Walgreens Boots Alliance announced on Friday that Rosalind Brewer, the CEO of the pharmacy chain, has stepped down from her position after less than three years at the helm. This move follows mutual agreement between Brewer and the company’s board. Brewer, who was one of only two Black women leading a Fortune 500 company, also resigned from her role as a member of the company’s board.
In the wake of Brewer’s departure, the Walgreens board has appointed Ginger Graham, an existing board member, as the interim CEO while the company initiates a search for a permanent CEO.
This transition comes during a challenging period for Walgreens. The company’s stock has seen a decline of 32% this year, and in June, Walgreens had to revise its full-year profit guidance downwards. This revision was attributed to weakened consumer spending and reduced demand for COVID-19 vaccines.
Beyond these issues, Walgreens has been grappling with sluggish sales of discretionary items, adding to the overall challenges faced by the retailer.
During Brewer’s tenure, the company implemented cost-saving measures to bolster profitability within its healthcare segment. These measures included the closure of 450 locations in both the United States and the United Kingdom, along with the elimination of over 500 positions, equivalent to around 10% of its corporate and US office support workforce.
While Walgreens was scaling back its physical footprint, it was simultaneously exploring new retail formats. One notable experiment took place in Chicago, where the majority of merchandise was deliberately kept out of customers’ sight.
This specific store, located at 2 East Roosevelt Road, initially offered the typical Walgreens shopping experience, featuring multiple aisles stocked with daily essentials, cosmetics, snacks, healthcare products, and an in-store pharmacy.
However, in a recent transformation, the same location reopened with a significantly scaled-back appearance. According to Walgreens, this store serves as a digital-first experimental concept aimed at benefiting customers and not primarily as an anti-theft strategy, despite keeping most merchandise out of reach.
It is worth noting that various retailers, including Dick’s Sporting Goods and Dollar General, have recently raised concerns about the rising incidents of shoplifting, which could potentially impact their profits.
About the Company – Founded in 1901 by Charles R. Walgreen in Chicago, Walgreens is a pharmacy chain that has expanded to offer health, wellness, and photo products and services. In 2014, it merged with Alliance Boots, forming Walgreens Boots Alliance, a global company. Walgreens now has 9,000+ U.S. stores with over 200,000 employees and is known for its milkshakes, prescription whiskey, and testing services.
