The Walgreens Shopper - US - February 2016

BACKGROUND AND METHODOLOGY
Background and objectives
Methodology
Quantitative Methodology:
Qualitative methodology
KEY TAKEAWAYS
Walgreens’ convenience has trade-offs – namely, spending more money
Product and brand selection at Walgreens is appealing, though primarily driven by key categories – Beauty and Home Healthcare
Leveraging store associates
Make Walgreens trips more efficient
Increase basket size among shoppers who walk into Walgreens without a specific plan
Walgreens’ digital experience
WHO IS THE WALGREENS SHOPPER?
Figure 1: Demographic profile of Walgreens shoppers
Shopper Demographic Profile Summary: Hispanics and Millennials are key demographics for Walgreens
Heavy Shoppers (5+ trips/month):
Moderate Shoppers (2-4 trips/month)
Light Shoppers (1 trip/month)
Spotlight on Hispanics: One in five Walgreens shoppers are Hispanic
Spotlight on Millennials: A third of Walgreens shoppers are Millennials
WHY SHOP AT WALGREENS?
Figure 2: Key importance and performance metrics for Walgreens
Convenience
Store environment
Selection
Price/promotions
AREAS WHERE WALGREENS EXCELS
Store atmosphere
In their words…
Balance Rewards program
In their words…
Digital offers
In their words…
CHALLENGES SHOPPERS HAVE AT WALGREENS
Figure 3: Reasons for not making purchase among those who shopped, but did not purchase an item at Walgreens
Price
In their words…
Product and brand selection
In their words…
Navigation and in-stock issues
In their words…
TRIP DRIVERS AND PRESHOPPING ACTIVITY
In their words…
Half stick to what they intend to purchase, almost half buy unintended items
Opportunity: planners
Opportunity: browsers
Figure 4: Planned versus unplanned purchases, among those who purchased at least one item at Walgreens
A third of shoppers are swayed by in-store visual cues
Figure 5: Influencers of purchasing unplanned item, among those who did not plan to purchase an item, but did
Mindset
Immediate need
In their words…
Promotional trip – Weekly store specials drive trip
In their words…
Figure 6: Reason for last visit to Walgreens
Figure 7: Preshopping influencers for Walgreens trips
Figure 8: Preshopping activities for Walgreens shoppers
SHOPPING BY CATEGORY
Figure 9: Category purchases made at Walgreens
Figure 10: Perceptions of Walgreens categories
GROCERY/FOOD/DRINK
What you need to know
What are they buying?
Figure 11: Grocery/Food/Drink items shopped for and purchased at Walgreens
Figure 12: Specific Grocery/Food/Drink items that were planned purchases at Walgreens
Demographic snapshot
Figure 13: Specific Grocery/Food/Drink items purchased at Walgreens, by demographics
Figure 14: Perceptions of the Grocery/Food/Drink category at Walgreens
Figure 15: Where else do they shop for Grocery/Food/Drink?
Figure 16: What else are they buying with Grocery/Food/Drink at Walgreens?
 CANDY/GUM/MINTS – DEEP DIVE
Candy/gum/mints aisle strengths at Walgreens
In their words…
Candy/Gum/Mints aisle weakness at Walgreens
Candy/Gum/Mints decision process at Walgreens
In their words…
 SALTY SNACKS – DEEP DIVE
Salty snacks aisle strengths at Walgreens
In their words…
Salty snacks aisle weaknesses at Walgreens
In their words…
Salty snacks decision process at Walgreens
In their words…
 BEVERAGES – DEEP DIVE
Beverages aisle strengths at Walgreens
In their words…
Beverages decision process
In their words…
PERSONAL CARE
What you need to know
What are they buying?
Figure 17: Personal Care items shopped for and purchased at Walgreens
Figure 18: Specific Personal Care items that were planned purchases at Walgreens
Demographic snapshot
Figure 19: Personal Care items purchased at Walgreens, by demographics
Figure 20: Perceptions of the Personal Care category at Walgreens
Figure 21: Where else do they shop for Personal Care?
Figure 22: What else do they buy with Personal Care?
Category deep dive – Body wash/soap
Body wash/soap aisle strengths at Walgreens
In their words…
Body wash/soap aisle weaknesses at Walgreens
Body wash/soap decision process at Walgreens
In their words…
HOUSEHOLD
What you need to know
Category deep dive – Cleaning products
What are they buying?
