Results Count ... everything else is conversation.: 5 Things Retailers Can Learn from Walgreens Innovation

You can see the future of retailing today … at Walgreens, not Walmart

When you specialize as a consultant, it is a mixed blessing. On the positive side, you gain deep knowledge about an industry. After working in the field of technology and retailing for 30 years, I've accumulated a wealth of experience and first-hand knowledge of the challenges and success factors for retailing technology products. The danger of specialized focus is that you can completely miss trends in other areas. Frankly, I was shocked when I started poking to find just how far "drug store" retail chains have come. The most innovative, consumer centric retailer in North America starts with a "W" … but it is Walgreens, not Walmart.

Retail evolution is staring you in the face … just around the corner

In my past blogs, I've mentioned this source before. If you are serious about trends in retail and consumer experience, I would highly recommend MorningNewsBeat.com. Two of the principle authors are Kevin Coupe and Michael Sansolo. They do a great job of covering what is happening in the world of food, drug and convenience retailing. The nature of the retailers covered, and their insights on consumer experience, are the main reasons why I scan their morning headlines.

I spend so much time covering "big box" retailers that I don't think much about "food & drug" or convenience stores. About the only time I think of a drug store is when I have to go stand in line to pick up a prescription. Good thing I caught Sansolo's weekly post: "Retail Evolution … Now on Display". Frankly, I had missed this channel and its evolution completely. I simply don't think of Walgreens as a case study in retail innovation. Wowser, was I wrong.

"I've seen the future, and its name is Walgreens"

In his post, Michael Sansolo laments that he did not write that headline. Like Michael, I wish I could claim credit for it to. Actually, the credit goes to Matthew Yglesias who wrote a piece in the Washington Post about Walgreen's new flagship stores. As with most flagship stores, Walgreens new formats are located in New York City (in the Empire State Building of all places), Washington DC (in Chinatown) and soon to be coming to Chicago. So, they are not going to be at your corner Walgreens just yet, but look at these articles to get a taste of what is coming just around the corner. It might even be worth a trip to see one of these flagships … this is not your parent's Walgreens!

The Fresh Selection at the Walgreens Flagship Stores

Along with traditional grab and go food items in the main traffic areas, there are now an array of choices of everything from fresh sandwiches, to salads and even sushi
Coca-Cola Freestyle machines along with Icee and frozen yogurt dispensers
Coffee/juice/smoothie bar, with a juice drink named Water-melon-gate, and creative menus on flat screens
Not to mention both wine and beer for sale in Washington DC

Of course, in addition to using food to drive daily traffic, the Pharmacy is a core traffic and profit driver. So, it is creatively positioned in the store at a feature location instead of the back like most drug stores. We'll get to that shortly … very different concept.

It's the consumer centric attention to service that sets these stores apart

The fact that you can pick up your pills, a salad, wine and sushi is convenient, especially in an urban setting. But, beyond the creative merchandising what really sets these stores apart is the focus on consumer centricity. Since these flagship stores are built in high density urban areas, they have been creatively designed to engage consumers to not only shop for products, but come to a destination for services needed … at convenient times:

Schedule a manicure while you shop...creating service

In addition to health and beauty items there … not one, but two manicure stations where you can make appointments
An in store health clinic with … now get ready … a comfortable waiting area!
Doctor/nurse practitioner onsite with … are you ready … hours from 8 am to 7:30 pm on weekdays, and 9:30 am to 5:30 pm on weekends!
The pharmacist is NOT behind the tall counter barely visible but … are you ready … at a desk sitting down ready to consult with consumers who can also sit!
Associate who can actually help rather than point … equipped with iPads to assist you in looking for any products, or generic equivalents

Providing customer engagement within its stores

To top it all off, the store looks cool, hip and urban. Not to mention the Associates are genuinely interested in serving their guests.

5 key things that make Walgreens flagship stores truly innovative

The entire store is designed to be consumer centric. Everything from waiting areas, to a place to sit down and talk with a specialist is designed from the view point of consultative service and convenience of the consumer.
The difference is services designed around the consumer. Most drug stores don't have a physician and manicurist onsite scheduling appointments, which is why time stressed urbanites find this store so compelling.
The Associates are "staged" and empowered to engage. From the Associate with an iPad, to the Pharmacist sitting at a desk, the store is staged and merchandised to be engaging, consultative and add value.
The focus is on "health", "well-being". The whole essence of the store design and execution is about shedding the persona of "drug store" dispensing meds to the sick, to creating a place where consumers want to come to be healthy, eat healthy, and keep coming back to place to maintain their wellness and healthy lifestyle.
Cool convenience from the eyes of the consumer. The Walgreens flagship stores are visibly cool, hip and comfortable. The untold story is also one of the incredible CRM system Walgreens has to make it easy for consumers to keep coming back for everything they need.

Why are Walgreens Flagship stores the future of retail?

The bottom line is that results count. These stores are small, compact, and can be fit into any environment including density urban space. Smaller stores are cheaper to operate than massive big box stores of the past. But, the real key to success is the consumer centric services that we value. That is where the profit lies … and it is the fundamental driver of loyalty, repeat traffic and lifetime value.

My prediction is that a version of the Walgreens flagship will be coming to your corner sooner rather than later. And, it won't be surprising to see it include a dietician, a trainer, or even a physical therapist.

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