easter, Mother’s Day), and also uses local radio spots in the same manner. Additionally, the chain consistently deploys co-op local radio spots with manufacturers/brands and in e-mail blasts.
In time for the 2023 holidays, Coca-Cola Brands sent newsletter subscribers Coke-branded cocktail and mocktail recipes. The links took users to a Coca-Cola.com page with recipes and featured Coca-Cola products that took them to Walgreens' e-commerce page.
The retailer regularly partners with manufacturers on co-op FSIs, while also running its own multi-page FSI events to support its larger programs (e.g., allergies, diabetes).
Solution Providers
![calendar](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/2014_04_15_walgreens_chi008.jpg)
Solution Providers
- WBA global advertising: WPP (Ogilvy, Finsbury, BCW, GCI and Hill+Knowlton Strategies)
- Circular planning and buying: Novus Media, Bloomington, Minnesota
- Shopper data analysis and targeted marketing services: Emnos USA, Chicago
- Digital cooler doors: Cooler Screens, Chicago
- In-store security pedestal ads (pictured at right): StoreBoard Media, New York. All requests for security gate panels must go through StoreBoard Media.
- Antibacterial dispensing wellness kiosks: Terraboost Media, Miami Beach, Florida
- Register Rewards/POS checkout system: Catalina, St. Petersburg, Florida
- POS advertising: Neptune Retail Solutions, Jersey City, New Jersey
- In-store radio/music: DMI Music & Media, Pasadena, California
- Price labels: Vestcom International, Little Rock, Arkansas
- Digital circular: Flipp, Toronto
- POP Displays: TPH Global Solutions, Skokie, Illinois
- Preferred P-O-P vendor: Great Northern Instore, Bannockburn, Illinois
- Preferred P-O-P vendor: Menasha Packaging Co., Northbrook, Illinois
- Preferred P-O-P vendor: The Royal Group, Cicero, Illinois
- Preferred P-O-P vendor: WestRock, Atlanta
- Space and floor planning processes: JDA Software Group Inc., Scottsdale, Arizona
- In-store branding: Jackman Reinvention, Toronto
- Walgreens Viewpoint online shopper panel: Verve, Chicago
- Market research: The Link Group, Atlanta
- U.S. public relations agency of record: Weber Shandwick, New York City
- ATM services: Cardtronics, Houston
- Second-party data marketplace: OwnerIQ, Boston
Walgreens Advertising Group
- Retailer Media Network: Walgreens Advertising Group
- Self-Service Platform for Buying Retail Media: Criteo, Paris, France
- Demand Side Platforms (DSP): The Trade Desk, Los Angeles
- Demand Side Platforms (DSP): OpenX, Pasadena, California
- MyWalgreens platform: Epsilon, Irving, Texas
- Digital and in-store media: Neptune Retail Solutions, Jersey City, New Jersey
- Digital/Paperless Coupons: Coupons.com/Quotient Technology, Mountain View, California
- Operational data sharing program: Retail Solutions (RSi), an IRI company, Mountain View, California
- Data insights: IRI, Chicago
- Electric charging stations and digital advertising: Volta Inc., San Francisco
Sponsorships
![Ravi Patel holding a sign](https://assets1.p2pi.com/s3fs-public/styles/hero/s3/2022-07/wag_twitter_red_nose_april_4.png)
Sponsorships
In 2015, Walgreens began a partnership with London-based Comic Relief to support the “Red Nose Day” fundraising event. Red Nose Day funds charitable programs that address the needs of children and young people living in poverty in the U.S. and internationally in Africa, Asia and Latin America. Walgreens is the exclusive retailer of emblematic red noses in the U.S, and its marketing campaign supporting Red Nose Day is the retailer's largest effort of the year..
Walgreens previously served as the official retail sponsor of the People's Choice Awards, a Procter & Gamble-owned property, through 2016. The annual marketing effort leveraged fashion expert Tim Gunn and P&G’s beauty products. The inaugural program earned a 2014 Shopper Marketing Effie Award.
The retailer sponsors the American Diabetes Association's "Step Out: Walk to Stop Diabetes" events that take place in 125 cities across the country.
Walgreens routinely partners with its hometown Major League Baseball team, the Chicago Cubs, while also supporting events in local communities across the country.
Additionally, Walgreens consistently taps into the sponsorships of its vendor partners, including Coca-Cola (World Cup), Johnson & Johnson (World Cup), PepsiCo (NFL), Unilever (NCAA) and Hershey.
