Dive Brief:
- Walgreens plans to close a “significant” number of its U.S. stores but will focus its efforts on delivering better experiences at its remaining locations, Tim Wentworth, CEO of Walgreens Boots Alliance, said during a Q3 2024 earnings call Thursday.
- The company will update its store, pharmacy and digital operations to meet shifting customer expectations. Efforts include reducing wait times for pharmacy patients and refining in-store product selection.
- “We remain relentlessly focused on enhancing the front of store and creating the right omnichannel experience for our customers while driving in-store efficiencies,” Wentworth said during the call.
Dive Insight:
Walgreens is staking its future success on its retail pharmacy experience as the struggling company saw growth well below expectations in Q3.
Part of Walgreens’ plan is investing in community pharmacy initiatives and encouraging pharmacists to build long-term relationships with their patients, according to Wentworth.
Walgreens is working with schools and trade associations to address an industrywide pharmacist shortage and attract fresh talent to its stores. The initiative includes getting students excited about the idea of community pharmacy.
Walgreens will make investments in back-of-store automation, a strategy that it previously paused as it focused on other opportunities, Wentworth said. Improved automation is expected to free up labor to handle higher order tasks.
Wentworth didn’t specify what these tasks would entail, but at other retailers, automation has let workers spend more time with shoppers, which would be in line with Walgreens’ overall CX goals.
“Over our 125-year heritage, we have earned the right to engage with patients and customers in a way that few others can rival,” Wentworth said. “I believe that this human-to-human interaction is an imperative in healthcare and the core foundation of our business is the relationship we have with our customers.”
The retailer plans to boost its loyalty program, including such benefits as same-day delivery. Walgreens delivers 80% of same-day delivery orders within one hour, but Wentworth sees room for improvement.
