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Walgreens Co – Progress Report 1 Company Background: A) What is the ticker symbol of your company? Identify the stock exchange(s) where your company stock trades. The corporate name of the Walgreens drugstore chain is Walgreens Co, as identified on Form 10-5 (SEC Filing). The company is traded in the NYSE under the ticker symbol ‘WAG’. B) Read the auditor’s report included in the annual report of the company and explain its purpose. Identify the name of the auditing firm. Walgreen’s was audited by Deloitte & Touche LLP, based in Chicago, Illinois. The annual report and subsequent audit data was reported for the fiscal year ended 8/31/11.1 The ‘Report of Independent Registered Public Accounting Firm’ certifies that the…show more content…
Walgreens has chosen to opt out of the PBM market. WHI was sold to infuse cash from the sale to upgrade Walgreens drugstores and to further expand their market share of the retail grocery store industry. The additional capital is intended to be used to open additional retail stores or to acquire smaller independent pharmacies. 3 The second significant change for Walgreens in recent history is the purchase of Drugstore.com, a leading online retail pharmacy, in 2011 for the sum of $409 million. In addition, subsidiary companies of Drugstore.com were also purchased (Beauty.com, SkinStore.com, and VisionDirect.com). 4 Analysts have debated whether the recent acquisition should remain as a stand alone business or whether it should be integrated into the Walgreens business. Proponents of the integration argue that a consistent brand experience which extends from physical stores into the digital web will increase consumer loyalty. Proponents of leaving the online venture as a stand alone entity argue that integration of Drugstore.com into Walgreen’s will open up debate on pricing may diminish the consumer loyalty from Drugstore.com, thus negating the potential increase in sales. Walgreens has made it clear that it intends to leave the newly acquired online businesses as stand alone entities. 5 Walgreens has also been expanding its retail product line as

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