Citi Comments On Walgreen's Personnel Changes

Walgreen Co. WAG announced Graham W. Atkinson will be joining the company as SVP and Chief Customer Experience Officer, effective Jan. 24. He will report to President and CEO Greg Wasson. Mr. Atkinson will be responsible for developing and leading the company's loyalty strategies. The hiring of Mr. Atkinson is the next step WAG is taking to build its loyalty program. Citi believes that WAG will eventually roll out some form of loyalty program, but they want to make sure it will have an impact on their top and bottom line. At its recent shareholders' meeting, WAG said that it will eventually expand its loyalty program when it can better understand how to drive consumer loyalty. WAG has been piloting a loyalty card program in 3 markets since March 2010 and it has experienced strong enrollment. In addition, WAG has rolled out other initiatives that are improving the customer experience, including its CCR remodels, multi-channel improvements, and expanded private label offerings. Sona Chawla was promoted to President of E-Commerce, from SVP of E-Commerce prev. Mia Scholz was promoted to SVP of Accounting and Controller, from CVP of Accounting and Controller previously. Robert Zimmerman was promoted to SVP and Chief Strategy Officer, from VP of Corporate Development previously. Citi has a $33 PT and Sell rating on WAG WAG closed Friday at $41.44