The drugstore chain, Walgreen Co. has posted a bigger-than-expected 8.7% fall in its third quarter earnings.

The fresh look of drugstore chain has cost about $30,000 to $50,000 to implement in each store. 

"Affordable essentials" such as toilet paper are being encouraged by Walgreen in order to attract shoppers who switched to value-oriented chains such as Wal-Mart Stores Inc.

Walgreen scored earnings of $522 million, or 53 cents per share, in the third quarter, ended May 31, down from $572 million, or 58 cents per share, during the previous year.

Technical Analysts, on average were expecting it to earn 56 cents per share on revenue of $16.17 billion.

In order to score a double-digit earnings growth, Walgreen has plans to trim down jobs and open fewer stores than it planed earlier.

Speaking on the issue, Gregory Wasson, President and Chief Executive of the company, said, "We continue to see consumers save more, use less credit and spend closer to payday."

Mr. Wasson further addedd, "This is challenging to all retailers, including us, but we are well positioned to continue to grow."

Shares of the drugstore chain were recently down 4% at $30.15.

As far as gross margin for the fiscal third quarter is concerned it dropped from 28.3% to 2 27.5% on results of non-retail operations and added inventory costs. Apart from this, Walgreen also manages workplace health-and-wellness centers, sells beer and wine, the business which the company is going to expand further.