How Speedy Does Walgreens Need To Be?

Lindsay Mikos, senior director of omnichannel strategy and programs at Walgreens, spoke about the retail pharmacy chain’s moves to build out and maintain its super-fast omnichannel fulfillment options, including 30-minute pickup, In a session at the Internet Retailer Conference & Expo in Chicago last week. “It was at the height of the pandemic,” Ms. Mikos said. “Walgreens didn’t have a pickup program... We knew that COVID was happening, people were not able to go and shop in our stores, we needed to figure out a solution very quick.” What would eventually become Walgreens’ 30-minute pickup program began with Mikos and a team of around 10 creating a microsite that gave customers access to 100 critical items through the drive-thru. The initiative gave proof of concept to corporate, overriding skepticism that a chain with an average store journey of eight minutes needed omnichannel solutions to speed transactions. “Convenience is changing,” Ms. Mikos said. “[We observed] if we don’t offer these solutions, [customers] won’t continue to shop with us.” The chain pushed itself to guarantee a 30-minute pickup time to do it “bigger and better” than competitors. Four months later, Walgreens launched delivery from store, with a target of two-hour delivery. Looking at the metrics on the program, Walgreens found that 80 percent of its deliveries were reaching their destination in under an hour. Today, Walgreens offers 30-minute pickup chainwide via in-store interaction, curbside or drive-thru. It offers 27,000 items for omnichannel purchase and last year launched 24-hour delivery at hundreds of stores nationwide. Walgreens aims to facilitate customers shopping retail and pharmacy simultaneously in the same basket. Ms. Mikos pointed to a few factors that have led to its pickup and delivery success:

• Improved AI-enhanced on-site search experience, which offers recommendations based on purchase history and other characteristics;
• Giving store staff the right tools to allow for orders to be filled quickly (with 89 percent of orders filled within 30 minutes);
• A robust training model for staff;
• Being responsive to store staff on the positives and negatives of the picking/fulfillment process and solutions.