Key Takeaways:
- Walgreens CEO Tim Wentworth told CNBC’s Jim Cramer his retail pharmacy chain can rival Amazon because of its human-to-human interactions with customers and presence in communities.
- Wentworth said he thinks “human interface” will differentiate Walgreens from its competitors more so than speedy deliveries.
Walgreens CEO Tim Wentworth conveyed to CNBC’s Jim Cramer his belief that the retail pharmacy chain can compete with Amazon by leveraging its human-to-human interactions with customers. He emphasized the significance of Walgreens’ presence in communities, with its 8,600 locations serving as accessible hubs where customers can engage in discussions about medications, seek advice on health concerns, or find complementary over-the-counter products alongside their prescriptions. Wentworth underscored that these personalized interactions, rather than just speedy deliveries, are what will set Walgreens apart.
While expressing admiration for Amazon and acknowledging its role in driving industry innovation, Wentworth stressed that Walgreens’ strength lies in its consumer presence. He noted that consumer expectations have evolved due to companies like Amazon and Instacart, but emphasized that Walgreens’ ability to connect with customers in person is a key competitive advantage against online giants.
Despite reporting earnings that surpassed Wall Street’s expectations, Walgreens revised its fiscal 2024 earnings guidance to reflect challenges in the U.S. retail environment. Wentworth, who joined Walgreens in 2023, has been leading efforts to navigate the company through a period of difficulty, marked by factors such as declining demand for Covid products, pharmacy reimbursement rate reductions, online competition, and staff discontent.
Wentworth outlined strategies to enhance Walgreens’ pharmacy business, including collaborating with pharmaceutical school deans to reshape the future community pharmacy workplace and adjusting curricula to meet evolving needs. Additionally, Walgreens is streamlining pharmacists’ tasks, such as pill counting, through the implementation of micro-fulfillment centers. Wentworth believes that redesigning the workplace and engaging with the community to cultivate future pharmacists will equip Walgreens with the workforce needed to meet customer needs effectively.