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HomeWorldBusiness has a story about how Walgreen is conducting a 17-store test in the Gainesville, Florida, market that brings together “new approaches to pricing and promotions, product selection, the shopping experience and strategic collaborations to bring new services to customers.”

According to the story, “Walgreens has lowered every day prices on more than 5,000 items, including health and beauty, personal care and grocery and household items, throughout these 17 stores. In addition, at these stores the company has introduced Walgreens Plus, a subscription program through which customers who pay a $20 annual fee receive an additional 20% off prices storewide every day, including sale prices.”

In addition, the test is expanding a specimen collection service to 10 stores, and is adding convenience products and services such as FedEx.
KC's View:
This makes sense in some ways - it is Walgreen adopting a model that seems similar to Amazon Prime or the membership programs of Costco and Sam’s. Be interesting to see if it works.

I do know this. If Walgreen is investing in a redefinition and rethinking of what bricks-and-mortar retail means in a 2018 context, that’s smart,. It is what more retailers should do.

In some ways, this is what CVS decided to when it refocused itself on the health side of its business. It sounds like Walgreen is going in a different direction, more focused on price. Be interesting to see if it is able to gain a differential advantage.