Walgreens, a US-based retailer, has invested heavily in
Boots, with an option to merge the two chemist chains by 2015. Walgreens operates 8,200 stores and enjoys a 20% share of the US retail pharmaceutical prescription market, filling 819 million prescriptions every year. (Compare that market share to 2003, when Walgreens had just 13% of the US market.)
Its
roots date back to 1901, and it wants to continue its financial growth through expansion outside the 50 states.
By spending £4.3bn for a 45% ownership position in Boots, Walgreens hopes to not only increase turnover but also move more decisively into the
European market via Boots'
operations.
Both businesses have strong store-label brands and good store locations. What changes will occur if Walgreens and Boots merge in 2015? How will customers react to the combined company?
