Walgreens (WBA) announced on Thursday that Chief Executive Officer Roz Brewer and the company’s Board of Directors have mutually agreed for her to step down from the CEO role and from the board effective August 31, 2023. The company made the announcement in an official statement on Friday, yet declined to provide more details on the abrupt departure.
Brewer’s exit follows the planned departure of former Chief Financial Officer James Kehoe earlier this year, leaving two top positions vacant at the retail pharmacy giant in the midst of their transformation from a retail pharmacy chain to providing a range of health care services.
JPM analyst Lisa Gill wrote in a note on Friday that whoever fills the upcoming vacancies should include a focus on health care, remarking “given the company’s focus on healthcare going forward, we would expect that either the new CEO and CFO (or preferably both) would have healthcare backgrounds.” Similarly, analysts at Evercore ISI said in their own note that while the move may have been unexpected, it makes sense as the company’s broader health portfolio grows.
Brewer previously served as chief operating officer of Starbucks (SBUX) from 2017-2021 and president and CEO of Sam’s Club (WMT) from 2012-2021 before taking the helm at Walgreens in 2021. Here she oversaw the company’s shift towards a healthcare-centric approach, has acquired a majority stake in VillageMD and inked a $9 billion deal with medical group Summit Health, in addition to building out a clinical trials service.
However, the decline in COVID-related demand and waning demand for tests and vaccines has caused Walgreens to return to its pre-pandemic struggles, in its effort to increase prescription fill and get more customers in the door to buy front-of-store products.
Brewer did not hint at the departure in a post on LinkedIn Thursday, following a leadership meeting. The next day she wrote on LinkedIn about the departure, saying “This decision did not come without great consideration for what is best for all of you, our shareholders, customers, patients, and my family”. The news of her departure caused the company’s stock to fall nearly 7% in the session.
Amidst significant shifts in the retail and healthcare sectors in recent years, and following the departure of CEO Roz Brewer, who stepped down unexpectedly, Walgreens faces the task of filling two crucial leadership positions as they navigate their ongoing healthcare-centric transformation.
Source: Yahoo Finance
