Walgreens CEO departs, to be replaced by exec with ‘deep health care experience’
The sudden move comes as the retailer, which just announced it will soon roll out new care options normally only available at a doctor’s office, is aiming to position itself more as a health care company than a pharmacy chain.
Walgreens has announced that its CEO, Rosalind Brewer, stepped down August 31, and that its next CEO will have “deep health care experience,” as the company continues its ascent into a large conglomerate of health care offerings.
Brewer’s departure comes less than three years after she joined the Illinois-based retailer during the chain’s rollout of COVID-19 vaccines and its strategic pivot to health care that year. Under Brewer’s leadership, Walgreens added primary care centers to hundreds of U.S. stores and acquired urgent care provider Summit Health-CityMD in a $8.9 billion deal, partnered with health insurers and bought out its remaining stakes in post-acute technology platform CareCentrix and Shields Health Solutions.
However, the move is not entirely unexpected since the company’s shares have been down all year, as its pharmacy unit has been hit by a steeper-than-expected demand for COVID tests and vaccines.
Walgreens will be searching for a successor with “deep health care experience to lead in today’s dynamic environment,” announced Stefano Pessina, chairman of Walgreens’ board of directors who preceded Brewer as CEO. Board member Ginger Graham , who has more experience in health care compared to Brewer, has been appointed as interim CEO, according to a statement.
Brewer, whose background was largely retail before joining Walgreeens, was chosen to transform Walgreens into a health care provider to become more competitive with CVS, which had been taking a more aggressive stance into health care. In 2020, the pharmacy chain struck a deal with VillageMD to have primary care clinics in 500 to 700 of its stores.
Last year, Walgreens acquired Summit Health-CityMD in an $8.9 billion deal, expanding into health care services division. Just last week, Walgreens, along with CVS and Walmart, announced that they will soon be rolling out new care options normally only available at doctor’s offices.
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“We are experiencing a slower profit ramp for U.S. Healthcare,” Brewer had said in a third-quarter earnings call in June. “Importantly, we remain committed to our strategy through immediate actions to accelerate our path to profitability and to unlock long-term value. I remain confident in the long-term trajectory of our transformation.” Brewer will continue to advise Walgreens as it searches for another CEO, the company said.