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Measured solely by revenue numbers, the U.S. is the undisputed leader of the retail industry.
Walmart is not only the largest global retailer, it is also the largest company of any kind in the
world.
According to the 2015 Global Powers of Retailing report, 76 of the largest retailing companies in
the world are based in the U.S.
Of the worlds 10 largest retail companies in the world, five of them are from the US and five are
from Europe, according to the 2015 Global Powers of Retailing rankings.
Some of these world's largest U.S. based retail chains operate domestically, but a growing number of
the large U.S. retail chains are establishing international retail presence as well as the world moves
towards a global economy.
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Employment
Retailers directly provide 29 million American jobs according to the U.S. Bureau of Labor Statistics.
Supports 1 in 4 US jobs
#1 Private sector employer
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Types of retailing businesses
The 13 major types of retailing businesses, along with the percentage of total sales each generates
annually in the U.S. retail industry, according to the most recent figures released by the U.S. Census
Bureau are as follows:
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Fig 1.3: Mobile as main purchasing tool for 26% of the population, and laptops for 23%.
Source: PwC, 2016 Total Retail Survey
US shoppers prefer to use their smartphones on the purchase journeyto access coupons and
promotional codes (34%), research products (30%), compare prices (30%), and access loyalty and reward
programs (23%).
US shoppers, however, dont yet have a mobile app that offers a variety of social, commercial, and
interactive choices. Also, shoppers in the US worry about cybersecurity. Hence, its a challenge for the
US retailers to fulfill both these requisites, and they are looking for options to match up.
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The top 5 retail giants of America based on their revenue figures are:
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WALMART STORES INC.
About Walmart
Walmart is headquartered in Bentonville, Arkansas, United States. Founded by Sam Walton, its first
retail store was opened on July 2, 1962 in Rogers, Ark.
By 1990, Walmart became Americas number one retailer. It then expanded internationally.
Walmart is engaged in retail and wholesale operations in various formats across the globe. Walmart has
11,500 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. It employs 2.3
million people across the globe (1.5 million in the US). It serves nearly 260 million customers each week.
It encompasses:
Physical Retail
which includes its brick and mortar stores located across the globe.
Digital retail
which includes its e-commerce websites and mobile commerce applications.
Strategy: Lead on price, differentiate on access, be competitive on assortment and deliver a great
experience.
1. Leading on price is designed to earn the trust of customers every day by providing a broad
assortment of quality merchandise and services at everyday low prices ("EDLP"). EDLP is
Walmarts pricing philosophy under which items are priced at a low price every day so as to
build trust among customers trust that prices will not change under frequent promotional
activity.
2. Everyday low cost ("EDLC") is their commitment to control expenses so those cost savings can
be passed along to their customers. Digital and physical presence provides customers access to
a broad assortment anytime and anywhere.
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Fig1.4: Walmart strategy
Source: Walmart website
1. Walmart U.S.
Walmart
2.
international
SAM's club
3. segment
Walmart U.S.
Mass merchandiser of consumer products, operating under the "Walmart" or "Wal-Mart" brands, as
well as walmart.com. The Walmart U.S. segment had net sales of $298.4 billion, $288.0
billion and $279.4 billion for fiscal 2016, 2015 and 2014, respectively. During the most recent fiscal year,
no single unit accounted for as much as 1% of total Company consolidated net sales.
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Operates retail stores in the U.S., including in all 50 states, Washington D.C. and Puerto Rico, with
supercenters in 49 states, Washington D.C. and Puerto Rico, discount stores in 41 states and Puerto Rico
and Neighborhood Markets and other small store formats in 31 states and Puerto Rico.
Walmart U.S. provides its customers access to a broad assortment of merchandise, including products
not found in our physical stores, and services online through our e-commerce websites and mobile
commerce applications. Walmart.com experiences on average 85 million unique visits a month and
offers access to approximately 8 million SKUs. In addition, the e-commerce website includes
Marketplace, a feature of the website that permits third parties to sell merchandise on walmart.com.
