Walgreens raises quarterly dividend, names new controller
DEERFIELD, Ill. — The board of directors of Walgreens on Thursday declared a regular quarterly dividend of 27.5 cents per share, a 22.2% increase over the year ago dividend. The dividend is payable March 12, 2013, to shareholders of record Feb. 15, 2013.
Walgreens has paid a dividend in 321 straight quarters (more than 80 years) and has raised its dividend for 37 consecutive years. Over the last five years, Walgreens annual dividend rate has increased from 38 cents per share to $1.10 per share, resulting in a compound annual growth rate of nearly 24%.
The board today also elected Ted Heidloff as controller of the company. Heidloff succeeds Mia Scholz, who continues in her role with Walgreens as SVP corporate financial operations.
Heidloff, 36, had served as assistant controller since joining Walgreens in May 2011. Previously, he served as controller of Aon Hewitt, a division of Aon Corp., from October 2010 to April 2011, and as assistant controller of Hewitt Associates from September 2008 to September 2010. He also served as controller of Brunswick Boat Group, a division of Brunswick Corp., from April 2007 to August 2008.
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New Year revelations
If you are like a lot of people, hanging a new calendar has inspired you to embrace new beginnings and experimentation. Every January morning begins with plans to put insights into action.
And if you are like a lot of other people, you’re feeling desperate for different outcomes in 2013, while still doing things the 2012 way.
Whichever group you are in, take heart. You have time. In fact, now is the perfect time to set your course based on what you learned last year. While the inevitable naysayers might prognosticate about a grim future, I foresee a very positive 2013. Especially for those who are bold enough to take a chance on educated guesses.
Here are a few of my “New Year Revelations” for consumer health care in 2013:
- De-cluttered shelves and refined assortments are in. Retailers and manufacturers must embrace “less is more” in this age of attention spans lasting no longer than the time it takes to send a text message. If shopping is confusing and difficult because of too many choices or ill-conceived merchandising, consumers will vote with their feet.
- Ubiquitous communication is in. Your message has to be omnipresent. And consistent. All the time. When a consumer meets your brand, she needs a familiar yet unique experience. Why? Because consumers need reassurance that they can count on your brand. They also need reminders of why they like your brand in the first place.
- The price is right is in. Pricing is part art, part science, with a dash of math and a pinch of intuition. A recent survey by Boston Consulting Group found that 53% of global retail executives believed pricing should be a top priority, but only 38% felt that the company was taking measures to get it right. Examining pricing from a consumer value perspective in 2013 is a good first step.
- Leather wallets are out. Along with canvas, vinyl, burlap or any other textile that protects your paper and plastic money. This is the year the digital wallet makes a splash. Permitting shoppers to make purchases through the platform of their choice is something you need to start planning for now, before demand grows.
- Ignoring the data is out. How many strategic decisions do you make without consulting your mountains of loyalty card statistics, consumer feedback and transactional level data? If you answered “less than 50%,” listen up. Why collect the data if you don’t plan to mine it? Seize the opportunities to optimize operations and product plans with well-sifted data. (And if you really want to, you can still make fancy graphs and pretty charts with it.)
There was a time when revelations like these took years to come to fruition. Today’s pace of business makes it entirely possible that these five priorities could be — or must be — tackled before 2014.
But take note: The train has already left the station on some of these initiatives. Are you on board?
Dave Wendland is VP and co-owner of Hamacher Resource Group, a retail healthcare consultancy located near Milwaukee, Wis. He directs business development, product innovation and marketing communications activities for the company and has been instrumental in positioning HRG among the industry’s foremost thought leaders. You may contact him at (414) 431-5301 or learn more at Hamacher.com.
Walmart makes merchandising moves
BENTONVILLE, Ark. — More than a dozen executives in Walmart’s merchandising organization, including several with key healthcare responsibilities, will begin the new fiscal year with different responsibilities following a restructuring announced on Thursday.
An internal announcement from Duncan Mac Naughton, Walmart’s chief merchandising and marketing officer detailed the moves involving executives with responsibilities for food, consumables, health and wellness, general merchandise, merchandise execution and private label.
“We’re coming off a strong year and beginning our new fiscal year with accelerating momentum with every part of our business focused on being even more responsive to our customers,” said Mac Naughton said in an internal announcement. “These moves strengthen our merchant talent and capabilities across the globe, and this is a testament to the strength we have in our business.”
Among the notable changes were:
- In the health and wellness area, Carmen Bauza was named SVP of OTC health and wellness. She fills the roll previously occupied by Scott McCall and will report to Dr. John Agwunobi, president of health and wellness. Bauza currently serves as VP of beauty and personal care.
- John Aden was named to the new role as EVP of merchandise services. His new responsibilities include replenishment, merchandise execution, small formats and supplier diversity.
- Assuming Aden’s previous responsibilities as EVP of general merchandise is Steve Bratspies. He assumes responsibility for entertainment, toys, seasonal, sporting goods, automotive, hardware, paint, stationery, crafts and fabric. Bratspies joined Walmart in 2006, initially as a SVP of marketing and most recently served as SVP of dry grocery.
- Laura Phillips was named SVP of entertainment after previously serving as SVP of toys, seasonal and celebrations, and will report to Bratspies.
- Moving into Phillips prior position will be Scott McCall. He currently serves as SVP of health and wellness, but earlier in his Walmart career, which began in 1993, he was responsible for toys. He too will report to Bratspies.
- Rejoining Sam’s Club in a new capacity as SVP of merchandise business services is Seong Ohm. She currently serves as SVP of entertainment, but previously working in Sam’s merchandising and also spent time at Walmart’s Japanese subsidiary Seiyu.
- Shipping off to Walmart’s Brazilian subsidiary is Steve Breen. He currently serves as SVP of snacks and beverages and will become chief merchandising office of Walmart Brazil.
- Filling Breen’s roles is Ashley Buchanan who was promoted to SVP of snacks and beverages from his current role as VP of meals, condiments and specialty.
Anytime Walmart begins shuffling the deck within its merchandise organization it tends to have ripple effects and that is the case with the latest round of moves. Accordingly, Mac Naughton said the company is looking to strategically align its fresh categories. That means Scott Neal is being elevated to the role of SVP produce, meat and seafood after previously serving as VP of meat and seafood and will report to EVP of food Jack Sinclair. As a result, of the realignment and elevation of Neal, other executives finding themselves in new roles include:
- DeDe Priest was named SVP of deli, bakery, dairy and frozen.
- Assuming Priest’s prior dry grocery responsibilities is Matt Kistler who was named SVP of dry grocery. He currently serves as SVP of merchandise execution.
- Taylor Smith is being promoted to SVP of merchandise execution to assume Kistler’s responsibilities from his current roles VP of baby. He will report to John Aden.
- Responsibility for the baby business now falls to Jane Ewing who was named SVP after joining Walmart international last fall after a 20 year career with Diageo PLC.
In addition to the merchandising moves, Walmart also made several changes that are reflective of new sourcing initiatives. For example, Michelle Gloeckler was given new responsibility for a sourcing organization that will focus on U.S. sourcing and manufacturing. She will maintain her current responsibilities as SVP of home. Aiding Gloeckler will be Greg Hall who was named VP of U.S. sourcing and manufacturing. He will report to Gloeckler and most recently served as VP of marketing for Walmart.com.