powerx Top 50
RANK
Canada PowerRx
With Target having opened its first stores
in Canada, Loblaw’s buying Shoppers Drug
Mart and provinces increasing the prescribing power of pharmacists, the Canadian market is one to watch. DSN profiles
the top five Canadian pharmacy retailers,
which represent approximately half of the
Canadian retail pharmacy market.
RANK
COMPANY
With more than $195 billion in pharmacy sales and more
than 54,000 stores, the retailers in the 2014 PoweRx
Top 50 represent more than 80% of the retail pharmacies in
the United States across all classes of trade — chains and
independents. And with the implementation of the Affordable Care Act, they are creating innovative programs and
entering healthcare partnerships to move beyond dispensing and increase their role in the U.S. healthcare arena.
72 • april 28, 2014
DrugStoreNews.com
2013 Rx
SALES*
2013 TOTAL
CORP. SALES*
TOTAL
STORES
STORES
WITH Rx
$45,600.1
$126,800.2
7,660.3
7,603
74
72,200
8,127.4
8,127.4
74
76
PAGE
1
CVS Caremark
2
Walgreens
45,400
3
Rite Aid
17,300.5
25,500.5
4,587
4,587
4
Walmart
16,800.
279,400.6
4,205
4,176
76
5
Cardinal Health
15,200
18,000
7,000
7,000
78
6
6
Kroger
7,900
98,400
2,640
2,109
78
7
Health Mart
6,500
7,100
3,276
3,276
80
8
Good Neighbor Pharmacy
6,200
7,300
3,154
3,154
80
9
Safeway/Albertsons
4,600
57,900
2,410
1,859
82
10
AAP
4,500
4,700
2,054
2,054
82
11
Target
3,700.7
71,300
1,924
1,749.7
84
12
Ahold
2,100
26,100
767
565
84
13
Medicine Shoppe International8
1,800
1,900
570
570
88
14
Costco9
1,700
75,500
462
455
88
2013 Rx
SALES*
2013
TOTAL CORP.
SALES*
TOTAL
STORES
STORES
WITH Rx
PAGE
$5,200
$11,100
1,377
1,309
126
17
Sam's Club
1,600
57,200
634
584
90
18
H-E-B
1,500
20,000
352
235
90
1,200
9,300
218
213
1
Shoppers
2
Jean Coutu
1,800
2,700.
3
Uniprix
1,200
1,900
1
15
Publix
1,700
28,900
1,077
928
86
16
Kmart
1,700
13,100
1,215
841
86
407
407
128
387
387
129
19
Giant Eagle
92
4
Rexall
1,100
2,400
454
454
128
20
Hy-Vee
958
8,000
236
246.
5
Pharmasave
1,100
1,400
500
500
129
21
Bi-Lo11
942
11,600
860
551
96
22
Shopko
870
3,000
326
274.12
100
* All sales in millions, $ Canadian; most recent fiscal year
1 For fiscal year ended March 2, 2013
Profiles of leading pharmacy retailers
in the industry
COMPANY
Footnotes for powerx players top 50
1.Based on retail sales
2.Includes pharmacy services segment revenue of $76.2
billion and retail sales of $65.6 billion
3. Retail stores
4.Includes only retail pharmacies and specialty pharmacies
5.FY2014 for 52 weeks ended March 1, 2014
6.Sales include 3,290 supercenters, 508 discount stores, 346
Neighborhood Markets and 61 small formats (i.e., Amigo,
Supermercado, Walmart Express, Walmart on Campus and
Super Ahorros) in the United States
7.As of March 2014, including 1,797 U.S. stores and 127
stores in Canada
8. U.S. only
9. U.S. operations
10.Includes in-store pharmacies, offsite clinics, specialty pharmacy and a central fill facility
11.Includes Piggly Wiggly and Delhaize acquisitions
12.Includes six stand-alone pharmacy locations and two longterm care pharmacies
13.266 ShopRite, 54 PriceRite and 7 The Fresh Grocer stores
14.U.S.-based stores (Food Lion and Hannaford)
15.Excludes Save-A-Lot and supply chain sales; for fiscal
year 2014
16.Includes 84 in-store pharmacies and three free-standing
pharmacies near health clinic
17.As of Dec. 31, 2013
18.For 21 stores, year ended December 2013
10
92
23
Wegmans
735
7,000
83
83
104
24
Fred's Super Dollar
731
1,900
704
355
96
25
Wakefern Food
677
14,100
327.13
209.13
99
26
Delhaize America
27
Meijer
14
547
17,100
1,347
184
98
486
15,200
204
204
102
28
Kinney Drugs
470
829
99
99
100
29
A&P
462
7,700
301
170
102
30
Supervalu15
371
4,600
190
138
104
31
Care Pharmacies
348
366
76
76
107
32
Thrifty White Pharmacy
331
367
90
90
107
33
Brookshire Grocery
297
2,200
152
116
108
34
Raley's
270
3,100
128
97
112
35
Sav-Mor
257
303
70
70
108
36
Discount Drug Mart
250
576
71
71
110
37
Weis Markets
232
2,700
165
134
112
38
Bartell Drugs
229
408
63
63
114
39
Schnuck Markets
212
2,600
101
95
114
40
Roundy's
191
3,900
166
113
118
41
Save Mart Supermarkets
185
4,600
226
108
116
42
K-VA-T Food City
162
2,200
107
77
116
43
Aurora Pharmacy
154
168
73
73
110
43
118
87.16
120
44
Marc Glassman
153
1,200
61
45
Price Chopper
140
3,600
132
46
Lewis Drug
117
171
37.17
36.17
122
47
Navarro Discount Pharmacy
104
340
33
33
120
48
Fruth Pharmacy
101
120
27
27
122
49
Pharmaca Integrative Pharmacy
60
112
24
24
124
50
Ritzman Pharmacy
58.18
26
26
124
60.18
* All sales in millions; reflect most recent fiscal year
DrugStoreNews.com
april 28, 2014
• 73
poweRx 50
Expanding scope of health services
By Michael Johnsen
Health is happening at Walgreens.
Through such initiatives as the expanded
scope of healthcare services across its rebranded
Healthcare Clinics, Walgreens clinics now assess, treat and manage chronic conditions, such
as diabetes, asthma, hypertension and hyperlipidemia. “We are experiencing growing interest
from customers ... and from payers who view
Walgreens as an emerging health alternative
care model and an important part of the patients’
daily care regime,” said Greg Wasson, Walgreens
president and CEO in March. “We have a goal
to add nearly 100 new Healthcare Clinic locations in calendar 2014 on top of our 400 current
retail clinics.”
And in the first two quarters of fiscal 2014,
Walgreens has administered 8.6 million vaccinations, up 11% from the same period last year.
Then there is the company’s Well Experience
stores, which now number 628 locations and
have given health a hip factor with iPad-armed
health guides cruising OTC aisles to answer
questions. That’s in addition to the feel-good services available in its beauty department, which
employs more than 26,000 beauty advisers.
And customers/patients are eating it up.
That’s evidenced by Walgreens’ Balance Rewards loyalty program, which now numbers
more than 100 million enrolled and 80 million
active members. As many as 9 million customers
touch the Walgreens brand every day — whether
it’s through one of its physical locations or across
a very robust omnichannel offering.
Some of the more notable initiatives in the
past year include the introduction of diagnostic
lab testing services that provide less invasive and
more affordable clinician-directed lab testing.
Walgreens also continues to advance its specialized pharmacies’ business that provides more
personalized care for patients with such conditions as HIV, with more than 700 locations, and
hepatitis C, with more than 100 locations.
walgreens
HQ: Deerfield, Ill.
2013 sales: $72.2 billion
% change vs. 2012: 0.8%
No. of stores: 8,127*
No. of stores with Rx: 8,127*
Avg. store size: 14,700 sq. ft.
Rx sales: $45.4 billion
% of sales from Rx: 62.9%
Sales per store: $8.9 million
*Includes only retail pharmacies and specialty pharmacies
Source: Company reports
Personalization key to retail strategy
By Antoinette Alexander
cvs caremark
HQ: Woonsocket, R.I.
2013 sales: $126.8 billion*
% change vs. 2012: 3%
No. of stores: 7,660**
No. of stores with Rx: 7,603
Avg. store size: 8,000 sq. ft. to 15,000 sq. ft.
Rx sales: $45.6 billion***
% of sales from Rx: 69.5%
Sales per store: $8.6 million
* Includes pharmacy services segment revenue of
$76.2 billion and retail sales of $65.6 billion
** Retail stores
*** Based on retail sales
Source: Company reports
74 • april 28, 2014
With an unmatched breadth of assets and a
clear, long-term strategy, CVS Caremark is working to capitalize on the opportunities created by
the changing healthcare landscape.
With a network of more than 7,600 retail pharmacies, a big PBM and a large retail clinic operation, the company is leveraging these core parts
of its business — either individually or together
— to improve access to care, lower costs and improve health outcomes.
The message is resonating on the PBM side
of the business, as CVS Caremark had net-new
wins for the 2014 selling season of about $2.4 billion, excluding attrition in its Medicare Part D
business, with a 96% retention rate. With the 2015
selling season ahead, executives are optimistic
that it is well-positioned to both retain business
and gain share with its suite of capabilities. This
includes its proprietary programs like Pharmacy
Advisor, Maintenance Choice and now Specialty
Connect. Rolling out in 2014, Specialty Connect is
analogous to Maintenance Choice as it connects
mail and retail capabilities to provide choice and
convenience for specialty pharmacy members.
On the retail side, personalization remains
core to its retail strategy. This is evidenced by its
ongoing store clustering initiative, which develops store designs that match the needs of customers within a specific trade area, and its new
myWeeklyAd digital circular.
One of the biggest moves on the retail side is
its decision to stop selling tobacco products in all
of its stores by Oct. 1. President and CEO Larry
Merlo said the tobacco category is inconsistent
with CVS Caremark’s growing role within U.S.
health care. The move — while bold — drew
overwhelmingly positive response across an array of constituents, including consumers.
Forging ahead on its longer-term goal of creating a national platform to support primary care,
the company looks to open at least 150 MinuteClinics this year and is now testing telehealth at
more than two-dozen sites in California. By 2017,
it expects to have about 1,500 clinic locations.
DrugStoreNews.com
poweRx 50
Adding wellness-themed initiatives
By Michael Johnsen
The fullness of Rite Aid’s wellness strategy
came to fruition in March with the announcement of its Rite Aid Health Alliance — an integrated care model that is a first for the drug
store industry, as it uniquely leverages the
combined expertise of community pharmacists
and in-store healthcare coaches in a collaborative care model that augments a physician’s
reach and enables Rite Aid’s patient base to
pursue wellness.
It’s the kind of customer-focused care model
people are beginning to expect from Rite Aid.
One of Rite Aid’s growth catalysts is its Genuine
Well Being format, which now makes up nearly
25% of the company’s store base. These stores are
home to more than 1,900 specially trained Wellness Ambassadors, who engage the customer in
the aisles and help to serve as a bridge between
the front-end and the pharmacy.
Most recently, Rite Aid began piloting expand-
ed beauty departments in several Wellness stores
that feature a broader selection of prestige brands
and trained beauty advisers. Rite Aid also is testing new merchandising initiatives that focus on
creating a more engaging shopping environment.
Throughout the OTC department, for example,
there are educational materials and interactive
product displays.
Rite Aid’s wellness+ loyalty card, which today boasts 25 million active members, was
the first such program to incorporate healthand-wellness solutions into its reward platform, including free health screenings and gym
membership discounts.
Since introducing the program in 2010, Rite
Aid has developed some lifestyle-focused extensions of the program, including wellness+ for
Diabetes and wellness65+, which offer special
consultations with Rite Aid pharmacists, among
other exclusive offerings. Rite Aid’s wellness65+
loyalty program now boasts more than 1.3 million senior members.
rite aid
HQ: Camp Hill, Pa.
2013 sales: $25.5 billion*
% change vs. 2012: 0.5%
No. of stores: 4,587
No. of stores with Rx: 4,587
Avg. store size: 12,400 sq. ft.
Rx sales: $17.3 billion
% of sales from Rx: 67.9%
Sales per store: $5.6 million
*FY2014 for 52 weeks ended March 1, 2014
Source: Company reports
Expanding smaller store formats
By Richard Monks
Walmart
HQ: Bentonville, Ark.
2013 sales: $279.4 billion*
% change vs. 2012: 1.8%
No. of stores: 4,205
No. of stores with Rx: 4,176
Avg. store size: 182,000 sq. ft.
Rx sales: $16.8 billion*
% of sales from Rx: 6%
Sales per store: $65.2 million
* Sales include 3,290 supercenters, 508 discount stores, 346 Neighborhood Markets and 61 small formats (i.e., Amigo, Supermercado, Walmart
Express, Walmart on Campus and Super Ahorros) in the United States
Source: Company reports, DSN estimates
76 • april 28, 2014
Already one of the most prominent players in
the retail pharmacy and health and beauty aids
arena, Walmart is turning up the heat with new
formats that many feel will further challenge
traditional drug stores and supermarkets.
Among the newest of these concepts is a
convenience store called Walmart to Go. Being
tested in a single pilot store near its Bentonville,
Ark., headquarters, Walmart to Go is a 5,000-sq.ft. unit offering approximately 3,500 SKUs. Its
debut comes on the heels of the company’s
announcement that it will step up the pace
of expansion of its two other small formats,
Neighborhood Market and Walmart Express,
which offer shoppers many of the same products
found in a traditional pharmacy.
In February, Walmart announced that it plans
to add 270 to 300 Neighborhood Markets and
Walmart Express stores this year, up from the 120
to 150 units it projected in October 2013.
“Our small-store expansion ... will help us
usher in the next generation of retail,” Walmart
U.S. president and CEO Bill Simon said.
Currently, Walmart has 346 Neighborhood
Market and 20 Walmart Express stores. All of the
Neighborhood Market stores have pharmacies,
average nearly 40,000 sq. ft. and offer fresh produce and health and beauty aids. The Walmart
Express stores measure about 15,000 sq. ft. and
carry groceries and general merchandise — not
all of them have pharmacies.
