U.S. health care spending is expected to grow from 17 percent of gross domestic product to 20 percent by 2020, driven by an aging population and health care reform, which is expected to bring 30 million more people into the system. At the same time, health care is beginning to see a shift in payment models from fee-for-service to pay-for-performance. That’s good for Walgreens and community pharmacy, as the company is well positioned to play a greater role in these emerging models and expand its role beyond the pharmacy market to the much larger $2.6 trillion health care market.On the retail side, consumers continue to look for value and extraordinary service coming out of the Great Recession, and Walgreens introduced 2,000 new private brand items last year to meet growing demand for trusted retail brands. In addition, more opportunity in categories such as beauty and fresh foods is opening up to Walgreens as consumers shop across all retail channels. And finally, digital commerce is expanding rapidly and driving major change in both retail and health care.
Walgreens Outlines Growth Opportunities And Strategy At 2014 Annual Shareholders Meeting
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