Essay about Walgreens; Financial Statement Analysts

2248 Words Sep 14th, 2008 9 Pages
Executive Summary
Walgreens offers an old-fashioned tonic for fiscal fitness: quality over quantity and homespun growth rather than growth through acquisitions. It works. While Walgreen has fewer stores than its closest rival CVS, it is #1 in the nation in sales. (Hoover's Inc, 2007)

Walgreens operates about 6,000 stores in 49 states and Puerto Rico, and has three mail order facilities. Prescription drugs account for 65% of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics, and groceries. Walgreen usually builds rather than buys stores, so it can pick prime locations. For added convenience, more than two-thirds of its stores offer drive-through pharmacies, and almost all offer one-hour photo
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And In 1995 Walgreen launched a prescription benefits management company, WHP Health Initiatives, to target small to medium-sized employers and HMOs in the top 28 Walgreen markets. Walgreen continued building stores and entering new markets in 1996, including Las Vegas and Dallas. (Walgreen.com, 2007)

The company opened a full-service pharmacy online in 1999 and added more than 450 stores in 2000. During 2002 Walgreen opened 471 stores and closed 108. To support its rapid expansion, two new distribution centers opened in Jupiter, Florida, and Dallas. Walgreen In its first significant acquisition in nearly 20 years, Walgreen agreed to buy 16 drugstores in the Portland, Oregon, and Vancouver, Washington, metro areas from privately held Hi-School Pharmacy in 2003. Overall, in 2003 the company opened 430 stores and closed 86 (75 of which were relocated). In 2004 Walgreen added 355 new outlets (after store closings) to its store count and opened a distribution center in Moreno Valley, California. (Walgreen.com, 2007)

CVS
CVS/Caremark (formerly CVS) interprets the scrawl of more US doctors than anyone. The CVS pharmacy chain fills more prescriptions at more drugstores than any other drugstore operator, although it trails rival Walgreen in total sales. Following its acquisitions of the Eckerd chain and stores from Albertsons, CVS operates more
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