Walgreens Faces Legal Battle Over Failed $200 Million Smart Cooler Experiment

The pharmacy chain's partnership with Cooler Screens Inc. to digitize refrigerator doors led to technical failures, customer dissatisfaction, and mutual lawsuits.

Walgreens partnered with Cooler Screens Inc. in 2019 to replace traditional refrigerator doors with digital smart screens aimed at enhancing customer engagement and generating ad revenue.
The screens suffered from widespread technical issues, including malfunctioning displays, incorrect product information, and frequent outages, frustrating customers and staff alike.
Cooler Screens sued Walgreens for $200 million in June 2023, accusing the retailer of breaching their 10-year contract by attempting to terminate it early due to dissatisfaction with the technology.
Tensions escalated in December 2023 when Cooler Screens cut data feeds to over 100 Walgreens stores, leaving the screens blacked out and disrupting customer experience during the holiday season.
Walgreens has since removed the screens from all its stores, citing unmet contractual obligations, while Cooler Screens shifts its focus to software partnerships with other retailers like Kroger and Chevron.