Walgreens
| File:Walgreens Logo.svg Logo used since 2015 | |
| Company type | Subsidiary |
|---|---|
| Industry | Pharmacy retail |
| Founded | 1 January 1901 in Chicago, Illinois, United States |
| Founder | Charles Rudolph Walgreen |
| Headquarters | Deerfield, Illinois , United States |
Area served | United States |
Key people | Stefano Pessina (Executive Chairman), Tim Wentworth (CEO), Tracey D. Brown (President) |
| Products | Pharmacy services, photo development, beauty products, groceries, retail goods |
| Parent | Walgreens Boots Alliance (until 2025), Sycamore Partners (from 2025) |
| Website | www |
Walgreens is a prominent American pharmacy retailer based in Deerfield, Illinois, ranking as the second largest in the United States after CVS Pharmacy. As of March 2025, the company managed a network exceeding 8,700 locations across the country. Established in 1901 in Chicago by its founder, Charles Rudolph Walgreen, Walgreens experienced substantial growth following its acquisition of the Switzerland- and UK-based firm Alliance Boots on December 31, 2014. This strategic merger resulted in the formation of the parent entity Walgreens Boots Alliance, with Walgreens continuing as a subsidiary headquartered in Deerfield and listed on the Nasdaq under the ticker WBA.
The company’s operations encompass pharmacy services along with offerings such as photo development, beauty merchandise, groceries, and various retail goods. Walgreens serves a wide-ranging consumer base throughout the U.S., utilizing its extensive store presence to enhance market penetration.
Leadership at Walgreens includes Executive Chairman Stefano Pessina, CEO Tim Wentworth, and President Tracey D. Brown. Operating under Walgreens Boots Alliance, the company is also subject to an impending acquisition by Sycamore Partners.
Walgreens has encountered multiple legal issues involving allegations of discrimination, fraudulent drug practices, federal billing violations, opioid distribution controversies, pricing irregularities, improper hazardous waste management, sales of expired products, misinformation to investors, employment of unlicensed pharmacists, and wage theft claims. In particular, a 2021 federal jury determined that Walgreens was among several pharmacy chains significantly responsible for exacerbating the opioid epidemic.
20th century
The origins of Walgreens trace back to 1901 when Charles Rudolph Walgreen acquired a modest food store in Chicago where he was employed as a pharmacist. By 1919, the business had grown to encompass 20 stores. During the Prohibition era of the 1920s, Walgreens capitalized on selling prescription whiskey at elevated prices. In 1922, employee Ivar Coulson invented the company’s iconic malted milkshake, which contributed to establishing Walgreens as a favored social gathering spot.
By the mid-1920s, Walgreens operated 44 outlets with annual revenues of $1.2 million, expanding into states including Minnesota, Missouri, and Wisconsin. By 1930, the chain had increased to 397 stores generating $4 million in sales. The Great Depression had a limited effect on growth; by 1934 Walgreens operated 601 stores across 30 states. After Charles R. Walgreen passed away in 1939, leadership passed to his son Charles R. Walgreen Jr.
In 1946, Walgreens acquired Mexico’s Sanborns pharmacy and department store chain but divested this asset in 1982. During the 1950s, Charles "Cork" R. Walgreen III modernized company operations by implementing barcode scanning technology and developing larger Superstore formats. The firm also expanded through acquiring Globe Discount City big-box stores during the 1960s.
In the 1980s, Walgreens owned Wag's casual dining restaurants but exited this business by 1991. The company further expanded in 1986 by purchasing the MediMart chain from Stop & Shop. Kevin P. Walgreen entered senior management as vice president in 1995 and progressed to senior vice president of store operations by 2006.
2000s
On July 12, 2006, David Bernauer resigned as Walgreens' CEO, with company president Jeff Rein stepping into the role and later assuming the positions of chairman and CEO. That same year, Walgreens broadened its footprint by acquiring the Happy Harry's pharmacy chain operating in Delaware, Pennsylvania, Maryland, and New Jersey. In 2007, the company expanded further by purchasing Take Care Health Systems, a quick-care clinic network founded by Hal Rosenbluth. On October 10, 2008, Alan G. McNally succeeded Rein as chairman and interim CEO. Subsequently, Gregory Wasson was appointed CEO starting February 1, 2009.
