How Walgreens is Advancing with Automated Fulfillment to Boost Efficiency and Customer Satisfaction

As consumer behavior shifts towards more value-driven and cautious spending, Walgreens is actively reshaping its retail strategy to align with these evolving needs. This strategic pivot is underpinned by enhancements in advanced fulfillment technologies and a stronger focus on omnichannel capabilities, positioning Walgreens to thrive in a challenging retail landscape.

Enhancing Fulfillment Technologies

According to recent insights from Grocery Doppio, “2025 Digital Grocery Outlook: Profitability, Fulfillment and Personalization” 71% of grocers are now prioritizing improvements in their advanced fulfillment technologies to better cater to consumers who are increasingly looking for value and caution in their spending habits. 

This is in response to data showing that while 76% of U.S households have used digital channels in the last twelve months, and projections indicate that 17.9% of sales will be digital by 2030, a significant 81% of grocers remain dissatisfied with their online profitability. With 51% of grocery retailers either losing money or making less than a 10% average margin per online order, the need for optimized fulfillment solutions is more pressing than ever.

Walgreens' Micro-Fulfillment Strategy

In response to these industry challenges, Walgreens has intensified its focus on micro-fulfillment centers (MFCs) as a core component of its operational strategy to serve customers better.

A key component of Walgreens’ strategy is the optimization of its micro-fulfillment centers (MFCs), which have shown impressive results since resuming rollout. These centers now serve approximately 4,800 stores, achieving a 23% increase in shipped volumes year-on-year. More notably, the cost associated with each fill has decreased by 13%, which has allowed pharmacists to dedicate more time to essential clinical services and patient care. This improvement is critical as it not only enhances service quality but also reduces operational costs significantly.

Stores equipped with MFCs have enhanced their service offerings, notably in administering more vaccines and expanding medication therapy management for patients, payers, and B2B customers. Walgreens plans to continue this expansion across its national footprint, aiming to further lower operating costs per script and solidify its market position as a leader in efficient and responsive pharmacy services.

Leveraging Omnichannel Capabilities to Meet Consumer Demands

As consumer behaviors shift towards more value-seeking and cautious spending, Walgreens is proactively enhancing its omnichannel capabilities to meet these changes. This includes offering same-day prescription delivery nationwide and two-hour delivery from about 800 stores, plus virtual care in 30 states that covers nearly 90% of the U.S. population. According to Grocery Doppio's insights, as grocers' operations mature, they should adopt a digital-first strategy. Walgreens is exemplifying this approach by integrating its operational strategies to bolster its omnichannel capabilities, which aligns with our research that emphasizes the importance of delivering a seamless and personalized customer experience in a digital-first framework.

Download Grocery Doppio’s Comprehensive Report

For more in-depth analysis and strategic insights similar to those applied by Walgreens, download Grocery Doppio's report, "State of Digital Grocery: Evolve to Improve Profitability," available now to help you refine your approach and leverage a digital-first strategy effectively.