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Market Update : 
Walgreens Q3 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 9:55 AM ET June 25 2009


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And our final question today comes from John Heinbockel of Goldman Sachs.

John Heinbockel - Goldman Sachs

Greg, as you evolve CCR, the remodel here, do you think it will get tweaked or what’s out there today is pretty much what you think you will go with as you go through the significant rollout?

Gregory D. Wasson

Yeah John, good question. I don’t, other than, unless we hear and get some feedback in the next couple of months before we start the next wave, I don’t think you’ll see a lot of drastic change of any type. This is, again, I’d look at this as CCR is an opportunity to refresh our stores across our network and then I think obviously we’ll begin to look at new concepts and new formats and different ways to improve upon that. You know, I’ve been pretty public. I think there’s an opportunity for us in select stores to create a new and unique beauty experience. I think there are opportunities to do some improvements upon that CCR refresh as we go forward but CCR in itself I don’t see a dramatic change in the plan that we have today.

Wade D. Miquelon

Yeah, and I’ll just say where the tweaking might occur is really as we go category by category by category, every single category, are we seeing the lift we thought, whatever. There might be a few categories that need some adjustment but in aggregate in terms of the overall layout, shelf life, planogramming, et cetera, we feel we’re 90%-plus right on course.

John Heinbockel - Goldman Sachs

Was the store of the future model too radical a departure? And in particular, I would have thought the Café W would have a lot of promise. Does that just not have a good return profile as you go forward?

Gregory D. Wasson

Well, I think the store of the future, John, was a good test for us and there are some good learnings there and I think there are parts of that store of the future that we may be able to pull forward as we go forward. As you noted, the cosmetic department, there are some good learnings there from that. But I think it’s far too soon to say that that is the store of the future for us. And your second point was, John?

John Heinbockel - Goldman Sachs

Café W, it looked like that would have promise to do more soda fountain, coffee program, but is the return there? Is that the issue?

Gregory D. Wasson

I think with Café W, it’s really it’s based on the store. We’re doing well with it in select stores and I think there’s an opportunity for us to have it in our future and again I think it will be based on store location and demographics.

John Heinbockel - Goldman Sachs

Do you think that prototype store will lift pharmacy sales as well as the front-end, or it’s mostly front-end driven?

Gregory D. Wasson

You’re talking about the store of the future or the --

John Heinbockel - Goldman Sachs


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