Walgreens Boots Alliance(WBA) PYMNTS.com·2025-01-10 18:46Core Viewpoint - Walgreens Boots Alliance is undergoing a long-term turnaround process, emphasizing the importance of sustainable, retail pharmacy-led operations and focusing on improving customer experience and financial stability [2][8]. Financial Performance - In Q1, Walgreens reported sales of 265 million, up from a loss of $67 million the previous year due to higher operating losses [5]. - The U.S. retail pharmacy segment grew by 6.6%, driven by a 10.4% increase in pharmacy sales, while retail sales fell by 6.2% due to a weaker flu season and reduced discretionary spending [5]. - The international segment saw a growth of 10.2%, aided by a favorable currency impact of 3.6% [5]. Strategic Initiatives - The company is focusing on stabilizing its retail pharmacy, optimizing store footprint, and enhancing reimbursement models while elevating customer experience [2][6]. - Walgreens plans to close approximately 500 stores during fiscal year 2025, having already closed about 70 in Q1, with a goal of a healthier, smaller footprint [6]. - The company has introduced 60 owned brands in the first quarter as part of its strategy to become a trusted provider of private label merchandise [4]. Customer Experience Enhancements - Walgreens is implementing digital and virtual check-ins for pharmacy patients, set to launch in 100 stores, with virtual care currently available in 30 states [3]. - The company is revamping its analytics, omnichannel, and digital experiences to better meet customer needs and improve loyalty [3][7]. Long-term Focus - The company is committed to a multiyear process aimed at operational efficiency and customer loyalty, utilizing data and analytics to enhance decision-making and streamline operations [6][7]. - Walgreens acknowledges that while initial progress has been made, significant work remains to achieve its long-term turnaround goals [8].