“Customers’ needs and expectations are
changing,” Simon said. “They want to shop
when they want and how they want, and we are
transforming our business to meet their expectations. We believe that accelerating our small store
expansion will allow customers to choose where
and when to shop based on their needs.”
In 2014, Walmart also made a series of executive changes. In February, Doug McMillan took
the reins as president and CEO of Wal-Mart Stores,
and in March Labeed Diab was named SVP and
president health and wellness at Walmart, a position previously held by Dr. John Agwunobi.
DrugStoreNews.com
poweRx 50
Meeting health reform demands
By Richard Monks
As the nation’s healthcare system continues to
evolve, Cardinal Health is developing new ways
to ensure that its network of independent pharmacies stay at the forefront of patient care.
“More than 10,000 people become eligible
for Medicare each day, making such programs
as medication therapy management and Part
D performance networks a critical part of the
community pharmacy business,” SVP independent sales Steve Lawrence said. “We’re helping our customers to take advantage of these
new opportunities.”
As the system shifts to one where providers
are paid for performance and their ability to
drive patient outcomes, Cardinal is working to
help the 7,000 independents in its network meet
these new demands.
For instance, Lawrence said, a suite of new
back-office solutions is available to Cardinal
network pharmacies that let them enroll in
EQuIPP, a web-based dashboard that shows
a pharmacy its performance against the five
pharmacy metrics used in the Centers for
Medicare and Medicaid Services’ Star Ratings
system. The solutions also offer an enhanced
version of Cardinal’s Reconciliation Services
program, a HIPAA support program, compliance management service to assist with credentialing and regulatory mandates, and an online
legislative toolkit.
A medication therapy management solution
is being piloted to a small group of pharmacies
to help Cardinal get a handle on how it can offer
the best possible support for MTM cases, he said.
These new programs are just the latest additions to Cardinal’s ongoing efforts to level the
playing field for the independent pharmacies
it serves.
“We are constantly working to provide members with the best tools to help them prosper not
only in today’s marketplace, but in tomorrow’s,”
he said.
cardinal health
HQ: Dublin, Ohio
2013 sales: $18 billion
% change vs. 2012: 4.7%
No. of stores: 7,000
No. of stores with Rx: 7,000
Avg. store size: 2,300 sq. ft.
Rx sales: $15.2 billion
% of sales from Rx: 84.3%
Sales per store: $2.6 million
Source: Company reports, DSN estimates
Buoyed by Harris Teeter buyout
By Jim Frederick
kroger
HQ: Cincinnati
2013 sales: $98.4 billion
% change vs. 2012: 3.9%
No. of stores: 2,640
No. of stores with Rx: 2,109
Avg. store size: 63,000 sq. ft.
Rx sales: $7.9 billion
% of sales from Rx: 8%
Sales per store: $37.3 million
Source: Company reports, DSN estimates
78 • april 28, 2014
The nation’s premier supermarket operator
muscled up with the sudden addition of more
than 200 high-end food stores and combo stores
early this year — and gained one of the industry’s regional crown jewels in the bargain.
The gains came with Kroger’s purchase in
January of Matthews, N.C.-based Harris Teeter’s
227 supermarkets, 147 of which include fullservice pharmacies. Kroger officials were enthusiastic about the merger, and promised that the
chain “will continue to operate its stores under
the Harris Teeter brand name as a subsidiary of
the Kroger Co.”
As of March 2014, Kroger operated 2,640 supermarkets, food/drug combo stores, discount
department stores and “price-impact warehouse
stores” in 34 states under nearly two-dozen banners, including Kroger, Smith’s Food and Drug,
Harris Teeter, Ralphs, King Soopers, Fred Meyer,
Fry’s, Tom Thumb and Food 4 Less. In late 2012,
the company also added a specialty pharmacy
component with its buyout of Lake Mary, Fla.based Axium Healthcare Pharmacy.
“Our business is strong, and our merger
with Harris Teeter is going well,” said CEO
Rodney McMullen in a conference call in
March, citing the “remarkable consistency of
Kroger’s performance.”
The company’s 2,000-plus pharmacies remain “an important part of
Kroger’s convenient
one-stop shopping
strategy,” McMullen said,
with 162 million prescriptions filled in fiscal
2012, the most recent period for which figures
are available.
“We are focusing on improving our
customers’ pharmacy experience,” Kroger reports, with
services like immunizations, diabetic counseling
and a new, opt-in service called AutoRefill, which
refills prescriptions automatically and alerts
customers when they’re ready via text, email
or voicemail.
Also expanding: Kroger’s strength in acute
care. As of March 6, 114 stores included an instore clinic under the Little Clinic logo.
DrugStoreNews.com
poweRx 50
Keeping pace with changing industry
By Richard Monks
With the full rollout of the Affordable Care
Act altering the way community pharmacies approach health care, AmerisourceBergen
is working to ensure that its more than 3,100
Good Neighbor Pharmacies have the necessary
tools to meet the challenges posed by these new
market dynamics.
“The business has changed quite a bit in the
past few years,” GNP group VP Scott Robinson said. “The ACA and Star ratings have had
a big impact, and we have to keep our member
pharmacies focused on how these changes affect
their business.”
With more health plans compensating pharmacies based on their ability to drive patient outcomes, it has become essential, he explained, that
GNP store owners understand the importance of
Star ratings — a system developed by the Centers for Medicare and Medicaid Services to gauge
a provider’s ability to improve patient health
— and keep their ratings as high as possible.
These pharmacies will be the ones that continue
to be included in health plans’ networks, and
will be ensured a high degree of patient access,
Robinson said.
“The way to ensure patient access is to provide
the level of care that will keep patients adherent
to their medications,” Robinson said. “The payers only want pharmacies in their networks that
can provide a high level of care.”
Just as outcomes-based care got its start in
government-run healthcare programs and has
become adopted by the private sector, Robinson said he thinks medication therapy management will undergo a similar evolution, and GNP
store owners and other community pharmacies
should prepare for this shift.
“The way the government goes often determines the direction private plans take,” he said.
“Over the next year or so we will see how MTM
works in Medicare, and I would be surprised if it
didn’t become part of more private plans.”
good neighbor pharmacies
HQ: Valley Forge, Pa.
2013 sales: $7.3 billion
% change vs. 2012: -14.1%
No. of stores: 3,154
No. of stores with Rx: 3,154
Avg. store size: 2,500 sq. ft.
Rx sales: $6.2 billion
% of sales from Rx: 85%
Sales per store: $2.3 million
Source: Company reports, DSN estimates
Health Mart renews focus on adherence
By Michael Johnsen
HEALTh mart
HQ: San Francisco
2013 sales: $7.1 billion
% change vs. 2012: 6.5%
No. of stores: 3,276
No. of stores with Rx: 3,276
Avg. store size: 2,500 sq. ft.
Rx sales: $6.5 billion
% of sales from Rx: 91%
Sales per store: $2.2 million
Source: DSN estimates
80 • april 28, 2014
McKesson’s Health Mart is fully invested in
helping members boost medication adherence —
an area where community pharmacies are uniquely positioned to excel due to their strong clinical
expertise and personal patient relationships.
To that end, a major pharmacy initiative
has been Health Mart’s “Know Your Numbers” campaign, and Health Mart has developed the tools and resources members need
to learn more about their pharmacy’s specific
quality performance and its potential impact
on Medicare plans’ Star ratings. “We’ve also
partnered with Pharmacy Quality Solutions to
give our members access to EQuIPP, an online
information management platform that makes
pharmacy quality performance data available
to health plans and community pharmacy organizations,” Kristin Hunter, McKesson manager strategic communications, told DSN. “By
giving our members the tools they need to understand how they measure up, they can focus
on their patients to help them be more adherent
to their medications.”
McKesson provides a suite of technology
solutions to help independents better manage
medication refills and efficiently deliver targeted
adherence interventions. For example, Health
Mart utilizes the McKesson Pharmacy Intervention Program technology to identify patients
with adherence opportunities and to deliver targeted behavioral coaching, all within the pharmacy’s existing workflow. “Programs like PIP
present a win-win situation, as they provide the
pharmacy an additional revenue stream tied directly to the interventions, while improving patient medication adherence,” Hunter said. “For
example, results for our diabetes portfolio of
programs illustrated patients who received faceto-face behavioral coaching showed an average
of four incremental refills over 12 months, and
adherence improved by 25%.”
A major health-and-wellness program for 2014
is its Health Mart Healthy Living Tour, which
features a mobile screening vehicle that will visit
more than 130 communities to screen for diabetes,
high cholesterol, high blood pressure and obesity.
DrugStoreNews.com
poweRx 50
Providing ‘high-touch’ service
By Barbara White-Sax
American Associated Pharmacies, the collective of community pharmacies working together
as a chain, has created a national presence in the
pharmacy arena. “As a member-owned, national
cooperative group, we have volume purchasing
power, as well as access to merchandising, distribution, managed care contracting and back-end
business services that help our pharmacies compete more powerfully,” said Tamara McKinney
Berry, a spokeswoman for AAP.
AAP stores position their pharmacies as
“high-touch” personalized service providers,
offering flu shots, insights into the impact of
the Affordable Care Act, medication adherence
programs, medication therapy management
and medication consultation for such chronic
diseases as diabetes.
The position has gained the chain recognition
among consumers and the healthcare industry.
“Initial feedback from PBMs and health plans
indicate that AAP’s Pharmacy Services Admin-
istration Organization is garnering high scores
when it comes to the quality indicators used by
Centers for Medicare and Medicaid Services to
monitor adherence and treatment option measures for Medicare Advantage plans,” Berry said.
Last year, AAP introduced Compliance Guardian to help pharmacies comply with federally
mandated sanction checks and monitoring. “The
program is a suite of services created as a result
of new laws that require pharmacists to perform
a variety of tasks to meet federal requirements,”
Berry said. “Compliance Guardian enhances regulatory protection for individual pharmacies and
for AAP membership as a whole.”
AAP’s member-owned warehouses provide
member pharmacies with more than 300 fastmoving brand prescription products, as well as
OTCs. AAP’s Memphis distribution center, purchased and modernized in 2012, became fully
operational in 2013, doubling its distribution capacity. “For our pharmacies in the Mountain and
Pacific Time zones, that’s meant more efficient
and improved delivery service,” Berry said.
aap
HQ: Scottsboro, Ala.
2013 sales: $4.7 billion
% change vs. 2012: 3.6%
No. of stores: 2,054
No. of stores with Rx: 2,054
Avg. store size: 2,000 sq. ft.
Rx sales: $4.5 billion
% of sales from Rx: 96%
Sales per store: $2.3 million
Source: Company reports
Merger to create grocery Rx giant
By Richard Monks
safeway/albertsons
HQ: Boise, Idaho
2013 sales: $57.9 billion
% change vs. 2012: NA
No. of stores: 2,410
No. of stores with Rx: 1,859
Avg. store size: 48,500 sq. ft.
Rx sales: $4.6 billion
% of sales from Rx: 7.9%
Sales per store: $24 million
Source: Company reports, DSN estimates
82 • april 28, 2014
The recently announced merger of Albertsons
LLC and Safeway will create a new giant in the
supermarket pharmacy sector.
Under the $9.1 billion deal announced in early
March, Albertsons will acquire nearly all of Safeway’s assets, creating a network of more than
2,400 stores.
Executives at both companies say the merger
will provide the combined Albertsons/Safeway
with increased efficiencies and will lead to savings for customers. The deal is expected to close
in the fourth quarter.
Because each company is rooted in the grocery
business, they have been able to promote their
pharmacies as just one part of a greater health and
well-being offering. While the companies have
followed the path of other community pharmacies — offering a range of immunizations, health
screenings and prescription savings programs
— they also have merged their pharmacy operations with other aspects of their business, such as
nutrition programs.
Both Safeway and Albertsons upped their
healthcare offering last year when they added
health test kiosks to many of their stores. The kiosks provide patients with access to free health
screenings, personalized assessments and other
health data.
Before the merger, Safeway was looking to
launch a new wellness platform with pharmacists accessible in aisles and a robust wellness
service offering.
Meanwhile, Albertsons has found that its
MyRxCare program, offering certain prescriptions for $3.99 a month and significant discounts
on most other medications, has proven popular with patients who frequent its pharmacies.
In addition, the company offers an extensive
diabetes care program that offers patients specialized training from Albertsons pharmacists,
diabetes seminars and a six-month program of
education and follow-up that executives say
is designed to encourage sustainable healthy
lifestyle choices.
DrugStoreNews.com
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Post-data breach, retailer rebuilds trust
By Jim Frederick
Target ended 2013 with one of the toughest
challenges in its 52-year history: A serious data
breach by criminal hackers, affecting as many
as 70 million of its customers’ credit and debit
card accounts.
The massive fraud led to “meaningfully weaker-than-expected sales,” according to the company, with fourth-quarter sales plunging 6.6%.
Target reacted quickly. It accelerated its $100
million development of chip-enabled smart-card
technology for its REDcard loyalty card. And it
invested $5 million in a campaign to educate consumers about cyber-security and scams.
“We will continue to work tirelessly to win
back the confidence of our guests,” said chairman, president and CEO Gregg Steinhafel.
The data breach hasn’t deterred Target. Coming off what Steinhafel called “the largest singlestore expansion in Target’s history” in 2013, which
saw the addition of 23 new units, the company
will open at least 10 more U.S. stores this year, in-
cluding three CityTarget urban format stores.
Target also will test TargetExpress, a 20,000-sq.ft. new-concept store that will open this July near
the University of Minnesota. TargetExpress will
feature a pharmacy, a Beauty Concierge advisor,
revamped checkout lanes to accommodate smaller basket sizes and a “larger selection of graband-go food options,” according to John Griffith,
EVP property development for Target.
Also on tap: Plans to add “Beauty Concierge”
experts to another 95 Target stores this year.
Beauty Concierge advisors are already available
in some 300 stores across the United States.
In Canada, Target plans to open nine new
stores in 2014. “The past year marked a major
milestone for Target as we delivered on the unprecedented goal of opening 124 Target stores
across 10 provinces,” said Target Canada president Tony Fisher.
