Who Owns Walgreens Property? A Comprehensive Guide

With over 9,000 retail pharmacy locations across all 50 states, Puerto Rico, and the U.S. Virgin Islands, Walgreens has established itself as one of the most ubiquitous and recognizable retail chains in America. But who exactly owns all that Walgreens property?

As a neighborhood pharmacy, Walgreens offers us convenience and familiarity. So it’s natural to wonder about who controls and profits from such an influential business with deep community roots.

This comprehensive guide will explore all aspects of Walgreens’ ownership, real estate holdings, operations, and competitive advantage. Let’s get started!

Overview of Walgreens and Parent Company Walgreens Boots Alliance

First, let’s quickly recap some key facts about Walgreens:

• Founded in 1901 in Chicago, IL
• Headquarters located in Deerfield, IL
• 9,277 retail pharmacy locations in the US as of 2020
• Ranked #2 largest U.S. retailer by total sales
• Parent company: Walgreens Boots Alliance (WBA)

Walgreens locations are owned by the parent corporation Walgreens Boots Alliance (WBA). WBA is a publicly traded company, listed on the NASDAQ under the ticker WBA.

WBA was formed in 2014 when Walgreens acquired the remaining stake in European pharmacy retailer and wholesaler Alliance Boots. This merger created one of the largest global pharmacy-led health and wellbeing enterprises.

Now with over 25 brands and businesses, WBA is currently the largest retail pharmacy, health and daily living destination across the U.S. and Europe.

The Walgreens Family Still Owns a Stake in the Company

While Walgreens Boots Alliance is publicly owned, the Walgreen family maintains ownership as well through an inherited stake.

Charles R. Walgreen opened his first drugstore on Chicago’s South Side in 1901. An innovator aiming to improve pharmacy experience, Walgreen installed soda fountains, offered generous promotions, and expanded his successful “on the corner” model rapidly.

• By 1916, there were nine Chicago-area locations
• By 1920, 20+ stores with estimated annual sales of $1 million
• In 1922, the business incorporated as “Walgreens”
• By 1930, Walgreens had opened its 100th store

Charles Sr. passed the business to his sons Charles Jr. and Philip. The Walgreen brothers continued expanding operations, ending prohibition-era alcohol sales but boosting other offerings.

The company remained family-owned until going public in the late 1950s. Even today, descendants like Charles R. “Cork” Walgreen III maintain ownership stakes and sit on the WBA board.

As of 2020, the Walgreen family owned around 16% of WBA shares collectively.

This makes them the second largest institutional shareholder behind Stefano Pessina and his affiliates. While no longer outright owners, the Walgreen family still has great influence over the company their ancestor built.

Walgreens and Walmart Have No Common Ownership

Given the similar names, some confuse Walmart and Walgreens as being commonly owned. Rest assured, Walmart and Walgreens have zero common ownership.

Walmart was founded by businessman Sam Walton. Mr. Walton opened his first five-and-dime store in 1950 and incorporated Walmart in 1969. After Walton’s death in 1992, his heirs inherited majority stake in the company.

The Walton family continues to own about half of Walmart shares to this day.

Meanwhile, as we just covered, Walgreens traces back to founder Charles R. Walgreen in the early 1900s and is now part of the publicly traded WBA corporation.

The two retail giants formed a strategic partnership in 2007 to sell Walgreens products in Walmart stores in exchange for increased distribution. But Walmart and Walgreens remain completely separate in ownership and operations otherwise.

Key Differences Between Walgreens and CVS Ownership

Walgreens primary competitor in the pharmacy space is CVS Health and its CVS Pharmacy subsidiary. It’s easy to conflate these two retail chains. However, some distinct differences exist between Walgreens and CVS ownership.

Walgreens

• Parent company: Walgreens Boots Alliance (WBA)
• Publicly traded on NASDAQ
• Founded 1901 in Chicago
• Walgreen family holds 16% stake

CVS

• Parent company: CVS Health Corporation
• Publicly traded on New York Stock Exchange
• Founded 1963 in Lowell, MA
• No founding family retains ownership

Both brands are publicly traded companies with no single majority owner. However, the Walgreen family uniquely continues to retain board seats and minority shares.

CVS Health owns other major subsidiaries like pharmacy benefits manager Caremark. Overall though, Walgreens Boots Alliance maintains larger global revenue – $136.9B vs. $107B in 2021.

