Walgreens has tapped new talent, hiring two leaders to help lead the chain during turbulent times. CVS, Walgreens, Rite-Aid and other pharmacy chains have been struggling to find their footing recently in a changed retail environment. Thousands of pharmacies have shuttered, including some of Walgreens’. The company has even said it is considering closing up to 25% of its 8,600 stores.

As it looks to improve, Walgreens has hired Tracey Koller to be senior vice president and chief merchandising officer. It is also bringing on Sharmila Sudhakar as group vice president and head of the company’s digital commerce.

Walgreens Boots Alliance Inc. ranks No. 14 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers. In the database, Walgreens falls under the Health & Beauty category. Digital Commerce 360 projects that Walgreens online sales will reach $9.15 billion in 2024.

Walgreens web sales by year

Who are Walgreens’ newest hires?

Tracey Koller, senior vice president and chief merchandising officer at Walgreens | Photo credit: Walgreens

With Walgreens’ latest hires, Koller replaces Linh Peters, who served in the top merchandising role for two years and now serves on the advisory board of Session AI. Koller comes to Walgreens after serving in a similar role at Party City, helping it emerge from bankruptcy.

Meanwhile, Sudhakar arrives at Walgreens from from Tailored Brands, where she served in a number of leadership positions, most recently as vice president and general manager of ecommerce business in North America for Men’s Wearhouse.

“Our retail pharmacy business is uniquely positioned to expand the role we play in the lives of our patients who have come to expect and need retail pharmacy at the center of their care,” said Tracey Brown, executive vice president and president, Walgreens retail and chief customer officer via a company press release.

“To do this, we are investing in the industry’s best talent, which includes the addition of Tracey and Sharmila to the Walgreens leadership team,” Brown added. “With their strong track records of delivering results in omni-channel solutions and merchandising, I know they will be.”

Timing for Walgreens’ latest hiring

Sharmila Sudhakar, group vice president and head of Walgreens digital commerce | Photo credit: Walgreens

Scott Stuart, CEO at Turnaround Management Association, which advises troubled companies, says these new hires will have to navigate choppy waters.

“With stiff competition, over- expansion, declining prescription drug rebates and shrinking profit margins, the retail pharmacy sector is at a crossroads, and Walgreens is one of the chains trying to figure it all out,” Stuart said.

In the meantime, the value of physical stores is being revisited.

“And while there is a need for retail pharmacies, the traditional brick-and-mortar stores are not working as they once did,” Stuart said.

Now, Stuart believes Walgreens will have to reinvent itself.

“What that looks like is still in flux, but with the trend in this sector consistently showing current models no longer work, a good hard look at consolidation and finding the right balance of product and services will be key to the next iteration of what this sector will be,” he said.

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