Walgreens looking to shed $1 Billion in costs, shares surge.

Walgreens shares surged on Friday after it preliminarily reported same store sales increased by 2.2% in the first 28 days of October. The partial month sales report was an unusual move for Walgreens. We will look forward to the full month sales figures that should be available on Tuesday, November 4th. Since after hours trades were lower, I would imagine there is some investor worry about WHY they announced partial month sales early.

The Company also unveiled a new strategic plan that includes the following key initiatives:

1. Slowing store growth to allow more time to develop the company’s management ranks and focus on improving the customer experience, while freeing up capital and enhancing flexibility to invest in Walgreens core business.
2. Re-inventing the customer experience by streamlining merchandise selection and shifting promotional focus toward essential consumer needs. The company is also expanding its private brand products to provide value to customers and higher profit margins to stores, and is focused on growing its e-commerce initiatives.
3. Transforming community pharmacy through a significant new initiative that is expected to reduce the cost of filling prescriptions and increase the time pharmacists spend with patients. The program is currently in 152 stores in Florida and is expected to be in more than 750 Florida stores by the end of fiscal 2009.
4. Expanding Walgreens Health and Wellness division, which now encompasses more than 600 in-store clinics and worksite health centers. Walgreens expects to have more than 800 of these facilities by the end of fiscal 2009. Its in-store Take Care Clinics offer quality and accessible health and wellness services that reduce costs for patients and payors. Its worksite health centers provide employees immediate access to health services and prescriptions at work, while offering new customers and their families the convenience of Walgreens retail stores to fill their ongoing prescriptions and serve everyday shopping needs.
5. Expanding Walgreens leading independent specialty pharmacy business, which now h

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