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job predicting the future, including the many “futurologists” who told us
we™d be jetting around in flying cars by now and living in space colonies,
yet failed to anticipate the Internet or global terrorism. Yet some things
seem certain.
“With the current U.S. population, right now we can probably have
12,000 or so stores around the country,” Cork said. “If we keep on opening
400, 500, 600 stores a year, we™ll get there by 2015, maybe 2020 or so.
We™ve got a ways to go yet, but there will come a time when we have to
look at other businesses.”64
Walgreens has no current plans to enter the Canadian or overseas mar-
kets. Instead, the company intends to do more of what it does so well now:
provide convenience for drugstore customers.
Whatever the future holds, two bets are safe: Walgreens (1) will have
the courage to anticipate the changes ahead and (2) will not lose sight of
its commitment to customer service. Bernauer explained,

We™re conservative in our values, but we™re not conservative in our
execution or in our planning. The fact that we™re quiet does not
mean we don™t have resolve or intensity or determination. We™ve
made some pretty bold decisions, and we™re continuing to do that.
We don™t have many stores left [that were] built before 1990, yet
we™re taking down 15 percent of them a year and replacing them.
But I guess on a strategic basis, what we are focused on hasn™t




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226 america™s corner s tore

changed a whole lot. There are current issues always, like Medicare
and drug coverage issues. But our basic business hasn™t changed: site
selection, convenience, customer service. If we get those things right,
we™ll be in good shape.65

“Here™s the thing in a nutshell,” Jorndt said. “We preach this around
here all the time: Running your core business is the hardest thing to do. It™s
not that exciting, it™s not that new, it™s very tiring! You™re driving
this eight-horse team down this mountain road”you better be focused!
You better not be looking at the scenery or focusing on your girlfriend in
Santa Fe.”66
“I guess the press thinks we™re sort of a boring company,” Cork said. “We
just keep plodding along, and we don™t have any debt. The CEOs are still
paid way below the hotshots, and should be. We may be boring, but it
works.” When asked what his grandfather would think if he were to spend
a week meeting the current executives, studying the growth charts, and
visiting the stores, Cork said, “I hope he would be proud,” then mulls it
over a little longer before adding, with subtle but unmistakable satisfac-
tion. “And I think he would be.”67




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A
APPENDIX




walgreens
financial facts




Corporate Headquarters
Walgreen Co.
200 Wilmot Road
Deerfield, IL 60015
Phone: (847) 914-2500
www.walgreens.com

Founded in 1901 in a 50-by-20-foot neighborhood store on Cottage Grove
and Bowen avenues on the South Side of Chicago.


227




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228 america™s corner s tore

As of August 31, 2003:
Number of Employees: 154,000
Number of Stores: 4,227
Sales: $32.5 billion
Net earnings: $1.176 billion.
Share price: $32.57
Earnings per share: $1.14

David W. Bernauer, Chairman and CEO
Jeffrey A. Rein, President and COO




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B
APPENDIX




historic
highlights




Charles Sr. born October 9, Rio, Illinois.
1871
Charles moves from Dixon, Illinois, to Chicago.
1893
Walgreen buys his former boss Isaac W. Blood™s store at 4134
1901
Cottage Grove and Bowen avenues for $6,000.
Walgreen buys his former boss William G. Valentine™s drugstore
1909
at Cottage Grove Avenue and 39th Street, Walgreen™s second
store. A chain is born.
Myrtle starts making soups, sandwiches, cakes, and pies for
1910
Walgreen™s second store, thereby starting the chain™s first food
service division.
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230 america™s corner s tore

