North suburban-based Walgreen Company has announced it's buying a web site for more than $400 million. In a statement, Walgreen said it acquired drugstore.com in a deal valued at $409 million.
Matt Coffina, who analyzes Walgreen for Morningstar, said the acquisition makes sense for Walgreen's strategic future, but it isn't necessarily a good financial deal.
"I think they want to be the drug store of choice and they want to be there for consumers regardless of what channel they use to purchase their drug store-like items and so this was one way of meeting that demand," Coffina said.
Coffina said drug store dot com has not been profitable in its 10-year history. He said Walgreen Company is likely to remain more focused on the nearly 7,700 stores it runs across the country than on its online presence.