America's Corner Store

Praise for America's Corner Store "Who would have thought the story of a drugstore chain could encompass so much vital and fascinating American history? With superb storytelling skills, John Bacon gives us a vivid and insightful chronicle of matters both large and small, from the birth of the milkshake to the rise of America's consumer culture. America's Corner Store is a genuine treat." -James Tobin the National Book Critics' Circle--Award winner, and author of To Conquer the Air: The Wright Brothers and the Great Race for Flight "Run the business with your head. Lead the family with your heart. Walgreens' history is filled with good values, strong principles, and immense courage. A family business classic." -Howard "Howdy" S. Holmes President and CEO, "Jiffy" Mixes "John Bacon has crafted a thorough, insightful, readable, and fascinating account of the development of Walgreens: one of the world's most compelling examples of the creation of shareholder value in conjunction with good corporate governance... all in a company run in a highly unique fashion as a 'family' business. As the store that everyone knows, Walgreens has become the envy of corporate America and the darling of shareholders, consistently producing investor returns that place it at the very top among its peers. This book will be required reading in my private equity class at Michigan Business School." -Professor David Brophy Director, Center for Venture Capital and Private Equity Finance, University of Michigan Business School

Preface ix Acknowledgments xiii 1 From Humble Beginnings 1 The Apple and the Tree 1 Sweet Home Chicago 7 The State of the Profession 14 Walgreen Does Chicago 22 To Live and Almost Die in Cuba 25 Walgreen Returns 27 The Most Important Merger 30 Diving In—Together 37 2 The Start of Something Special: 1910–1929 43 On His Own 43 The Secrets of the Second Store 44 I Scream, You Scream 47 The Hot Lunch Program 48 Cultivating Leaders 50 Growing Like Topsy 52 The Pepper Pod 55 Steppin’ Out 59 Chicago in the Roaring Twenties 61 On the Lighter Side 65 Fundamental Values 69 Putting Out Fires 71 The Walgreen Creed 74 The Knight Report 75 “Absolute Dominance” 82 If They Can Make It Here 83 Read All about It 86 Chain Fight 88 The Good Life 92 3 Nothing to Fear: 1929–1945 95 Facing Fear Itself 95 Better Days Are Coming 96 Helping the Mom-and-Pop Shops 101 Walgreens’ Own: From Coffee to Corn Remover 105 Getting the Word Out 109 Damn the Depression, Full Speed Ahead! 111 Finding Time for Fun 117 The Son Also Rises 119 The Accidental Benefactor 122 Charles’s Demise 126 Defusing a Palace Coup 129 There’s a War On 134 Where Everyone Meets 137 4 The Postwar Era: 1945–1970 139 The Power Era 139 Mergers and Acquisitions 141 All Power to the Pharmacist 144 Partners in Health 145 Battling the Bargain Stores 149 The Self-Service Revolution 151 The Shopping Center Is Born 159 The Four-Way Test 161 Chuck’s Legacy 163 5 Reinventing the Corporation: 1970–1990 167 State of the Company 168 Looking for a Few Good Men 171 Walgreen’s Wingman 174 The Turn-Around Team 177 Killing Off Their Little Darlings 182 The Systems behind the Smiles 187 Walgreens Goes High-Tech 189 Vindication 191 6 Poised to Pounce: 1990–Future 193 “This Is Dan Jorndt, How May I Help You?” 193 Plain and Proud of It: The Anti-Enron 197 Getting the Right People Ready 207 A Good Corner Is a Good Corner 211 Passing the Torch 215 Hello, My Name Is Dave 217 Constant Competition 220 Walgreens’ Advantages 223 The Future Is Now 224 Appendix A Walgreens Financial Facts 227 Appendix B Historic Highlights 229 Notes 233 Index 249