Walgreens has unveiled a test program to lower SKU counts by 20% per store in 17 Gainesville, Fla. area locations. As part of the market pilot, Walgreens has lowered everyday prices on more than 5,000 items, including health and beauty, personal care and grocery and household items.
At these stores, the pharmacy has introduced Walgreens Plus, a subscription program through which customers can pay a $20 annual fee to receive an additional 20% off prices storewide every day, including sale prices. Other perks include a 60% discount on cash-paid generic prescription prices and the option of free, same-day prescription delivery through Walgreens.com.
Over the next 12 to 18 months, Walgreens plans to gauge customer reaction at the pilot stores and adjust quickly based on feedback, then roll out new ideas to other stores in the future.
Advertisement
“People give drug stores roughly seven minutes [of their time],” Alex Gourlay, Co-COO of Walgreens Boots Alliance and President of Walgreens, told Drugstore News. “If you can give them two minutes back, they’re really happy. And in the modern world, more people will order in advance. We’re trying to redefine modern convenience.”
Despite its position as a drugstore with more than 10,000 brick-and-mortar locations (including 1,900 Rite Aid stores), the company has continued to seek out innovative ways improve convenience within every channel. Last year, former Walgreens Digital Commerce Director Wayne Duan indicated during a presentation at the 2017 Retail Innovation Conference that the business is focused on accounting for “digitally influenced sales” as opposed to direct e-Commerce sales totals. The pilot of lowered SKU counts and prices could tell Walgreens which items sell better online and thus could be scaled back within stores.
Walgreens is investing significantly in digital in an effort to deliver on the promise of an endless aisle. Moving forward, Walgreens has committed more than $500 million toward supply chain systems to help make last-mile delivery more efficient.
The retailer also is expanding its existing pilot with health care diagnostics company LabCorp to 10 Florida locations, including four in Gainesville, in a partnership designed to enable lab testing in a secure environment. The patient service centers, co-branded LabCorp at Walgreens, are located near the pharmacy area.
