America’s Corner Store

Praise for America's Corner Store "e;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."e; -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 "e;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."e; -Howard "e;Howdy"e; S. Holmes President and CEO, "e;Jiffy"e; Mixes "e;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."e; -Professor David Brophy Director, Center for Venture Capital and Private Equity Finance, University of Michigan Business School

Praise for America's Corner Store"Who would have thought the story of a drugstore chain couldencompass so much vital and fascinating American history? Withsuperb storytelling skills, John Bacon gives us a vivid andinsightful chronicle of matters both large and small, from thebirth of the milkshake to the rise of America's consumer culture.America's Corner Store is a genuine treat."James Tobinthe National Book Critics' Circle--Award winner, and author of ToConquer the Air: The Wright Brothers and the Great Race forFlight"Run the business with your head. Lead the family with your heart.Walgreens' history is filled with good values, strong principlesand immense courage. A family business classic."Howard "Howdy" S. HolmesPresident and CEO, "Jiffy" Mixes"John Bacon has crafted a thorough, insightful, readable, andfascinating account of the development of Walgreens: one of theworld's most compelling examples of the creation of shareholdervalue in conjunction with good corporate governance... all in acompany run in a highly unique fashion as a 'family' business. Asthe store that everyone knows, Walgreens has become the envy ofcorporate America and the darling of shareholders, consistentlyproducing investor returns that place it at the very top among itspeers. This book will be required reading in my private equityclass at Michigan Business School."Professor David BrophyDirector, Center for Venture Capital and Private Equity FinanceUniversity of Michigan Business School

Preface ixAcknowledgments xiii1 From Humble Beginnings 1The Apple and the Tree 1Sweet Home Chicago 7The State of the Profession 14Walgreen Does Chicago 22To Live and Almost Die in Cuba 25Walgreen Returns 27The Most Important Merger 30Diving In--Together 372 The Start of Something Special: 1910-1929 43On His Own 43The Secrets of the Second Store 44I Scream, You Scream 47The Hot Lunch Program 48Cultivating Leaders 50Growing Like Topsy 52The Pepper Pod 55Steppin' Out 59Chicago in the Roaring Twenties 61On the Lighter Side 65Fundamental Values 69Putting Out Fires 71The Walgreen Creed 74The Knight Report 75"Absolute Dominance" 82If They Can Make It Here 83Read All about It 86Chain Fight 88The Good Life 923 Nothing to Fear: 1929-1945 95Facing Fear Itself 95Better Days Are Coming 96Helping the Mom-and-Pop Shops 101Walgreens' Own: From Coffee to Corn Remover 105Getting the Word Out 109Damn the Depression, Full Speed Ahead! 111Finding Time for Fun 117The Son Also Rises 119The Accidental Benefactor 122Charles's Demise 126Defusing a Palace Coup 129There's a War On 134Where Everyone Meets 1374 The Postwar Era: 1945-1970 139The Power Era 139Mergers and Acquisitions 141All Power to the Pharmacist 144Partners in Health 145Battling the Bargain Stores 149The Self-Service Revolution 151The Shopping Center Is Born 159The Four-Way Test 161Chuck's Legacy 1635 Reinventing the Corporation: 1970-1990 167State of the Company 168Looking for a Few Good Men 171Walgreen's Wingman 174The Turn-Around Team 177Killing Off Their Little Darlings 182The Systems behind the Smiles 187Walgreens Goes High-Tech 189Vindication 1916 Poised to Pounce: 1990-Future 193"This Is Dan Jorndt, How May I Help You?" 193Plain and Proud of It: The Anti-Enron 197Getting the Right People Ready 207A Good Corner Is a Good Corner 211Passing the Torch 215Hello, My Name Is Dave 217Constant Competition 220Walgreens' Advantages 223The Future Is Now 224Appendix AWalgreens Financial Facts 227Appendix BHistoric Highlights 229Notes 233Index 249