Target’s reach in pharmacy also continues to
expand. “We are constantly striving to deliver
an … affordable healthcare experience for our
guests,” said José Barra, SVP health and beauty.
target
HQ: Minneapolis
2013 sales: $71.3 billion*
% change vs. 2012: -0.9%
No. of stores: 1,924*
No. of stores with Rx: 1,749*
Avg. store size: 186,000 sq. ft.**
Rx sales: $3.7 billion
% of sales from Rx: 5.2%
Sales per store: $37.1 million
* As of March 2014, including 1,797 U.S. stores and 127 stores in Canada
** Average Super Target size
Source: Company reports, DSN estimates
Acting on customer service
By Richard Monks
ahold
HQ: Carlisle, Pa.
2013 sales: $26.1 billion
% change vs. 2012: 1.1%
No. of stores: 767
No. of stores with Rx: 565
Avg. store size: 41,000 sq. ft.
Rx sales: $2.1 billion
% of sales from Rx: 8%
Sales per store: $34.0 million
Source: Company reports, DSN estimates
84 • april 28, 2014
With pharmacies in nearly three-quarters of its
stores, Ahold USA offers patients a convenient
way to fill prescriptions and receive a comprehensive health-and-wellness offering.
“For many of our customers, healthier
choices often begin in the supermarket as they
are filling their shopping carts,” VP Raymond
McCall said. “Therefore, we are able to provide customers with a variety of health-andwellness resources for themselves and their
families both at the pharmacy and throughout
the store.”
The company, the domestic arm of Dutch
supermarket giant Ahold NV, operates stores
in 12 states and Washington, D.C., under the
Stop & Shop, Giant and Martin’s banners.
Stressing the superior service it provides
its pharmacy patrons, Ahold continues to enhance its pharmacy offerings with savings
programs, nutritional education and counseling services. In June 2013, the chain launched
its Prescription Savings Card, offering patients
discounts for branded and generic prescriptions, as well as savings on a wide range of
other health-related products.
More recently, Ahold rolled out a new customer service initiative that emphasizes the
role the company’s pharmacists play in patient’s health and well-being. McCall said the
program, dubbed ACT, seeks to make customers feel important and appreciated by having
pharmacists be more interactive, and a focus on
counseling is at the heart of the effort.
“Counseling is our best opportunity to communicate the value we provide,” McCall said.
“It’s key to creating customer awareness that
they are receiving more from us than just a
filled prescription; that they have an advocate
who is concerned about their health and sees
them as a person, not just a prescription.”
Ahold also is rapidly expanding its online
Peapod division. Ahold opened 120 pickup
points for online orders as of the end of 2013,
and Ahold CEO Dick Boer said, “Peapod is
expected to double its capacity in the United
States in 2014.”
DrugStoreNews.com
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Specialty meds program expands Rx
By Barbara White-Sax
“Kmart Pharmacy is always evaluating its
marketing and merchandising to meet the needs
of its diverse Shop Your Way members,” said
Mark Panzer, the new president of pharmacy at
Kmart. “We have many more integrated and targeted initiatives to offer our products and services
in-store, online and via mobile devices, to include
free home delivery, a new mobile app, and beginning in May, access to specialty medications.”
In an effort to offer even more services to its
patients, the chain announced a new specialty
medications program and last year launched a
mobile app that allows shoppers to access Kmart
pharmacy 24/7. Kmart also has revitalized and
expanded its diabetic category to offer more
products to its customers.
The chain has focused on the pharmacy’s
presence in the store with an update of signage
throughout its pharmacies that give the department a cleaner and more prominent presence.
The chain also developed and launched a dedicated section in its stores for “pharmacist-recommended” drug store items.
Pharmacy education continues to be a big focus at the chain. In 2013, Kmart partnered with
Enroll America to educate its shoppers on the options available through the Affordable Care Act
and created a “Pharmacist Recommends” health
newsletter that offers customers valuable savings
for everyday drug store items.
Panzer said that the chain’s focus on pharmacy and on its pharmacists keep customers
loyal to the chain. “Kmart offers great programs
like its Prescription Savings Club that provides
discounts on all medications,” Panzer said. “But
it’s really our pharmacists that give us strength
in our markets. The average Kmart pharmacist has been with us 11.8 years, translating into
strong community relationships and improved
patient care.”
All Kmart pharmacists are medication therapy
management trained and certified immunizers.
kmart
HQ: Hoffman Estates, Ill.
2013 sales: $13.1 billion
% change vs. 2012: NA
No. of stores: 1,215
No. of stores with Rx: 841
Avg. store size: 70,000 sq. ft.
Rx sales: $1.7 billion
% of sales from Rx: 13%
Sales per store: $10.8 million
Source: Company reports, DSN estimates
Exceeding customer expectations
By Richard Monks
publix
HQ: Lakeland, Fla.
2013 sales: $28.9 billion
% change vs. 2012: 5.2%
No. of stores: 1,077
No. of stores with Rx: 928
Avg. store size: 45,000 sq. ft.
Rx sales: $1.7 billion
% of sales from Rx: 5.8%
Sales per store: $26.8 million
Source: Company reports, DSN estimates
86 • april 28, 2014
Offering pharmacies in 928 of its 1,077 stores
across Florida, Georgia, Alabama, South Carolina, North Carolina and Tennessee, Publix
Supermarkets has consistently won accolades
from patients for the level of service it provides. The company’s pharmacies are ranked
at or near the top of the annual J.D. Power and
Associates pharmacy satisfaction poll, and
have been the poll’s top-rated supermarket
pharmacy for the past four years. In 2012, Publix was the highest-ranked pharmacy chain in
any trade class, and last year it was the overall
No. 2 pharmacy chain.
Earlier this year, that support was backed up
when 3,600 consumers queried by customer
intelligence solutions provider Market Force
Information ranked Publix as offering the best
customer service of any pharmacy provider in
North America.
Executives say Publix has been able to maintain its high level of customer satisfaction by
offering its pharmacy patients the services and
programs they want. One of those offerings,
the company’s Sync Your Refills program, was
extended to all of the chain’s pharmacies earlier this year after a test in the Publix Atlanta
division deemed the program to be something
that would significantly impact the quality of
patient care the company could provide.
“As both a supermarket and pharmacy,
we are focused on providing convenient programs and services to our customers,” media
and community relations director Maria Brous
said when the program was expanded in late
January. “Our Sync Your Refills program is
designed to respect the time of our customers,
and continue to build on a strong relationship
between patient and pharmacist. Prescription
synchronization assists in medication adherence for happier, healthier customers.”
Pharmacy patients using the Sync Your
Refills program have all of their medications
refilled on the same day of the month. Doing
this, Brous explained, makes Publix’ pharmacists better equipped to engage with patients
and discuss their care.
DrugStoreNews.com
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By Antoinette Alexander
As healthcare reform gives rise to new models
of care and new quality standards, pharmacy retailers are increasingly aligning themselves with
the longer-term trends in healthcare, and Costco
is no exception.
“We are actively moving toward a more carecentric model in our pharmacies,” Michael Mastromonica, Costco’s assistant VP pharmacy services, told Drug Store News.
As part of this effort, Costco is sharpening its
focus on medication therapy management. The
company also has been in the screening business
for some time, offering screenings for such conditions as osteoporosis and cardiovascular disease,
but within the next year, it plans to ramp up its
care management initiatives.
“I would like to become more proactive relative to MTM/care management for patients as
Costco initiatives. … So, we are in the process
of putting together some programs here that we
hope to be able to offer to our [members] and potentially work in conjunction with some of our
managed care and PBM partners to deliver care
plans to them,” said Mastromonica, who noted
that company is looking to find the right opportunities, partners and tools to leverage.
He added, “the focus, I think, in the short term
is going to be on the chronic disease states, particularly those that are impacted by [the Star rating system].”
Costco also is working to ramp up its immunization services and plans to further explore travel
medicine via a pilot program in the Seattle-area
in the coming months.
Costco pharmacists currently administer most
adult immunizations, as permitted by state laws,
but the company sees a significant opportunity in
travel medicine.
“[Travel medicine] is a little bit more complicated of a business, and we’ve been looking for
awhile now. … But I want to make sure we do it
right,” Mastromonica said.
Photo provided by Costco Wholesale
Ramping up care management
costco
HQ: Issaquah, Wash.
2013 sales: $75.5 billion*
% change vs. 2012: 5.2%
No. of stores: 462*
No. of stores with Rx: 455*
Avg. store size: 143,000 sq. ft.
Rx sales: $1.7 billion
% of sales from Rx: 2.2%
Sales per store: $163.4 million
* U.S. operations
Source: Company reports
Emphasizing MTM across franchise
By Richard Monks
medicine shoppe
HQ: Dublin, Ohio
2013 sales: $1.9 billion*
% change vs. 2012: 1.1%
No. of stores: 570*
No. of stores with Rx: 570*
Avg. store size: 2,500 sq. ft.
Rx sales: $1.8 billion*
% of sales from Rx: 93.4%
Sales per store: $3.4 million*
* U.S only
Source: Company reports, DSN estimates
88 • april 28, 2014
At Medicine Shoppe International, the emphasis this year is on performance.
John Fiacco, the vice president who oversees
the Medicine Shoppe and Medicap Pharmacies franchised network for parent company
Cardinal Health, said 2014 is seeing the rollout of programs to improve patient care and
pharmacy performance, especially as it relates
to managed health care.
“We continue to put an emphasis on medication therapy management across the system,” he said. “We have resources dedicated
to monitoring MTM from the providers and
coordinating the efforts of our field staff as
they work with our franchisees to complete
MTM cases.”
With 570 franchised stores in 44 states across
the United States and another 232 in Canada,
Japan, the United Arab Emirates, India and
China, MSI offers its franchisees the opportunity to be independent store owners who get
the advantages of operating under a recognizable and respected brand name. For shoppers,
the franchised network provides one of the
industry’s most pharmacy-centric operations,
with nearly everything Medicine Shoppe and
Medicap stores offer revolving around its prescription and healthcare services.
Fiacco says that because pharmacy is so vital to the company’s success, it is working to
ensure that its franchisees stay on top of the
nation’s rapidly evolving healthcare system
and shifting patient needs.
“We also are working to improve medication adherence and compliance by piloting
a medication synchronization program,” he
said, explaining that MSI offers store owners
in its network two different synchronization
programs. A select number of MSI franchisees
also are part of a pilot program for Pharmacy
Quality Solutions’ EQuIPP tool — a national
platform that provides objective performance
data to health plans, prescription benefit managers and community pharmacies.
DrugStoreNews.com
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Sam’s Club: Screening programs key
By Richard Monks
Sam’s Club has made free health screenings
a centerpiece of its operation.
With more than 47 million people across the
country enrolled as Sam’s Club members, executives say the health clinics have helped improve
the lives of millions of Americans suffering from
a wide range of conditions.
Over the past year, Sam’s Club has offered
screenings for seasonal allergies, breast cancer,
diabetes and prostate cancer. Many of the
screening events also offered tests for related
conditions, such as high blood pressure, thyroid
disease and body mass index.
“Our screening program helps Sam’s Club
pharmacy patients pinpoint causes, prevent
symptoms and actively maintain daily wellness
at an amazing savings,” SVP of health and wellness Jill Turner-Mitchael said. She noted that
many of the screenings provide members with
free exams and test kits that could otherwise cost
several hundred dollars per patient.
At the company’s breast cancer screenings
last fall, Sam’s Club gave away more than 25,000
breast self-exam kits. Turner-Mitchael said that
the breast cancer and related women’s health
screenings are among Sam’s Club’s most popular
events, attracting nearly 700,000 women a year.
Screenings are just one way that Sam’s Club
seeks to differentiate its pharmacies. The company also offers its members a discounted generics
program, with 30-day prescriptions for $4 and
90-day prescriptions for $10. In addition, club
members enrolled in the company’s Savings and
Plus programs get reduced prices on a wide variety of branded and generic medications.
In addition, Sam’s Club pharmacies offer immunizations for adults, including flu shots and
vaccines to protect against such conditions as
pneumonia, shingles and whooping cough, and
almost all of its pharmacies offer patients healthscreening kiosks. More than 250 clubs aslo have
optical and hearing aid centers.
Sam’s club
HQ: Bentonville, Ark.
2013 sales: $57.2 billion
% change vs. 2012: 1.3%
No. of stores: 634
No. of stores with Rx: 584
Avg. store size: 133,000 sq. ft.
Rx sales: $1.6 billion
% of sales from Rx: 2.8%
Sales per store: $89.0 million
Source: Company reports, DSN estimates
H-E-B’s ‘total wellness destination’
By Jim Frederick
h-e-b
HQ: San Antonio
2013 sales: $20 billion
% change vs. 2012: 3.1%
No. of stores: 352
No. of stores with Rx: 235
Avg. store size: 68,000 sq. ft.
Rx sales: $1.5 billion
% of sales from Rx: 7.5%
Sales per store: $56.8 million
Source: Company reports, DSN estimates
90 • april 28, 2014
With more than 350 supermarkets and 235
in-store pharmacies, H-E-B means food and
drug store retailing — not to mention health
services, natural foods and nutritional counseling — to millions of Texas residents.
“We want to be known as the premier healthcare provider in Texas, recognizing H-E-B as a
total wellness destination,” said Craig Norman,
SVP pharmacy. “That encompasses pharmacy
and the rest of the store, including the services
we provide with our dietitians and nutritionists, the health information and education we
provide online, and of course, a lot of programs
in pharmacy.”
Among those programs: H-E-B’s “Second
Saturday” health screenings, available the second Saturday of every month at all of its pharmacies. The screenings, Norman said, “have
become a total store event,” with “healthy
product demonstrations and other activities
… to promote health and wellness.”
Norman calls H-E-B’s expanding immunization program “the cornerstone of our professional service offerings,” with pharmacists providing
“immunizations without a prescription, based on
the protocol agreements we have with doctors.”
Coming up: H-E-B’s first outpatient pharmacy in a medical center hospital in Odessa, Texas.
“This will be our entry into … having a standalone outpatient pharmacy in a hospital setting,”
Norman said. “The focus … is going to be integrating with the hospital care team, and providing medications and discharge counseling to patients prior to their leaving the hospital.”
“Our intention is to follow up with those
patients post-discharge as well,” he added.
