Walgreens and delivery intermediary Postmates are expanding their on-demand delivery service to 13 additional cities in the US. Following the launch of the service in New York City and Brooklyn in October 2019, deliveries are now also available in Los Angeles, San Francisco, San Diego, Phoenix, Las Vegas, Portland (OR), Washington DC, Chicago, Atlanta, Charlotte, Miami, Ft. Lauderdale and Houston.
As the baby boomer generation retires and households will carry a growing share of health expenditure, Walgreens is joining the race to provide consumers with affordable health & wellness products and services, as well as a frictionless and convenient experience. For example, in October 2018, Walgreens and Kroger partnered to integrate grocery click and collect stations into the Walgreens network. Other recent initiatives from US players have included disruptive moves from Amazon into subscription services and private label, as well as Walmart’s launch of a health centre format. In addition, Walgreens created a buying alliance with Kroger to improve supply chain efficiencies.
Health & wellness brands must recognise the importance of Amazon and omnichannel mass market grocers as key routes to growth as they disrupt a high-margin industry with generic drugs, subscription models and delivery services. Brands should work with retailers and intermediaries now to ensure strong digital shelf visibility, provide exceptional online content and customer education, and actively manage price and promotions to drive conversion and inclusion in subscription schemes.
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