|   | þ | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | ¨ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

| Illinois                                | 36-1924025                                          |
|-----------------------------------------|-----------------------------------------------------|
| (State                of Incorporation) | (I.R.S.                Employer Identification No.) |

| 200                Wilmot Road, Deerfield,                Illinois | 60015                     |
|--------------------------------------------------------------------|---------------------------|
| (Address                of principal executive offices)            | (Zip                Code) |

|   | Yes                þ        No                ¨ |
|--------|---------------------------------------------------------------------------------------------------|

| Large                accelerated filer þ                                           Accelerated                Filer ¨     Non-accelerated                filer¨ |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Yes                ¨        No                þ |
|--------|---------------------------------------------------------------------------------------------------|

WALGREEN      CO.

| Item                1. | Consolidated                Condensed Financial Statements (Unaudited)                                              |
|------------------------|---------------------------------------------------------------------------------------------------------------------|
|                   | a)                                                                                                                  | Balance                Sheets | 4 |
|                   | b)                                                                                                                  | Statements                of Earnings |  5 |
|                   | c)                                                                                                                  | Statements                of Cash Flows |  6 |
|                   | d)                                                                                                                  | Notes                to Financial Statements |  7 |
| Item                2. | Management's                Discussion and Analysis of Results of Operations                and Financial Condition |  9 |
| Item                3. | Qualitative                and Quantitative Disclosure about Market                Risk                             |  15 |
| Item                4. | Controls                and Procedures                                                                              |  15 |

| Item                2. | Unregistered                Sales of Equity Securities and Use of                Proceeds |  16 |
|------------------------|-------------------------------------------------------------------------------------------|----------|
| Item                6. | Exhibits                                                                                  | 17       |

