Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

Founded in 1901, Walgreen Co. (Walgreens) is the largest drugstore chain in the U.S. counting 244,000 employees and 8,046 locations in 2010. 2010 has been the company’s 36^th consecutive year of record sales besides being named to the Fortune’s magazine list of Most Admired Companies in America for the 17^th consecutive year, as well as being ranked 32^nd on the Fortune 500 list. Walgreens’ service offerings include retail, mail and online pharmacy, in-store Take Care Clinics, employer worksite health centres, hospital pharmacy services, specialty pharmacy, home infusion services, and pharmacy benefit solutions. Walgreens Health and Wellness division is comprised of Take Care Health Systems, a wholly owned subsidiary of Walgreens. TCHS is the largest and most comprehensive provider of worksite health and wellness centres and convenient care clinics in the country.

Walgreens recorded net sales of $67,420 million during the financial year ended August 2010 (FY2010), an increase of 6.4% over FY2009. Its net earnings were $2,091 million in FY2010, compared to net earnings of $2,006 in FY2009.

Although Walgreens managed to maintain its AA- brand rating in 2011, the retailer's brand value decreased by 4.5% to $11,182m. At the same time, enterprise value fell by 5.3% to $31,632m.

Positive Aspects

Walgreens for active community involvement

Walgreens establishes meaningful connections with the communities it serves through support of health care organizations, creation of job opportunities for people with disabilities, financial aid to college programmes that help those with limited financial means, “green” initiatives, and involvement in local events. The Company sponsors national programmes for the American Cancer Society, American Heart Association and Juvenile Diabetes Research Foundation. In 2010, to promote preventive health care, the AARP/Walgreens Wellness Tour buses travelled across the United States and Puerto Rico, providing nearly 1.2 million health screenings worth more than $27 million in more than 1,400 communities.

Walgreens is in fact ‘green’

Eco-friendly initiatives, from energy efficient lighting in stores to rooftop solar panels to green shopping bags, are putting more “green” in Walgreens. In 2009, Walgreens opened the first drugstore to meet Leadership in Energy and Environmental Design (LEED) standards. In fiscal 2011, the company will open its first store using geothermal energy in Oak Park, Illinois.

Acquisition of Duane Read in April 2010

With the purchase of 258 Duane Reade stores in the New York City metropolitan area in April 2010, Walgreens made the largest acquisition in its history. Beyond establishing Walgreens as a leader in the nation’s largest drugstore market, the acquisition has allowed both companies to benefit from the other’s expertise. Duane Reade’s five decades of experience as an urban retailer is providing key insights that will translate well to Walgreens other urban markets. In August, Duane Reade’s popular food and beverage private brand, called DR Delish, was introduced in all Walgreens stores. For Duane Reade, Walgreens' 109 years of experience as the most convenient provider of pharmacy, health and wellness services in the country will strengthen the health care services Duane Reade provides in its stores.

Negative Aspects

Walgreens' court settlement from Wal-Born scandal

In a continuing crackdown on companies making unproven claims about cold and flu remedies, the Federal Trade Commission has announced that national pharmacy chain Walgreens has agreed to pay nearly $6 million to settle FTC charges that the company deceptively advertised “Wal-Born” – a line of dietary supplements using the claims that the supplements could prevent colds, fight germs, and boost the immune system. Walgreens sold the supplements under its store name, and touted their similarity to supplements sold by Airborne Health, Inc., which settled FTC deceptive advertising charges in 2008.  According to the FTC’s complaints, Walgreens advertised its Wal-Born supplements online, in newspaper circulars nationwide, and on packaging.

Walgreens offered compensation to its customers who could choose between receiving a $15 refund or a free flu shot.

 

 

Last changed September 9, 2011

League tables

Walgreens appears in the following brand league tables:

Rank 7 in the Best Retail Brands 2012.
Rank 74 in the Global 500 2012.
Rank 70 in the Global 500 2011.
Rank 9 in the Best Retail Brands 2011.
Rank 70 in the Global 500 2011.
Rank 70 in the Global 500 2010.
Rank 59 in the Global 500 2009.
Rank 69 in the Global 500 2008.
Rank 80 in the Global 250 2007.