2010s
In 2010, Walgreens completed the acquisition of Duane Reade for $1.075 billion, retaining the brand within the New York City area. The following year, it acquired Drugstore.com for $409 million. On June 19, 2012, Walgreens acquired a 45% ownership stake in Alliance Boots for $6.7 billion and also purchased Mid-South drugstore chains operating under USA Drug and other names. A trademark dispute initiated in 2010 against Wegmans regarding logo similarities was resolved in 2011 when Wegmans agreed to discontinue its "W" logo.
To foster digital innovation, Walgreens established a technology hub in Chicago in 2010. In 2011, the company announced it would end its collaboration with Express Scripts but reversed this decision in 2012 following pressure from minority shareholders and other stakeholders, underscoring the complexities of pharmacy benefit management partnerships.
In July 2013, Walgreens sought to enter the Canadian market by attempting to acquire Toronto-based Shoppers Drug Mart but was ultimately outbid by Loblaw Companies. Later that year, it strengthened its presence in North Carolina through the acquisition of Kerr Drug.
A proposed move of the corporate headquarters to Switzerland in 2014 during the Alliance Boots merger generated controversy due to concerns over tax inversion. In August of that year, Walgreens finalized the purchase of all remaining shares of Alliance Boots to form Walgreens Boots Alliance, headquartered in Chicago. Additionally, acquisitions included Almus Pharmaceutical's generic brand and Farmacias Benavides.
By mid-2016, Walgreens discontinued Drugstore.com and Beauty.com to concentrate resources on Walgreens.com. On September 19, 2017, after multiple attempts and regulatory review, the Federal Trade Commission approved Walgreens’ $4.38 billion purchase of Rite Aid's remaining stores (1,932 locations), significantly increasing its market share and reinforcing its leadership in retail pharmacy.
2020s
In February 2020, Richard Ashworth was named president of Walgreens but departed before the year's end. In June 2023, the company announced plans to close 150 stores across the United States along with 300 locations in the United Kingdom.
On June 27, 2024, Walgreens disclosed intentions to shutter roughly one-quarter (around 2,150) of its approximately 8,600 U.S. stores over a three-year period, focusing on underperforming sites without revealing specific locations.
By December 2024, negotiations began for Walgreens Boots Alliance to be acquired by private equity firm Sycamore Partners. This culminated in March 2025 with a finalized $10 billion transaction taking the company private under Sycamore’s ownership.
Store model
Walgreens operates primarily through standalone corner stores located on busy streets, mirroring the style of traditional independent pharmacies. A significant number of these outlets include drive-through pharmacy services.
The interior design of stores is typically open and uniform, with newer locations showcasing contemporary architectural elements. In metropolitan areas such as New York and Chicago, flagship stores often occupy several floors. Tobacco products and alcoholic drinks are usually kept behind the checkout counters; nonetheless, certain state laws impose restrictions—for instance, alcohol sales are banned in New Jersey pharmacies, and Massachusetts prohibits tobacco sales within pharmacy settings.
Claims of Discriminatory Practices
In March 2008, Walgreens resolved a $24 million lawsuit brought by the Equal Employment Opportunity Commission (EEOC) concerning allegations of discrimination against African American staff members. The settlement compensated approximately 10,000 affected employees, with Walgreens not admitting any wrongdoing.
Later, in September 2011, Walgreens settled another EEOC case involving the wrongful dismissal of an employee with diabetes who consumed store food to counteract a hypoglycemic episode.
Fraudulent Activities Related to Medications
In June 2008, Walgreens agreed to pay $35 million to federal and state authorities, including Puerto Rico, to settle accusations of altering medication dosages without authorization to boost profits. The company also pledged to discontinue these practices.
That same month, Walgreens paid an additional $35 million to the U.S. government, 42 states, and Puerto Rico for overcharging Medicaid by dispensing higher-cost dosage forms of generic ranitidine and fluoxetine.
In 2009, Walgreens—Delaware’s largest pharmacy chain—threatened to withdraw from the state's Medicaid program due to disputes over reimbursement rates. The standoff was resolved when both parties reached a payment agreement.