Walgreens Real Estate and Property Holdings

As you can imagine, Walgreens owns extensive real estate across the United States to accommodate its 9,000+ pharmacy locations.

According to Walgreens Boots Alliance’s 2019 annual report, here are some key figures on Walgreens owned and operated properties:

• 8,162 properties in 9 major U.S. markets
• 8,145 retail stores
• 29 distribution centers
• 8 specialty pharmacy facilities

The total estimated value of Walgreens’ owned real estate was $11.06 billion as of February 2020.

The drugstore chain owns especially high concentrations of real estate in:

• Arizona
• California
• Colorado
• Illinois
• Nevada
• Texas
• Wisconsin

They also hold significant property in Florida, Georgia, Virginia, Puerto Rico, and other states.

Additionally, WBA owns various international corporate offices and facilities in countries like the United Kingdom, Switzerland, Norway, and China.

Largest Shareholders of Walgreens Boots Alliance

Shareholder	Ownership Percentage
Stefano Pessina & affiliates	16%
Vanguard Group	6.1%
BlackRock Fund Advisors	5.3%
State Farm Mutual Fund	4.8%
Walgreen Family	16%

As a publicly traded corporation, Walgreens Boots Alliance has many institutional and retail shareholders. But Italian billionaire Stefano Pessina stands out as the single largest shareholder.

Pessina owns about 16% of WBA shares along with his affiliates. He assumed the role of Executive Chairman following the merger with Alliance Boots and also serves as CEO.

The Walgreen family members collectively form the second largest block of shareholders with 16% as well.

Other major shareholders include investment management giants like Vanguard Group, BlackRock Fund Advisors, and State Farm Mutual Fund. But no one individual investor or entity controls a majority stake.

Who Is Stefano Pessina?

Let’s take a closer look at Stefano Pessina, the influential billionaire behind Walgreens Boots Alliance.

• Born in 1940 in Pescara Del Tronto, Italy
• Began business career in Italy in the 1960s
• Graduated from Milan University with a nuclear engineering degree
• First worked for his father‘s pharmaceutical wholesaler business
• Allegedly promised his father he‘d buy it one day

Through a series of targeted mergers and acquisitions, Pessina built his own wholesale pharmaceutical empire over the decades. He eventually acquired Alliance Boots in 2007, then merged with Walgreens in 2013 to create WBA.

Forbes currently lists Pessina as the world’s 131st richest billionaire with an estimated net worth of $10.4 billion as of 2022. His wealth continues to grow in tandem with WBA’s success.

Now in his 80s yet still involved in operations, Stefano Pessina represents the face behind the largest ownership share of the Walgreens enterprise.

In Contrast, CVS Health Owns 70% of CVS Pharmacy Locations

Unlike competitor Walgreens, CVS Health maintains outright ownership of about 70% of CVS Pharmacy stores.

According to CVS Health’s 2019 annual report, the corporation owns approximately 10,000 retail pharmacies, clinics, long-term care facilities, and other properties. They lease the remaining 30% of locations from landlords and real estate companies.

Overall, CVS intends to acquire even more real estate over the next few years to gain fuller ownership of its pharmacies.

Walgreens and CVS have similar numbers of pharmacy locations in the United States – around 9,000 each. But their real estate ownership models diverge, with CVS claiming outright ownership of a greater portion of properties.

Walgreens “Family of Companies”: Major Subsidiaries

Walgreens operates within a broad network of subsidiary companies under the Walgreens Boots Alliance corporate umbrella. This is collectively referred to as the “Walgreens Family of Companies.”

Major businesses and brands that fall under WBA include:

• Walgreens – The main US retail pharmacy chain. Walgreens commands about 20% of pharmacy market share in America.

• Duane Reade – NYC-area pharmacy chain acquired by Walgreens in 2010. It maintains its own branding.

• Boots – Leading UK pharmacy retailer with over 2,200 stores. Boots offers pharmacy, health/beauty products and optician services.

• AllianceRX – Specialty and home delivery pharmacy providing medications for chronic conditions nationwide.

• Whole Beauty – Portfolio of health and beauty brands like No7, Liz Earle, and Soap & Glory. Sold at Walgreens stores and online.

• Amerisource Bergen – Pharmaceutical wholesaler distributing drugs and medical supplies to pharmacies, hospitals, and clinics.

