Overview of Walgreens Corporation

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TABLE OF CONTENTS

LIST OF FIGURES……………………………………………………………………….

EXECUTIVE SUMMARY……………………………………………………………….

COMPANY DESCRIPTION……………………………………………………………..

HISTORY……………………………………………………………………………........

MANAGEMENT

David W. Bernauer…………………………………………………………………. Jeffrey A. Rein………………………………………………………………………

PRODUCTS AND SERVICES

Products…………………………………………………………………………….. Services……………………………………………………………………………...

COMPETITIVE LANDSCAPE…………………………………………………………..

FINANCIAL REVIEW…………………………………………………………………...

CONCLUSION…………………………………………………………………………...

WORKS CITED…………………………………………………………………………..iii

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FIGURE 1: NUMBER OF STORES NATIONWIDE……………….……………..….....

FIGURE 2: DAVID W. BERNAUER PHOTO……..……………………………………

FIGURE 3: JEFFREY A. REIN PHOTO………….……………………………………...

FIGURE 4: 2006 SALES BY PRODUCT CATEGORY………………………..……….

FIGURE 5: DIRECT COMPETITOR COMPARISON……………………………..…...

FIGURE 6: 2001 – 2006 SALES AND NET EARNINGS…………………………........

FIGURE 7: STOCK PRICE HISTORY………………………………………………….

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LIST OF FIGURES
EXECUTIVE SUMMARY

Company Description
Walgreens is a nationwide chain of drug stores, with its headquarters located in Deerfield, Illinois. It currently owns and operates about 5,515 stores in the U.S. and Puerto Rico. Walgreens stores offer prescription and non-prescription drugs, grocery items and general merchandise. Its main goal is to maintain constant growth and innovation. History

Walgreens was opened in 1901 by Charles R. Walgreen. It quickly became successful because of Walgreens’ commitment to their customers and employees. In 1910, the second store was opened and has been increasingly expanding since then. The corporate philosophy “growth according to plan” was very successful in growing of Walgreens corporation. Management

Two executives highlighted in the report are David Bernauer and Jeffrey Rein. Bernauer started his career with Walgreens in 1966 as a pharmacy intern. He graduated from North Dakota University with a B.S. in pharmacy. Today Bernauer is the chairman of the company. Rein is a president and a chief executive officer of Walgreens. He started his career with the company in 1982 after graduating from the University of Arizona with an accounting degree.

Products and services
Three main categories of products are prescription drugs, general merchandise, and non-prescription drugs. Prescription drugs are the main seller of Walgreens pharmacies, and it accounts for 64% of all sales. General merchandise is the second with 25% of total sales. Non-prescription drugs is the smallest category and it brings in 11% of sales. Services include a full-service pharmacy, photo development, and redbox. Competitive landscape

Walgreens’ main competitors are supermarkets, merchandisers, online stores, and mail-order prescription drugs. The company’s main strengths are: ability to retain employees, building new stores in high traffic locations, and virtual lack of long and short-term debt. Opportunities include an increase of 8.2% in pharmacy sales over the last year, and expected sales growth. Walgreens’ main strategy of growth is building new stores. Their weakness is that this strategy is not very sustainable for a long-term period. Company would also have to acquire existing stores, like their competitor CVS does. Financial review

In 2006 Walgreens had an increase in sales of 12.3%, compared with 7.7% increase in comparable stores. Sales increase on prescription drugs amounted to 13.3%. Net earnings of the company increased to a total of 1.751 billion from 1.560 billion in 2005.

Company Description
Walgreens is a nationwide chain of drug stores serving 4.7 million customers per day. A typical store is about 15,500 square feet with the sale area of 11,000 square feet. In contrast, the first Walgreens had an area of only 1000 square feet. Each store employs 25 to 30 employees...
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