As Chief Operating Officer, International, for Walgreens Boots Alliance (WBA) life has been exceptionally busy recently for Ornella Barra, even by her standards.
In June, WBA announced it was aborting its bid to sell Boots, the second time since 2022 that it had called off a sale of the business.
One reason Boots is no longer for sale is it’s been performing strongly in recent times. Its retail sales rose by 6% in Q3 2023 – the 13th consecutive period the chain has grown its market share.
In the past, Barra has faced criticism that Walgreens has asset stripped Boots, with 560 stores closing in the past six years, and many of those remaining being starved of investment.
But she disputes this, pointing out Walgreens recently signed off on a three-year investment plan to upgrade 70 Boots stores this year, followed by a further 100 in 2025.
So now Boots remains firmly in the WBA fold, what does Barra envisage for an institution that traces its roots back to 1849?
“Boots is very important for Walgreens,” Barra said after the announcement. “It’s in a very good position in the market, so at the moment, the best solution is for Boots to remain part of the group.”
Barra, 70, is married to Stefano Pessina, Executive Chairman of Walgreens, who orchestrated the acquisition of Boots in 2012.
WBA is a multinational company operating in the retail pharmacy and healthcare sectors. Formed in 2014 through the merger of Walgreens and Alliance Boots, it operates pharmacy chains, chiefly in the US (Walgreens) and the UK (Boots).
It also has pharmacy-led health and beauty retail businesses in Europe, Latin America and Asia, as well as a pharmaceutical wholesale operation in Germany and the No7 Beauty Company.
In recent years, under Barra’s guidance, it has focused on cost-cutting measures and digital transformation efforts to adapt to market shifts.
Before moving into her current position, Barra was Co-Chief Operating Officer, prior to which she was President and Chief Executive of Global Wholesale and International Retail.
Before the Walgreens Boots Alliance was formed, in December 2014, she was Chief Executive, Wholesale & Brands, of Alliance Boots.
She was also previously CEO of the Pharmaceutical Wholesale Division, from January 2009 to September 2013), before which she was Wholesale & Commercial Affairs Director. In that role, she oversaw Boots’ Pharmaceutical Wholesale Division, as well as the overall development of International Health & Beauty and Brands.
Barra’s voice not only carries great weight in WBA but also in the wider healthcare industry. She is on the board of directors of Cencora (formerly AmerisourceBergen Corporation), a pharmaceutical services company, and is the Chairman of the International Federation of Pharmaceutical Wholesalers industry association.
Pessina and Pessina make a formidable team – and they need to be, for in the US, where Walgreens makes the bulk of its $139bn in sales, it is facing stiff competition from the likes of Amazon.
On top of this, it is also facing payments of $4.95bn over 15 years, to settle claims relating to America’s opioid crisis.
These difficulties have hit its share price and reduced the market value of Walgreens to $10.2 billion.
Over the past year, the value of Pessina’s 16.8 per cent stake in Walgreens has declined by $2.8 billion. But Barra says that, despite this, Pessina remains “very confident” in the company.
“Stefano has an entrepreneur’s spirit,” she says. “As an entrepreneur you know the company has good moments and bad moments.
“Walgreens is solid, has a strong team, 123 years of history, thousands of stores and an iconic brand. Stefano remains committed to finding the solution.”
In terms of her personal vision of what it takes to succeed in business, Barra has said that, for her, a good day “is a day during which I have learned something”.
She adds: “At any age, you should never stop wanting to learn, and engaging with energy and passion."
To read the full story in the magazine click HERE
**************
Make sure you check out the latest industry news and insights at Healthcare Digital and also sign up to our global conference series - Tech & AI LIVE 2024
**************
Healthcare Digital is a BizClik brand