| WALGREEN                CO. AND SUBSIDIARIES                                                                                                                                                                                                               |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                CONDENSED BALANCE SHEETS                                                                                                                                                                                                       |   |
| (UNAUDITED)                                                                                                                                                                                                                                                |   |
| (In                Millions, except shares and per share amounts)                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                       |   | November                30, |   |   | August                31, |   |   | November                30, |   |
|                                                                                                                                                                                                                                                       |   | 2007 |   |   | 2007 |   |   | 2006 |   |
| Assets                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |
| Current                Assets:                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                   |   | $ | 295.1 |   |   | $ | 254.8 |   |   | $ | 669.7 |   |
| Short-term                investments - available for sale                                                                                                                                                                                                 |   |   | - |   |   |   | - |   |   |   | 99.7 |   |
| Accounts                receivable, net                                                                                                                                                                                                                    |   |   | 2,247.0 |   |   |   | 2,236.5 |   |   |   | 2,304.3 |   |
| Inventories                                                                                                                                                                                                                                                |   |   | 7,552.9 |   |   |   | 6,790.5 |   |   |   | 6,998.8 |   |
| Other                current assets                                                                                                                                                                                                                        |   |   | 240.1 |   |   |   | 228.7 |   |   |   | 228.9 |   |
| Total                Current Assets                                                                                                                                                                                                                        |   |   | 10,335.1 |   |   |   | 9,510.5 |   |   |   | 10,301.4 |   |
| Non-Current                Assets:                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Property                and equipment, at cost, less accumulated depreciation and amortization                of                $2,943.9 at November 30, 2007, $2,776.6 at August 31, 2007 and $2,478.0                at                November 30, 2006 |   |   | 8,497.4 |   |   |   | 8,199.9 |   |   |   | 7,203.1 |   |
| Goodwill                                                                                                                                                                                                                                                   |   |   | 1,066.2 |   |   |   | 1,060.2 |   |   |   | 167.2 |   |
| Other                non-current assets                                                                                                                                                                                                                    |   |   | 576.9 |   |   |   | 543.0 |   |   |   | 354.3 |   |
| Total                Assets                                                                                                                                                                                                                                |   | $ | 20,475.6 |   |   | $ | 19,313.6 |   |   | $ | 18,026.0 |   |
| Liabilities                & Shareholders' Equity                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                Liabilities:                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term                borrowings                                                                                                                                                                                                                       |   | $ | 1,166.5 |   |   | $ | 878.5 |   |   | $ | - |   |
| Trade                accounts payable                                                                                                                                                                                                                      |   |   | 4,106.6 |   |   |   | 3,733.3 |   |   |   | 4,552.3 |   |
| Accrued                expenses and other liabilities                                                                                                                                                                                                      |   |   | 2,094.4 |   |   |   | 2,104.4 |   |   |   | 1,800.6 |   |
| Income                taxes                                                                                                                                                                                                                                |   |   | 177.9 |   |   |   | 28.1 |   |   |   | 245.8 |   |
| Total                Current Liabilities                                                                                                                                                                                                                   |   |   | 7,545.4 |   |   |   | 6,744.3 |   |   |   | 6,598.7 |   |
| Non-Current                Liabilities:                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Deferred                income taxes                                                                                                                                                                                                                       |   |   | 106.5 |   |   |   | 158.2 |   |   |   | 107.7 |   |
| Other                non-current liabilities                                                                                                                                                                                                               |   |   | 1,333.6 |   |   |   | 1,306.8 |   |   |   | 1,165.1 |   |
| Total                Non-Current Liabilities                                                                                                                                                                                                               |   |   | 1,440.1 |   |   |   | 1,465.0 |   |   |   | 1,272.8 |   |
| Shareholders'                Equity:                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                stock $.0625 par value; authorized 32 million shares, none                issued                                                                                                                                                  |   |   | - |   |   |   | - |   |   |   | - |   |
| Common                stock $.078125 par value; authorized 3.2 billion shares; issued                1,025,400,000 at November 30, 2007, August 31, 2007 and November                30,                2006                                               |   |   | 80.1 |   |   |   | 80.1 |   |   |   | 80.1 |   |
| Paid-in                capital                                                                                                                                                                                                                             |   |   | 568.6 |   |   |   | 558.5 |   |   |   | 561.2 |   |
| Employee                stock loan receivable                                                                                                                                                                                                              |   |   | (57.5 | ) |   |   | (51.6 | ) |   |   | (66.4 | ) |
| Retained                earnings                                                                                                                                                                                                                           |   |   | 12,389.9 |   |   |   | 12,026.8 |   |   |   | 10,665.7 |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                                        |   |   | (4.1 | ) |   |   | (3.9 | ) |   |   | - |   |
| Treasury                stock, at cost; 34,019,636 shares at November 30, 2007, 34,258,643                at                August 31, 2007 and 25,048,561 at November 30, 2006                                                                            |   |   | (1,486.9 | ) |   |   | (1,505.9 | ) |   |   | (1,086.1 | ) |
| Total                Shareholders' Equity                                                                                                                                                                                                                  |   |   | 11,490.1 |   |   |   | 11,104.3 |   |   |   | 10,154.5 |   |
| Total                Liabilities & Shareholders' Equity                                                                                                                                                                                                |   | $ | 20,475.6 |   |   | $ | 19,313.6 |   |   | $ | 18,026.0 |   |

