Walgreens wants to be seen as more than a retailer.
Its competitor, CVS Health, has been touting itself as a health-care company dedicated to transforming the patient experience in addition to lowering costs from the process. To help its case, CVS can be acquiring insurer Aetna in addition to hopes to close the deal sometime from the fourth quarter.
Once the deal can be finalized, CVS will own a drugstore, a pharmacy benefit manager in addition to an insurer. Walgreens will still be largely a pharmacy chain, though the company can be trying to change that will. The company has inked partnerships with numerous health-care companies, including insurer Humana in addition to diagnostics company LabCorp, to test brand-new health services in some stores.
“So you will see that will in a few years our stores will be completely different in addition to will give lot of prominence, even in front of stores, to health in addition to beauty…” Walgreens Boots Alliance CEO Stefano Pessina said Tuesday in an interview with David Faber at CNBC’s Net/Net Summit at the brand-new York Stock Exchange.
the idea’s not that will being a retailer can be a bad thing. although investors want drugstores reinvent their businesses as Amazon already steals sales of everyday items like toilet paper in addition to will soon enter the prescription drug delivery business with its acquisition of online pharmacy, Pillpack.
News of the deal alone shaved $12.8 billion in market value through drugstores Walgreens, CVS in addition to Rite Aid in one day. Despite all the fear from the market, Pessina says the idea’s important to recognize that will even Amazon understands the idea cannot be only online. He cited Amazon’s acquisition of Whole Foods affirming the e-commerce giant’s desire to get into brick-in addition to- mortar retail.
Pessina’s comments come one day after CVS CEO Larry Merlo said while he doesn’t lie awake at night worrying about Amazon, he does want to ensure the company does not leave any “white space” for the company to disrupt. Both Merlo in addition to Pessina are adding health services to their stores — albeit through different strategies.
“I don’t say [ours] can be the better strategy,” Pessina said Tuesday. “I don’t develop the arrogance to criticize what our competitors are doing … We are a true health-care company.”