Digital retail is integrated with Walmarts physical stores through services like "Walmart Pickup," "Pickup
Today" and "Online Grocery." The Walmart U.S. segment also offers access to digital content and
services including Vudu and InstaWatch.
Walmart U.S. does business in six strategic merchandise units, listed below, across several store formats
including supercenters, discount stores, Neighborhood Markets and other small store formats, as well as
walmart.com.
Its highest sales volume and segment operating income have occurred in the fiscal quarter ending
January 31.
Sales Contribution
7%
8%
9%
9% 56%
11%
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Grocery: A full line of grocery items, including meat, produce, natural & organics, deli & bakery,
dairy, frozen foods, alcoholic and nonalcoholic beverages, floral and dry grocery, as well as
consumables such as health and beauty aids, baby products, household chemicals, paper goods and
pet supplies.
Health & Wellness: Pharmacy, optical services, clinical services, over-the-counter drugs and other
medical products
Entertainment: Electronics, toys, cameras and supplies, photo processing services, cellular phones,
cellular service plan contracts and prepaid service, movies, music, video games and books
Hardlines: Stationery, automotive, hardware and paint, sporting goods, fabrics and crafts and
seasonal merchandise
Apparel: Apparel for women, girls, men, boys and infants, as well as shoes, jewelry and accessories
Home: Home furnishings, housewares and small appliances, bedding, home decor, outdoor living
and horticulture
National brand merchandise represents a significant portion of the merchandise sold in the
Walmart U.S. segment.
Walmart International
The Walmart International segment consists of operations in 27 countries outside of the U.S. and
includes numerous formats divided into three major categories: retail, wholesale and other. These
categories consist of numerous formats, including supercenters, supermarkets, hypermarkets,
warehouse clubs, including Sam's Clubs, cash & carry, home improvement, specialty electronics, apparel
stores, drug stores and convenience stores, as well as digital retail.
The Sam's Club segment operates membership-only warehouse clubs, as well as samsclub.com, in the
U.S. Sam's Club provides its members access to a broad assortment of merchandise, including products
not found in their clubs, and services online at samsclub.com and through our mobile commerce
application. Samsclub.com experiences on average 16 million unique visits a month and offers access to
approximately 51,000 SKUs providing the member the option of delivery direct-to-home or to the club
through services such as "Club Pickup."
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Sales Contribution
Grocery & consumables: Dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods,
alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty
aids, paper goods, laundry and home care, baby care, pet supplies and other consumable items.
Fuel & other categories: Gasoline stations, tobacco, tools and power equipment, and tire and battery
centers.
Home & apparel: Home improvement, outdoor living, grills, gardening, furniture, apparel, jewelry,
housewares, toys, seasonal items, mattresses and small appliances.
Technology, office & entertainment: Electronics, wireless, software, video games, movies, books, music,
office supplies, office furniture, photo processing and third-party gift cards.
Health & wellness: Pharmacy, optical and hearing services and over-the-counter drugs.
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Walmarts STP:
Type of segmentation Segmentation criteria Walmart target segment
Region Domestic and international
Geographic Density Urban and rural areas
Age Individuals of all age categories
Gender Males and females
Demographic Life- cycle stage Bachelor stage young
people not living at
home
Newly married couple,
young, no children
Full nest I youngest
child under 6
Full nest II youngest
child 6 or over
Full nest II older
married couple with
dependent children
Empty nest
Solitary survivor
Income Individuals and households with
low incomes and middle class
Occupation Students, manual workers, floor
level employees and middle
level manager in public and
private sectors
Degree of loyalty Hard core loyal
Switchers
Behavioral Benefits sought Cost advantage
Personality Reserved and cost conscious
individuals
User status Non-users, potential users, first
time users, regular users or ex
users
Psychographic Social class Lower, working middle class
Lifestyle Resigned strugglers and
mainstream individuals.
