Beauty Differentiation Program Pays Off for Walgreens Boots Alliance

Walgreens Boots Alliance’s investment in its Beauty Differentiation program is paying off in its retail stores. Speaking during the first-quarter analysts call, George Fairweather, WBA’s global chief financial officer and executive vice president, gave a nod to the beauty category along with the chain’s health and wellness business. Those businesses “partially offset” declines in consumables, general merchandise and personal care, he said. “This is the sixth consecutive quarter that we’ve delivered comparable sales growth in the health and wellness and beauty categories.” The beauty category today represents a healthy 9 percent of WBA’s total retail sales. WBA’s sales for the quarter ended Nov. 30 totaled $30.74 billion, up 7.9 percent from $28.5 billion a year earlier. The gain was 7.2 percent on a constant currency basis. In the Retail Pharmacy USA division, which encompasses Walgreens and Duane Reade, first-quarter sales jumped 8.9 percent to $22.49 billion from $20.66 billion in the year-ago period. Same-store sales rose were up 4.7 percent. However, front-end sales fell 2.8 percent overall and declined 0.9 percent on a same-store basis. The company continues to expect to complete integration of the acquired Rite Aid stores and related assets by the end of fiscal 2020, at an estimated cost of approximately

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