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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.

Overview

  • 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.