“Our overall goal … will be to hopefully improve adherence and compliance, and lower
hospital readmission rates for those patients.”
H-E-B also is developing a full-range of specialty pharmacy services. “As soon as we’re
able to turn on a disease state, we’ll start going
after that business, and we’ll expand disease
state by disease state,” Norman said.
DrugStoreNews.com
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Shifting focus to patient care
By Antoinette Alexander
In 2014 and beyond, supermarket chain HyVee is shifting its health-and-wellness efforts
into high gear as it leverages its new central fill
facility to help free up pharmacists, bolsters it
specialty pharmacy business and expands its
number of in-store health clinics.
The grocer, which has more than 200 pharmacy locations and more than 900 pharmacists
companywide, is working to further improve
patient outcomes by leveraging its new central fill facility that opened in late 2013 and is
currently filling about 20,000 prescriptions per
eight-hour shift — a number that is expected
to grow to upward of 30,000 prescriptions.
“The idea behind the central fill is not costdriven, the reason was because we wanted to
provide more time for our pharmacists to interact with their patients,” said Bob Egeland,
VP pharmacy at Hy-Vee.
The company also is part of a grant pro-
gram, funded by the National Association of
Chain Drug Stores Foundation, which is examining the ACO-MTM model, and it currently
has four pharmacies in central Iowa participating in the ACO project.
Recognizing the rapid growth within the
specialty pharmacy segment, the company
is bolstering its specialty pharmacy business
by acquiring Amber Pharmacy, a specialty
pharmacy solutions provider based in Omaha,
Neb. The deal is expected to close in mid-May.
“We did have a specialty pharmacy called
Hy-Vee Pharmacy Solutions, but now we have
combined Amber Pharmacy, which is one of
the larger specialty pharmacies in the United
States,” Egeland said.
In 2014, Hy-Vee also is looking to expand
its number of retail-based health clinics. The
company currently has about 20 in-store clinics through several health system partners,
and will open three in Columbia, Mo., in May
with the University of Missouri.
Hy-Vee
HQ: West Des Moines, Iowa
2013 sales: $8 billion
% change vs. 2012: 4.3%
No. of stores: 236
No. of stores with Rx: 246*
Avg. store size: 70,000 sq. ft.
Rx sales: $958 million
% of sales from Rx: 12%
Sales per store: $34 million
* Includes in-store pharmacies, offsite clinics, specialty pharmacy and
a central fill facility
Source: Company reports, DSN estimates
Entering into specialty Rx, delivery
By Michael Johnsen
giant eagle
HQ: Pittsburgh
2013 sales: $9.3 billion
% change vs. 2012: -6.1%
No. of stores: 218
No. of stores with Rx: 213
Avg. store size: 80,000 sq. ft.
Rx sales: $1.2 billion
% of sales from Rx: 13%
Sales per store: $42.7 million
Source: Company reports, published reports
92 • april 28, 2014
Giant Eagle last year got into specialty pharmacy in a big way with its acquisition of Rx21
Specialty Pharmacy. The acquisition enables
the company to provide enhanced services to
patients with cancer, Hepatitis C and chronic
inflammatory disease.
“Our specialty pharmacy clinical care services
and patient care advocates provide the essential
tools, enabling access to financial support, crucial
therapy and medication management,” Daniel
Donovan, Giant Eagle spokesman, told DSN. “In
2014, we are making significant enhancements to
our current clinical care plan and expanding the
services provided both centrally and at our retail
locations, allowing for the best possible patient
experience and clinical outcome.”
In addition to access to Rx21’s expertise
and clinical support, Giant Eagle Specialty
Pharmacy customers have 24-hour-a-day access to pharmacists ready to provide counsel
on medication management.
Along with its entry into specialty pharmacy,
Giant Eagle also expanded its services to include
prescription drug delivery in the Columbus
market. “Currently, pharmacy home delivery is
marketwide in Columbus, with an additional 20
Pennsylvania locations providing the service,”
Donovan said. “We continue to evaluate opportunities to expand home delivery into other
markets, as well as including over-the-counter
medications and health-related items.”
Through 2014, Giant Eagle pharmacy will
be increasing convenience for customers by
enhancing digital services and expanding
medication offerings, Donovan said. “Additionally, we will continue to offer free prenatal
vitamins and $4 and $10 generic medications.”
Known for its penchant for trying new store
formats, Giant Eagle’s latest introduction is a
cross between its gourmet Market District stores
and the smaller footprint of its GetGo convenience stores called Market District Express. The
15,500-sq.-ft. Market District Express includes an
in-store pharmacy with drive-through access.
DrugStoreNews.com
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Expanding base through acquisition
By Michael Johnsen
Bi-Lo Holdings, parent company of Bi-Lo
and Winn-Dixie supermarkets, grew by leaps
and bounds last year with the merger of the
two supermarket entities. And acquisition
continues to be a key part of the company’s
growth strategy as it considers whether or not
to go public.
Bi-Lo Holdings recently closed on the deal to
buy three chains (153 stores net) from Belgiumbased Delhaize Group, including the Sweetbay,
Harveys and Reid’s banners. And last year, BiLo Holdings acquired 22 Piggly Wiggly stores
across South Carolina and coastal Georgia.
As the company’s store base continues to expand, so does its pharmacy heft — which, under the guidance of SVP pharmacy John Fegan,
is focused on improving the health of its patrons. Four times a year, for example, each store
hosts a wellness screening with free screenings
for cholesterol, diabetes and blood pressure.
“The services we offer are so important, and
how you can improve the health of the patients
will be a key metric in appealing to health payers going forward,” Fegan said.
Bi-Lo recently rolled out “Refill Sync,” a free
service that synchronizes customers’ maintenance medication prescriptions so that all scripts
— regardless of refill dates — can be filled at
the same time. “We have done almost 40,000
refill syncs,” Fegan said. Adherence initiatives
are imperative, he said, because “the Star rating
program is going to become more important in
the way networks choose their participants.” To
that end, Bi-Lo and Winn-Dixie’s pharmacies are
members of the Pharmacy Quality Alliance.
Bi-Lo makes it convenient for patients to
order prescriptions through the chain’s pharmacy mobile app. In addition, patients can access their prescription records, which include a
visual depiction of their medicines.
Bi-Lo also is involved with the Diabetes
Prevention and Control Alliance. “We have
30 pharmacies that have specialized diabetes
offerings,” Fegan said.
Bi-Lo
HQ: Jacksonville, Fla.
2013 sales: $11.6 billion*
% change vs. 2012: 16%
No. of stores: 860*
No. of stores with Rx: 551*
Avg. store size: 46,000 sq. ft.
Rx sales: $941.8 million*
% of sales from Rx: 8.1%
Sales per store: $13.5 million
* Includes Piggly Wiggly and Delhaize acquisitions
Source: Company reports, DSN estimates
Pharmacy is ‘crown jewel’ of Fred’s
fred’s super dollar
HQ: Memphis, Tenn.
2013 sales: $1.9 billion
% change vs. 2012: -0.8%
No. of stores: 704
No. of stores with Rx: 355
Avg. store size: 18,300 sq. ft.
Rx sales: $731 million
% of sales from Rx: 37.7%
Sales per store: $2.8 million
Source: Company reports
96 • april 28, 2014
Fred’s Super Dollar in January placed itself on
the sales bloc in retaining Bank of America Merrill Lynch and Peter J. Solomon Co. to review
strategic opportunities to enhance shareholder
value. And the jewel in Fred’s crown? Pharmacy.
For Fred’s, it’s all about building out its pharmacy business. Last month, Fred’s announced
it will be exiting a number of front-end categories — including footwear, televisions/home
theater and select home furnishings — in an
effort to expand an assortment better suited
for a retail drug store setting. “By exiting these
product lines, the company will better tailor
its health and beauty care products to be more
reflective of a pharmacy’s product offering,”
said Bruce Efird, Fred’s CEO.
“As we continue to accelerate our pharmacy
presence, we are further leveraging our pharmacy department by tailoring our general merchandise mix toward our pharmacy customers in
stores with pharmacies,” Efird said. “We will be
retrofitting 80 stores in the first half of 2014 with
the reconfiguration program as well. The results
of reconfiguration continue to be positive, with
comparative sales of retrofitted stores realizing a
1.6% comp gain over the chain store average.”
Beyond reconfiguring stores to better emphasize pharmacy, Fred’s also is expanding
its specialty pharmacy business. “One of our
most exciting opportunities for the future [is]
our specialty pharmacy division, EIRIS,” Efird
recently told investors. “EIRIS provides us an
opportunity to accelerate our penetration into
the fastest growing segment of the pharmacy
industry, specialty drugs. We believe Fred’s is
uniquely positioned to participate in this segment by leveraging our network of rural and
local pharmacies.”
EIRIS is a stand-alone specialty pharmacy
that supports Fred’s ongoing relationship with
Diplomat Specialty Pharmacy. “With 2013 being our initial entry into the specialty pharmacy segment, we are experiencing an 8% increase in specialty scripts and a 13% increase
in sales associated with those scripts,” Efird
told analysts in November.
DrugStoreNews.com
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Delhaize: Spotlight on Food Lion
By Antoinette Alexander
As Delhaize Group wraps up its deal with
Bi-Lo Holdings — in which Bi-Lo will acquire
Sweetbay, Harveys and Reid’s supermarket
chains from the Belgium-based company —
Delhaize shifts much of its future focus to the
Food Lion banner.
With a geographic footprint of more than 1,100
supermarkets in 10 Southeastern and Mid-Atlantic states, of which about 29 have pharmacy locations, Food Lion has not been immune to intense
competition — especially in the Southeast where
there’s a high concentration of low-cost players.
Facing strong rivalry and declining market
share, Delhaize set into motion several years ago
a phase plan for Food Lion that it rolled out in
different regions between May 2011 and November 2013. The results: Lower prices on thousands
of items and other store enhancements, such as
the addition of MVP Savings Centers in each of
its stores. Shoppers can scan their MVP Card to
receive personalized offers for additional savings during their shopping trip.
The company has now embarked on the next
step of its transformation, and has 77 market
test stores that it is planning for the second half
of the year. This testing involves different frontend labor models from a software and labor
perspective, and a sealed fresh beef program.
In addition, the company will test changing
the assortment only in a given market to
understand the stand-alone impact.
“If we are successful within the next step of
our strategy, we believe that we should have
the ambition to aim for a higher share of wallet
of our customers. … We have only 18% share
of wallet compared to an average of around
26% for a selected group of local peers,” Delhaize Group CEO Frans Muller said.
ShopRite’s eye on health and wellness
delhaize group
wakefern food
HQ: Salisbury, N.C.
2013 sales: $17.1 billion*
% change vs. 2012: 1.9%
No. of stores: 1,347*
No. of stores with Rx: 184*
Avg. store size: 34,000 sq. ft.
Rx sales: $547.2 million
% of sales from Rx: 3.2%
Sales per store: $12.7 million*
HQ: Keasbey, N.J.
2013 sales: $14.1 billion
% change vs. 2012: 3.9%
No. of stores: 327*
No. of stores with Rx: 209
Avg. store size: 65,000 sq. ft.
Rx sales: $677 million
% of sales from Rx: 4.8%
Sales per store: $43.1 million
* U.S.-based stores (Food Lion and Hannaford)
Source: Company reports, DSN estimates
* 266 ShopRite, 54 PriceRite and 7 The Fresh Grocer stores
Source: Company reports, DSN estimates
With a growing list of Wellness Centers, instore registered dietitians and even a fitness
center with exercise classes, there’s no denying
that Wakefern Food’s ShopRite grocery chain
is ramping up its focus on health and wellness.
Looking to help its shoppers live a healthier
life and to serve as a resource for health and
wellness, ShopRite has expanded its number
of Wellness Centers in the past year, bringing
the current number of locations to 10. Among
the more notable is the ShopRite of Greater
Morristown, N.J. This location, which opened
in November, boasts not only an in-store
dietitian and full-service pharmacy, but also
a fitness studio featuring yoga, Zumba and
other exercise classes. The fitness classes are
free to Price Plus card members.
The retailer’s in-store dietitian program, which
was implemented in 2006, continues to play an
important role in its focus on health and wellness.
There are currently more than 80 in-store registered dietitians serving ShopRite stores.
Also, the QCare in-store health clinic located
inside a ShopRite store in Philadelphia will
soon become home to a new pilot program.
The clinic location will house in mid-May
a mental health online assessment tool — a
first for a retail-based clinic. The Philadelphia
Department of Behavioral Health and the
Intellectual Disability Services, in collaboration
with Screening for Mental Health Inc., will
create a private area at the clinic where patients
can use an iPad to access its online behavioral
health-screening tool.
“The Department of Behavioral Health has a
‘train-the-trainer model,’ so they will be training
the QCare staff on how to use this tool and how
to assess the information,” said Gregory Caplan a
master’s student at Drexler University School of
Public Health and Scattergood Foundation intern.
Innovating Today
To Lower The Cost Of Tomorrow’s Most Needed Medicines
The investments we’re making today at Dr. Reddy’s – in our infrastructure, technology and operations –
are done to deliver value to you and ensure critical drugs reach those individuals who require them
in the future. It’s all part of an exciting, yet complex journey that the company began when it was
founded more than two decades ago in an effort to improve access to more affordable, innovative
medicines. Looking ahead, we will continue to bring you the flexibility, quality assurance, and service
that you’ve come to expect from Dr. Reddy’s. We look forward to delivering on this commitment for
years to come.
Dr. Reddy’s Laboratories, Inc.
107 College Road East
Princeton, NJ 08540
Tel: 866-733-3952 www.drreddys.com
98DR-2844.17x4.75
• april 28,DSN
2014
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drugStoreNews.com
©2014 Dr. Reddy’s Laboratories, Inc. All right reserved. January 2014
april 28,2/6/14
20144:12
• 99
PM
poweRx 50
Collaborating on affordable health care
By Barbara White-Sax
Regional chain Kinney Drugs, which operates
in central and northern New York and adjacent
areas of Vermont, appointed a new president in
2013. Jim Spencer, who had served as COO, was
named president of the 100-store chain and will
continue to report to Bridget-Ann Hart, president
and CEO of KPH Healthcare Services.