Figure 23: Household items shopped for and purchased at Walgreens
Figure 24: Specific Household items that were planned purchases at Walgreens
Demographic snapshot
Figure 25: Specific Household items purchased at Walgreens, by demographics
Figure 26: Household category perceptions at Walgreens
Figure 27: Where else are they shopping for Household items?
Figure 28: What else are they buying with Household items?
Category deep dive – Cleaning products
Cleaning products aisle strengths at Walgreens
In their words…
Cleaning products aisle weaknesses at Walgreens
In their words…
Cleaning products decision process at Walgreens
In their words…
MEDICINES & TREATMENTS
What you need to know
What are they buying at Walgreens?
Figure 29: Medicines & Treatments items shopped for and purchased at Walgreens
Figure 30: Specific Medicines & Treatments items that were planned purchases at Walgreens
Demographic snapshot
Figure 31: Specific Medicines & Treatments items purchased at Walgreens, by demographics
Figure 32: Perceptions of the Medicines & Treatments category at Walgreens
Figure 33: Where else do they shop for Medicines & Treatments?
Figure 34: What else do they buy with Medicines & Treatments?
BEAUTY
What you need to know
Category deep dive – Makeup:
What Beauty products are they buying at Walgreens?
Figure 35: Specific Beauty items shopped for and purchased at Walgreens
Figure 36: Planned purchases in the Beauty category at Walgreens
Demographic snapshot
Figure 37: Specific Beauty items purchased at Walgreens, by demographics
Opportunity: Elevate positive perception
Figure 38: Perceptions of the Beauty category at Walgreens
Where else do they buy Beauty items?
Figure 39: Where else do they shop for Beauty items?
What else do they buy with Beauty items?
Figure 40: What else do they buy with Beauty items?
Category deep dive – Makeup
Makeup aisle strengths at Walgreens
In their words…
Makeup aisle weaknesses at Walgreens
In their words…
Makeup decision-making process at Walgreens
In their words…
VITAMINS & SUPPLEMENTS
What you need to know
What are they buying?
Figure 41: Vitamins & Supplements shopped for and purchased at Walgreens
Figure 42: Specific Vitamins & Supplements that were planned purchases at Walgreens
Demographic profile
Figure 43: Specific Vitamins & Supplements purchases, by demographics
Figure 44: Vitamins & Supplements category perceptions at Walgreens
Figure 45: Where else do they shop for Vitamins & Supplements?
Figure 46: What else do they buy with Vitamins & Supplements?
DIET & FITNESS
What you need to know
What are they buying?
Figure 47: Diet & Fitness items shopped for and purchased at Walgreens
Figure 48: Specific Diet & Fitness items that were planned purchases at Walgreens
Demographic profile
Figure 49: Specific Diet & Fitness items purchased at Walgreens, by demographics
Figure 50: Diet & Fitness category perceptions at Walgreens
Figure 51: Where else do they shop for Diet & Fitness?
Figure 52: What else do they buy with Diet & Fitness?
BABY & CHILD
What you need to know
What are they buying ?
Figure 53: Baby & Child items shopped for and purchased at Walgreens
Figure 54: Specific Baby & Child items that were planned purchases at Walgreens
Demographic profile
Figure 55: Specific Baby & Child items purchased at Walgreens, by demographics
Figure 56: Baby & Child category perceptions at Walgreens
Figure 57: Where else do they shop for Baby & Child?
Figure 58: What else do they buy with Baby & Child?
HOME HEALTHCARE
What you need to know
What are they buying?
Figure 59: Specific Home Healthcare items shopped for and purchased at Walgreens
Figure 60: Specific Home Healthcare items that were planned purchases at Walgreens
Demographic profile
Figure 61: Specific Home Healthcare items purchased at Walgreens, by demographics
Figure 62: Home Healthcare category perceptions at Walgreens
Figure 63: Where else do they shop for Home Healthcare?
Figure 64: What else do they buy with Home Healthcare?
SEXUAL WELLNESS
What you need to know
What are they buying ?
Figure 65: Sexual Wellness items shopped for and purchased at Walgreens
Figure 66: Specific Sexual Wellness items that were planned purchases at Walgreens
Demographic snapshot
Figure 67: Specific Sexual Wellness items purchased at Walgreens, by demographics
Figure 68: Sexual Wellness category perceptions at Walgreens
Figure 69: Where else do they shop for Sexual Wellness?
Figure 70: What else do they buy with Sexual Wellness?