Walgreen to Test Chilled Foods

The drug store chain will look into selling fresh food at a dozen stores this autumn.

July 06, 2010

NEW YORK -- Walgreen Co. will begin testing chilled foods at up to a dozen stores this autumn, the Dow Jones Newservice reports. The fresh food program would assist the chain in becoming a "destination for tonight??s meal," said spokeswoman Tiffani Washington.

Possible foods include fresh-cut fruit, sandwiches, soups and wraps, said Washington. While she indicated the testing would be done at 12 stores, others with knowledge of the program indicated the around 50 stores in the Chicago area would be part of the fresh food test this September.

These sources also reported that this test will likely lead to a bigger foray into the fresh food market for Walgreen, such as adding cooked meals like chicken Marsala, General Tso??s chicken and mac-and-cheese. However, the chain is still sorting out its distribution and refrigeration, which will be crucial to the success of any fresh food venture.

Washington didn??t give prices for the items but did say that price and quality would be vitally important. She also indicated that the program??s logistics would be part of the testing process and that "any retailer getting into fresh [food] would have to address" those issues.

Walgreen and other drug stores, such as CVS, are revamping their food sections and redesigning stores to keep up with customer desire for speed and one-stop shopping. "Drugstores realize if they're going to survive in this marketplace, they can??t be one-note songs. They need to have more things to offer consumers," said William Cross, vice president of restaurant and food brand licensing at Broad Street Licensing Group.

Helping Walgreen achieve success is Jim Jensen, who came on board in January as divisional merchandise manager of fresh food. Jenson previously worked at Fresh & Easy Neighborhood Market and at 7-Eleven.

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