Spencer will be responsible for the total customer experience and strategic growth of the
company’s retail drug stores. In addition to overseeing pharmacy and retail operations, marketing and merchandising, he will assume oversight
responsibilities for company logistics.
In April, the regional operator changed its
name to better reflect its evolving focus on healthcare services. The newly named KPH Healthcare
Services still has the same ownership structure.
The identity and branding of its Kinney Drugs
store division, Health Direct Institutional Pharmacy Services long-term care services, ProAct
Inc. pharmacy benefit management company
and Noble Health Services specialty pharmacy
remain unchanged.
In a collaborative effort designed to address
the need for greater access to affordable health
services in the Syracuse market, Kinney Drugs
has partnered with Pulmonary Health Physicians, PC and Franciscan Companies (an affiliate of St. Joseph’s Hospital), to open a Healthy
You Wellness Center at one of the chain’s locations in Syracuse. The center will be staffed
by specialists from Pulmonary Health Physicians and will focus on disease state management, as well as immediate care for certain
health concerns.
Services will include assessment, treatment
and management of such chronic conditions as
COPD, emphysema, bronchitis and asthma, as
well as diagnosis and treatment of such illnesses
as the common cold, flu, allergies and sinus infections. The wellness center also will provide
counseling for patients with sleep apnea and
questions regarding smoking-cessation options,
as well as oxygen therapy.
kinney drugs
HQ: Gouverneur, N.Y.
2013 sales: $829 million
% change vs. 2012: 3.4%
No. of stores: 99
No. of stores with Rx: 99
Avg. store size: 10,500 sq. ft.
Rx sales: $469.7 million
% of sales from Rx: 77%
Sales per store: $6.9 million
Source: Company reports
Maximizing the ‘Hometown’ convenience
Shopko
HQ: Green Bay, Wis.
2013 sales: $3 billion
% change vs. 2012: 0%
No. of stores: 326
No. of stores with Rx: 274*
Avg. store size: 80,000 sq. ft. (Shopko) and 27,000 sq.
ft. (Shopko Hometown)
Rx sales: $870 million
% of sales from Rx: 29%
Sales per store: $8.8 million
* Includes six stand-alone pharmacy locations and two long-term
care pharmacies
Source: Company reports, DSN estimates
100 • april 28, 2014
Shopko remains true to its founder’s vision
of being a mass retailer whose cornerstone
is community health. Pharmacy service is
a key feature in all of the formats the chain
operates. The chain operates its original
Shopko big-box mass merchant formats
that include pharmacy and optical services
in small to mid-sized cities. It also operates
Shopko Express Rx, neighborhood drug
stores in mid-sized communities throughout
Wisconsin, and Shopko Hometown stores,
smaller-format mass merchant/pharmacy
stores in communities with populations
under 10,000.
After merging with the Pamida chain in
early 2012, Shopko acquired and converted the
Pamida stores to its Hometown format in an
effort to expand convenient healthcare options
for patients.
“Our Shopko Hometown store format is
focused on serving the needs of consumers
in smaller, more rural communities where
there are limited retail options. Shopko
Hometown is the only retail option in these
communities that combines pharmacy services with a broad and dynamic offering
of strong national brands and high-value
private-label brands of apparel, toys, consumer electronics, seasonal items, and lawn
and garden products,” said Peter McMahon,
president and CEO. “Shopko is filling a void
that previously existed in these markets,
and is saving consumers time and money as
they no longer need to travel to larger markets for items they couldn’t previously find
in their hometown.”
The pharmacy part of the stores’ equation is
focused on providing an array of services to patients. FastCare clinics allow patients to walk in
with minor ailments and be treated without an
appointment. Along with consulting services,
the chain offers flu immunizations and worksite immunizations. Shopko also provides longterm care pharmacy services to nursing homes,
skilled nursing facilities and assisted living facilities in the communities it serves.
The chain plans to open two new Hometown format stores in May 2014.
DrugStoreNews.com
poweRx 50
A&P focuses on fresh start
By Antoinette Alexander
Still working to turn around its business
since emerging from bankruptcy two years
ago, grocer A&P is likely to have an interesting
year as a new leader takes the helm, it ramps
up its specialty pharmacy business and speculation of a sale is fresh in the air.
In March, the company announced that COO
Paul Hertz would step into the role of president
and CEO, succeeding Sam Martin. In January,
A&P had confirmed Martin’s departure. Martin, a
former OfficeMax executive, joined A&P as CEO
in July 2010.
Hertz, a 27-year veteran of the retail industry, also joined A&P in 2010. Before that he was
EVP of retail stores for OfficeMax.
Seeing the fast-growing specialty pharmacy
market as one key area of opportunity, the
company recently signed a three-year agreement with Innovatix, whereby it will serve as
A&P’s exclusive provider of specialty pharma-
cy services. The move will help A&P provide
product and full medication therapy management support for its patients.
Through Innovatix Specialty Pharmacy Management, a turnkey and à la carte solution for retail
pharmacies to expand into the specialty market,
A&P will receive access to specialty medications,
as well as back office services including dispensing, data management, clinical and reimbursement support, and patient financial assistance.
However, not so far in the past, speculation
of a sale sparked intrigue as supermarket operators continue to battle big box-rivals and
niche, health-oriented grocers.
In mid-2013, The Wall Street Journal reported
that it had obtained an internal memo that outlined several ways in which the grocer could
fund its growth, such as refinancing, and the
memo also reportedly indicated that a sale of the
company was a possibility. The WSJ reported that
a sale to another grocer or private-equity firm
could value the company at $1 billion or more.
A&P
HQ: Montvale, N.J.
2013 sales: $7.7 billion
% change vs. 2012: -3.7%
No. of stores: 301
No. of stores with Rx: 170
Avg. store size: 42,000 sq. ft.
Rx sales: $462 million
% of sales from Rx: 6%
Sales per store: $25 million
Source: DSN estimates
Serving an expanded customer base
By Barbara White-Sax
meijer
HQ: Grand Rapids, Mich.
2013 sales: $15.2 billion
% change vs. 2012: 2.7%
No. of stores: 204
No. of stores with Rx: 204
Avg. store size: 205,000 sq. ft.
Rx sales: $486 million
% of sales from Rx: 3.2%
Sales per store: $74.4 million
Source: DSN estimates
102 • april 28, 2014
Meijer pharmacy has set its sights on expanding into new territories and positioning itself in
the healthcare arena. Meijer is investing $146 million to purchase and remodel an existing Supervalu facility in Pleasant Prairie, Wis., for a new
distribution center. The 770,000-sq.-ft. facility,
which will be located in the LakeView Corporate
Park, is expected to serve stores in Wisconsin, Illinois and possibly other states.
“We are opening nine new stores in 2014, so
we’ll be at 213 stores at the end of this year. We
currently have stores in Michigan, Ohio, Indiana, Illinois and Kentucky. This year we will be
opening our southernmost store [in Bowling
Green, Ky.], and we have announced plans that
we will be opening stores in Wisconsin beginning as early as 2015,” said Frank J. Guglielmi, a
Meijer spokesman.
Meijer currently has plans to open stores in
Grafton, Oak Creek, Kenosha, Wauwatosa, Sussex and Waukesha, Wis., over the next two years.
It was a busy year for the chain’s pharmacy
operations, as well. Pharmacists at select Meijer stores in Michigan were involved in a study
in which they gave patients rapid diagnostic
influenza or Group A Streptococcus tests, then
treated with prescriptions when appropriate under the direction of a physician participating in
the study.
In early 2014, the chain also leased space in
one of its locations to Bronson FastCare, a retail
healthcare provider offering convenient and inexpensive treatment for walk-in patients. So far,
there are no plans to extend the arrangement to
other Meijer locations. Meijer also partnered with
Priority Health, Michigan’s leading health plan,
to raise awareness and help customers obtain information about health insurance under the Affordable Care Act.
In addition, the chain enhanced its mPerks
digital coupon program to allow customers to
store digital receipts from purchases in a single
place. The retailer also expanded the couponing
program in 2013 to include pharmacy purchases.
DrugStoreNews.com
poweRx 50
New programs target adherence
By Michael Johnsen
Enabling their customer-focused pharmacists
to practice at the top of their license, Wegmans will
introduce a blood-pressure screening program
later this year in an effort to improve adherence.
Patients identified as at-risk — prehypertensive
or hypertensive — and who are taking at least
one blood-pressure medicine are enrolled into
one-on-one medication therapy management
consultations with their pharmacist.
Wegmans employees are already wellversed on the program; they’ve been participating in the program in-house for the past
four years. According to a white paper Wegmans published on its own employee results,
Wegmans was able to boost adherence by 50%
across a nonadherent group.
And the in-house program is expanding.
“The idea was to first start with blood pressure. We are now also doing lipids [for] cholesterol,” Dan Ferrara, Wegmans VP pharmacy
operations, told DSN. “By the end of the year
we’ll have a disease-state management program around Type 2 diabetes. The idea is to
get it right with our own employees first, and
from there, take it to the community.”
And there is a natural synergy between
disease state management and eating healthy
tours. “Something we’ve been saying a lot
lately is we try to tie food into pharmacy and
pharmacy into food,” Ferrara explained. For
example, the healthy foods promoted through
Wegmans’ “Eat Well Live Well” challenge are
cross-merchandised in the pharmacy “to drive
conversations around that item,” Ferrara said.
Brian Pompo, who leads Wegmans’ wellness
and clinical services, will be responsible for expanding the program to the general public. And
the supermarket operator already has signed
two employee groups. “We have one with a local employer here in Rochester, [N.Y.], and then
we have one with a local PBM,” John Carlo, Wegmans SVP pharmacy, said.
wegmans
HQ: Rochester, N.Y.
2013 sales: $7 billion
% change vs. 2012: 4.5%
No. of stores: 83
No. of stores with Rx: 83
Avg. store size: 110,000 sq. ft.
Rx sales: $735 million
% of sales from Rx: 10.5%
Sales per store: $84.3 million
Source: Company reports, DSN estimates
Growth top-of-mind for Supervalu
supervalu
HQ: Eden Prairie, Minn.
2013 sales: $4.6 billion*
% change vs. 2012: NA
No. of stores: 190
No. of stores with Rx: 138
Avg. store size: 60,000 sq. ft.
Rx sales: $370.6 million
% of sales from Rx: 8%
Sales per store: $24.4 million
* Excludes Save-A-Lot and supply chain sales; for fiscal year 2014
Source: Company reports, DSN estimates
104 • april 28, 2014
One year following the divestiture of 877
stores to New Albertsons, Supervalu operates
five retail banners — Cub Foods (Minnesota),
Farm Fresh (Richmond, Va.), Hornbachers
(Fargo, N.D.), Shop ‘N Save (St. Louis) and
Shoppers
(Washington,
D.C./Baltimore)
— across seven states and Washington, D.C.
Last year was about stabilizing. “This
past year has been about reorganizing
and [navigating] new directions for our
company, stabilizing and decentralizing,”
Sam Duncan, Supervalu president and CEO,
told analysts.
But this coming year is about growing.
Supervalu in January committed to investing
into its retail supermarket banners with a
makeover for all of the banners, a review of
the planograms within those banners and a
concentration on private-label launches. There’s much work to be done in turning
around the supermarket banners, Duncan
acknowledged. “In some of our banners, the
store layouts are still [reflective of] the ‘80s and
‘90s, where center store was more of a focus,”
he said. “We are going to focus on fixing the
sales of that retail side of our company.”
Supervalu has made several notable improvements across its perishable departments
and is now focused on expanding pet and
baby care. Gradually, it will add 25 to 50 new
items in the coming months. Private brand is another focus, Duncan
said. “Our private-brand sales penetration
has increased 75 basis points on a year-todate basis compared with last year, and we
know we still have a significant opportunity
in front of us.”
Supervalu also plans to grow its store base
soon, even expanding into markets not yet serviced by the new Supervalu. “We have begun
to hire additional real estate and development
personnel,” Duncan said. “We are also in negotiations for a new dry warehouse facility
that will allow us to more effectively serve a
number of new markets and provide the foundation for future store openings.”
DrugStoreNews.com
poweRx 50
Boosting Medicare Star rating scores
By Michael Johnsen
The independent network Care Pharmacies in
the past year has been institutionalizing its internal infrastructure to support high scores across
the Medicare plan Star ratings. “We want a seat
at the table with the payers and the local [healthcare] systems to show them that if they send their
patient into our pharmacies, they’ll have a positive outcome because we have the infrastructure
and the quality processes in place to ensure that
outcome,” Michael Wysong, Care Pharmacies
CEO, told DSN.
As part of that, Care Pharmacies earlier this
year implemented Pharmacy Quality Solutions’
EQuIPP software to benchmark and identify
areas for improvement in each of its locations
aimed at improving patient care and clinical outcomes. “As more performance networks evolve
and payer models continue to shift from feefor-service to fee-for-value, it is imperative that
our members have the tools to stay competitive
and to retain access to the patients that value
the programs and services that they provide,”
Wysong said.
And in August, Care Pharmacies was awarded a grant from the Pharmacy Quality Alliance to
support the implementation of a medication synchronization program using the appointmentbased model.
Care Pharmacies have always been early
adapters. It’s not only evident in its early commitment to acing the five-star ratings, but also in
its 20-year heritage of specialty pharmacy excellence. And a year ago, Care Pharmacies was one
of the founding companies of the National Association of Specialty Pharmacy.
Today the network includes 76 locations across
11 states. Outside of the Route 95 corridor stretching from the Washington, D.C., market on up to
New York, Care has pharmacies in Alabama,
Florida and Georgia, as well as in Michigan and
Wisconsin. “You’re going to continue to see us
venturing out of our normal operating area,”
Wysong said, as the company expects at least 12
stores to join the network in the coming year.
care pharmacies
HQ: Linthicum, Md.
2013 sales: $366 million
% change vs. 2012: -3.4%
No. of stores: 76
No. of stores with Rx: 76
Avg. store size: 3,500 sq. ft.
Rx sales: $347.7 million
% of sales from Rx: 95%
Sales per store: $4.8 million
Source: DSN estimates
Building adherence using med sync
By Antoinette Alexander
thrifty white
HQ: Maple Grove, Minn.