Source: Walmart Stores Inc. Report by Research Methodology
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Who is a Walmart shopper?
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Fig1.9: Gender wise segmentation
Source: Walmart Annual report 2016
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Fig1.11: Generation wise segmentation
Source: Walmart Annual report 2016
The average Wal-Mart shopper is a white, 50-year-old female with an annual household income of
$53,125.
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The Kroger Co.
About Kroger
The Kroger Co. is one of the world's largest grocery retailers, with fiscal 2015 sales of $109.8 billion.
With more than 2,700 stores in 35 states under two dozen banners and annual sales of more than
$109.8 billion, Kroger today ranks as one of the worlds largest retailers.
Kroger operates 38 food manufacturing facilities that make thousands of products ranging from bread,
cookies and milk to soda pop, ice cream and peanut butter. About 40% of private-label items found in
the companys stores today are made at one of Krogers manufacturing plants. These Corporate Brands
today account for an impressive 26% of Krogers total store dollar sales, providing the company with a
significant strategic advantage. In response to customers who want the convenience of one-stop
shopping, stores have grown much larger to accommodate more variety and more merchandise.
Kroger operates more than 2,240 in-store pharmacies that fill nearly 180 million prescriptions a year. Its
floral shops ring up enough business to make Kroger the worlds largest florist. And Kroger has installed
fuel centers in more than 1,423 locations to appeal to customers who want to gas up their cars during
their shopping trip.
With dozens of manufacturing facilities and distribution centers around the country, Kroger also has one of
the largest privately-owned truck fleets in the country. Trucks moving merchandise and supplies among our
stores, warehouses and manufacturing plants log nearly 329 million miles annually.
Strategy: Be particular. Never sell anything you would not want yourself.
Service
Selection
Value
Throughout its rich history, Kroger has served as an innovator and pioneer in the food retail industry. During
the 1930s, it was the first grocery chain to routinely monitor product quality and scientifically test foods. In
2012, the companys long-standing commitment to food safety and quality earned it the highly prestigious
Black Pearl Award, awarded to only one company each year by the International Association for Food
Protection.
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Three-Tier Marketing Strategy
Kroger brand products are produced and sold in three quality tiers. This strategy fills the needs of all
their customers in the various markets where they operate. All tiers are value priced to offer shoppers
big savings over other premium, national and economy brand items.
Formats: Kroger formats include supermarkets, multi-department stores, Marketplace stores, price-impact
stores, convenience and fine jewelry stores. New combination stores, Krogers primary format, today average
76,000 square feet.
The companys Marketplace stores, which offer expanded general merchandise, are between 100,000 and
130,000 square feet, and multi-department stores under the Fred Meyer banner truly tip the scales at over
161,000 square feet. Items ranging from basic grocery staples to more innovative fare such as organic
vegetables, natural foods, and hot meals ready to eat.
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Market
Price impact Offering general
place
stores stores
merchandise
Multi
Offering a myriad of Fine jewelry
departme
products stores
ntal stores
Super
Convenien
market Drive throughs
ce stores
stores
Food stores are Krogers primary business and account for approximately 94% of total company sales.
Convenience and jewelry stores and manufacturing facilities contribute the remainder of total sales. The
information below is current as of December 1st, 2016.
They operate 2,796 grocery retail stores in 35 states under nearly two dozen banners.
Kroger also operates 787 convenience stores under six banners in 19 states.
324 fine jewelry stores under names like Fred Meyer Jewelers and Littman Jewelers.
Kroger is the only major U.S. supermarket company to operate an economical three-tier
distribution system.
Kroger also operates 38 food production or manufacturing facilities producing high quality
private-label products that provide value for customers and enhanced margins for Kroger.
Kroger operates 1,439 supermarket fuel centers, which are a natural addition to our one-stop-
shopping strategy.