| WALGREEN                CO. AND SUBSIDIARIES                 |   |
|--------------------------------------------------------------|--------|
| CONSOLIDATED                CONDENSED STATEMENTS OF EARNINGS |   |
| (UNAUDITED)                                                  |   |
| (In                Millions, except per share amounts)       |   |
|                                                         |   |
|                                                         |   | Three                Months Ended |   |
|                                                         |   | November                30, |   |   | November                30, |   |
|                                                         |   | 2007 |   |   | 2006 |   |
|                                                         |   |   |   |   |   |   |
| Net                sales                                     |   | $ | 14,027.9 |   |   | $ | 12,708.5 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Costs                and Deductions:                         |   |   |   |   |   |   |   |   |
| Cost                of sales                                 |   |   | 10,121.1 |   |   |   | 9,132.9 |   |
| Selling,                general and administrative expenses  |   |   | 3,179.0 |   |   |   | 2,903.7 |   |
|                                                         |   |   | 13,300.1 |   |   |   | 12,036.6 |   |
| Other                Income:                                 |   |   |   |   |   |   |   |   |
| Interest                income, net                          |   |   | .4 |   |   |   | 10.6 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Earnings                before income tax provision          |   |   | 728.2 |   |   |   | 682.5 |   |
| Income                tax provision                          |   |   | 272.7 |   |   |   | 250.8 |   |
| Net                earnings                                  |   | $ | 455.5 |   |   | $ | 431.7 |   |
| Net                earnings per common share:                |   |   |   |   |   |   |   |   |
| Basic                                                        |   | $ | .46 |   |   | $ | .43 |   |
| Diluted                                                      |   | $ | .46 |   |   | $ | .43 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Dividends                declared                            |   | $ | .0950 |   |   | $ | .0775 |   |
|                                                         |   |   |   |   |   |   |   |   |
| Average                shares outstanding                    |   |   | 991.3 |   |   |   | 1,005.2 |   |
| Dilutive                effect of stock options              |   |   | 6.2 |   |   |   | 8.2 |   |
| Average                shares outstanding assuming dilution  |   |   | 997.5 |   |   |   | 1,013.4 |   |
|                                                         |   |   |   |   |   |   |   |   |

| WALGREEN                CO. AND SUBSIDIARIES                                                                       |   |
|--------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                CONDENSED STATEMENTS OF CASH FLOWS                                                     |   |
| (UNAUDITED)                                                                                                        |   |
| (In                Millions)                                                                                       |   |
|                                                                                                               |   |   |   |   |   |   |
|                                                                                                               |   | Three                Months Ended |   |
|                                                                                                               |   | November                30, |   |   | November                30, |   |
|                                                                                                               |   | 2007 |   |   | 2006 |   |
|                                                                                                               |   |   |   |   |   |   |
| Cash                flows from operating activities:                                                               |   |   |   |   |   |   |
| Net                earnings                                                                                        |   | $ | 455.5 |   |   | $ | 431.7 |   |
| Adjustments                to reconcile net earnings to net cash provided by operating activities                - |   |   |   |   |   |   |   |   |
| Depreciation                and amortization                                                                       |   |   | 195.7 |   |   |   | 160.2 |   |
| Deferred                income taxes                                                                               |   |   | (71.9 | ) |   |   | (23.9 | ) |
| Stock                compensation expense                                                                          |   |   | 31.3 |   |   |   | 34.5 |   |
| Income                tax savings from employee stock plans                                                        |   |   | 1.0 |   |   |   | 1.6 |   |
| Other                                                                                                              |   |   | 3.0 |   |   |   | .9 |   |
| Changes                in operating assets and liabilities -                                                       |   |   |   |   |   |   |   |   |
| Inventories                                                                                                        |   |   | (753.0 | ) |   |   | (948.4 | ) |
| Trade                accounts payable                                                                              |   |   | 373.4 |   |   |   | 727.1 |   |
| Accounts                receivable, net                                                                            |   |   | (157.9 | ) |   |   | (242.5 | ) |
| Accrued                expenses and other liabilities                                                              |   |   | 2.0 |   |   |   | 86.6 |   |
| Other                assets                                                                                        |   |   | (9.3 | ) |   |   | (6.5 | ) |
| Other                non-current liabilities                                                                       |   |   | (1.3 | ) |   |   | 35.9 |   |
| Income                taxes                                                                                        |   |   | 321.8 |   |   |   | 243.0 |   |
| Net                cash provided by operating activities                                                           |   |   | 390.3 |   |   |   | 500.2 |   |
|                                                                                                               |   |   |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                               |   |   |   |   |   |   |   |   |
| Purchases                of short-term investments - available for sale                                            |   |   | - |   |   |   | (2,340.5 | ) |
| Proceeds                from sale of short-term investments - available for sale                                   |   |   | - |   |   |   | 2,660.4 |   |
| Additions                to property and equipment                                                                 |   |   | (490.4 | ) |   |   | (418.2 | ) |
| Proceeds                from sale of assets                                                                        |   |   | 5.4 |   |   |   | 14.0 |   |
| Business                and intangible asset acquisitions, net of cash received                                    |   |   | (48.0 | ) |   |   | (34.0 | ) |
| Net                proceeds from corporate-owned life insurance policies                                           |   |   | 1.7 |   |   |   | - |   |
| Net                cash used for investing activities                                                              |   |   | (531.3 | ) |   |   | (118.3 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |
| Cash                flows from financing activities:                                                               |   |   |   |   |   |   |   |   |
| Net                proceeds from short-term borrowings                                                             |   |   | 316.5 |   |   |   | - |   |
| Payments                of debt                                                                                    |   |   | (28.5 | ) |   |   | - |   |
| Stock                purchases                                                                                     |   |   | (78.4 | ) |   |   | (433.9 | ) |
| Proceeds                related to employee stock plans                                                            |   |   | 68.4 |   |   |   | 83.7 |   |
| Cash                dividends paid                                                                                 |   |   | (94.2 | ) |   |   | (78.2 | ) |
| Bank                overdrafts                                                                                     |   |   | - |   |   |   | (213.9 | ) |
| Other                                                                                                              |   |   | (2.5 | ) |   |   | 10.2 |   |
| Net                cash provided by (used for) financing activities                                                |   |   | 181.3 |   |   |   | (632.1 | ) |
|                                                                                                               |   |   |   |   |   |   |   |   |
| Changes                in cash and cash equivalents:                                                               |   |   |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                |   |   | 40.3 |   |   |   | (250.2 | ) |
| Cash                and cash equivalents at beginning of year                                                      |   |   | 254.8 |   |   |   | 919.9 |   |
| Cash                and cash equivalents at end of period                                                          |   | $ | 295.1 |   |   | $ | 669.7 |   |