2013 sales: $367 million
% change vs. 2012: 7%
No. of stores: 90
No. of stores with Rx: 90
Avg. store size: 4,500 sq. ft.
Rx sales: $331 million
% of sales from Rx: 90%
Sales per store: $4.1 million
Source: Company reports
DrugStoreNews.com With roots that stretch back more than 120
years, regional player Thrifty White remains
focused on enhancing customer service, and
today much of that centers around improving
adherence rates and providing shoppers with
greater convenience.
Much of the spotlight today revolves around
Thrifty White’s medication synchronization program, which launched several years ago. Under
this program, all of a patient’s prescriptions are
synchronized so that patients on multiple medications can pick up all of their prescriptions at
once. On pickup day, the pharmacist will review
the prescription regimen, monitor changes from
any doctor or hospital visits, and check for any
possible drug interactions.
“[The program] continues to grow, as our
patients really enjoy being able to pick up all
of the prescriptions for the month with one
trip to the pharmacy. Not only is this convenient, but a study conducted by Ateb shows
that for all disease states studied, the proportion of days covered, or PDC, score jumps dramatically,” said Dave Rueter, EVP personnel at
Thrifty White.
Thrifty White now has more than 40,000 patients enrolled in its med-sync program.
Meanwhile, the company continues to build
on its clinical and immunization programs.
The time saved in the local stores by “syncing” patients’ prescriptions and filling them
in a central facility allows the pharmacists to
spend more time with their patients. Rueters
said: “Community pharmacists have an important role to play in helping their patients
live healthier lives, and at the same time, drive
shared savings for the insurer or employer that
pays much of the bill.”
Rueter also stated that the Affiliated Pharmacy Program continues to enjoy growth.
This program provides 99 independently
owned pharmacies with access to some of
Thrifty White’s programs so they can grow
their businesses.
april 28, 2014
• 107
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Screenings draw in customers
By Amanda Baltazar
Last year Brookshire Grocery opened a warehouse for generic prescriptions, and it’s had
“a significant and positive impact to our gross
profit,” said Jim Cousineau, SVP pharmacy operations. The Tyler, Texas-based retailer continues
to increase the number of generics housed there,
and patients appreciate the consistency of having
the same generic product every time.
“Patient acceptance and confidence in accuracy is at risk when the appearance of the product changes with practically every refill,” he said.
“Procuring and distributing generics from our
own facility allows us to significantly minimize
the number of product changes.”
Brookshire’s continues to offer diagnostic services, which include such screenings as blood
glucose, cholesterol and body fat composition for
a fee. Around 20 stores now offer them, and all
new and remodeled stores will offer them.
Over the last year, Brookshire’s also has held
more than 80 health fairs in stores and in its communities. At them, it has offered free glucose and
cholesterol screenings, blood-pressure checks
and body fat composition screenings. “Health
fairs where free screenings are offered bring
people into the stores,” Cousineau said. “It is my
hope that they bring awareness to the services we
offer, which will translate to repeat business.”
Brookshire’s is considering adding pharmacy
items in 2014 to the Baby Club it kicked off last
year. The program is designed to provide savings
for families with a child younger than 3 years old,
as well as loyalty card points.
All of Brookshire’s 116 pharmacies continue to
offer flu, pneumonia, shingles, tetanus, whooping cough, chicken pox, measles and meningococcal shots. Hepatitis A and B and HPV are
available upon request. Two stores also specialize
in travel vaccines, and offer polio, typhoid, rabies
and Japanese encephalitis vaccines. They also advise patients on the vaccinations recommended
for their specific destination.
brookshire grocery
HQ: Tyler, Texas
2013 sales: $2.2 billion
% change vs. 2012: 1.2%
No. of stores: 152
No. of stores with Rx: 116
Avg. store size: 40,000 sq. ft.
Rx sales: $297 million
% of sales from Rx: 13.5%
Sales per store: $14.3 million
Source: DSN estimates
Trending with technology
sav-mor
HQ: Novi, Mich.
2013 sales: $302.5 million
% change vs. 2012: -4.5%
No. of stores: 70
No. of stores with Rx: 70
Avg. store size: 10,000 sq. ft. and 17,500 sq. ft*
Rx sales: $257.1 million
% of sales from Rx: 85%
Sales per store: $4.3 million
* Two store formats
Source: Company reports, DSN estimates
108 • april 28, 2014
Sav-Mor is all about technology.
Over the past year, the fanchisor has betatested new workflow software, and it will
decide which to recommend to pharmacists
at the end of the third quarter. In addition,
the company last year beta-tested new optics
technology from Innovation that photographs
prescriptions, and is now recommending the
technology to its pharmacies.
Late last year, Sav-Mor signed on
PharmaSmart International, a producer and
distributor of blood-pressure screening systems, and 40 pharmacies now contain their
blood pressure and pulse kiosks. Using the kiosks, Sav-Mor has launched a Blood Pressure
Tracker program with PharmaSmart in which
smartcards store blood-pressure results that
can be accessed online.
“Customers and pharmacists really like it,”
said EVP Yvonne Gallagher. “Many of the patients’ physicians also are involved and send
us some of their critical patients that require
a more individualized program. We’ve had
great success stories where patients were unaware of a blood-pressure problem until they
signed up for the program.” Each kiosk, she
said, can be customized and designed to appeal to a specific store’s customer base.
Beyond technology, Sav-Mor is aiming to be
a central part of the communities in which it
operates. “We all live busy lives, and often all
it takes is opening up the patients’ awareness
that the community pharmacy is there to serve
the patients’ needs,” Gallagher said.
Customers have responded favorably to
its wellness programs around hypertension,
asthma, diabetes and smoking cessation. “Our
programs have increased prescription adherence by simply opening up a dialog between
the patient and the pharmacy,” Gallagher said.
“One of our pharmacies was using a program that educates the child patient about
the importance of completing their antibiotic
regimen. Not only did the kids enjoy it, the
physicians commented on it favorably, too,”
she said.
DrugStoreNews.com
poweRx 50
Benefiting from community ties
By Barbara White-Sax
Discount Drug Mart positions itself as a convenient shopping option with strong community
ties. “We like to advertise ourselves as the ‘hometown pharmacy,’ focusing on the idea that we
don’t have a large store that you have to walk too
far inside to get what you need. You’re able to get
in and out,” said Amanda Stefanski, marketing
coordinator for the chain.
The chain also makes the most of its communities. “Upper management lives in the communities in which our stores are located, and that allows us to make adjustments to each location to
appeal to people in that particular area,” she said.
The chain recently expanded its Courtesy
Card Plus loyalty card program to the health and
beauty department. The new program, Premier
Beauty Club, highlights a particular brand each
month, giving customers who purchase $25 of
that brand’s product an instant $5 back at the register. It’s a win-win-win for the retailer, its manu-
facturer partners and consumers.
Discount Drug Mart has expanded its grocery
offerings. “A majority of Discount Drug Mart locations now have delis that provide sliced-to-order meats and cheese, as well as a variety of pasta
salads, macaroni salads and other deli products,”
Stefanski said.
In the pharmacy department, Discount
Drug Mart began a conversion to a new
pharmacy management system, Pioneer Rx,
and will roll the new system out chainwide by
second quarter 2014.
The chain has been steadily adding consulting
rooms to existing pharmacies. “In the past year, we
have continued to emphasize our immunization
program available in our pharmacy, including the
common flu shot, as well as shingles, pneumonia
and other vaccinations,” Stefanski said. Discount
Drug Mart also focused on the expansion of the
Pet Meds program, which offers medications for
pets, often at lower prices than those offered at
the veterinarian.
discount drug mart
HQ: Medina, Ohio
2013 sales: $575.9 million
% change vs. 2012: 0.8%
No. of stores: 71
No. of stores with Rx: 71
Avg. store size: 26,000 sq. ft.
Rx sales: $249.6 million
% of sales from Rx: 43%
Sales per store: $8.1 million
Source: Company reports
Health team integration key for Aurora
By Amanda Baltazar
aurora healthcare
HQ: Elm Grove, Wis.
2013 sales: $167.5 million
% change vs. 2012: NA
No. of stores: 73
No. of stores with Rx: 73
Avg. store size: 1,000 sq. ft and 2,300 sq. ft.*
Rx sales: $154.1 million
% of sales from Rx: 92%
Sales per store: $2.3 million
* Operates a clinic and free-standing format
Source: Company reports, DSN estimates
110 • april 28, 2014
Aurora Healthcare’s approach to health care
is an integrated model. Pharmacists work in
coordination with the entire team responsible
for caring for a patient ­
— from doctors to
nurses, and including in-patient, outpatient
and pharmacy treatment.
All members of the care team use one shared,
electronic medical record system so all carers
have access to lab results, physicians’ notes and
pharmacy interventions. This integration, Aurora said, helps improve patient safety and the patient experience, and controls unnecessary costs.
Aurora Pharmacy partners with the Aurora
in-patient care team to provide the DischargeRx
program, designed to improve the continuity of
pharmaceutical care as patients transition from
the in-patient to the outpatient setting. Before
patients are discharged they receive a detailed
medication review, including discharge instructions by an Aurora pharmacist. According to Aurora, the program offers “an extra level of safety
and improved medication therapy compliance,
which reduces preventable and costly readmissions and post discharge complications.”
Aurora Healthcare has 73 Aurora Pharmacies, two of which opened this year, and 15 hospital pharmacies, all of which offer medication
therapy management. Aurora is working with
an MTM program developed by the state pharmaceutical society, the Wisconsin Pharmacy
Quality Collaborative, to clarify the value MTM
brings to its patients.
In 2013, the company built out the Aurora
Specialty Pharmacy, which provides comprehensive, coordinated delivery and support services for high-cost oral or injectable medications
used to treat complex, chronic conditions. The
program provides high-touch patient care, support and education to ensure patient compliance.
Aurora has worked with the Agency for
Healthcare Research and Quality to pilot a patient safety survey for retail pharmacies, and this
year it will have all pharmacy staff complete the
survey. The results will show where the company
needs to improve its patient safety, as well as any
issues specific to certain stores.
DrugStoreNews.com
poweRx 50
Raley’s ranked best in the West
By Amanda Baltazar
Earlier this year, readers of a national consumer magazine rated the family-owned
supermarket retailer Raley’s one of the best
pharmacies in the western United States in
an annual ranking of the top pharmacies and
drug stores. The magazine ranked pharmacies on personal service, knowledge, speed,
accuracy, helpfulness and courtesy.
“We are thrilled to learn of this recognition
based shopper feedback,” said Lee Worthy,
a pharmacist and Raley’s VP pharmacy and
wellness. “Clearly, our customers appreciate
our focus on meeting their health-and-wellness needs through our personalized service
and offerings like our online prescription service, our wide range of generic prescriptions
and our in-store immunizations.”
Also at the beginning of this year, Raley’s
began using a new social commerce solution
called Extra Friendzy. The program is run by
Revionics and offers customers time-sensitive
and limited-quantity offers on the condition
that they then post the offer on their social
media networks.
The program will complement and drive
Raley’s loyalty program, Something Extra,
through which customers earn one point for
every $1 spent. Co-pays and cash payments
in the pharmacy earn points, as well.
In the pharmacy, Raley’s offers a range of
immunizations, including flu, shingles, pneumonia, HPV and hepatitis A and B, as well as
travel vaccinations.
Raley’s also has a compounding
pharmacy at its central fill site that prepares
prescriptions for all of its pharmacies.
Compounded drugs are prepared for
children and the elderly so they are in a
suitable dose, as well as medications in
different formats — such as suppositories
or transdermal doses — for those who can’t
tolerate oral medicines.
Raley’s
HQ: West Sacramento, Calif.
2013 sales: $3.1 billion
% change vs. 2012: 0.8%
No. of stores: 128
No. of stores with Rx: 97
Avg. store size: 42,000 sq. ft.
Rx sales: $269.7 million
% of sales from Rx: 8.7%
Sales per store: $24.2 million
Source: DSN estimates
Weis committed to growth, tech
By Michael Johnson
weis markets
HQ: Sunbury, Pa.
2013 sales: $2.7 billion
% change vs. 2012: -0.3 %
No. of stores: 165
No. of stores with Rx: 134
Avg. store size: 50,000 sq. ft.
Rx sales: $231.6 million
% of sales from Rx: 8.6%
Sales per store: $16.3 million
Source: Company reports
112 • april 28, 2014
Weis Markets has a Weis at the helm, again.
The Pennsylvania retailer in February named
Jonathan Weis as company president and
CEO. Weis also will retain his role as company
vice chairman.
Jonathan Weis is the son of Robert Weis,
who remains chairman of Weis Markets, and
grandson of one of the company’s co-founders, Harry Weis. Along with the elevation of
Jonathan Weis to president and CEO, five-year
Weis veteran Kurt Schertle was promoted to
COO. In that capacity, he will oversee the company’s day-to-day operations and will continue to oversee all aspects of the company’s
marketing, merchandising, procurement and
advertising for its center store, perishable and
pharmacy departments. And the company is committed to growing. For 2014, Weis Markets has committed
$100 million to capital spending. The company’s most recent new store, which held
its grand opening March 2 in Flanders, N.J.,
features expansive fresh departments and a
full-service pharmacy.
The store also includes advanced refrigeration and climate-control technologies designed
to lessen the store’s impact on the environment
and global warming. These technologies will
reduce the store’s refrigerant usage by 60%
compared with a conventional supermarket.
As a result, it is expected to achieve the U.S.
EPA’s GreenChill Gold-Level Certification.
Weis Markets also is focused on expanding
its portfolio of pharmacy services.
The 2013 wave of generic drug launches
caused a decline of 2.2% in comparable pharmacy sales, according to Weis Markets’ annual report. In response to that decline, Weis
Markets is doubling down on health-andwellness initiatives.
“As part of management’s strategy to offset this decline, Weis Markets is emphasizing
a continued focus on immunizations, while
implementing in-store pet medications and
a medication synchronization program,” the
company noted in its annual report.
DrugStoreNews.com
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Bartell pushes ‘next generation’ stores
By Antoinette Alexander
Likely still reeling from the thrill of the Seattle
Seahawks landing their first Super Bowl victory, Seattle-based Bartell Drugs celebrated the
event in style by hoisting the world’s largest No.
