Walgreen to offer fresh food and prepared meals in US

Walgreen, the US pharmaceutical chain, is to offer fresh foods and prepared meals at its 7,000-plus stores in a bid to reach time-starved shoppers.

The company is reported to have been negotiating with food manufacturers including, Nestle, Sara Lee and Unilever about developing private-label and branded products.

"Everyone is time-starved and we have the most convenient 7,000 locations in the US," said Bryan Pugh, vice president of merchandising for Walgreen and former chief retail operations officer for Tesco's Fresh & Easy format.

"They're on-the-way-home destinations that are easy to get in and out of and will provide a good value," he said. Pugh did not say when the initiative would launch.

In the meantime, Walgreen will sort out supply and distribution issues while testing products in select markets before rolling out salads, prepared fruits and sandwiches in a large-scale campaign.

Pugh said that the goal of the programme is to boost revenue. Last year, same-store sales at Walgreen declined in November and December. However, some analysts voiced skepticism at the success of the proposed venture.

"You've got convenience stores and gas stations trying to go in that direction," said Bob Goldin, an executive vice president at Technomic Inc. "[Walgreen] does have a lot of stores, but I don't see it as being a venue of choice for consumers. It will be hard for them to establish credibility in freshness and variety. I don't see it as being a big business driver."

Walgreen hired a director of fresh foods who will begin work in several weeks, Pugh said.

Last year, Walgreens began introducing alcohol in its stores.