The Doctor Is In at Walgreens

The pharmacy is investing in health services to keep in-store visits (and spending) high

In this article:

  • Foot traffic at Walgreens is falling as fewer people need vaccines.
  • The pharmacy chain is trying to maintain the high sales seen during the height of the pandemic.

Walgreens got a boost from the Covid-19 vaccine rush, and the pharmacy chain is looking to extend it.

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Now that the demand for Covid-19 vaccines and boosters is slowing – during the last quarter, Walgreens gave out almost 12 million Covid-19 shots, down from 15.6 million vaccinations in the prior quarter – Walgreens is expanding its clinic services to try to maintain high foot traffic.

In order to do that, Walgreens is moving further into in-store clinic services. Last year, Walgreens bought a majority stake in a chain of clinics called Village MD. Walgreens is aiming to nearly double the number of its clinics – to 200 locations by the end of 2022. Walgreen’s has more than 9,000 stores in the U.S. and 2,200 Boots stores in the United Kingdom.

At the clinics it owns, Walgreens expects to offer other common medical services, like strep throat tests. Forty percent of people are more likely to shop at a store if they received medical care there, according to one report. If customers visit the clinic because they’re not feeling well, Walgreens is betting that they might also need some cough drops or tissues.

Walgreens is one of many companies that has benefited from the effects of the pandemic. Tech companies like Zoom provided workers with the software and hardware they need to perform their jobs. Liquor stores and online entertainment platforms like Netflix saw success as people looked for ways to pass the time at home. Grocery stores and cleaning supplies companies sold the necessities people needed to stay safe.

As the pandemic eases, all these companies face the same challenge: how to keep their customers around. By the end of the year we’ll know if Walgreens‘ strategy – investing in health services – was the right one.