The news: The new myWalgreens Credit Card Program includes two Synchrony-issued cards: a co-branded Mastercard and a private-label store card. Interested customers can apply at the register or scan a QR code in-store to get a customized, pre-filled link. Once approved, they will earn a $25 bonus if they use their card within 45 days.
How it works: The card’s rewards structure benefits Walgreens loyalists.
The opportunity: A newfound focus on health and wellness could give the program a strong start.
US health and wellness sales will grow 6.0% this year, with ecommerce sales specifically increasing by 22.8%—the second-highest growth rate of any product category. At Synchrony, health and wellness was the second-fastest growing vertical in Q2 2021.
As interest in health and wellness mounts in the coronavirus pandemic’s wake, the $593.07 billion market offers Walgreens a strong opportunity to attract customers and their dollars. Health-focused customers in particular may be incentivized to spend more at Walgreens than they otherwise would, Synchrony SVP of co-brand programs David Parkes told Insider Intelligence.
The program also can leverage repeat behavior, since customers tend to incorporate pharmacy visits into their daily lives. And it will benefit from seamless integration with an existing, popular rewards program: Maria Smith, Walgreens’ VP of payments and financial services told us that the card “amplifies the rewards customers earn and love.” Such close integration is a core feature in the success of co-brands.
The bigger picture: The Walgreens program—another signifier of the digital evolution of co-brands—further entrenches Synchrony as a leader in the space.
Go deeper: To learn more about the state of the co-brand cards market in the US, how retail and digital cards are performing, and best practices shaping success, check out our Co-Brand Credit Card Report.