Kroger's 2,253 pharmacies, located in our combination food and drug stores, provide high
quality services at everyday low prices.
Grocery Retail
The Kroger Co. operates grocery retail stores under the following banners:
Supermarkets - Kroger, Ralphs, Dillons, Smith's, King Soopers, Fry's, QFC, City Market, Owen's,
Jay C, Pay Less, Baker's, Gerbes, Harris Teeter, Pick N' Save, Copps, Metro Market, Mariano's
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Multi-department stores - Fred Meyer
Dillons Marketplace, Fry's Marketplace, King Soopers Marketplace, Kroger Marketplace, Smith's
Marketplace
Kroger operates its grocery retail stores in the following four formats:
Supermarkets
Multi-department stores
Marketplace stores
Supermarkets
The combination food and drug store is Kroger's primary supermarket format. These stores are able to
earn a return above the cost of capital by drawing customers from a 2 - 2.5-mile radius.
Although considered "neighborhood stores" - in terms of size, shopping experience, and travel time -
they are large enough to offer the high-margin specialty departments that customers desire. Specialty
departments include: whole health sections, pharmacies, pet centers and world-class perishables, such
as fresh seafood and organic produce.
Multi-department stores
Fred Meyer - Operated successfully by Fred Meyer since 1922, the multi-department store is a unique
one-stop shopping experience. Fred Meyer is the nation's third-largest supercenter operator. Stores
average over 165,000 square feet and carry more than 225,000 food, apparel, and general merchandise
products under one roof. The multi-department stores include a broad selection, including:
Full-line supermarket
Apparel
Home fashion
Shoes
Accessories
Garden
Home electronics
Nutrition centers
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An important part of Fred Meyer's competitive advantage is its emphasis on national brand products,
such as Levi's, Columbia Sportswear, Nike, Kitchen Aid, adidas, Skechers, Dockers, Carhartt, Apple,
Panasonic, Nikon, Canon, Jockey, Krups, Ashley, and Sony. Also included are many private-label products
that offer high-quality alternatives at lower prices.
Marketplace Stores
These multi-department stores offer full-service grocery, pharmacy and expanded general merchandise
including outdoor living products, electronics, home goods and toys. Marketplace stores opened during
the last two years range in size from 100,000 to 130,000 square feet.
Fine Jewelry
Founded in 1973, Fred Meyer Jewelers is the nations third-largest fine jewelry retailer operating 324
jewelry stores in 30 states under the Fred Meyer Jewelers and Littman Jewelers brand names. The stores
carry a broad assortment of engagement and wedding rings, fine jewelry for women and men, and
watches. Fred Meyer Jewelers, Inc. is a wholly owned subsidiary of Fred Meyer Stores, Inc., which was
acquired in 1999 by The Kroger Co. (NYSE:KR).
Littman Jewelers
Included are stand-alone units in malls and shops inside the multi-department stores of Fred Meyer. and
in select Kroger Marketplace, Dillons Marketplace, Frys Marketplace, Smiths Marketplace and King
Soopers Marketplace stores across the country.
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Segmentation, targeting & Positioning
STP
Segment Supermarket
Values
Honesty: insist on truthfulness with each other, with customers, with vendors and in business records.
Kroger expects and values openness.
Integrity: act in accordance with core values, even when its difficult.
Respect: treat all with dignity and value the opinions and perspectives of others.
Diversity: seek and embrace differences in the backgrounds, cultures and ethnicities of all associates,
customers and vendors.
Safety: protect customers and each other from injury with a safe and secure workplace and shopping
environment.
Inclusion: encourage and expect collaboration, teamwork and the active involvement of all associates.
