Walgreen Co. has been synonymous with excellent operational execution for decades, but over the last two years, management has made costly missteps, incurring self-inflicted wounds with the Express Scripts dispute and embarking on what we believe is a risky international growth strategy.
Walgreen has rolled out a new customer loyalty program, but recent data shows that the company has not consistently carried out the most basic of retail tasks—keeping its shelves fully stocked and correctly labeled. These problems may be undercutting its efforts to improve customer experience and build loyalty.
Now that the Alliance Boots-Walgreen deal is complete, many questions remain about the strategy and growth plan of this new global company.