Company officials told CNBC in a report Sunday (May 11) that the pharmacy hopes to have its 11 micro-fulfillment centers serving more than 5,000 stores before the year’s end.
That’s up from 4,300 in October 2023 and 4,800 in February. During that month, these centers handled 40% of the prescription volume on average at supported pharmacies, which translates to roughly 16 million prescriptions filled per month at the different sites, the company said.
“Right now, they’re the backbone to really help us offset some of the workload in our stores, to obviously allow more time for our pharmacists and technicians to spend time with patients,” Rick Gates, Walgreens’ chief pharmacy officer, said of the fulfillment centers.
“It gives us a lot more flexibility to bring down costs, to increase the care and increase speed to therapy — all those things,” he said.
He added that the centers offer Walgreens a competitive edge, as independent pharmacies and some rivals don’t provide centralized support for their stores.
However, the report notes, companies like Walmart, Albertsons, and Kroger have either tested or are using micro-fulfillment facilities to dispense grocery items and other prescriptions.
According to the CNBC report, Walmart hopes to give pharmacy staff more time to interact with patients and provide clinical services such as vaccinations, using the centers to reduce routine tasks and eliminate inventory waste.
The news comes as Walgreens engages in a turnaround plan while it waits to be acquired by private equity firm Sycamore Partners.
Last month, the company reported a 4.1% increase in sales, while its operating loss fell from $13.2 billion a year ago to $5.6 billion.
PYMNTS wrote last week about robotics efforts underway at Walmart and rival Amazon. That report followed Amazon’s introduction of Vulcan, a fulfillment center robot and the company’s first robot equipped with a sense of touch.
“And while Amazon is launching robots that can feel, Walmart is turning to machines that can build,” that report said, as the retail giant teamed with Alquist 3D to build a 5,000-square-foot warehouse extension in Huntsville, Alabama, with robotic 3D printing technology.
“Completed in just seven days with a five-person crew, the project underscores the commitment of large retailers to leveraging automation to address labor shortages and accelerate construction timelines,” PYMNTS wrote.