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COSTCO WHOLESALE
About Costco
Costco Wholesale Corporation operates an international chain of membership warehouses, under
the "Costco Wholesale" name, that carry quality, brand name merchandise at substantially lower
prices than are typically found at conventional wholesale or retail sources. The warehouses are
designed to help small-to-medium-sized businesses reduce costs in purchasing for resale and for
everyday business use. Individuals may also purchase for their personal needs. Costco Wholesale is a
membership warehouse club, dedicated to bringing our members quality goods and services at the
lowest possible prices.
Costco provides a wide selection of merchandise, plus the convenience of specialty departments
and exclusive member services, all designed to make consumers shopping experience a pleasurable
one. Costco's warehouses present one of the largest and most exclusive product category
selections to be found under a single roof.
Business model: Costco uses a membership-only warehouse club business model. In this model,
consumers pay a membership fee to access the low-cost products available at Costco stores. Non-
members may accompany members, but only members are allowed to purchase in these stores.
However, non-members can use Costco Cash Cards to shop at the companys stores. Competitors Sams
Club and BJs Wholesale Club also use the same business model.
Costco facts:
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2 locations in Spain
Geographic Spread:
700
650
715
686
600 663
634
608
550
2012 2013 2014 2015 2016
At fiscal year end
Net Sales
120
115
110
$ Billions
105
100 2016, 116.073
2015, 113.666
2014, 110.212
95 2013, 102.87
90 2012, 97.062
85
2012 2013 2014 2015 2016
Fiscal Year
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Net Income
2500
2000
$ Millions
1500
2015, 2377 2016, 2350
1000 2013, 2039 2014, 2058
2012, 1709
500
0
2012 2013 2014 2015 2016
Fiscal Year
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Source: National Retail Federation report, 2016
Product Line: Categories include groceries, confectionary, appliances, television and media, automotive
supplies, tyres, toys, hardware, sporting goods, jewelry, watches, cameras, books, housewares, apparel,
health and beauty aids, tobacco, furniture, office supplies and office equipment. Costco is known for
carrying top quality national and regional brands, at prices consistently below traditional wholesale or
retail outlets. Members can also shop for private label Kirkland Signature products, designed to be of
equal or better quality than national brands, including juice, cookies, coffee, tyres, housewares, luggage,
appliances, clothing and detergent.
Strategy:
The companys business model is a core factor that enables Costco to follow its mission. In fact, this
business model aligns with the companys mission. The generic strategy of cost leadership also agrees
with and is needed to sustain Costcos business model.
Quality
Value
Costco is confident in the quality and value of its products, and stands behind them with the guarantee
of satisfaction.
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According to Jim Sinegal, the Company's Co-Founder and Director, "Costco is able to offer lower prices
and better values by eliminating virtually all the frills and costs historically associated with conventional
wholesalers and retailers, including salespeople, fancy buildings, delivery, billing and accounts
receivable. We run a tight operation with extremely low overhead which enables us to pass on dramatic
savings to our members.
Costco Wholesale has been aggressively infiltrating global markets with the retail innovation practices
that have created a cult-like consumer fanaticism rightfully characterized as "The Costco Craze." Costco's
global expansion frenzy since 2013 includes more than 200 international Costco Warehouse locations
operating in eight countries outside the U.S.
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Besides expansion in the brick-and-mortar channel, Costco Wholesale (COST) has also been steadily
growing its presence in the online channel. E-commerce sales grew more than 20% year-over-year (or
YoY) to $3.4 billion in fiscal 2015, representing ~3% of warehouse sales. Thats over three times the
overall sales growth rate. Thus far, Costco operates e-commerce websites in the US, Canada, the UK,
Mexico, and South Korea. The company has been steadily adding to the list of countries where its
products are available. Mexico was added in 2014, followed by South Korea this fiscal year.
Enhancing digital and physical infrastructure is critical for enhancing online sales for Costco and its
peers. Costcos warehouses serve as a natural hub for servicing omnichannel orders. However, the
company has also been investing in new distribution depots to enhance fulfilment speed and minimize
shipping costs.
