Walgreens Boots Alliance Monday named veteran pharmacy executive and former Rite Aid chief executive officer John Standley as president of Walgreens, saying he will lead all of the drugstore chain’s U.S. drugstore operations.
Standley, who left Rite Aid last year in a major transition for that drugstore chain following a failed merger with a major grocer and battered stock price, “will have responsibility for the development, growth and management of the business as the company continues to build on its leadership in the rapidly evolving healthcare sector,” Walgreens said.
Standley replaces Alex Gourlay, who will return to his co-chief operating officer role at Walgreens Boots Alliance, the parent company. Standley will report to Gourlay.
Walgreens didn’t comment on Standley’s departure from Rite Aid where investors and others blamed him for two failed mergers – including an effort by Walgreens to buy all of Rite Aid — and a battered share price of the U.S. drugstore chain. Walgreens eventually settled on buying about 1,900 Rite Aids, which were about half of that chain’s drugstores.+
Walgreens said Standley can “hit the ground running” and cited his “deep background in pharmacy, retail and healthcare,” saying he “will bring extensive operational experience to his role to further deliver on the company’s four key strategic priorities: creating neighborhood health destinations, driving cost transformation, accelerating digitalization and restructuring Walgreens retail offering.”
It’s a critical time for Walgreens, which earlier this summer said it will invest $1 billion in its primary care partner VillageMD to open 500 to 700 physician-staffed clinics inside its drugstores in more than 30 U.S. markets within the next five years.
Walgreens push into physician-staffed clinics comes as rivals roll out their own primary care expansions. CVS Health is opening 1,500 HealthHub store formats with more healthcare items and medical services to complement its established MinuteClinics staffed by nurse practitioners while Walmart is opening more “Walmart Health” centers that feature an array of primary medical services, dental care, and behavioral health services as part of a new model.
Walgreens said Standley has experience in the U.S. pharmacy and drugstore business that will benefit the company, citing his work at Rite Aid and before that his time as Chief Executive Officer of Pathmark Stores Inc.. Walgreens also cited Standley’s former chairmanship of the National Association of Chain Drug Stores.
“John’s leadership experience and strong understanding of our industry and the U.S. healthcare markets will allow him to hit the ground running, drive our transformation and fulfill our purpose to help people lead healthier and happier lives across America,” Stefano Pessina, Executive Vice Chairman and Chief Executive Officer, Walgreens Boots Alliance said Monday in a statement. “Walgreens’ essential role in the healthcare delivery system and in the lives of millions of Americans has never been more important as we continue to work our way through the pandemic together. I’m confident John will build on and grow our momentum at Walgreens, and help us compete and win even more in the marketplace.”