Marketing Expenditures
Marketing Expenditures
Walgreens Boots Alliance's net advertising expenses (reduced by the portion funded by vendors) were:
- $775 million in fiscal 2023
- $862 million in fiscal 2022
- $772 million in fiscal 2021
- $532 million in fiscal 2020
- $585 million in fiscal 2019
- $665 million in fiscal 2018
- $571 million in fiscal 2017
- $598 million in fiscal 2016
- $491 million in fiscal 2015
Walgreens Promotional Calendar
A roundup of seasonal promotions.
January
- New Year: Integrated, health-focused campaign receives support from a plethora of brands; vitamins and supplements take center stage. Brand-agnostic social media updates help ring in the New Year.
- Super Bowl: “Game Day” campaign often gains the support of official NFL sponsors (e.g., PepsiCo, Anheuser-Busch and Mars Inc.) as well as other national brands.
- Valentine’s Day: Promotions focus on gifts (candy, cosmetics, fragrances) with special emphasis placed on greeting cards from Hallmark. Activity includes digital circulars and social media updates spotlighting candy items and greeting cards.
- Cold & Flu: Continues activity that began in August of the previous year.
- Martin Luther King Jr. Day: Product-devoid social media updates honoring Dr. King and supporting health equity.
- Seniors Day: Adults 55 and older or members of AARP can save 20% on select items the first Tuesday of the month.
February
- Heart Health Month: Program brings brands together for themed endcaps. Retailer supports the American Heart Association.
- Black History Month: Social media updates honoring Black communities.
- Cold & Flu: Continues activity that began in August of the previous year.
- Big Beauty Event: MyWalgreens rewards members can clip a coupon offer to earn $10 in Walgreens cash rewards when spending at least $30 on select cosmetics, nails and accessories.
- Super Bowl
- Valentine’s Day
- Seniors Day
March
- March Madness: Using the recurring “Game Day” theme, program leverages the official NCAA sponsorships of manufacturers (e.g., Coca-Cola, Hershey and Mondelez International) for a tie-in to the Division I men’s basketball tournament. Also partners with Unilever separately.
- Allergies: “Allergy Relief” campaign launches as spring begins with support from most of the major category brands.
- Easter: Runs a P-O-P heavy campaign that typically boasts multiple promotional partners, including Mars Inc.’s Starburst and Hershey Co.’s Cadbury. Digital circular features support.
- Cold & Flu: Continues activity that began in August of the previous year.
- Spring Cleaning: Social media updates in 2022 spotlighted cleaning SKUs from Method and linked to Walgreens.com for more “spring cleaning essentials.”
- St. Patrick’s Day: A spotlight on green-colored items. A Facebook update in 2022 also shared a “Guinness cake” recipe.
- International Women’s Day/Women’s History Month: Brand-agnostic social media updates celebrating women.
- Seniors Day
- Big Beauty Event
April
- Red Nose Day: The exclusive retailer partner of Comic Relief’s charity enlists support from countless manufacturers for a massive campaign. Physical red noses returned in 2022 after a two-year hiatus due to the COVID-19 pandemic.
- Passover: Celebratory social media posts.
- Mother’s Day: Employs a consistent theme across multiple marketing vehicles leading up to the holiday. Among the activity, digital circular features spotlight gifts and brand-agnostic social media posts celebrate moms.
- Spring Cleaning: Activity continues with deals on household cleaning products.
- Spring Break: Social media updates highlight products to pack from national and private label brands.
- Earth Day: Brand-agnostic social media updates promote Earth-friendly activities.
- Ramadan: Brand-agnostic social media activity. (Note that Ramadan is a floating holiday that shifts by approximately 10 days each year.)
- National Prescription Drug Take Back Day: The retailer has safe medication disposal kiosks at nearly 1,500 locations, but takes part in the initiative to help combat prescription drug abuse.
- Allergies
- Easter
- Seniors Day
May
- May the 4th Be with You: Social media activity spotlights Star Wars SKUs from brands including Funko Pop and Lego Group.
- Summer: In-store showcase for summer essentials such as sunscreen, grilling accessories, insect repellent, toys and snacks/beverages, as well as Memorial Day deals.
- Memorial Day: Veterans, active-duty military and their immediate family get a 20% discount on regularly priced products (with some exemptions) when they present a valid military ID and have myWalgreens membership.
- Graduation: In-store merchandising for gifts.