WALGREEN      CO. AND SUBSIDIARIES

|                                                                                  |   | Three                Months Ended |   |
|---------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                  |   | November                30,       |   |   | November                30, |   |
| Components                of Net Periodic Benefit Costs (In                Millions): |   | 2007                              |   |   | 2006 |   |
| Service                cost                                                           |   | $                                 | 3.5    |   |   | $ | 3.4 |   |
| Interest                cost                                                          |   |                              | 5.9    |   |   |   | 5.5 |   |
| Amortization                of actuarial loss                                         |   |                              | 1.4    |   |   |   | 1.4 |   |
| Amortization                of prior service cost                                     |   |                              | (1.1   | ) |   |   | (1.0 | ) |
| Total                postretirement benefit cost                                      |   | $                                 | 9.7    |   |   | $ | 9.3 |   |

|                                                |   | November                30, 2007 |    |   | November                30, 2006 |   |
|-----------------------------------------------------|--------|----------------------------------|---------|--------|----------------------------------|--------|
| Balance                outstanding                  |   | $                                | 1,166.5 |   |                             |   | - |   |
| Maximum                outstanding at any month-end |   |                             | 1,166.5 |   |                             |   | - |   |
| Average                daily short-term borrowings  |   |                             | 796.7   |   |                             |   | - |   |
| Weighted-average                interest rate       |   |                             | 4.57    | %      |                             |   | - | % |

MANAGEMENT'S

|                                                                                               |   | Percentage                Increases                                |   |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                               |   | Three                Months Ended November 30,                2007 |   |   | Three                Months EndedNovember                30, 2006 |   |
| Net                Sales                                                                           |   |                                                               | 10.4   |   |   |   | 16.6 |   |
| Net                Earnings                                                                        |   |                                                               | 5.5    |   |   |   | 24.9 |   |
| Comparable                Drugstore Sales                                                          |   |                                                               | 5.4    |   |   |   | 9.7 |   |
| Prescription                Sales                                                                  |   |                                                               | 11.1   |   |   |   | 18.7 |   |
| Comparable                Drugstore     Prescription                Sales |   |                                                               | 5.9    |   |   |   | 11.9 |   |
| Front-End                Sales                                                                     |   |                                                               | 9.1    |   |   |   | 12.6 |   |
| Comparable                Drugstore Front-End Sales                                                |   |                                                               | 4.6    |   |   |   | 5.8 |   |
| Gross                Profit                                                                        |   |                                                               | 9.3    |   |   |   | 19.1 |   |
| Selling,                General and Administrative Expenses                                        |   |                                                               | 9.5    |   |   |   | 18.0 |   |

