Finally, the gift for that one person in your family who already seems to have everything. Walgreen Co. (NYSE: WAG) has announced that it will begin selling gift cards for flu shots.
After all, nothing says �I love you,� like a Walgreen�s vaccination.
According to reports, the retailer will offer the gift cards for $29.99 at all of its 7,500 drugstores as well as on its website, Walgreens.com.� Last year, the Illinois-based company provided over 7 million influenza vaccinations.
The flu shot will be a little different this year.� A vaccination that covers three strains of influenza, including the 2009 H1N1 strain, has been approved by the U.S. Food and Drug Administration.� No official date has been set by the drugstore retailer for the medication, however the WAG promises the shot will be available soon to beat the flu season rush.
Walgreen�s stock has not fared particularly well in 2010.� Down -21.5% since January, WAG has also missed earnings estimates for back-to-back quarters. The biggest problem for the drug store has been front-of-store sales � that is, non-prescription purchases. Though Walgreen experienced better customer traffic and larger individual purchases in its latest quarter, weak consumer spending appears to continue to take a toll.
Clearly, the marketing move is an attempt to drive health-conscious consumers to Walgreen�s for their flu shots. With 100 million to 150 million vaccines given every year, that could prove to be very profitable indeed as the company looks to grab a bigger share of the pie. Additionally, the move might just take business away from competitors CVS (NYSE: CVS) and Rite Aide (NYSE: RAD). CVS shares have dramatically outperformed WAG stock in 2010, while Rite Aide has been in a steady downward spiral since mid 2007.
While Walgreen�s officials are pushing the gift idea, the question remains whether consumers will feel like they are buying into a gimmick. �What�s next, a Valentine�s Day card with a free sample of Viagra?
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