Walgreens recently released their Q3 earnings report and, according to Retailer Daily, the drug store chain posted record sales of $16.2 billion in the quarter. However, they still experienced a 9% decline in sales.
Walgreens, like most strategic-minded retailers, spent the beginning of this year making customer-centric adjustments to account for the change in shopping behaviors and spending capacity. Their Rewiring for Growth and Customer Centric Retailing Programs were part of that initiative which sought to reduce costs, streamline category assortments and expand the most popular product categories. However, it appears that the markdowns taken in implementing these programs cost the company in their retail operations. Pharmacy growth and generic drugs buffered the quarterly sales.
What does this mean about strategic adjustments in this economy? Are retailers better served to wait it out and hold on to their traditional positioning like Abercrombie & Fitch? Or should they take the hit and shift gears? Your answer likely depends on whether you believe that current shopper behavior changes are temporary or permanent.
One Comment
Pretty nice post. I just found your blog and wanted to say
that I have really enjoyed reading your blog posts. Any way
I’ll be subscribing to your blog and I hope you write again soon!