Last week Walgreens announced the opening of the first Dental Care clinic in partnership with Aspen Dental, the largest and fastest growing network of branded dental care providers in United States. The collaboration is one of many programs that major Drug stores have done over the last year to provide diversified and Internet-resistant offerings, and effectively drive more traffic to their stores.

Recently opened clinic in Palatka Florida reveals that Walgreens is targeting locations where majority of population is over 65 years old. While we do not know the exact structure of the partnership, and whether Aspen Dental would be paying rent for Walgreens store space, it is almost certain to guarantee an increase in traffic to the stores, and effectively their store sales. This should lead to Walgreens being able to afford higher Base Rent and a stronger business model than its competitors, both important considerations for Drug store investors.

At the time when shopping centers and big box retailers are struggling to -attract traffic and bring consumers to the brick-and mortar locations, big pharmacies are progressively thinking about their business models and diversifying their offering beyond its core business. While it is too early to measure how this partnership will impact the business, it certainly shows the strength and ability of Walgreens’ management to adopt to the changing environment and continue to grow the bottom line.

Did You Know?

• Walgreens is giving its freezer and refrigerator doors a digital makeover in a move that could bring more revenue – AdAge
• CVS Health reveals New Health-Focused Store Format – ChainStoreAge
• CVS is offering free weekly hearth checks in their stores as a part of their “Know Your Numbers” program – PBN
• Every Thursday this February, you can get a free Heart Health screening in 33 states where CVS has stores, Including NY, NJ and PA.