While Walgreen has fewer stores than its closest rival CVS, it is #1 in the nation in sales. Walgreen operates some 6,235 stores in 49 states and Puerto Rico, and has three mail order facilities. Prescription drugs account for nearly two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics, and groceries. Walgreen usually builds rather than buys stores, so it can pick prime locations. For added convenience, more than 80% of its stores offer drive-through pharmacies, and almost all offer one-hour photo processing.

Corporate Facts

History

Walgreen Co, doing business as Walgreens, was founded by registered pharmacist and entrepreneur, Charles Walgreen in 1901. His first store was located in Chicago’s South Side and by 1919 the chain had grown to twenty locations. He offered food (equipped with a soda fountain) and other home entities that were rarely seen at drug stores at the time, while offering neighborhood personal customer services and home delivery. In 1922, Ivar “Pop” Coulson invented Walgreens “immortal malted milkshake,” an instant classic, served only at Walgreens. By 1929, the total number of Walgreens stores reached 525, including locations in New York City, Florida and other major markets. It is reported that Walgreens ran the largest promotion campaign in its history – costing more than $75,000 – during 1931. Also in 1931, Walgreens became the first drugstore chain in the country to advertise on the radio, with legendary Chicago Cubs announcer Bob Elson the “voice” of Walgreens.[1]

During World War II, Walgreens established a not-for-profit pharmacy in the Pentagon, a service for which it was formally recognized by President Eisenhower. It was an important marketer of War Bonds during the war effort. Walgreens was among the very first American companies to establish profit sharing and pension plans, to assure security for its employees. The initial funds for the pension – $500,000 in cash – was contributed by the personal estate of Charles R. Walgreen Sr. in a plan called “a landmark in American industrial relations,” by The Chicago Daily News.[2]

In 1968, Walgreens became the first major drug chain to put its prescriptions into child-resistant containers, prior to legal requirements. In 2002, Walgreens became the first drugstore chain to offer prescription labels in multiple languages chainwide. The chain reports opening 425 new stores each year and plans on reaching 7,000 locations by 2010. [3]

Criticism

Human Rights

• Many Lawsuits Against Pharmacies Settled in Silence “Chanda Givens’s doctor prescribed a prenatal vitamin, Materna. But instead, a Walgreens store in suburban St. Louis gave her Matulane, a chemotherapy drug that interferes with cell growth. According to the federal lawsuit she later filed against Walgreens, Givens, then 29, suffered weeks of “nausea, vomiting, neurologic symptoms … dizziness, lightheadedness, chills and shortness of breath.” A medical exam showed her fetus was not developing normally. She miscarried in early April.”

• Rx for errors: Speed, high volume can trigger mistakes “The prescription called for Inderal to control a little boy’s tremors. A Walgreens pharmacy instead gave him Methitest, a steroid usually prescribed for older males. Five-year-old Trey Jones took the wrong medication for two months and began showing signs of early puberty. How do mistakes like this happen?”

Worker Rights

• U.S. Agency Lawsuit Accuses Walgreen of Discrimination “Agency officials described the Walgreen case as the biggest discrimination action brought by it in recent years. After more than 20 current and former employees nationwide complained to the agency, the E.E.O.C.’s district offices in St. Louis and Miami conducted an investigation, the agency said in a statement. It said it decided to bring the case after attempts to reach a voluntary settlement were unsuccessful.”

Praise

Brands & Subsidiaries