Walgreens taps Starbucks COO Roz Brewer as its next CEO

Starbucks Chief Running Officer Rosalind Brewer will replace Stefano Pessina as CEO of Walgreens Boots Alliance, the drugstore chain confirmed in a shriek Tuesday evening.

Starbucks had presented Brewer’s departure earlier in the day, saying she is leaving on the close of February for a CEO region at an undisclosed publicly traded firm.

As CEO of Walgreens, Brewer could be the one Sad lady leading a Fortune 500 firm.

Her departure from Starbucks comes as investors, regulators and activists push for more differ in company The usa. Nasdaq has proposed changes that can push for increased racial and gender differ on the boards of publicly traded companies listed on its alternate. 

The Wall Avenue Journal first reported Brewer’s resolution to affix Walgreens.

Walgreens shares rose simply about 8% in extended procuring and selling on the data. The inventory is down 5% over the final 12 months, bringing its market value to $42.50 billion.

Pessina’s plans to step down

Pessina presented his plans to step down as CEO in July. He’s one in every of the drugstore chain’s largest particular individual investors and plans to proceed to attend on the board as govt chairman.

Brewer joined Starbucks’ board in 2017 and became its chief running officer later that three hundred and sixty five days after serving as CEO of Sam’s Membership, which is owned by Walmart. She was the major Sad lady to be COO of Starbucks and to transfer a division on the mountainous-box retailer. Ahead of her time at Walmart, she labored for consumer packaged items big Kimberly-Clark.

In her fresh feature, Brewer offers with a broad form of tasks, from expertise initiatives to the introduction of contemporary coffee drinks. She was broadly expected to be the successor to fresh CEO Kevin Johnson. After she leaves, her tasks shall be split between CMO Brady Brewer and Rossann Williams, who serves as president of firm-operated areas in the U.S. and Canada.

Challenges ahead at Walgreens

At Walgreens, Brewer will face lots of challenges as the firm appears to be like to be to flip spherical its enterprise and originate fresh revenue streams. The pharmacy chain struggled in the early months of the pandemic as foot net site visitors dropped, in particular at its Boots stores in the United Kingdom. The firm reported earlier this month that sales had been picking up however reiterated its outlook for low single-digit earnings instruct.

The pharmacy chain has been slicing funds in some areas and investing in others. It closed a complete bunch of Walgreens and Boots stores closing three hundred and sixty five days and decrease the scale of its personnel.

Walgreens’ bigger rival, CVS Health, bought health insurer Aetna and was faster to elongate in health-care services and products. CVS opened Minute Clinics, and Walgreens has been playing non-public-up.

Brewer furthermore sits on the board of Amazon, a firm that is been slicing into drugstore sales both in the entrance of the retailer as successfully as in the assist of the pharmacy counter as more customers secure toothpaste and fill up prescriptions on-line.

Amazon launched its hold pharmacy enterprise in November, providing perks equivalent to a financial savings program and free two-day offer to Top people. It bought on-line pharmacy PillPack in 2018.

Brewer furthermore is chairwoman of Spelman College’s board of trustees and beforehand was a director at Lockheed Martin and Molson Coors Beverage.

Starbucks has furthermore lately presented the retirement of its CFO, Pat Grismer. He shall get replaced by Rachel Ruggeri, who serves as senior vice president of finance for the Americas division, initiating Feb. 1.

Shares of Starbucks fell bigger than 1% in extended procuring and selling on Tuesday after the chain reported its fiscal first-quarter results. It beat analyst estimates for its earnings, however its sales recovery in the U.S. faltered as Covid-19 cases increased all around the quarter.