show me the money! (investor relations)

Annual Report:

Walgreens' annual report is attractive. It's in full color, full of pictures, and I would definitely pick it up and take a look... at least at the beginning. The first 18 pages are prose and pictures, more of a narrative explanation and collection of everything Walgreens did in 2009.

Then come the numbers... from page 19 to page 42. While investors are (okay, maybe) interested in these details, let's just say I skimmed over them... but I did notice that after each section filled with charts and spreadsheets, there is a narrative passage summarizing what the numbers represent.

The goal of the annual report is to appeal to each audience that may be reading it. There are numbers for those who think in Excel spreadsheets, explanations for those who need some help drawing conclusions, and pictures for people who prefer to see success visually and in color! They definitely see this as an opportunity to showcase their achievements and highlight their goals. Walgreens mentions the new markets they entered in the past year, how they're caring for the community, including employees with disabilities at work, and serving their customers above and beyond the year before. The annual report resembles a newsletter because it's visually pleasing and (at least the beginning part) features easy-to-read feature-like stories.

Letter to Shareholders:

The letter to shareholders is found at the beginning of the annual report and it's signed by two company officials-- the President/CEO, and the Chairman of the Board.

The main message of this letter is to let shareholders know that even through tough economic times, Walgreens will emerge as strong and successful as ever. 2009 was a good year for the company, opening its 7,000th store, focusing energy into "Affordable Essentials" in their stores (rather than focusing on new discretionary items), and introducing "Customer Centric Retailing" which features merchandise displayed in groups of complimentary items (to provide a more convenient and efficient shopping experience).

As an investor, I'd feel confident in Walgreens surviving another year, and being successful doing that. The letter also says how the company wants to return any surplus ca$h to the shareholders, so I'd be excited about that, but also because it means the company realizes the value of my share and wants to repay me for helping them out too. They also thank their employees in the letter, which seems a little out of place in the shareholder letter, but employees could be shareholders too so this is important.

The letter is certainly credible and features numbers, charts, graphs, and photographs. Using several methods of proof and giving various examples makes me believe what they're writing. The tone of the letter is confident. Walgreens truly believes they're doing a great job, and will continue to grow by implementing new strategies and ideas. The company wants shareholders to know that they're not going anywhere.

Latest News Release:

"Walgreens September Sales Increase 5.3 Percent"

This news release, from the first week in October, is reader-friendly, in that it doesn't include jargon. However, as it's a sales report, it's full of numerals, which makes it hard to read nonetheless.

The CEO is not quoted here, but rather, the president of pharmacy services. (Sidenote, his name is Kermit.)

His quote is factual, but a little lengthy, all about flu shots and how Walgreens has given out some but still has plenty of vaccinations available for the rest of the season. They handled their increase in earnings well, because they're careful not to brag, just in case misfortune strikes in the future. They're confident without being cocky. The news release was well-written and contained enough background information to help a first-time reader/ potential investor understand how the company is doing.

Community Health Partners

Walgreens is an active neighbor in the community-- heavily in its Chicago hometown, but certainly not limited to Chi-town.

Their community outreach is targeted toward health & wellness, which fits their company image well. Walgreens started as a pharmacy and has since expanded its services, but first and foremost, they are a healthcare partner in the communities they serve.

The company's mission statement is succinct, yet broad, and their community outreach is clearly targeted to meet this mission.

The following excerpt (two pieces) drives their community relations program:

1- "We will provide the most convenient access to...pharmacy, health, and wellness services"

2- "We will earn the trust of our customers"

...and to do this, Walgreens has a multi-pronged approach.

Because Walgreens is on every corner in America, (and Puerto Rico!), it's important for their image and business success to support these communities. There are four staples in their outreach program, along with opportunities for additional group funding.

First:

Walgreens teamed up with AARP to bring "wellness on wheels" around the country as part of a "Wellness Tour." This mobile health unit travels the country providing FREE services including screenings for glucose, cholesterol, blood pressure, BMI, and bone density. Normally, these services could cost up to $140, but Walgreens realizes the value of being a positive presence in the community. They also realize that a lot of customers, including people in low-income areas and older people too may not have the resources at their fingertips to access these services, so Walgreens is coming to them. It doesn't hurt their business either, because hopefully, customers will bring their business to Walgreens after seeing this extension of goodwill and caring to the community.



They also provide a phone number for interested participants to call and find out when the vehicle will be near them! (If you want to be a Walgreens groupie and follow the bus around the country, you can find it by calling 1-866-484-TOUR).


Second:

Walgreens realizes that people are in need, and therefore, there's no need to waste items that are perfectly useful, just cosmetically damaged. Walgreens has partnered with Feeding America to provide not only food, but other household items to those in need (essentially, another type of "food" that people need to live). Walgreens donates any slightly damaged or discontinued products (like shampoo) to Feeding America, which is especially useful because these are the types of items that people canNOT buy using food stamps. In 2009, Walgreens donated 5.6 million pounds of goods-- definitely contributing to the community's wellness, health, and personal hygene too!

Third:
Walgreens works with the Midtown Educational Foundation in Chicago to help students in grades 4-12 prepare for the future.

Walgreens employees volunteer their time to mentor and tutor these students, in an at-risk area, to encourage them to stay active in school and make goals for their futures. When it comes to community giving, working with children is one of the best ways to get involved and Walgreens understands this.



Fourth:

Walgreens realizes that their employees are also part of the communities they serve, and chances are, their employees shop there too. The Walgreens Benefit Fund for Community Relief was founded in 1939 by company founder Charles Walgreen, with a $50K donation from his will. Part of the company's mission says "We will treat each other with respect and dignity" which often is a challenge after a tragedy. This fund is for employees suffering a loss, such as funeral expenses, losing their home to a fire, or natural disasters hitting hard. By rebuilding where people have lost, they're also re-building the communities they serve.

Walgreens' outreach shows a commitment to health and wellness, along with building customer loyalty, trust and support. Employees also know they can count on their employer in times of need.



Less substantial but also available: Walgreens pharmacies offer free glucose testing to people who may not even realize they are Diabetic yet, but Walgreens helps people be proactive and is caring for its community members in this way.
Finally, any organization can apply to Walgreens for funding, as long as they meet the criteria:

-access/

outreach/

education geared toward health

-non-profit organizations focused on a disease

-civic/community outreach groups

-faith-based groups, as long as the funding isn't JUST used for religious purposes, but rather, for some greater good in the community

The company knows that community involvement is a must and it will make them more popular, likeable, and respectable.

Community Outreach efforts are definitely a positive PR outreach program for Walgreens. Funding community projects, supporting community health, mentoring students (because they are the future, after all!), and giving to the needy in our own backyards shows the company in a favorable light. They're covering all the bases, while staying focused on their company mission.

However, working with kids seems like an afterthought. While a mentoring program is definitely a great idea and they should continue doing it (as long as it's mutually beneficial), it would make more sense for the in-school volunteers to focus on health. Maybe that already is the focus of their mentoring program, but if so, they're not publicizing it as such. Topics like personal hygene, preventive screenings, and other health issues should definitely be a priority. If this is in a low-income area, chances are, these kids may not have full access to all their healthcare needs (like the dentist, even). Maybe some sort of scholarship program for kids who have been through the program would be a wonderful addition to the company's community outreach.