|                                                                                  |   | Percent                to Sales                                   |   |
|---------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|
|                                                                                  |   | Three                Months EndedNovember                30, 2007 |   |   | Three                Months EndedNovember                30, 2006 |   |
| Gross                Margin                                                           |   |                                                              | 27.9   |   |   |   | 28.1 |   |
| Selling,                General and  Administrative                Expenses |   |                                                              | 22.7   |   |   |   | 22.8 |   |

|                                                                                                            |   | Other                Statistics                                    |   |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------|--------|
|                                                                                                            |   | Three                Months Ended November 30,                2007 |   |   | Three                Months Ended November 30,                2006 |   |
| Prescription                Sales as a % of Net Sales                                                           |   |                                                               | 66.1   |   |   |   | 65.7 |   |
| Third                Party Sales as a % of Total     Prescription                Sales |   |                                                               | 95.1   |   |   |   | 94.6 |   |
| Total                Number of Prescriptions     (in                millions)          |   |                                                               | 151.0  |   |   |   | 140.9 |   |
| Total                Number of Locations                                                                        |   |                                                               | 6,139  |   |   |   | 5,580 |   |

| Goodwill                and other intangible asset impairment - |
|-----------------------------------------------------------------|
|                                                            | Goodwill                and other indefinite-lived intangible assets are not amortized, but                are                evaluated for impairment annually or whenever events or changes in                circumstances indicate that the value of a certain asset may be                impaired.  The process of evaluating goodwill for impairment                involves the determination of fair value.  Inherent in such fair                value determinations are certain judgments and estimates, including                the                interpretation of economic indicators and market valuations and                assumptions about our business plans.  We have not made any                material changes to the method of evaluating goodwill and intangible                asset                impairments during the last three years.  Based on current                knowledge, we do not believe there is a reasonable likelihood that                there                will be a material change in the estimate or assumptions used to                determine                impairment. |
| Allowance                for doubtful accounts -                |
|                                                            | The                provision for bad debt is based on both specific receivables and                historic                write-off percentages.  We have not made any material changes to                the method of estimating our allowance for doubtful accounts during                the                last three years.  Based on current knowledge, we do not believe                there is a reasonable likelihood that there will be a material change                in                the estimate or assumptions used to determine the                allowance. |
| Vendor                allowances -                              |
|                                                            | Vendor                allowances are principally received as a result of purchase levels,                sales                or promotion of vendors' products.   Allowances are                generally recorded as a reduction of inventory and are recognized                as a                reduction of cost of sales when the related merchandise is                sold.  Those allowances received for promoting vendors' products                are offset against advertising expense and result in a reduction                of                selling, general and administrative expenses to the extent of advertising                incurred, with the excess treated as a reduction of inventory                costs.  We have not made any material changes to the method of                estimating our vendor allowances during the last three                years.  Based on current knowledge, we do not believe there is a                reasonable likelihood that there will be a material change in the                estimate                or assumptions used to determine vendor allowances. |
| Liability                for closed locations -                 |
|                                                            | The                liability is based on the present value of future rent obligations                and                other related costs (net of estimated sublease rent) to the first                lease                option date.  We have not made any material changes to the                method of estimating our liability for closed locations during the                last                three years.  Based on current knowledge, we do not believe                there is a reasonable likelihood that there will be a material change                in                the estimate or assumptions used to determine the                liability. |
|                                            |
|-------------------------------------------------|
| Liability                for insurance claims - |
|                                            | The                liability for insurance claims is recorded based on estimates for                claims                incurred.  The provisions are estimated in part by considering                historical claims experience, demographic factors and other actuarial                assumptions and are not discounted.  We have not made any                material changes to the method of estimating our liability for insurance                claims during the last three years.  Based on current knowledge,                we do not believe there is a reasonable likelihood that there will                be a                material change in the estimate or assumptions used to determine                the                liability. |
| Cost                of sales -                  |
|                                            | Drugstore                cost of sales is derived based on point-of-sale scanning information                with                an estimate for shrinkage and adjusted based on periodic                inventories.  Inventories are valued at the lower of cost or                market determined by the LIFO method.  We have not made any                material changes to the method of estimating cost of sales during                the last                three years.  Based on current knowledge, we do not believe                there is a reasonable likelihood that there will be a material change                in                the estimate or assumptions used to determine cost of                sales. |