This diverse network of health, wellness, beauty, and pharmaceutical companies gives WBA extensive global reach and distribution capabilities.

Stefano Pessina – One of the World‘s Richest Billionaires

Italian business magnate Stefano Pessina has amassed immense wealth as the architect of Walgreens Boots Alliance and its ascent.

Forbes currently pegs Pessina‘s net worth at $10.4 billion, positioning him as the 131st wealthiest billionaire worldwide as of 2022.

The bulk of Pessina‘s fortune stems from his 16% ownership stake in WBA. But he also maintains past earned equity in major European wholesalers, along with other investments.

Key facts on how Stefano Pessina built his billions:

• Invested in his family‘s small Italian pharmaceutical wholesaler in the 1970s, eventually buying it out

• Orchestrated mergers over the next 30 years, building Italy‘s largest pharmaceutical wholesaler

• Acquired stake in Alliance UniChem in 1997, becoming Executive Chairman

• Merged Alliance UniChem with Boots Group to create Alliance Boots in 2006

• Took Alliance Boots private in 2007 in $22 billion leveraged buyout

• Acted as Deputy Chairman prior to, during and after the merger with Walgreens

• Rose to Executive Chairman role following the creation of Walgreens Boots Alliance

Pessina‘s net worth continues to grow in concert with WBA. He remains heavily involved in business operations even in his 80s.

Walgreens Leverages Third-Party Sellers for Expanded Product Selection

To diversify its retail selection beyond just in-house pharmacy and health essentials, Walgreens partners with third-party sellers.

Walgreens.com currently features over 100,000 products available from third-party sellers. Customers can browse and purchase a wide range of items from baby, beauty, grocery and tech products to household goods, toys, and more.

Many third-party items are eligible for convenient curbside or in-store pickup. Walgreens also offers discounts on select products using its “Pickup Discount” program.

This extensive marketplace of third-party retail products lets Walgreens significantly expand its catalog beyond its own private label offerings.

Mix of National Brands and Local Suppliers Provision Walgreens Shelves

Walk down any Walgreens aisle and you’ll see a mix of popular national brands and local products sourcing those endless shelves.

For national brand products, Walgreens partners with large CPG companies like:

• Procter & Gamble
• Johnson & Johnson
• Unilever
• Nestlé
• Kimberly-Clark

These major suppliers provide many of the big name health, beauty, personal care and over-the-counter medications Walgreens is known for.

However, Walgreens also sources local and specialty items from smaller vendors and businesses to offer unique selections. Local suppliers help Walgreens cater its in-store inventory to regional tastes and preferences.

This diversity of suppliers enables Walgreens to provide all the products its varied customer base depends on.

Walgreens “W Brand”: Store Label Private Brand Products

Alongside national brands, Walgreens sells its own brand of private label products under the “W Brand” or “Walgreens” labeling.

The Walgreens brand includes over 3,000 products across categories like:

• Health and wellness
• Beauty and skincare
• Household essentials
• Over-the-counter medications
• Vitamins and supplements
• Groceries and snacks
• Baby care items

Walgreens brand products are formulated to offer alternatives to name brand items at lower price points while maintaining quality. Health and beauty products often promise comparable results.

Developing its own in-house brand allows Walgreens to provide value, capture more profit, and boost customer loyalty. Look for the “W” to identify Walgreens’ brand items in store.

Walgreens Competitive Advantage Against Rivals

With competitors like CVS, Rite Aid, grocery chains, big box stores, and online retailers, how does Walgreens maintain its strong positioning?

Walgreens sustains its competitive advantage through:

Convenience

• With over 9,000 locations nationwide, most American consumers live near a Walgreens for quick pharmacy runs and shopping.

Brand equity

• Being a trusted household name for 120+ years brings tremendous brand recognition and loyalty.

Pharmacy expertise

• As one of the largest US pharmacy chains, Walgreens pharmacy staff offer specialized expertise.

Personalized services

• Options like photo printing, prescription savings plans, and Walgreens Express help customize the shopping experience.

Omnichannel capabilities

• Walgreens integrated shopping experience bridges brick-and-mortar and online seamlessly.

Pricing & promotions

• Loyalty programs, registered savings, and private label products provide value.

Product selection

• Walgreens offers strong assortments of health, convenience, beauty, grocery, and pharmacy products.

By leveraging these strengths, Walgreens retains its status as America’s “corner store” and a preferred shopping destination.