In 2010, Walgreens stopped accepting Medicaid in Washington state, affecting approximately one million Medicaid beneficiaries across 121 outlets.
On April 20, 2012, Walgreens settled with the U.S. Department of Justice for $7.9 million over alleged breaches of the federal Anti-Kickback Statute and False Claims Act relating to federal healthcare recipients.
In January 2019, Walgreens Boots Alliance Inc. paid more than $269 million to resolve federal and state lawsuits accusing it of overbilling government healthcare programs. Later, in September 2024, the company agreed to a $106 million settlement following whistleblower allegations that it billed federal programs for prescriptions that were temporarily filled but never collected by patients.
Controversies Over Proprietary Medications
In January 2012, the United Food and Commercial Workers Unions and Employers Midwest Health Benefits Fund filed a lawsuit against Walgreens alleging violations of the Racketeer Influenced and Corrupt Organizations Act (RICO). The complaint asserted that Walgreens and Par Pharmaceutical conspired to inflate prices on generic drugs by promoting costlier dosage forms of medications such as Zantac and Prozac instead of dispensing the prescribed lower-priced alternatives.
Opioid Distribution
In September 2012, the DEA prohibited Walgreens from distributing oxycodone and other controlled substances from its Jupiter, Florida distribution hub, citing inadequate measures to regulate drug dispensing and prevent diversion to addicts and dealers. The agency noted that certain Walgreens locations placed orders for millions of oxycodone tablets annually, significantly surpassing typical pharmacy demand. Since 2009, Walgreens’ Jupiter facility—one of twelve nationwide—had become the largest distributor of oxycodone in Florida.
In 2013, Walgreens incurred an $80 million penalty for violations related to recordkeeping and dispensing, representing the highest fine issued under the Controlled Substances Act at that time.
A federal jury in 2021 determined that Walgreens, along with CVS and Walmart, played a substantial role in exacerbating the opioid epidemic, establishing an important legal precedent holding major pharmacy chains responsible.
By May 2022, Walgreens reached a $683 million settlement with the state of Florida over opioid sales without admitting fault. Following this, Tennessee initiated litigation accusing Walgreens of contributing to its opioid crisis by excessively supplying prescription narcotics in breach of state regulations.
In August 2022, a federal court awarded $650 million to Ohio’s Lake and Trumbull Counties in an opioid-related lawsuit involving Walgreens, CVS, and Walmart. The counties sought damages totaling $3.3 billion; other defendants had settled prior to trial.
Penalties for Pricing Irregularities
Walgreens has been subject to various fines due to pricing discrepancies. In 2013, the Wisconsin Department of Agriculture fined the company $29,241 for inconsistencies between shelf labels and scanned prices. In April 2016, Walgreens agreed to a $500,000 settlement with New York’s Attorney General over allegations of deceptive advertising and overcharging, which also led to revisions in its advertising policies. Moreover, in 2015 a Kansas City court imposed a $309,000 fine on Walgreens for comparable pricing violations.
Improper Hazardous Waste Disposal
In December 2012, Walgreens resolved a lawsuit with a $16.57 million settlement after accusations surfaced that more than 600 stores had unlawfully discarded hazardous waste and improperly handled confidential customer information.
Expired Goods Sales and Excessive Charges
In January 2018, Walgreens settled a consumer protection lawsuit in the San Francisco Bay Area by paying $2.25 million. The case involved allegations that the company sold expired baby food, infant formula, and over-the-counter medications while charging prices exceeding advertised discounts.
Prescription Refusal Due to Religious Convictions
In June 2018, a pharmacist at a Walgreens location in Peoria, Arizona declined to fill a prescription intended to terminate a pregnancy medically determined as nonviable. The patient described the incident as "humiliating." Walgreens stated its policy allows pharmacists to refuse prescriptions based on personal beliefs.
SEC Settlement for Investor Misrepresentation
In September 2018, Walgreens consented to pay $34.5 million to settle charges brought by the SEC concerning misleading financial guidance provided to investors. The SEC claimed that former CEO Greg Wasson and CFO Wade Miquelon acted negligently when issuing financial projections.
