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article imageWalgreens’ shares tumble by 5% on earnings posting

By Tim Sandle     Jan 9, 2020 in Business
Walgreens just released its earnings and fell short by 5 percent.m The healthcare giant is one of many companies in the sector being forced to compete with the likes of Amazon, and the share price drop reflects market uncertainty.
After hitting rock bottom in 2019 and landing the title of worst performer in the Dow Jones Industrial Average, many industry commentators are beginning to question Walgreens ability to prosper in the new decade. Walgreens has faced intense competition from the arrival of Amazon.com Inc in the pharmacy market in the past year. Walgreens has also seen its gross margins come under pressure of late, with generic drug cost inflation being a key factor.
As reported on Investor Business Daily, Dow Jones stock Walgreens Boots Alliance reported fiscal first-quarter earnings that fell more than expected. According to Forbes, the global pharmacy chain may be taken into private ownership in a massive leveraged buyout
Despite these various challenges, Walgreens’ may be able to pull ahead as long as it can deliver on its new frictionless shopping strategy. Such a strategy involves identifying and removing any hassles and pain points that arise when customers interact with the organization
Walgreens' recent pivot away from a brick-and-mortar based strategy toward a frictionless CX strategy -- including innovations like the use of drones for delivery -- is a step in the right direction to regaining its position as a leader in the industry, according to Kate Hogenson, a loyalty and CX expert at Kobie, in a message sent to Digital Journal.
With the drone technology, Walgreens Boots Alliance Inc. provided information about their last-mile delivery innovations, at CES 2020, as e-commerce continues to upend traditional retail and logistics business models.
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