|  Rating                Agency   | Long-Term                Debt Rating |  Outlook | Commercial                Paper Rating |  Outlook |
|--------------------------------------|--------------------------------------|---------------|----------------------------------------|---------------|
| Moody's                              | Aa3                                  | Negative      | P-1                                    | Stable        |
| Standard                & Poor's | A+                                   | Stable        | A-1                                    | Stable        |

|                                                                       |   | Payments                Due by Period (In Millions) |     |
|----------------------------------------------------------------------------|--------|----------------------------------------------------------|----------|
|                                                                       |   | Total                                                    |     |   | Less                than 1 Year |   |   | 1-3                Years |   |   | 3-5                Years |   |   | Over                5 Years |   |
| Operating                leases (1)                                        |   | $                                                        | 29,696.6 |   |   | $ | 1,653.5 |   |   | $ | 3,482.2 |   |   | $ | 3,405.3 |   |   | $ | 21,155.6 |   |
| Purchase                obligations (2):                                   |   |                                                     |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Open                inventory purchase orders                              |   |                                                     | 1,269.0  |   |   |   | 1,269.0 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Real                estate development                                     |   |                                                     | 1,023.9  |   |   |   | 1,020.7 |   |   |   | 3.2 |   |   |   | - |   |   |   | - |   |
| Other                corporate obligations                                 |   |                                                     | 715.3    |   |   |   | 347.7 |   |   |   | 293.3 |   |   |   | 39.0 |   |   |   | 35.3 |   |
| Insurance*                                                                 |   |                                                     | 491.2    |   |   |   | 153.2 |   |   |   | 153.1 |   |   |   | 89.5 |   |   |   | 95.4 |   |
| Retiree                health*                                             |   |                                                     | 376.8    |   |   |   | 8.7 |   |   |   | 21.2 |   |   |   | 26.2 |   |   |   | 320.7 |   |
| Closed                location obligations*                                |   |                                                     | 62.4     |   |   |   | 17.0 |   |   |   | 19.6 |   |   |   | 11.1 |   |   |   | 14.7 |   |
| Capital                lease obligations *(1)                              |   |                                                     | 39.4     |   |   |   | 1.2 |   |   |   | 2.3 |   |   |   | 2.7 |   |   |   | 33.2 |   |
| Other                long-term liabilities reflected on the balance sheet* |   |                                                     | 596.1    |   |   |   | 52.2 |   |   |   | 86.3 |   |   |   | 78.5 |   |   |   | 379.1 |   |
| Total                                                                      |   | $                                                        | 34,270.7 |   |   | $ | 4,523.2 |   |   | $ | 4,061.2 |   |   | $ | 3,652.3 |   |   | $ | 22,034.0 |   |

| *Recorded              on balance sheet. |
|------------------------------------------|
|                                     |   |
| (1)                                      | Amounts                for operating leases and capital leases do not include certain operating                expenses under the leases such as common area maintenance, insurance                and                real estate taxes.  These expenses for the company's most recent                fiscal year were $255.6 million. |
| (2)                                      | The                purchase obligations include agreements to purchase goods or services                that                are enforceable and legally binding and that specify all significant                terms, including open purchase                orders. |

| Inventory                obligations   |   | $      | 60.3  |   |
|----------------------------------------|--------|--------|-------|--------|
| Real                estate development |   |   | 13.1  |   |
| Insurance                              |   |   | 276.7 |   |
| Other                                  |   |   | 6.2   |   |
| Total                                  |   | $      | 356.3 |   |

Item      3.

