Recently, Walgreens ( WAG ) discussed the current business environment and provided valuable insight into its future operations. According to the company's conference call, while its pharmacy business continues to gain a strong foothold, the revenue contribution of the franchise might slowdown on account of the generic wave in the pharmaceutical industry. In the interim, Walgreens plans to revive growth of its front-end stores to achieve balanced growth. Walgreens recorded robust gross margin expansion in the first quarter of fiscal 2013. The company expects the trend to continue in the near term on the back of introduction of generics. Management asserted that the generic wave should significantly increase Walgreens' gross profit per script compared to the gross margin, which it earns on brands. Despite the efforts of its competitors, Walgreens is winning back new Express Scripts ( ESRX ) customers.