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over 70 percent of Walgreens offer those services, and the number rises every day Truth be told, the drive-thru service and one-hour photo labs add a lot of work and complication to each store s operation, but Walgreens philosophy trumps any complaints: If it can be shown that a new feature will increase customer convenience, they ll do it Dan Jorndt observed, Our company is now 103 years old, but we ve opened 3,400 of our 3,800 stores in the past 10 years Now, how can that be Well, along with moving to freestanding stores, we relocated all our strip centers and all our downtown stores to new sites So, just the net in the past 10 years is more like 2,000 new stores, but we ve also relocated 1,400 So here s a 103-year-old company, where 80 percent of our stores are less than 10 years old I don t think there s a retail company anywhere that can say, Gee, we re going on 103 years, and our average store is 5 years old! But that took a tremendous amount of discipline and a certain amount of guts to say, We re going to do that We re going to generate cash and put it back in the company And we ve been reinvesting about a billion [dollars] a year into new stores You ve probably heard it a hundred times around these halls, and if you haven t you probably will: We believe in crawl, walk, run Crawl, figure out what s going on, and once we get it figured out, start walking, and once you get that right, you go like hell! The best example of that is one-hour photo finishing We started one-hour photo finishing in 1984, and we tweaked it and tested it and marketed it, and we kept fooling around with that until about 1995 or 1996 All that was crawl, crawl, crawl We couldn t get it figured out, but we didn t give up We knew there was something there Finally, in the mid 1990s, a-ha! We got it We figured out we ve gotta have the right price, we ve gotta have well-trained technicians, we ve gotta have the right equipment We finally got the whole ball of wax right And then, conservative me, we had a meeting, and we say, All right, we ve got this thing figured out: We re going right
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from crawl to run Because we ve been studying this for 10 years! We laid out a plan that was going to cost us $50 million and take four years to train 20,000 people, remodel at the time about 1,600 stores, and get all this new equipment I mean, it was like the Normandy invasion, and I thought that was a high goal Then I went out to visit the stores for a month or so When I got back, Glenn Kraiss, who was our head guy in the stores then, but is now retired, said, Dan, I don t want you to be mad at me, but while you were gone, I had a little meeting with that group to start planning this rollout for one-hour photo finishing I said, Good! And he said, Well, I kind of shocked them, because I opened the meeting by saying, Look, we re not going to have this meeting We re going to have this meeting in a week I want everyone to go back for a week and figure out how we can roll this out in one year instead of four I said, I m proud of you, Glenn How d your next meeting go And he said, We re going to do it Well, to be honest, I thought they might be crazy, but it took us about a year and three months He was right! So here s an example, where this great guy, Glenn Kraiss, who was closer to the stores than I was, who says Jorndt thinks he s aggressive with four years well, watch this! And I wasn t involved at all He had the meeting, he challenged them, they came back in a week with everything they were going to need to do: real estate, planning, training, photo people They said [Jorndt slaps the table], We re on board! And we did it Boom! One year! It gets back to the leader believing it can be done I think if those people would have came back and said It ll take a year and a half, or two years, Glenn might have bought it But they didn t They came back and said, You want a year We think we can do it Well, do you think any of those folks who were a part of that amazing success story were talking to head hunters for that year [Jorndt can t help chuckling at the thought] And when everyone s ready to check out, I think we all want to look back and say, Did
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