Jenny Craig set for expansion at 100 Walgreens locations by the next year.

Walgreens, the American retail pharmacy chain, has announced a new partnership with Jenny Craig, a well-known weight loss company. This collaboration will see Jenny Craig's services being offered at 100 of Walgreens' locations in 20 states, starting from January 2020.

The partnership aims to provide private one-on-one consultations, a customized menu plan, and meal delivery services to customers seeking weight loss solutions. According to Jenny Craig CEO Monty Sharma, this tie-up is a "natural fit" for both companies.

The partnership is part of Walgreens' efforts to forge more strategic partnerships, as promised a year ago, and aligns with the growing emphasis on healthcare services in drugstore retail. The markets for these services include Dallas, Houston, Philadelphia, and Phoenix, among others.

In addition to the collaboration with Jenny Craig, Walgreens has also partnered with Birchbox, Kroger, and Alibaba. The company plans to expand a collaboration with LabCorp patient service centers from 17 stores to 600.

The partnerships are expected to help address the deficiencies in Walgreens' core retail offer and bring people into stores. However, GlobalData Retail Managing Director Neil Saunders believes that while these partnerships may bring footfall, they may not necessarily increase sales of core health and beauty ranges.

Walgreens' fourth quarter retail sales fell 3.9% year over year, and the adjusted operating income fell 12.2% to $1.1 billion. The operating income fell 30.3% from the year-ago quarter to $700 million. The retail comps fell 1.2%, entirely due to continued de-emphasis of tobacco.

Despite these challenges, the partnerships, along with the rising use of pharmaceuticals on an aging population and the need to control costs in healthcare, are expected to help Walgreens gain share, according to Wells Fargo analysts led by Peter Costa. After the co-locations open, the companies will begin to explore other potential in-store and digital initiatives.

In conclusion, the partnership between Walgreens and Jenny Craig is a significant step in the retail pharmacy chain's strategy to expand its healthcare services offerings and attract more customers. The collaboration is expected to bring new opportunities for both companies and contribute to Walgreens' growth in the competitive retail market.