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Website is online hub for health and beauty.
June 3, 2011
By: TOM BRANNA
Editor
Walgreen Co. has completed its acquisition of drugstore.com, a leading online retailer of health, beauty, clinical skin care and vision products. The transaction includes all websites directly owned and operated by drugstore.com, as well as its corporate office and customer service and distribution center operations. Brands include drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. The transaction, which represents a total enterprise value of approximately $409 million, follows Walgreens acquisition last year of New York-based drugstore chain Duane Reade. “We welcome drugstore.com’s leaders and employees to the Walgreens family,” said Walgreens President and CEO Greg Wasson. “Drugstore.com complements Walgreens center of gravity — our 7,700 drugstores ― by extending many of our own multi-channel initiatives that have been driving our growth. This acquisition also provides us a unique opportunity to access more than three million savvy, online loyal customers, and move even closer to our existing customers through relationships with new vendors and partners, adding approximately 60,000 products to our already strong online offering.” Walgreens president of e-commerce Sona Chawla will lead the combined e-commerce business. Dawn Lepore, former drugstore.com CEO and chairman, will continue through a transition period as a strategic advisor to Chawla. Drugstore.com will maintain separate branding of its websites. Over the long term, Walgreens will fully integrate the two businesses and intends to enhance its multi-channel product assortment and the overall customer experience by leveraging drugstore.com’s current websites.
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