Walgreens Boots Alliance chief executive Rosalind Brewer introduces the company’s new “Walgreens … [+]
Rosalind Brewer is stepping down as chief executive officer of Walgreens Boots Alliance effective immediately amid the drugstore giant’s flagging share price and a multibillion transformation to provide more healthcare services.
The company Friday morning said “the Board of Directors and Rosalind Brewer have mutually agreed that Ms. Brewer will step down as the Company’s Chief Executive Officer (CEO) and as a member of the Board, as of August 31, 2023.”
The Board has appointed Ginger Graham, Walgreens’ current lead independent director, as the company’s interim CEO. Brewer has agreed to advise WBA as it searches for a permanent CEO, Walgreens said.
“On behalf of the entire Board, I would like to thank Roz for her contributions to WBA. Roz navigated the Company through the global pandemic, overseeing the critical rollout of vaccines in Walgreens pharmacies and to high-risk populations across the country,” said Walgreens executive chairman Stefano Pessina, the 82-year-old Italian billionaire who preceded Brewer as CEO and was instrumental in her hiring.
“She furthered our consumer facing capabilities while supporting the culture of community and team-member engagement in difficult times,” Pessina added. “We appreciate her hard work and commitment to the Company during this period of unprecedented change.”
Brewer, who is 61 years old, became Walgreens CEO in March 2021, leaving her high-profile job as chief operating officer at Starbucks Corp. Brewer was president and CEO of Walmart’s Sam’s Club prior to her stint at the coffee chain. In tapping Brewer, Walgreens was getting a seasoned executive with two decades of retail and consumer experience.
But Walgreens’ share price has been sliding to a 14-year low as investors wait impatiently for results of the drugstore giant’s transformation into a major provider of healthcare services.
In Walgreens’ most recent quarter, profits tumbled to $118 million—less than half of what they were a year ago—due to, Brewer said, “significantly lower demand for Covid-related services.”
Under Brewer, Walgreens has spent billions of dollars, including gaining a majority stake in doctor-staffed clinic developer VillageMD, which is rolling out hundreds of primary care centers attached to Walgreens drugstores.
“I am proud of what we accomplished together,” Brewer said in a statement. “We’ve improved the lives of our employees, expanded healthcare services for our customers and enhanced our ability to deliver on our purpose of ‘more joyful lives through better health.’”
Her comments seemed to indicate Walgreens would continue on its path to becoming a “leading consumer-centric healthcare company.”
“Over the past several years, we have recruited a world class team to WBA, including the first-ever Chief Customer Officer and the first-ever President of U.S. Healthcare, and invested deeply in the improvement of the Company’s overall culture,” Brewer said. “I am confident that WBA is on track to be a leading consumer-centric healthcare company, serving thousands of communities across the country, especially those that need access to healthcare the most. I look forward to watching the Company continue its transformation to deliver localized healthcare.”
Walgreens Friday highlighted new interim CEO Graham’s healthcare experience.
“By capitalizing fully on the strength of WBA’s strong mission, values, and brand we have an enormous opportunity to play an even more valued role in local healthcare delivery,” Graham said. “My focus will be on our people and our operations, working together to drive shareholder value creation and ensuring a smooth transition as soon as we identify the next CEO for the future.”