Government Overcharging Settlements
In January 2019, Walgreens agreed to pay $269.2 million to settle claims accusing the company of defrauding the federal government and 39 states through schemes involving excessive billing.
Employment of Unlicensed Pharmacist
In February 2020, Walgreens resolved a consumer protection lawsuit with a $7.5 million settlement after permitting an unlicensed individual to serve as a pharmacist without conducting adequate background verifications. This individual processed more than 745,000 prescriptions, including upwards of 100,000 prescriptions for controlled substances. The investigation was conducted by California state and county officials. During the inquiry, Walgreens failed to produce the employment application of this person; although they had attended pharmacy courses, there was no documentation confirming the completion of a degree necessary for licensing examinations.
Violations Related to Wage Theft
In March 2021, Walgreens settled a class action lawsuit amounting to $4.5 million concerning wage theft and labor law breaches by California employees spanning from 2010 through 2017. The allegations included practices such as rounding down recorded work hours, mandating unpaid security screenings before and after shifts, and neglecting to compensate employees with premium wages when meal breaks were missed.
Incorrect Vaccine Administration to Young Children
In September 2021, a pharmacist at a Baltimore Walgreens mistakenly gave a four-year-old child an adult dose of the Pfizer–BioNTech COVID-19 vaccine instead of the intended flu vaccine. Walgreens acknowledged that such mistakes are infrequent. A few weeks later, in Evansville, Indiana, two children and their parents were similarly given adult doses of the Pfizer vaccine rather than flu shots. The children required treatment from pediatric cardiologists. At that time, the Pfizer vaccine had not received FDA approval for use in children under twelve years old. Walgreens chose not to comment on this incident.
Controversy Over Abortion Medication
In January 2023, Walgreens, along with CVS, announced intentions to distribute mifepristone, a critical medication used for abortion, following changes in FDA regulations. This announcement triggered considerable political opposition and protests outside Walgreens stores.
Following certification, Walgreens began dispensing abortion pills at specific locations but received legal warnings from attorneys general in conservative states, prompting the company to suspend sales in those areas. This move attracted criticism from advocates supporting abortion rights.
In reaction to Walgreens' position on abortion pill distribution, California Governor Gavin Newsom declared that the state would terminate its business dealings with Walgreens.
Performance Metrics Adjustment
In 2022, Walgreens eliminated task-based performance indicators for pharmacy personnel due to concerns that metrics emphasizing speed were detrimental to patient safety. This change demonstrates Walgreens' renewed focus on prioritizing patient care and experience instead of operational speed measurements.
Brands
| Brand | Product |
|---|---|
| Almus Pharmaceuticals | Medications |
| Be Jolly | Seasonal/Holiday |
| Big Roll | Toilet Paper |
| Botanics | Skin Care |
| Complete Home | Household Goods |
| CYO | Cosmetics |
| Certainty | Incontinence Products |
| Dashing | Holiday Items |
| Finest Nutrition | Vitamins and Supplements |
| Infinitive | Electronics |
| Liz Earle | Skin Care (UK) |
| Modern Expressions | Holiday Products |
| Nice! | Groceries |
| No. 7 | Skin Care |
| Patriot Candles | Candles |
| PetShoppe | Pet Supplies |
| Playright | Toys |
| Sleek MakeUP | Cosmetics |
| Smile & Save | Paper Towels |
| Soap & Glory | Cosmetics |
| Soltan | Sunscreen (UK) |
| Well at Walgreens | Healthcare Products |
| Well Beginnings | Baby Products |
| West Loop | Apparel/Clothing |
| Wexford | Office Supplies |
| YourGoodSkin | Skin Care Products |
See also
General sources
External links
- Articles with short description
- Pages with broken file links
- 1901 establishments in Illinois
- American companies established in 1901
- Companies based in Deerfield, Illinois
- Companies formerly listed on the New York Stock Exchange
- Former components of the Dow Jones Industrial Average
- Health care companies based in Illinois
- Pharmacies of the United States
- Retail companies established in 1901
- Walgreens Boots Alliance
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- Companies of the United States by year of establishment