- Asian American/Pacific Islander Heritage Month: Brand-agnostic celebratory social media posts.
- Red Nose Day
- Allergies
- Mother’s Day
- Seniors Day
June
- Summer: Continues social-media-heavy activity that began in May. Skin care, cookouts and 4th of July celebrations are a focus. Banana Boat typically leads brands receiving prime secondary merchandising space in stores.
- Father’s Day: Similar to Mother’s Day effort but smaller in scale.
- Pride Month: Rainbow-colored and related items get the spotlight in stores. Social media updates in 2022 plugged a Pride collection from Sally Hansen and solicited to-be-matched donations to The Trevor Project.
- Juneteenth: Brand-agnostic social media updates celebrate Black culture.
- Graduation
- Allergies
- Seniors Day
July
- Back to School: Integrated campaign typically launches the week after the 4th of July. Promotes available vaccines.
- Summer: Activity continues with social media updates plugging items such as mosquito repellent and sunscreen.
- July 4: A weekend-long 20% discount on regularly priced products for all veterans, active duty military personnel and immediate family.
- MyW Days: New for 2023, Walgreens is offering loyalty program members accelerated rewards-earning opportunities on products and services.
- Seniors Day
August
- Back to School: Activity continues with support from an abundance of “smart savings” promotions in digital circulars and stores that extend to the personal care category.
- Cold & Flu: Eight-month season kicks off with comprehensive activity focused on flu shots.
- Labor Day: Party/cookout focus leading into the end-of-summer holiday.
- Summer: Activity continues. In 2022, experiential retailer Camp doled out limited-edition beach bundles comprising toys, a summer activity book and store brand health and wellness essentials.
- National S'mores Day: Social media positioned Hershey's chocolate bars as a key ingredient to make the campfire treats and linked to Walgreens.com for a list of more ingredients.
September
- Cold & Flu: Activity continues. Focus expands to OTC products.
- Football: Seasonal “Game Day” campaign gets support from multiple promotional partners, including the alcoholic beverage category.
- Back to School: Seasonal activity wraps up early in the month.
- Halloween: Activity kicks off in the middle of month.
- Hispanic Heritage Month: Brand-agnostic social media posts celebrate the occasion.
- Labor Day: Brand-agnostic social media post recently focused on gratitude for essential workers.
- Seniors Day
October
- Halloween/Dia de Muertos: P-O-P-heavy campaign focusing on confectionery, decorations and party-hosting needs, recently also adding Dia de Muertos items. Circular features and social media posts support.
- MyW Days: A smaller version of the July event.
- Breast Cancer: Leverages October’s designation as “Breast Cancer Awareness Month” in various ways, including social media posts about early detection and the retailer’s support of Susan G. Komen.
- Cold & Flu: Activity continues, with the vaccination push including COVID shots.
- Fall: A spotlight on colder-weather items such as Hershey’s hot chocolate in stores.
- Diwali: Brand-agnostic social media posts wish those who celebrate a happy holiday.
- World Mental Health Day: Social media updates share tips on a healthy mindset.
- National Prescription Drug Take-Back Day
- Seniors Day
November
- Holiday: Executes a fully integrated campaign with various themes that typically includes an online holiday gift shop, gifts of the week and, at times, a toy drive. Social media updates promote custom cards from the photo department.
- Diabetes Awareness Month: Free in-store glucose testing and a checkout fundraiser for the American Diabetes Association.
- Veterans Day: A four-day Veterans Day discount of 20% off eligible products for veterans, active duty military personnel, and their family members. Social media updates support.
- Thanksgiving: For 2023, most locations will be closed, with the exception of nearly all 24-hour locations.
- Fall/Winter: Brand-agnostic, health-focused social media updates.
- National Caregivers Month: Brand-agnostic social media updates acknowledge the month.
- Cold & Flu
- Seniors Day
December
- Holiday: Activity continues. Winter-themed digital circular features highlight items such as Hallmark gift bags, pet toys, giftable holiday chocolates and Coca-Cola Co. products. In 2023, many holiday items were marked down up to 50% more than a week prior to Christmas. The retailer also offers Holiday Deals of the Week, ways for loyalty program members to earn more Walgreens Cash, and 12 Days of Deals with daily promotions, markdowns and loyalty rewards.
- Kwanzaa: Brand-agnostic social media updates celebrating the holiday.
- New Year: As Jan. 1 approaches, promotions focus on both party supplies and healthy activities.
- Cold & Flu
- Seniors Day