Rosalind “Roz” Brewer
Jason Redmond | Afp | Getty Images
Walgreens Boots Alliance said Friday that Roz Brewer had stepped down as the corporate’s chief executive because it leans deeper into its technique to turn out to be a health-care company as a substitute of a drugstore.
She also left the corporate’s board, effective Thursday. The choice was mutual, in line with a news release.
Shares of Walgreens fell about 7% Friday.
Ginger Graham, the lead independent director and a health-care industry veteran, will work as interim chief while the corporate searches for a successor. Graham is a veteran of the health-care industry.
Brewer has agreed to proceed advising the corporate until it selects a everlasting CEO. She didn’t immediately return requests for comment.
“Our Board and leadership team will intensify our deal with creating value for our customers and our shareholders while we advance the seek for a successor with deep healthcare experience to guide in today’s dynamic environment,” said Stefano Pessina, Walgreens’ executive chairman.
Brewer and Walgreens were in a rough patch leading as much as Friday’s announcement. Walgreens shares are down greater than 32% this 12 months as of Thursday’s close, as the corporate has struggled with a drop in demand for Covid testing and vaccines. It is also seen front-end retail sales for items like toothpaste and shampoo consistently fall as consumers go to competitors like Walmart and Amazon for those on a regular basis necessities, which could be ordered online and delivered inside a few days.
In June, the corporate reported fiscal third-quarter earnings that missed Wall Street expectations for the primary time since July 2020. It also slashed its profit guidance for the 12 months.
Nevertheless, Covid cases are back on the rise, and will prove to be a boon for pharmacy sales. The subsequent Covid boosters are slated to start out rolling out in mid-September.
For consumers who might not be excited by one other Covid booster, they may still turn to Walgreens for its typical over-the-counter cold and flu products. During its fiscal first quarter ended Nov. 30, an early cold and flu season boosted demand for cough and cold medicine and helped Walgreens offset its losses from a slowdown in vaccine demand.
A retail veteran in a health-care world
A veteran of Walmart and Starbucks, Brewer had led Walgreens since March 2021. During her transient tenure, which included a large stretch of the Covid pandemic, the corporate had pursued a transition that will position Walgreens more as a health-care company than a pharmacy chain.
Walgreens recently acquired Summit Health and primary-care provider VillageMD, which has opened lots of of clinics, including some which might be adjoining to Walgreens stores.
It also struck a take care of CareCentrix, which coordinates home look after patients after they’re discharged from the hospital, and Shields Health Solutions, a specialty pharmacy company.
Competitor CVS Health has also been leaning right into a health-care strategy. In February, it announced plans to amass Oak Street Health for about $9.5 billion in money so it may possibly add primary care to its portfolio of health offerings. Meanwhile, Rite Aid has focused on expanding its pharmacy presence and is now reportedly preparing a bankruptcy filing.
Yet as Walgreens leans deeper into its aspirations to turn out to be a health-care provider and away from its identity as a drugstore chain, Brewer’s skill set wasn’t as aligned with the corporate’s goals. Before her tenure with Walgreens, she served as Starbucks’ operating chief and group president, and previously ran Walmart’s Sam’s Club as its CEO. She’d spent a few decade with Walmart in a series of executive positions.
“The retail side of the business, where Ms. Brewer has far more experience, is just not an area that Walgreens desires to pursue as a significant growth opportunity,” retail analyst and GlobalData managing director Neil Saunders said in an emailed statement.
“All of this must come as a disappointment to Ms. Brewer, however it also signifies that a unique kind of experience is required to guide the business. It’s notable that the interim CEO, Ginger Graham, has a much deeper background within the healthcare and pharma industries,” he added.
Brewer’s last foray into the health world led to the early 2000s when she was an executive on the Kimberly-Clark, a worldwide health and hygiene products company, where she worked for greater than twenty years.
“I’m confident that WBA is on the right track to be a number one consumer-centric healthcare company, serving hundreds of communities across the country, especially those who need access to healthcare probably the most,” Brewer said in Friday’s announcement.
Pessina thanked Brewer for her high-stakes work through the Covid pandemic. She joined the corporate right across the time Covid vaccines were becoming available for most of the people and the rollout’s early days were often marked by tension, chaos and disorder.
“She furthered our consumer facing capabilities while supporting the culture of community and team-member engagement in difficult times,” said Pessina.
Brewer led the team that created Walgreens’ vaccine scheduling system and developed a plan to drive vaccine equity, the corporate said.
Despite Brewer’s many accomplishments, Pessina called Graham “the best person” to function the corporate’s interim CEO, considering her leadership experience across multiple segments of the health-care industry.
Graham has been on Walgreens’ board since 2010. Last October, she was named the lead independent director. She began her profession at Eli Lilly and has been on the boards of multiple health-care corporations. She was also CEO of Amylin Pharmaceuticals.