Item      4.

| PART                II.  OTHER INFORMATION |
|------------------------------------------------------|

| Item                2.  Unregistered Sales of Equity Securities                and Use of Proceeds |
|--------------------------------------------------------------------------------------------------------------|

|   | (c) | The                following table provides information about purchases by the company                during                the quarter ended November 30, 2007 of equity securities that are                registered by the company pursuant to Section 12 of the Exchange                Act: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ISSUER                PURCHASES OF EQUITY SECURITIES |   |
|------------------------------------------------------|--------|
| Period                                               |   | Total                Number of Shares Purchased                (1) |   |   | Average                Price Paid per Share |   |   | Total                Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Approximate                Dollar Value of Shares that May Yet Be Purchased Under the Plans                or Programs (2) |   |
| 9/1/2007                - 9/30/2007                  |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | 655,123,821 |   |
| 10/1/2007                - 10/31/2007                |   |   | 1,000,000 |   |   | $ | 39.0701060 |   |   |   | - |   |   | $ | 655,123,821 |   |
| 11/1/2007                -11/30/2007                 |   |   | 1,000,000 |   |   | $ | 39.2898540 |   |   |   | - |   |   | $ | 655,123,821 |   |
| Total                                                |   |   | 2,000,000 |   |   | $ | 39.1799800 |   |   |   | - |   |   | $ | 655,123,821 |   |

| (1) | The                company repurchased an aggregate of 2,000,000 shares of its common                stock                in open-market transactions to satisfy the requirements of the company's                employee stock purchase and option plans, as well as the company's                Nonemployee Director Stock Plan.                                                                                                                                                                                                                                                                                                                     |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | On                January 10, 2007, the Board of Directors approved a stock repurchase                program ("2007 repurchase program"), pursuant to which up to $1 billion                of                the company's common stock may be purchased prior to the expiration                date                of the program on January 20, 2011.  This program was announced                in the company's report on Form 8-K, which was filed on January 11,                2007.  The total remaining authorization under the repurchase                program as $655,123,821 as of November 30,                2007. |

Item      6

| (a)   | Exhibits |
|-----------------|----------|

|   | 3.     | (a)                                                                                                                                                                      | Articles                of Incorporation of the company, as amended, filed with the Securities                and                Exchange Commission as Exhibit 3(a) to the company's Quarterly Report                on                Form 10-Q for the quarter ended February 28, 1999, and incorporated                by                reference herein.          |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                     |
|   |   | (b)                                                                                                                                                                      | By-Laws                of the company, as amended and restated effective as of July 9, 2003,                filed with the Securities and Exchange Commission as Exhibit 3(b)                to the                company's quarterly report on Form 10-Q for the quarter ended November                30,                2003, and incorporated by reference herein. |
|   |   |                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                    |
|   | 10.    | (a)                                                                                                                                                                      | Walgreen                Co. Section 162(m) Deferred Compensation Plan Amendment No. 2 (effective                January 1, 2008) adopted on October 9, 2007.                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                    |
|   | 31.1   | Certification                of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.                                        |
|   |
|   | 31.2   | Certification                of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002.                                        |
|   |
|   | 32.1   | Certification                of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002, 18                U.S.C. Section 1350. |
|   |
|   | 32.2   | Certification                of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002, 18                U.S.C. Section 1350. |

|                                          | WALGREEN                CO.               |
|-----------------------------------------------|-------------------------------------------|
|                                          | (Registrant)                              |
|                                          |                                      |
| Dated:                 December 27, 2007 | /s/                W.M. Rudolphsen        |
|                                          | W.M.                Rudolphsen            |
|                                          | Senior                Vice President      |
|                                          | (Chief                Financial Officer)  |
|                                          |                                      |
| Dated:                 December 27, 2007 | /s/                M.M. Scholz            |
|                                          | M.M.                Scholz                |
|                                          | Controller                                |
|                                          | (Chief                Accounting Officer) |
|                                          |                                      |
|                                          |                                      |
|                                          |                                      |