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Richard J. George, Ph.D.'s RetailWire Blog
January 18, 2010
Walgreen Exploring the Sale of Prepared Meals and Fresh Foods
FROM RETAILWIRE:
Walgreen Co. is planning to roll out fresh foods and prepared meals in all its stores. What do you think of Walgreens' exploration of fresh foods and prepared meals? What would they have to do to make such a move a success?
MY COMMENTARY:
Certainly this is not a unique concept, namely fresh prepared, convenient meals. Walgreen needs to answer the following questions: 1. Can Walgreens do it? That is, can the company make or buy and merchandise/promote fresh-prepared meals? It appears that conversations with noted food manufacturers will address the make or buy. The issue of merchandising and promoting has yet to be seen. 2. Will the target market give Walgreen permission to do meals? This is the biggest question, not only for Walgreen but for any organization looking to do something new or different. Walgreen gets permission to make these meals from its board of directors. It gets permission to sell these meals from its customers. Before definitively answering this question we need to understand what business Walgreen is in. In the words of Charles Revson, "At the factories we make cosmetics, at the counters we sell hope." What is Walgreens' equivalent to "selling hope"? 3. Will the competition allow Walgreen to do this. I expect that traditional food retailers will recognize the seriousness of alternative food channels going after their core business and finally develop tasty, convenient meals. 4. Will it fit? Namely, will it satisfy Walgreens' philosophical and financial goals? Only Walgreen can answer this question. Upon addressing each of these questions Walgreens' potential for success can be more accurately assessed. |
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