Walgreens faces stiff competition from local, regional and national drugstores along with independent pharmacies. WalMart has also recently given a boost to its pharmacy, further increasing competition. To remain competitive, Walgreens must evaluate its pricing structure to remain competitive. Failure to change prices will drive customers away and decrease revenue. This method of risk financing is critical to their survival in the industry. Walgreens operates seasonally, particularly during holidays and flu seasons. As the store fills with seasonal inventory, adverse events such as weather, the economy and gas prices could limit traffic to the store. To combat this, Walgreens can implement a risk control system that regularly monitors foot traffic in the store to determine customer flow and monitor their spending patterns. This method falls under the third potential loss, failure to meet customer needs, which can impact sales. For Walgreens to be successful, it must offer its customers the best shopping experience. Which results in an attractive assortment of merchandise. Although it is increasingly difficult to track spending patterns, Walgreens must use the risk control method to track them. Through industry research, Walgreens can determine shopping habits and