Delivery channels
Costco is also actively using alternative delivery services like Google Shopping Express, InstaCart, Boxed,
and Jet.com in more and more markets to enhance its own distribution network. This strategy reduces
the onus of investing in its own infrastructure and allows the company to divert more investments in the
brick-and-mortar channel. The availability of merchandise in its owned portals, as well as other
channels, has also been steadily rising.
Costco is still away from the functionality which allows members the option of placing orders online
which they can procure from a store. Costcos e-commerce sales rose 19% last quarter. Thats precisely
why just like any other company, Sams Club cannot go into the mode of complacency.
The company is slowly expanding the categories its sells online and does not plan to focus on omni-
channel initiatives to drive store traffic.
Operations:
Costco is open only to members and offers three types of membership.
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EXECUTIVE
BUSINESS
GOLD STAR
Executive Members are offered additional savings on Costco Services such as auto and home insurance,
Costco Auto Program, check printing, identity protection, payment processing, bottled water delivery,
and payroll services. Executive Members in the U.S earn an annual 2% Reward (up to $750) on qualified
Costco purchases. All types of membership include a free Household Card. Costco membership cards are
accepted at Costco locations worldwide and online at Costco.com.
Business Members qualify by owning or operating a business, and pay an annual fee ($55 in the U.S.) to
shop for resale, business and personal use. This fee includes a free Household Card. Business members
may purchase up to six additional membership cards ($55 each) for partners or associates in the
business.
Gold Star Members pay an $55 annual fee (in the U.S.), to shop for personal use. Individuals who dont
own a business may sign up for a Gold Star Membership. This fee includes a free Household Card.
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The Home Depot, Inc.
The Home Depot is a home improvement supplies retailing company that sells tools, construction
products, and services. It operates many big-box format stores across the United States Canada, and the
country of Mexico. The company is headquartered at the Atlanta Store Support Centre in Cobb County,
Georgia, in Greater Atlanta.
In terms of overall revenue reported to the U.S. Securities and Exchange Commission, the Home Depot is
the largest home improvement retailer in the United States, ahead of rival Lowe's. It operates out of
large warehouse-style buildings averaging 105,000 ft2 with megastores operating in larger facilities.
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Graph 1.16: The graph presents the Companys cumulative total shareholder returns relative to the
performance of the S&Ps 500 composite Stock Index from 2011 to the last trading day of Fiscal 2016.
Source: The Home Depot Asia investors meeting Report
Background
The Home Depot was founded in 1978 by Bernard Marcus, Arthur Blank, Ron Brill and Pat Farrah. The
Home Depot's proposition was to build home-improvement superstores, larger than any of their
competitors' facilities. Investment banker Ken Langone helped Marcus and Blank to secure the
necessary capital. In 1979, the first two stores, built in spaces leased from J. C. Penney that were
originally Treasure Island "hypermarket" (discount department and grocery) stores, opened in metro
Atlanta. The company became a New York Stock Exchange traded company on April 19, 1984.
Since 2000, theres been a hard push to make the company more efficient, instituting many metrics and
centralizing operations business.
In 2001, it acquired distributor Your Other Warehouse (YOW), which still operates as its own division. In
2006, the Home Depot acquired Hughes Supply which was assimilated into HD Supply serving
contractors, which it sold in June 2007.
In September 2005, Home Depot Direct launched its online home-furnishings store, 10 Crescent Lane,
shortly followed by the launch of Paces Trading Company, its online lighting store.
In mid-2006, the Home Depot acquired Home Decorators Collection, which was placed as an additional
brand under its Home Depot Direct division. Home Depot Landscape Supply, with only a few stores each
in metro Atlanta and Dallas/Fort Worth, was founded in 2002 and closed in late 2007.On July 22, 2015,
Home Depot acquired Interline Brands from P2 Capital Partners, Goldman Sachs' private equity arm, and
the management of Interline Brands for $1.6 billion.
