Walgreens is creating more joyful lives through better health
September 12, 2022 | Global
Walgreens is an integrated healthcare, pharmacy and retail store leader serving millions of customers and patients every day. On a mission to create more joyful lives through better health, the company is reimagining local healthcare and well-being for all through dispensing medicines, improving access to a wide range of health services, and providing high quality health, beauty and convenience products and anytime, anywhere access across its digital platforms.
By the numbers
product SKUs
incremental revenue
AOV increase in six months
Walgreens doubles down to serve online customers
Walgreens is shaping the future of healthcare. The retailer was an early adopter of ecommerce, beginning with their acquisition of drugstore.com in 1995 which shipped items from a central warehouse via traditional logistics partners like Fedex, USPS and UPS. Since then, Walgreens ecommerce strategy has continued to evolve and expand on Walgreens.com and on third party delivery platforms like Uber Eats. With the onset of the Pandemic, Walgreens doubled down on serving online customers with same day delivery, leveraging inventory from local retail stores to fill online orders. We spoke with Zoran Minic, Senior Manager for Walgreens’ same day delivery to understand how Walgreens is driving growth online.
Walgreens for a new generation
New customer acquisition is a primary goal of Walgreens’ digital strategy. Third party delivery platforms like Uber Eats are helping the retailer attract a younger, more tech-savvy audience who want a wide range of products including food, snacks, beverages and health and beauty products delivered right to their home or office in as little as 60 minutes.
“Uber is the platform people trust to order what they want and get it same-day. And Walgreens has the name people trust for healthcare and convenience products. Together that’s a powerful combination.”
Zoran Minic, Senior Manager, Same Day Delivery Marketplace
Driving incremental revenue without disrupting store operations
Serving online orders from local stores can be challenging, but it also enables the Walgreens team to track and respond to customer trends more quickly. With a large Uber Eats audience selecting products from Walgreen’s menu of more than 20,000 SKUs, Walgreens merchandise teams are able to use data from Uber Eats to optimize in-store stock decisions and shelf placements, increasing sales and reducing cancellations and order errors.
“Our double digit growth on the Uber Eats platform has been driven by an expanding set of SKUs, targeted promotions, and our ability to respond to customer trends.”
Zoran Minic, Senior Manager, Same Day Delivery Marketplace
Rapid growth continues post pandemic
With the Pandemic subsiding, Walgreens has been pleased to see demand on the Uber Eats marketplace remain strong. Working with Uber Eats to target promotions and Ads on the Uber Eats platform has helped Walgreens continue to drive incremental revenue on core products, while also helping them test demand for new products at a lower cost and in a faster time frame -- reducing the traditional 12 week store-based test cycle to less than 4 weeks. Overall, revenue has never been higher and AOV is up, and growing with the addition of new SKUs.
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