All Walgreens stores”then numbering nine”are consolidated
1916
as the Walgreen Co.
Walgreens opens its first store inside Chicago™s “Loop” at 17 E.
1921
Washington, in the Venetian Building, sending fountain man-
ager Ivan “Pop” Coulson to work in the new store to ensure its
success. One day in 1922, Coulson adds two scoops of
Walgreens™ famous Double Rich Ice Cream to the malt powder
and milk and stirs it in the mixer, thereby inventing the milk
shake. The creation fuels an unpredented expansion in
Walgreens stores.
Walgreens opens its first store in New York, at 1501 Broadway
1927
and 44th Street, in the Paramount Theater Building”a huge
success that attained folklore status in the city for all the future
actors that whiled away their afternoons there.
On February 15, 1934, the 483-store Walgreens chain opens on
1934
the New York Stock Exchange, with the letters WAG.
On August 10, Charles Sr. resigns as president, and the board
1939
names his son Charles Jr. (“Chuck”) to replace him. On
December 10, Charles Sr. dies of cancer.
Due to irreconcilable differences between general manager
1941
Justin Dart and company president and CEO Chuck Walgreen,
the board forces Dart to resign, and a palace coup is averted.
In May, Walgreens opens a 6,000-square-foot store”its biggest,
1943
at the time”in the Pentagon, donating all profits from the
store back to the Pentagon Post Restaurant Council, which su-
pervised the building™s food service.
Walgreens opens its first self-service store, which proves to be
1950
so successful that Walgreens converts or builds all of its stores to
be self-service.
Evergreen Plaza opens in suburban Chicago, the area™s first
1952
shopping center, with a colossal Walgreens as the centerpiece.
“It was then and there,” Chuck says, “that we decided we would
never again open a conventional store.”




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his toric highlights 231

The board names Charles (“Cork”) Walgreen III to replace his
1969
father Chuck as company president and soon adds the title of
CEO.
Fred Canning rises to company president, forming a highly ef-
1978
fective partnership with Cork.
Walgreens™ innovative “Intercom” system is launched, linking
1976
all Walgreens prescription departments together, allowing Wal-
greens™ customers to get their prescriptions at any Walgreens
outlet they visit just by remembering their name.
Walgreens opens its 1,000th store, marking the beginning of
1984
the first major expansion since the 1920s. Sales top $3 billion
the next year.
Fred Canning retires as company president after a legendary
1990
12-year run. Dan Jorndt is named to replace him.
Walgreens opens its first freestanding corner store with drive-
1992
thru pharmacy.
Walgreens opens its 2,000th store.
1994
Cork Walgreen retires as CEO. Dan Jorndt takes over. Cork
1998
retires as chairman in 1999, with Dan Jorndt assuming that
title, too.
Walgreens opens its 3,000th store.
2000
Dan Jorndt retires as CEO, turning over the reins to David
2002
Bernauer. Jorndt retires as chairman in 2003.
Walgreens opens its 4,000th store.
2003




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TLFeBOOK
notes




preface

1. Marilyn R. Abbey, Walgreens: Celebrating 100 Years (Deerfield, IL: Walgreen
Co., 2001), 7.



1 from humble beginnings

1. Herman Kogan and Rick Kogan, Pharmacist to the Nation (Deerfield, IL:
Walgreen Co., 1989), 63.
2. Kogan and Kogan, 13.
3. Taken from Lee County Historical Society pamphlet; also available on
http://www.rootsweb.com/˜illee/history.htm.
4. Myrtle Walgreen, Never a Dull Day (Chicago: Henry Regnery, 1963), 71.
233




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234 notes

5. Author interview with Chuck Walgreen, May 23, 2003.
6. Kogan and Kogan, Pharmacist to the Nation, 15.
7. Walgreen, Never a Dull Day, 72.
8. Marilyn R. Abbey, Walgreens: Celebrating 100 Years (Deerfield, IL: Walgreen
Co., 2001), 73.
9. Donald L. Miller, City of the Century: The Epic of Chicago and the Making of
America (New York: Simon & Schuster, 1996), 65.
10. Ibid., 15.
11. Ibid.
12. Ibid.
13. Ibid.
14. Author interview with Bill Shank, May 22, 2003.
15. Miller, City of the Century, 24.
16. Ibid., 17.
17. Erik Larson, The Devil in the White City (New York: Crown, 2003), 16.
18. Ibid., 37“38.
19. Larson, The Devil in the White City, 12.

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