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Source: NAICS market analysis
Marketing
The slogan "More saving. More doing." was introduced by The Home Depot in the March 18, 2009
circular, replacing "You can do it. We can help." which had been used since 2003. Other slogans used in
the past 25 years include "The Home Depot, Low prices are just the beginning" in the early 1990s and
"When you're at the Home Depot, youll feel right at home" in the late 1990s and "The Home Depot:
First In Home Improvement!" from 1999 to 2003.
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Brands
Interline Brands
Interline Brands has over 90 distribution centers throughout the United States, Canada and Puerto Rico
that serves customer needs for MRO and janitorial supplies.
The brands of Interline Brands includes :
Online
The domain homedepot.com attracted at least 120 million visitors annually by 2008 according to
a Compete.com survey. In the US HomeDepot.com has 5 Call centers located in Kennesaw, GA; Atlanta,
GA; Marietta, GA; Ogden, Utah and Tempe, AZ.
Exclusive brands
The Home Depot exclusively carries several major brands, including:
Husky (tools)
Workforce (tools, shelving, storage cabinets, extension cords, worklights, tarps, paintbrushes)
HDX
Glacier Bay (kitchen sinks, faucets, etc.)
Hampton Bay (ceiling fans, lighting, outdoor furnishings, and outdoor shelters)
Commercial Electric
Home Decorators Collection
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WALGREENS BOOTS ALLIANCE
About Walgreens
Walgreens Co. was formed in 1909. And is headquartered in Deerfield, Illinois, United States. Walgreens
Boots Alliance, Inc., a Delaware corporation is the first global, pharmacy-led health and wellbeing
enterprise with sales of $117.4 billion in the fiscal year ended August 31, 2016. As of August 31, 2016,
Walgreens employed approximately 360,000 persons, approximately 120,000 of whom were part-time
employees working less than 30 hours per week.
Geographical Spread:
Segments:
Retail Pharmacy
USA
Retail Pharmacy
International
Pharmaceutical
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Contribution to Sales
22.6
13.3
83.8
Retail Pharmacy USA division (excluding equity method investments) has pharmacy-led health and
beauty retail offerings in 50 states, each focused on helping people feel happy and healthy. Principal
retail pharmacy brands in the division are Walgreens and Duane Reade. It provides customers with
convenient, omni-channel access to consumer goods and services, including own branded general
merchandise such as NICE!, DeLish and Well at Walgreens, as well as pharmacy and health and wellness
services in communities across America. The components of the divisions sales are Pharmacy (the sale
of prescription drugs and provision of pharmacy-related services) and Retail (the sale of healthcare and
retail products including non-prescription drugs, beauty, toiletries and general merchandise).
Contribution to Sales
33%
67%
Pharmacy Retail
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Retail Pharmacy International division (excluding equity method investments) has pharmacy-led health
and beauty retail businesses in eight countries, each focused on helping people look and feel their best.
Principal retail pharmacy brands are Boots in the United Kingdom, Thailand, Norway, the Republic of
Ireland and The Netherlands, Benavides in Mexico and Ahumada in Chile. The Boots omni-channel
offering is differentiated from that of competitors due to the product brands it owns, such as No7, Boots
Pharmaceuticals, Botanics, Liz Earle, Soap & Glory, and only at Boots exclusive products, together with
its long-established reputation for trust and customer care. Our brands portfolio is enhanced by our in-
house product research and development and manufacturing capabilities.
Website: boots.com
Contribution to Sales
35%
65%
Pharmacy Retail
Pharmaceutical Wholesale
Pharmaceutical Wholesale division (excluding equity method investments), which mainly operates
under the Alliance Healthcare brand, supplies medicines, other healthcare products and related services
to more than 110,000 pharmacies, doctors, health centers and hospitals each year from 288 distribution
centers in 11 countries, primarily in Europe, as of August 31, 2016,.
Target Customers
Customers include numerous wholesale and retail customers.
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