The drugstore giant Walgreen Co. thinks it has the right prescription for budget-conscious fashion shoppers: apparel, jewelry, accessories and more.
In an effort to grow its market share of female customers looking for convenience and low prices, the chain is adding basic, seasonal and trend fashion, as well as related lifestyle offerings at almost all of its 5,580 stores across the U.S.
It is a strategic move intended to evolve Walgreens into a lifestyle alternative to Target, which is pushing beauty, and Wal-Mart. The company also wants to grow the brand while distancing and differentiating Walgreens from pharmacy competitors such as Rite Aid, Brooks-Eckerd and CVS.
Walgreen Co. reported total volume of $47.4 billion in fiscal 2006, an increase of 12.3 percent compared with the previous year. Beauty products and other nonprescription items generated 35.6 percent of sales, an 11 percent increase for that category. Fourth-quarter net earnings were up 25.3 percent to $412 million, or 41 cents per diluted share, from $329 million, or 32 cents per diluted share, in the same year-ago period.
The merchandise crosses a wide range, from bras, underwear, sleepwear and hosiery to beaded fashion tops, knit sweaters, skirts, denim jackets, khaki shorts, cotton dresses, hooded sweatsuits and reversible hooded winter jackets.
On the men’s side, there is a growing lineup of leather belts, silk and silk-blend ties, socks, underwear and T-shirts, along with fashion items such as tops, bottoms and outerwear.
Most of the women’s apparel, which includes national brands as well as private label merchandise, sells for less than $50, and the bulk is below $15, such as beaded tops, long stretch skirts and sweaters, all priced at $9.99.
“We’ve always been a strong destination for health and beauty, and now we’re layering on the fashion, jewelry, accessories and apparel angle to even further meet shoppers’ lifestyle needs,” said Tiffani Bruce, a spokeswoman for Walgreens, which is based in Deerfield, Ill.
“As Walgreens grows you’ll certainly see more apparel items,” she said. “We’re customizing the fashion, accessories, beauty and other related businesses to meet the demands of each store’s unique needs in the marketplace. We’re continuing to try and find more possible apparel lines that fit our demographic.”
Related Articles
You May Also Like
Walgreens’ fashion offerings are driven by season, and items now include lots of stretch knit sweaters, colorful and beaded stretch knit tops, plush cotton bathrobes, leather and denim jackets, hooded and waterproof outerwear and patterned mufflers and gloves, among other styles.
“Offering fashion at Walgreens is very creative, out-of-the-box thinking based on an impulse-buying, buy-on-the-run shopper,” said Alan Shor, president and founder of The Retail Connection in Dallas, which works with mall developers and retailers. “Many of their customers are women who are very stressed for time and who look for ways to accomplish lots in one stop.”
Walgreens began offering trend, seasonal, logo- and sport-motif apparel on a meaningful scale in 2005, with the momentum increasing this year.
The chain last summer launched an in-house jewelry and accessories collection called Pure Allure Crystal Collection; Pure Allure is also available on Walgreens’ Web site, walgreens.com. Fashion apparel may be added to the Web site, but no firm date has been set.
“We’re always reevaulating our merchandise mix to meet the demands of our markets,” Bruce said. “The new Pure Allure Crystal jewelry collection is a great example of this. We’re having great success with Pure Allure and with our apparel offerings. We’re very skilled in anticipating the needs of what our shoppers want.”
The fall-winter Pure Allure Crystal Collection has 36 styles that will be available year-round. Retail priced at $5.99 to $14.99, the styles include crystal earrings, birthstone necklaces, pendants, pins and multicolored crystal hair accessories. New groups will arrive in stores every six to eight weeks accenting seasonal themes and fashion runway trends. Retail prices for the seasonal pieces range from $14.99 to $39.99. The collection was developed for Walgreens by Robertson Schwartz Agency, a Los Angeles-based product development and branding company.
“This line taps into the evolving needs of today’s female shopper,” said Cheryl Schultz, divisional merchandise manager for fashion. “She is both fashion- and price-savvy.”
The Pure Allure line is merchandised in Walgreens adjacent to the beauty department, with small jewelry offerings sprinkled throughout the beauty area. In-store beauty advisers are also being trained to assist customers with Pure Allure.
The drugstore chain’s beauty and wellness business is second only to Wal-Mart. Walgreens is considered a maverick among the mass pharmacy and beauty chains with a historical merchandising bravado that includes launching in-house beauty brands such as IsaDora and European Beauty Collection, among others, and continually beefing up name-brand and generic health, wellness, housewares and groceries.