As economic pressures weigh on shoppers' minds, Walgreens is leveraging targeting capabilities to keep shoppers interested.
On a conference call with analysts Thursday (March 28) to discuss Walgreens Boots Alliance's (WBA) second-quarter fiscal 2024 results, the multinational pharmacy giant said it would He talked about how change is forcing retailers to go the extra mile for consumption.
“In the retail industry, with U.S. household debt at record levels and delinquency rates rising, U.S. customers are struggling with a multi-year trend in inflation and household savings,” said CEO Tim Wentworth. “We are facing significant pressure from the depletion of the “Our shoppers are making intentional choices to pursue value and are taking channel-changing actions as a result. We invest in items of significant value and intelligently We are responding to these market trends by focusing our ability to engage with customers in a targeted way.”
Many shoppers are leaving. The February/March PYMNTS Intelligence Report, “New Reality Check: Paycheck to Paycheck Report: Why One-Third of High-Income People Live Paycheck to Paycheck,” surveyed more than 4,200 U.S. consumers. Based on a balanced survey of targeted censuses, we found that: He said 60% of shoppers have reduced non-essential purchases due to rising prices for retail goods. Additionally, half are turning to cheaper outlets, and 45% of low-income consumers have shifted to purchasing lower-quality products, as have 41% of middle-income consumers and 28% of high-income consumers. It is the same.
Amid this trend of lower prices, private label products are becoming more popular. Wentworth said retailers are “leaning toward large-scale and timely opportunities to increase the penetration of their brands,” not only meeting shopper demand for lower prices but also increasing the value these products offer. He also said that he has grasped the profit margin.
“We launched 37 new products in the second quarter. What this means for us is that consumer behavior continues to be value-oriented and leans more aggressively toward private label brands. This has worked very well for us,” says WBA. Tracy Brown, executive vice president, president of retail, and chief customer officer, told analysts.
Against this cost-conscious backdrop, the kind of “intelligent and targeted” communication that Wentworth emphasized could go a long way. The report “Personalized Offers Are Powerful, But Too Much of the Point,” produced by PYMNTS Intelligence in collaboration with his AWS, found that 71% of consumers receive a personalized offer, are interested in it, and are more likely to We found that 12% of respondents did not receive personalized offers. , but I'm interested.
Overall, WBA's revenue for the quarter was up approximately 6% year-over-year.
Additionally, the pharmacy giant is also adjusting its omnichannel strategy to meet the needs of today's Click-and-Mortar™ shoppers.
“Operationally, we are focused on customer experience and meeting where, when and how our customers want to shop,” Wentworth said. “This means enhancing the in-store experience as well as the ability to order online, pick up in store, and even have same-day delivery.”
This focus comes as a growing proportion of consumers seek omnichannel engagement. The PYMNTS Intelligence study, 2024 Global Digital Shopping Index: The Rise of the Click-and-Mortar™ Shopper and What It Means for Merchants, was commissioned by Visa Acceptance Solutions and surveyed approximately 14,000 consumers across seven countries. The survey was conducted and revealed the following: % of consumers are now click-and-mortar shoppers™, shopping across digital and physical channels. Specifically, 25% are digitally assisted in-store shoppers who use technology to enhance their in-store experience, and 14% buy online and pick up in-store. I'm a pickup shopper who prefers to do things.
