Walgreens unveils pilot programme

Date : 27 April 2018

Walgreens launches new pilot programme in Gainesville, Florida.

Optimised range, new services

The format is initially being launched in 17 stores and customer feedback over the next 12 to 18 months will influence further roll out.

Each store will feature an optimised product range with at least 20% fewer products on offer.

Walgreens has extended its partnerships with third parties to offer more convenient services. For example, its in-store concession from mobile phone provider Sprint, and wider range of delivery services with FedEx. Some of the trial stores also expand on Walgreens' existing pilot with LabCorp offering patient care services.

Simpler pricing and promotions, new loyalty subscription

Walgreens has introduced a new pricing and promotional strategy as part of the trial. This includes:

  • Lower every day prices on over 5,000 items across its health and beauty, personal care, grocery and homeware ranges
  • The launch of a new loyalty subscription programme called Walgreens Plus
    • $20 annual fee
    • 20% price discount on shopping, including sales items
    • Up to 60% off  prescriptions not billed to insurance (with further terms and conditions)
    • Free same day prescription delivery

Walgreens President Alex Gourlay said, “Today, more than ever, customers are looking for trusted advice, fair value and convenient products and services. At these stores in Gainesville, we are introducing a compelling retail experience that combines lower every day prices, the products customers ask for most often and modern convenience.”

Investment in digital

Walgreens is enhancing its digital capabilities as well as its in-store offer. The retailer is set to invest a further $500million on technology development over the next three years.

The retailer has already invested over half of its $1 billion budget in implementing new technology systems, designed to improve efficiency and lower costs for the business.

Walgreens is focusing its transformation strategy in three key areas: gaining shopper insight through analytics, improving in-store experience, and developing its digital capabilities.