A partnership gone sour marks the end of a technological endeavor between Walgreens Boots Alliance Inc WBA and Cooler Screens, a vendor specializing in digital advertising screens.
The project intended to modernize cooler doors with interactive ad displays has spiraled into a legal battle.
Cooler Screens accuses Walgreens of obstructing a planned nationwide deployment of their internet-connected doors, a claim rooted in court documents.
Originating in 2018, the alliance aimed at leveraging technology to enhance the consumer shopping experience while boosting ad revenues. The smart cooler doors, with sensors and digital screens, promised targeted ads and real-time inventory displays.
However, Walgreens cites persistent technical issues, ranging from frozen screens to incorrect product displays and fire hazards, as grounds for contract termination.
Cooler Screens rejects this narrative, maintaining adherence to service agreements and blaming Walgreens' outdated infrastructure for the technical glitches, the Wall Street Journal noted.
They contend that the pharmacy giant's slow approval of a remediation plan compounded the issue.
The vendor also highlights a discrepancy in the installation scale, with over 10,000 smart doors installed in 700 stores, falling short of the agreed 2,500 locations.
Microsoft Corp MSFT-backed Cooler Screens remains steadfast, with their technology still adorning Walgreens stores. Meanwhile, CVS Health Corp CVS, once a tester of this technology, has since disengaged, leaving no Cooler Screens' technology in their stores.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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