Why It Matters: A messy pivot from pharmacy to well being companies.
Walgreens has been shifting away from pharmacy and retail to focus extra on well being care companies, with blended outcomes. The firm’s shares sank additional on Friday, dropping to close a 14-year low. The firm mentioned its revenue this 12 months could be “at or near the low end” of its forecasts.
“The group, which previously grew through various pharmacy acquisitions, is now looking to consolidate and focus its efforts on the U.S. health care sector,” Neil Saunders, managing director of GlobalData, mentioned in an electronic mail. “While the wisdom of this move is debatable, health care is not Ms. Brewer’s forte.”
Before becoming a member of Walgreens, Ms. Brewer was the chief working officer of Starbucks and beforehand served as chief govt of Sam’s Club, a division of Walmart.
In addition to opening extra medical doctors’ workplaces inside Walgreens shops, she oversaw the sophisticated rollout of the Covid-19 vaccine at pharmacies and enforcement of pandemic security requirements inside shops.
In an announcement, Ms. Brewer mentioned that she was pleased with what she had achieved and that the corporate was “on track to be a leading consumer-centric health care company.”
Quotable: ‘The worst time’ for an govt departure.
Ms. Brewer’s exit was introduced somewhat over a month after the corporate’s chief monetary officer, James Kehoe, left to turn out to be a finance chief on the know-how agency FIS.
As Walgreens leans extra into the well being care business, it faces a number of hurdles, business specialists mentioned. In a be aware to shoppers, Deutsche Bank’s analysts mentioned the challenges included managing tough pharmacy reimbursements, remodeling its business mannequin to concentrate on main care and coping with opioid legal responsibility points.
“The departure of the two key executives comes at possibly the worst time,” the Deutsche Bank analysts wrote. “We cannot recall a time in our coverage experience where we have seen both the C.E.O. and the C.F.O. depart a large-cap company in such a short span where there were not other issues at the company.”
What’s Next: The seek for a everlasting successor.
Walgreens mentioned a seek for a everlasting chief was underway.
Stefano Pessina, the corporate’s govt chairman, mentioned in an announcement that Ms. Graham was the “ideal person to serve as interim C.E.O.” Ms. Graham was beforehand chief govt of Amylin Pharmaceuticals and chairman of Guidant. She began her profession at Eli Lilly.
It is uncommon for a lady to interchange one other feminine chief govt. This 12 months, gender variety has fallen throughout the high ranks of retail firms. Of the 86 retail firms within the Fortune 1000, 13 had a girl as chief govt as of July, down barely from the 12 months earlier than, in accordance with Heidrick & Struggles, an govt recruiting agency.
Among the Fortune 500, there are 50 feminine chief govt officers, in accordance with knowledge from Catalyst, which works with tons of of firms to advance the careers of ladies.
Ms. Brewer’s departure leaves only one Black lady operating a Fortune 500 firm: Thasunda Duckett TIAA, the funding agency.
Source: www.nytimes.com