What is Brief History of Walgreens Boots Alliance Company?

Walgreen Co. saw impressive growth from its initial 20 stores in Chicago in 1920 to 65 stores by 1925, reaching new cities like St. Louis and Milwaukee. By the close of 1925, annual revenue surpassed $1.2 million. This expansion was further fueled by its public offering on the Chicago Stock Exchange in 1927, which brought in more capital. By 1929, the company had grown to 397 outlets across 87 cities, achieving $47 million in annual sales.

Innovation was a key driver for Walgreen Co. in its early days, with the introduction of the malted milkshake in 1922, which became a popular soda fountain item. The company also expanded its restaurant operations, introducing 'Super Centers' in 1964 and operating 17 such centers by 1969. A significant operational shift occurred in 1952 when Walgreens began transitioning to self-service stores, becoming an early adopter of this retail concept, with 22 self-service locations by 1953.

Boots UK also experienced substantial early growth and diversification. By 1933, Boots had opened its 1,000th store in the UK. The company ventured into drug research and manufacturing in the 1960s, notably developing the painkiller Ibuprofen. A major expansion occurred in 1968 with the acquisition of the 622-store Timothy Whites and Taylors Ltd chain, significantly broadening its retail pharmacy presence in the UK.

Further diversification for Boots included the formation of Boots Opticians in 1987 through acquisitions, establishing it as the UK's second-largest optical retail chain. Alliance UniChem, another key predecessor, was formed in 1997 by merging UniChem and Alliance Santé, consolidating pharmaceutical wholesale operations. The merger of Alliance UniChem and Boots Group in 2006 created Alliance Boots. Walgreens expanded its market reach by entering Puerto Rico and launching its online pharmacy, Walgreens.com, in 1999. By 2007, Walgreens had 6,000 locations and held 17% of the U.S. prescription market. The strategic partnership in 2012, followed by the full merger in 2014, transformed Walgreens into a global pharmacy-led health and well-being enterprise, a pivotal moment in the Competitors Landscape of Walgreens Boots Alliance.

The company is implementing a 'Footprint Optimization Program' to close approximately 1,200 underperforming U.S. stores over the next three years. Around 500 closures are anticipated in the second half of fiscal 2025 to enhance cash flow.

Despite challenges, the company maintained its fiscal 2025 adjusted EPS guidance of $1.40 to $1.80 as of January 2025. In Q3 fiscal 2025, total sales reached $39.0 billion, a 7.2% increase year-over-year.

Walgreens Boots Alliance is expanding primary care services through partnerships like VillageMD and Premier Medical. The Walgreens app has over 94 million lifetime downloads, highlighting digital healthcare access.

CEO Tim Wentworth emphasizes an urgent focus on a turnaround strategy to stabilize the core business and improve profitability. The pending acquisition by Sycamore Partners is expected to accelerate this Growth Strategy of Walgreens Boots Alliance.