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Walgreens Teams Up with Fedex to Boost Retail Performance
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Leading pharmacy-led health and wellbeing company Walgreens Boots Alliance, Inc. (WBA - Free Report) recently inked a multi-year partnership agreement with global express delivery services company FedEx Corporation (FDX - Free Report) . The alliance is aimed at offering convenient access to FedEx drop-off and pickup services at several of Walgreens locations across the U.S.
According to both the companies, Walgreens’ convenient network of retail locations together with FedEx, which is a prime contributor to the rapidly growing e-commerce economy, will offer more options to consumers to drop off and pick up their FedEx shipments and handle multiple tasks during a single store visit. This combined service, while emphasizing on customer convenience, should also increase customer access and thereby enable Walgreens to significantly expand its retail network service.
Walgreens stated that, as part of the FedEx Onsite program, Walgreens’ customers will be able to drop off pre-packaged and pre-labeled shipments at the stores and pick up packages that they direct to their neighborhood Walgreens.
The companies plan for an initial, small-scale rollout this spring. However, they expect this program to be available at thousands of Walgreens locations later in 2017 and chain wide at nearly 8,000 Walgreens stores by the fall of 2018.
Share Price Movement
Over the last six months, Walgreens Boots outpaced the Zacks Classified Retail - Pharmacies and Drug Stores industry trend with respect to price performance. The stock, till now has gained 3.25%, way better than the 8.35% decline of the industry trend. This apart, the estimate revision trend is favorable for the current year with three analysts providing positive revisions and one offering downward revision in the last two months. Accordingly, the consensus estimate for the current year has also inched up 2 cents, over the same time frame.
We currently await the integration of Rite Aid into Walgreens’ business model which should expand its footprint in the U.S. over the long haul. Several recent strategic programs including skin product launch and vaccination programs are also expected to boost the company’s growth in the near term.
Our Take
We note that the latest alliance with FedEx is part of Walgreens’ strategic initiative to improve its operational performance across retail. The company is currently reinvesting in the stores of the Retail Pharmacy USA division to enhance customer experience, expanding retail margins as well as restructuring the cost base.
Through its latest efforts, Walgreens aims to become an industry leader in the pharmacy-led health care space. The company, in this regard also talks about a frontend strategy, a multi-year multi-phase approach that has three core elements, products, store environment, and customer experience. We are also optimistic about new strategies that are being adopted by Walgreens and expect them to drive growth, going forward.
Zacks Rank & Key Picks
Walgreens Boots currently carries a Zacks Rank #3 (Hold). A couple of better-ranked medical stocks include ICU Medical Inc. (ICUI - Free Report) ,and Conatus Pharmaceuticals Inc. ICU Medical sports a Zacks Rank #1 (Strong Buy) while Conatus Pharmaceuticals Inc. carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ICU Medical gained 36.5% over the last one year compared with the S&P 500’s 17.9% growth. The company has an impressive earnings growth expectation of 20.5% for the next five years compared with the industry average of 15.2%.
Conatus Pharmaceuticals Inc. rallied 173.26% in the past one year, way better than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 12.5%.
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Walgreens Teams Up with Fedex to Boost Retail Performance
Leading pharmacy-led health and wellbeing company Walgreens Boots Alliance, Inc. (WBA - Free Report) recently inked a multi-year partnership agreement with global express delivery services company FedEx Corporation (FDX - Free Report) . The alliance is aimed at offering convenient access to FedEx drop-off and pickup services at several of Walgreens locations across the U.S.
According to both the companies, Walgreens’ convenient network of retail locations together with FedEx, which is a prime contributor to the rapidly growing e-commerce economy, will offer more options to consumers to drop off and pick up their FedEx shipments and handle multiple tasks during a single store visit. This combined service, while emphasizing on customer convenience, should also increase customer access and thereby enable Walgreens to significantly expand its retail network service.
Walgreens stated that, as part of the FedEx Onsite program, Walgreens’ customers will be able to drop off pre-packaged and pre-labeled shipments at the stores and pick up packages that they direct to their neighborhood Walgreens.
The companies plan for an initial, small-scale rollout this spring. However, they expect this program to be available at thousands of Walgreens locations later in 2017 and chain wide at nearly 8,000 Walgreens stores by the fall of 2018.
Share Price Movement
Over the last six months, Walgreens Boots outpaced the Zacks Classified Retail - Pharmacies and Drug Stores industry trend with respect to price performance. The stock, till now has gained 3.25%, way better than the 8.35% decline of the industry trend. This apart, the estimate revision trend is favorable for the current year with three analysts providing positive revisions and one offering downward revision in the last two months. Accordingly, the consensus estimate for the current year has also inched up 2 cents, over the same time frame.
We currently await the integration of Rite Aid into Walgreens’ business model which should expand its footprint in the U.S. over the long haul. Several recent strategic programs including skin product launch and vaccination programs are also expected to boost the company’s growth in the near term.
Our Take
We note that the latest alliance with FedEx is part of Walgreens’ strategic initiative to improve its operational performance across retail. The company is currently reinvesting in the stores of the Retail Pharmacy USA division to enhance customer experience, expanding retail margins as well as restructuring the cost base.
Through its latest efforts, Walgreens aims to become an industry leader in the pharmacy-led health care space. The company, in this regard also talks about a frontend strategy, a multi-year multi-phase approach that has three core elements, products, store environment, and customer experience. We are also optimistic about new strategies that are being adopted by Walgreens and expect them to drive growth, going forward.
Zacks Rank & Key Picks
Walgreens Boots currently carries a Zacks Rank #3 (Hold). A couple of better-ranked medical stocks include ICU Medical Inc. (ICUI - Free Report) ,and Conatus Pharmaceuticals Inc. ICU Medical sports a Zacks Rank #1 (Strong Buy) while Conatus Pharmaceuticals Inc. carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ICU Medical gained 36.5% over the last one year compared with the S&P 500’s 17.9% growth. The company has an impressive earnings growth expectation of 20.5% for the next five years compared with the industry average of 15.2%.
Conatus Pharmaceuticals Inc. rallied 173.26% in the past one year, way better than the S&P 500. It has a trailing four-quarter average positive earnings surprise of 12.5%.
Zacks' Best Investment Ideas for Long-Term Profit
Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>