12 flag onto a flag pole at its headquarter office,
but it never took its eye off the main objective —
providing healthcare services to residents in the
Pacific Northwest.
Bartell Drugs may be the oldest familyowned drug store chain in the United States,
but don’t let that fool you. This retailer remains
on the cutting edge, as evidenced by its array
of in-store healthcare services and events, as
well as its “next generation” store renovations.
Among the more recent developments was
the company’s announcement in late 2013 that
it had entered the retail-based clinic space via
a partnership with a local health organization.
Bartell has teamed up with Group Health Cooperative to open clinics in two stores in Seattle
and one in the nearby city of Bellevue, Wash. The
program is called CareClinic: Group Health at
Bartell Drugs or, for short, CareClinic. The clinics
are staffed by Group Health nurse practitioners.
For the past few years, Bartell has held
Health & Beauty Events, and this spring was no
different. Aside from beauty demos and samples, the event this March also included mobile digital mammography screenings at select
locations. Additional health services included
blood-glucose testing, cholesterol testing, bone
density screenings for osteoporosis and bloodpressure testing.
Meanwhile, the company continues to roll
out its “next generation” format. Among the
more recent openings was a store in the Greenwood neighborhood. This “next generation”
store opened in October and includes an “Urban Market” with regionally produced products, an enlarged pharmacy and the “Greenwood Growler Station,” which offers an
on-tap selection of six rotating regional beers
and ales. Shoppers also can elect to take home
draft brews in half-gallon “growler” glass jugs.
bartell drugs
HQ: Seattle
2013 sales: $408 million
% change vs. 2012: 0.5%
No. of stores: 63
No. of stores with Rx: 63
Avg. store size: 15,000 sq. ft.
Rx sales: $228.5 million
% of sales from Rx: 56%
Sales per store: $6.5 million
Source: DSN estimates
Remodels, infusion drugs mark 75th year
By Barbara White-Sax
schnucks
HQ: St. Louis
2013 sales: $2.6 billion
% change vs. 2012: 0%
No. of stores: 101
No. of stores with Rx: 95
Avg. store size: 60,000 sq. ft.
Rx sales: $212.3 million
% of sales from Rx: 8.2%
Sales per store: $2.6 million
Source: DSN estimates
114 • april 28, 2014
Schnuck Markets will celebrate its 75th
year in business in 2014. The chain, which was
founded as a mom-and-pop shop in north St.
Louis in 1939, has grown to 101 stores serving
five states and employing nearly 15,000 people.
Schnucks’ spokesman Paul Simon said
that the family-owned and operated chain’s
unique combination of variety, value, quality and service set it apart from its competition. Scott Schnuck, who served as chairman
and CEO since 2006, handed the reins of the
company to his brother Todd Schnuck in
January 2014.
A big focus for the new CEO is security,
since the company suffered a data breach in
2013 in which 2 million of its customers’ payment card information was compromised in a
cyber attack. Schnucks has since hired a new
director of information security and continues
to look for ways to tighten data security.
The chain is focused on remodeling stores
based on the special needs of specific store
locations. In one location, Schnucks added a
drive-through pharmacy window; in another,
it expanded the pharmacy to allow for a patient consultation area. Several additional sites
are slated for remodels this year.
Last year, Schnucks opened an infusion
healthcare facility, a state-of-the art, 6,500-sq.ft. site that also includes Schnucks regional
specialty pharmacy. Infusion is a “natural
progression of the company’s specialty pharmacy division launched in 2008,” the chain
said. The specialty pharmacy is devoted to
medications that treat chronic conditions and
provides support to all Schnucks in-store
pharmacy patients.
The chain has expanded its existing $4 and
$10 prescription program to include $2 oral
diabetes mediations in several categories. The
program also includes free prescription prenatal vitamins and free generic oral antibiotics.
“Schnucks pharmacies are very excited
about our new $2 oral diabetes medicine program,” Simon said. Many of the chain’s pharmacies also have diabetes specialists.
DrugStoreNews.com
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K-VA-T boosts marketing efforts
By Amanda Baltazar
K-VA-T has been getting the word out
about Food City pharmacies in the past year
with a robust marketing campaign. A TV
commercial, three radio spots, outdoor bulletins, pump toppers for Gas & Goes gas stations and a pharmacy app were all designed
to bring more customers into the stores.
In the digital world, it has promoted its flu
shot and marketed its pharmacy app on the
company’s website and via social media. The
new app allows patients to refill prescriptions,
access health and drug information, and get
discounts and coupons. Other pharmacy services are promoted through the app, such as
its prescription discount club and text reminders when prescriptions are filled.
Technology added over the last couple of
years has been successful. Outbound Interactive
Voice Response to provide personalized
phone messages informing customers of
appointments, refills and prescriptions that are
ready also has been popular, with more than
20% of customers opting for texts rather than
phone calls. Likewise, the company’s health
portal has been hugely popular, and online
refills are starting to gain momentum.
“We can now offer services that pharmacy patients not only want, but expect in today’s competitive environment,” Mickey Blazer, director
of pharmacy operations, said. “The challenge
is making sure the services are communicated to
the patient, and educating the patient how to best
utilize them to their advantage.”
K-VA-T also has added durable medical
equipment to its website, including shower seats
and wheelchairs, and has added 150 items to its
prescription discount club, which has 30-day
supplies for $4 and 90-day supplies for $9.99.
In the past year, K-VA-T purchased a Kmart
patient file in Wise, Va., an independent
pharmacy in Grundy, Va., and an independent
pharmacy in Vansant, Va.
k-va-t food city
HQ: Abingdon, Va.
2013 sales: $2.2 billion
% change vs. 2012: 2.4%
No. of stores: 107
No. of stores with Rx: 77
Avg. store size: 42,000 sq. ft.
Rx sales: $162 million
% of sales from Rx: 7.5%
Sales per store: $20.2 million
Source: Company reports, DSN estimates
Looking at the big picture
save mart
HQ: Modesto, Calif.
2013 sales: $4.6 billion
% change vs. 2012: .5%
No. of stores: 226
No. of stores with Rx: 108
Avg. store size: 60,000 sq. ft.
Rx sales: $184.9 million
% of sales from Rx: 4%
Sales per store: $20.3 million
Source: DSN estimates
116 • april 28, 2014
Privately held Save Mart Supermarkets operates stores throughout the Central Valley
of California, the San Francisco Bay Area and
Northern Nevada under the banners Save Mart,
Lucky and FoodMaxx. In March, the company
reorganized to focus on these three banners and
to restructure its corporate governance.
The company’s plan is to be a health-andwellness resource for its customers, integrating food and health into its pharmacies.
“Our ultimate goal is to ensure the quality of
our customers’ lives. At the end of the day, you
don’t just want to increase the quantity of someone’s life, but the quality,” said Robert Vaughan,
senior director of pharmacy operations.
It also is looking at the big picture. In March,
Save Mart agreed to provide organic waste
to California Safe Soil, which recycles organic
waste into a liquid fertilizer. This product, called
Harvest-to-Harvest replenishes the nutrient
value of the soil to increase plant growth and
crop yields.
Last year, Save Mart Supermarkets also
continued to raise money through its BEAT
campaign in collaboration with the American
Heart Association. By mid-year, the company
had collected more than $300,000 of the
$400,000 it had pledged for the year from online
donations and sales of heart icons in stores.
“Heart disease is the No. 1 killer of women in
our country, with 1-in-3 being diagnosed each
year. We, as a company and as individuals,
are committed to building awareness and
raising funds to help protect the heartbeat of
our homes,” said Steve Junquiero, Save Mart’s
president and CEO.
Save Mart planned a series of initiatives
for the campaign, including specially
produced television and radio commercials,
digital media featuring real-life survivors,
heart-healthy recipe Pinterest sweepstakes,
pharmacy health fairs with preventive
screenings, shelf tags placed throughout the
stores identifying heart-healthy products and
participation in the AHA’s Heart Walks, as
well as employee events.
DrugStoreNews.com
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Increasing pharmacists’ visibility
By Barbara White-Sax
Roundy’s Supermarkets operates stores under
five retail banners in Wisconsin, Minneapolis/St.
Paul and in the greater Chicago area.
In the fourth quarter, Roundy’s acquired 11
Dominick’s locations in the Chicagoland area
from Safeway. The stores will be reopened under
Roundy’s Mariano’s banner, with each location
tailoring its merchandise to its customer base.
Roundy’s also embarked on a renewal campaign designed to position its 69 Milwaukee metro area Pick ’n Save stores as the premier grocery
operator in that market.
Pharmacy is a key component of all Roundy’s
stores. “Our newest stores feature a format that
lends itself to increased consumer interaction
with lower counters and a greater area of visibility for our patients and customers,” said James
Hyland, Roundy’s VP of investor relations and
corporate communications. “Most of our new
pharmacies incorporate a consultation/immuni-
zation room that is used to enhance the patientpharmacist interaction and relationship.”
Roundy’s automated refill program ended
its first full year and has exceeded expectations.
“Our pharmacists have been exemplary in explaining the clinical value and convenience that
this valuable program offers,” Hyland said. “We
anticipate an even greater expansion of this program in 2014.”
In late 2013, Roundy’s added a manager of
clinical care to its team to coordinate immunization and MTM programs, and to assist in pursuing new partnerships within its operating area.
Hyland said that Roundy’s pharmacists are
unique in the communities in which they practice since they provide a distinct level of service
unavailable in big box or conventional chain
pharmacy. “They offer convenience, a full slate of
retail and clinical services,” he said. “We are very
proud of the pharmacy team we’ve assembled
and look forward to advancing both our business
and the profession of pharmacy.”
roundy’s
HQ: Milwaukee, Wis.
2013 sales: $3.9 billion
% change vs. 2012: 1.5%
No. of stores: 166
No. of stores with Rx: 113
Avg. store size: 62,000 sq. ft.
Rx sales: $191.1 million
% of sales from Rx: 4.9%
Sales per store: $23.5 million
Source: Company reports, DSN estimates
Staying true to discount Rx roots
marc glassman
HQ: Cleveland
2013 sales: $1.2 billion
% change vs. 2012: 1.8%
No. of stores: 61
No. of stores with Rx: 43
Avg. store size: 40,000 sq. ft. and 50,000 sq. ft
Rx sales: $152.5 million
% of sales from Rx: 13.2%
Sales per store: $18.9 million
Source: DSN estimates
118 • april 28, 2014
Marc’s is about deals. The stores feature
grocery, health and beauty aids, but the star
attraction is the chain’s ever-changing mix of
hot deals and closeout merchandise. The deep
discount retailer also offers a huge selection in
housewares, toys and seasonal merchandise.
The chain began as a deep-discount drug
store, and CEO Marc Glassman says the chain
is good at “buying well and selling fast.” In an
effort to find other items that turn quickly, the
chain added more food to its merchandise mix.
“We just want to turn product fast at the lowest
prices,” Glassman said.
The fresh produce department is a big focus
at the chain. Marc’s is dedicated to buying the
freshest, highest-quality fruits, nuts and vegetables directly from small local farms and from
around the world to offer the best quality at the
lowest prices to its customers.
True to its discount pharmacy roots, price
is a focus in Marc’s pharmacy department as
well. The chain features generic savings programs with 30-day generic medications for
$1.98 and 90-days for $3.99. All pharmacies
have a pharmacist that is certified to administer flu, hepatitis, pneumonia, shingles or
Tdap immunizations. Medication therapy
management services also are available at
all the chain’s pharmacies, and customers
can refill prescriptions using Marc’s online
prescription refills.
Pet medicines for customers’ furry companions also are a strength at the chain, with many
pet prescriptions included on Marc’s discounted generic savings program.
Marc Glassman closed the pharmacy departments in 2-of-its-4 XPect Discounts stores in its
Milford and Cromwell, Conn., locations in 2013.
The decision came after the company recently
“updated and modernized” those locations.
Marc’s now operates four locations in
Connecticut under the Xpect Discount banner and 57 in Ohio under the Marc’s banner. Stores range in size from 18,000 sq. ft. to
48,000 sq. ft., and more than 40 of the locations
have pharmacies.
DrugStoreNews.com
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Offering full menu of health services
By Antoinette Alexander
Price Chopper Supermarkets, which is owned
by Golub, prides itself on innovative food merchandising and leadership in community service, and judging by several recent initiatives, it
should add health services to the list.
Providing health services has long been a focus for the supermarket chain as all of its pharmacists are certified immunizers and its menu of
signature programs includes Diabetes AdvantEdge, which provides members with free and
discounted medications and supplies; Rx AdvantEdge, a prescription drug savings plan; and
free antibiotics. But with the Affordable Care Act
placing a greater focus on the need for preventive
and efficient health care, Price Chopper is working to offer even greater access and further improve patient outcomes.
One of the more recent developments is the
opening of a second QuickCare health clinic in
Latham, N.Y., via a partnership with QuickCare
and Ellis Medicine. The first QuickCare clinic is
located in a Price Chopper store in Malta, N.Y.
The clinics, staffed by an Ellis Medicine nurse
practitioner, mark the first such facilities within
retail stores in New York’s Capital Region.
Meanwhile, the grocer announced in late 2013
that it has partnered with CDPHP to offer health
services and screenings at new Health Stations
located at Price Chopper pharmacies throughout
Upstate New York. Located in at least a half-dozen Price Chopper stores, the Health Stations provide free blood pressure, weight, heart rate, blood
oxygen and temperature readings. In addition,
patients can create a personal health assessment
that can be printed at the Health Station or online
at PriceChopper.com.
“Pharmacies can play an integral role by providing greater access to screenings and valuable health
services. Price Chopper is in a unique position to
offer access and advocate wellness programs,”
said Kathy Bryant, Price Chopper’s VP pharmacy,
when announcing the new Health Stations.
price chopper
HQ: Schenectady, N.Y.
2013 sales: $3.6 billion
% change vs. 2012: 2.5%
No. of stores: 132
No. of stores with Rx: 87*
Avg. store size: 60,000 sq. ft.
