Report: Walgreen Considers Smaller Format

Orlando, Fla. Walgreen Co. is considering a number of designs and formats in an effort to create a prototype that would be smaller than its traditional 15,000-sq.-ft. store, according to drugstorenews.com.

In addition to smaller formats, Walgreens has developed a prototype designed to operate profitably in smaller markets where sales-potential falls below the $8 million average that Walgreens locations typically generate during their first year of operation, said Don Whetstone, senior director of merchandising strategy and development at the Retailing Smarter conference in Orlando.

The future could also bring sweeping changes to the appearance of Walgreens conventional stores, according to Whetstone.

Through the first three quarters of its fiscal year, Walgreens has opened 420 stores. It is on track to achieve its full-year goal of 550 stores. Long-term, the company plans to operate 7,000 stores by 2010.