Rx sales: $140 million
% of sales from Rx: 3.9%
Sales per store: $27.3 million
* Includes 84 in-store pharmacies and three free-standing pharmacies
near health clinics
Source: Company reports, DSN estimates
New services to boost adherence
navarro discount pharmacy
HQ: Miami
2013 sales: $340.1 million
% change vs. 2012: 1.2%
No. of stores: 33
No. of stores with Rx: 33
Avg. store size: 16,200 sq. ft.
Rx sales: $104.2 million
% of sales from Rx: 30.6%
Sales per store: $9.4 million*
* All retail Rx and front end
Source: Company reports
120 • april 28, 2014
During the last year or so, Navarro
Discount Pharmacy has undergone a strategic
planning process and, looking ahead, the
regional player will continue emphasizing to
its patients the importance of healthy living
and medication adherence.
According to Juan Ortiz, president and CEO,
the company went through a strategic planning
process during the last 12 months that focused
on improving efficiencies, strengthening its
core business, analyzing retail store locations
by product assortment, reviewing pricing and
enhancing customer service.
As part of the effort, the company introduced
this past year various new services and products,
such as Navarro Express Online order/store pick
up and the EZ Meds pharmacy program. EZ
Meds aims to improve medication adherence and
accuracy by pre-packaging a customer’s medications and providing easy-to-follow instructions.
Its specialty pharmacy, Navarro Health
Services, also introduced additional offerings, such as hard-to-find chemotherapy and
HIV/AIDS medications. Ortiz noted that the
growth in its specialty pharmacy division
also is a key focus this year as it continues to
expand its network and serve patients with
personalized attention.
Furthermore, the company introduced a
Mobile Health and Wellness RV to the community as another way to better promote healthy
living, according to Ortiz. The new Mobile RV
offers free health exams, including glucose
and blood-pressure checks by pharmacists, as
well as workshops and vaccinations.
Meanwhile, the pharmacy retailer is celebrating the two-year anniversary of its private-label brand Vida Mia, the first brand in
the United States targeting Hispanics across
a variety of categories with bilingual product packaging and ingredients in English and
Spanish. During the last two years, Vida Mia,
which includes products across a wide range
of categories, including OTC and beauty, has
sold more than 7 million product units comprised of approximately 1,000 SKUs.
DrugStoreNews.com
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Expanding chain hones Rx focus
By Barbara White-Sax
Lewis Drug is on an expansion tear — last
year the chain added two stores, and it plans to
acquire an additional 10 stores in 2014. The acquisitions will increase the regional chain’s store
count by 30%.
While the chain is growing its store count,
it also continues to experiment with its merchandise mix, testing out new strategies and
finding new opportunities in the markets it
operates in South Dakota, Iowa and Minnesota. Last year, the chain had strong growth in
both prescription and front-end sales.
Mark Griffin, president and CEO, said one
of the chain’s strengths was “the ability to
adapt quickly to changes in our markets.” The
chain, he said, aims to always be the first stop
for everything on its customers’ shopping lists.
“We have listened to our customers and
have designed a store that will make their
shopping experience at Lewis more enjoyable
and convenient,” he said. New stores include
cosmetic boutiques and feature lower-profile
fixtures to make the stores easier to navigate.
Pharmacy was a strong department for the
chain last year. The chain focused store remodels on creating state-of-the-art pharmacies,
which include consultation/immunization
rooms at a number of stores.
The chain is expanding its pharmacy services in 2013. “Our SmartSync medication synchronization program that allows customers to
pick up their prescriptions once a month continues to grow rapidly,” Griffin said. “We also
have expanded our immunization services
last year.”
In the front end, the chain significantly expanded its pet, grocery, and lawn and outdoor
garden centers, a department that has had
particularly strong sales at the chain. “We also
increased our television advertising, emphasizing seasonal merchandise and pharmacy
services,” Griffin said.
lewis drug
HQ: Sioux Falls, S.D.
2013 sales: $171 million
% change vs. 2012: 6.2%
No. of stores: 37*
No. of stores with Rx: 36*
Avg. store size: 4,000 sq. ft. and 40,000 sq. ft.**
Rx sales: $117 million
% of sales from Rx: 68%
Sales per store: $4.6 million
* As of Dec. 31, 2013
** Operates two formats
Source: Company reports
Catering to a smaller, rural market
fruth pharmacy
HQ: Point Pleasant, W.Va.
2013 sales: $120 million
% change vs. 2012: NA
No. of stores: 27
No. of stores with Rx: 27
Avg. store size: 10,000 sq. ft.
Rx sales: $101 million
% of sales from Rx: 83%
Sales per store: $4.4 million
Source: Company reports
122 • april 28, 2014
Customer service and strong customer relationships continue to be Fruth Pharmacy’s
strengths in a competitive market. “We cater to
smaller markets by offering them a wider product selection, and we have the ability to special
order products for our customers as well. We also
have strong gift and seasonal offerings that give
rural customers an alternative to the malls,” said
Fruth president and CEO Lynne Fruth.
With an eye on being a worthy competitor to
mall-shopping, the chain continues to experiment with new categories to offer its customers
a wide selection of products in a convenient,
close-to-home location. “We expanded the pet
category — which includes pet prescriptions and
heartworm, flea and tick medications — as well
as additional food offerings and other supplies,”
she said. The chain also has experimented with
gluten-free foods in its expanded grocery aisles.
In the pharmacy department, the chain remodeled the pharmacy to provide counseling
and immunization space in the four stores the
chain remodeled or moved last year. The chain
expanded immunization services and patient
counseling, and continues to grow in 340B partnerships. “We also are in the beginning phase
of a central fill/central processing/call center,
which should be up and running this calendar
year,” Fruth said.
Fruth has been creative with its promotions.
The chain has been successful with customerloyalty programs, and it continues to grow those
programs. “We expanded our Rewards Program,
which includes the buy-six-get-one-free promos,
which have been very effective in soda and electronic cigarettes,” Fruth said. “We also changed
our rewards to be immediate at the register with
dollar-off offers, and those have been very popular with our customers.”
Recognizing the success of the rewards program in the front of the store, the chain also is
now providing rewards on prescriptions that
meet with federal guidelines. Fruth is experimenting with an Every Day Low Price program
on staple items and has seen that program’s popularity grow steadily.
DrugStoreNews.com
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Elevating in-store beauty services
By Michael Johnsen
Pharmaca Integrative Pharmacy’s point of difference is a high-touch service model featuring
licensed health and beauty professionals — from
practitioners in the aisle, the pharmacist behind
the counter to the aesthetician in an expanded
beauty offering. And the company this past year
has focused on cementing those points of difference by expanding the services available.
For beauty patrons, that means offering new
services like mini-facials, brow shaping and waxing. “This is one of our biggest opportunities
going forward — the expansion of the natural
beauty area,” Laura Coblentz, Pharmaca VP marketing, told DSN. “We are expanding our product offerings [to] more specialty beauty [and]
specialty cosmetics.”
The company’s new store in Greenwood Village, Colo., opening in May, will showcase Pharmaca’s latest approach to beauty. “That will have
an expanded beauty department — 50% bigger
than [in] our existing store base,” she said.
On the pharmacy side, Pharmaca has expanded its immunization offerings to the full portfolio
of vaccines available at retail. “We were originally focused on flu, pneumonia and whooping
cough,” Coblentz said. “Now we’re offering a
full suite of travel vaccinations, as well as HPV,
meningitis, etc.”
With partner LDM Group, Pharmaca has
identified two large patient groups for targeted messaging and couponing — patients
taking a statin and patients taking an antibiotic. Those patients taking a statin are made
aware of the nutrient depletions associated
with that therapy, such as Co Q-10, and are offered a coupon for a store-brand supplement.
The same goes for antibiotics, only a probiotic
is offered.
And the company is expanding into the pet
meds business. “We have brought in a suite of
pet medications, as well as expanding our pet
sections in our store,” Coblentz said.
pharmaca
HQ: Boulder, Colo.
2013 sales: $112 million
% change vs. 2012: 5.7%
No. of stores: 24
No. of stores with Rx: 24
Avg. store size: 4,200 sq. ft.
Rx sales: $59.8 million
% of sales from Rx: 53.4%
Sales per store: $4.7 million
Source: DSN estimates
Serving more customers, faster
By Barbara White-Sax
ritzman pharmacies
HQ: Wadsworth, Ohio
2013 sales: $60 million*
% change vs. 2012: NA
No. of stores: 26
No. of stores with Rx: 26
Avg. store size: 1,800 sq. ft.
Rx sales: $58 million*
% of sales from Rx: 95.3%
Sales per store: $2.9 million*
*For 21 stores, year ended December 2013
Source: Company reports
124 • april 28, 2014
Wadsworth, Ohio-based Ritzman Pharmacies
significantly increased its store count in 2013 with
the acquisition of five Mast Pharmacies. “The
acquisition fills out our footprint and puts us in
south Ohio in rural markets, which we do well
in,” said Robin Barnby, Ritzman’s VP marketing
and medical services.
In the pharmacy arena, Ritzman concentrated
on immunizations and medication therapy management. “We do all immunizations allowed by
the state of Ohio,” Barnby said. The chain also
remodeled one store to accommodate a larger
consulting area — a model Ritzman is following
whenever it remodels a location.
The regional chain is focused on its medsync program, which is rolling out chainwide.
Ritzman also won preferred pharmacy status
from the largest employer in Ohio’s Summit
County, Summa Health Systems.
In an effort to reach more consumers, the chain
added automation to its compliance packaging.
“We now have the ability to serve more customers faster with this service,” Barnby said. “We are
one of the few pharmacies that offer this service,
since it’s usually done in facilities. The ability to
have medicines packaged this way is very important to families with an elderly family member
who takes many medications. It’s something that
enables patients to be in their homes rather than
move to a facility.”
Ritzman named Beth Husted as its new director of pharmacy practices. “Under Beth’s direction, that department will continue to grow and
add new services and new programs,” Barnby
said. Yet Barnby said the chain’s success depends
more on its staff than on any efforts to add new
pharmacy services or remodel pharmacy departments. “All of the services that we offer are pretty
much the industry standard,” she said. “It’s important for us to offer them to our customers, but
our area of differentiation is our customer service.
It’s our philosophy to know our customers and
serve them well. We have amazing employees
that go above and beyond to serve customers.”
DrugStoreNews.com
Canada PowerRx
Canadian pharmacists focus on health services
By Richard Monks
The drug store and pharmacy business in
Canada is flourishing. A recent report from the
Canadian Institute of Health Information found
that Canadians spent a record $29.3 billion on
prescription drugs last year.
While Canadians spent more than ever on
prescription drugs, the CIHI report noted that
the type of drugs being dispensed is changing
and having an impact on growth in the pharmacy sector. A greater availability of generics, the
report said, has slowed the country’s annual rate
of spending growth to its lowest point in almost
two decades.
Still, drug stores north of the border continue
to prosper as pharmacists take on more responsibilities and provide more health-related services.
“Pharmacists are on the frontlines of health
care and offer a variety of convenient and accessible services for their patients up to 24 hours a
day with no appointment,” Ontario Pharmacists
Association chairman Carlo Beradi said.
As pharmacists take on a greater role in patients’ care, Canada’s overall healthcare system
is benefitting, Beradi said. The “9,000 Points of
Care” report issued last year by the Canadian
Association of Chain Drug Stores said that nation’s chain and independent pharmacies provide $12.5 billion in economic value to Canada’s
healthcare system every year.
That value, the report said, comes from preventing hospitalizations, offering a strong portfolio of generic medications and making the most of
an efficient distribution system and supply chain.
Yet, while pharmacy is definitely playing a
central role in controlling healthcare costs, a
majority of Canadians remain unaware of the
industry’s capabilities. For instance, Beradi
noted that a survey done last year in Ontario
showed that only 53% of people in the province were aware that pharmacists do more than
dispense medication.
Pharmacists in four provinces — Alberta, Sas-
katchewan, Manitoba and Nova Scotia — can
prescribe drugs to treat minor ailments, and the
governments of New Brunswick and Quebec are
considering extending that power to pharmacists in those provinces as well. And in Ontario,
pharmacists can now write prescriptions for
smoking-cessation products.
Meanwhile, just as has been the case across
the United States, retail pharmacies in Canada
have become the go-to outlets for immunizations. In Ontario, the country’s most populous
province, 750,000 people received free flu vaccinations through the end of March — that’s three
times the number of a year ago.
Ontario Pharmacists Association CEO Dennis
Darby said the growth in the number of people
who received the flu shot at a pharmacy this
season is a testament to the fact that Canadians have developed a high level of trust in their
pharmacist to provide convenient, high-quality
healthcare services. “It’s a win for the public and
government,” he said.
Rx giant evolves with consumers needs
shoppers drug mart
HQ: Toronto
2013 sales: $11.1 billion*
% change vs. 2012: 2.6%
No. of stores: 1,377
No. of stores with Rx: 1,309
Avg. store size: 10,000 sq. ft.
Rx sales: $5.2 billion*
% of sales from Rx: 47.3%
Sales per store: $8 million*
* $ Canadian
Source: Company reports
126 • april 28, 2014
With government regulators giving their final approval to Loblaw Cos.’ $12.4 billion takeover of Shoppers Drug Mart late last month,
the 1,377-store drug chain has become part
of one of Canada’s largest and most potent
retailing groups.
SDM — which in many observers’ opinions,
represents the epitome of the chain drug retailing north of the border — will give Loblaws a
network of approximately 2,738 stores and 1,824
pharmacies across the country. The company is
expected to generate more than $42 billion in
annual revenue.
Despite becoming part of the Loblaws empire, SDM will continue to operate as a separate company. Executives said it would not
have made sense to dissolve a highly respected
50-year-old brand.
As it moves into the next phase of its history,
SDM will continue to evolve with consumers’
needs and desires, the company said.
Over the past few years, that strategy has
seen the company bolster its presence in Canada’s highly competitive beauty care space and
strengthen its position in the company’s changing healthcare system.
SDM operates 1,253 Shoppers Drug Mart and
Pharmaprix stores in all 10 Canadian provinces
and the country’s two territories. In addition,
the company licenses or owns 56 medical clinic
pharmacies under the Shoppers Simply Pharmacy banner, as well as six Murale luxury beauty stores. SDM’s network is rounded out by 62
Shoppers Home Health Care stores.
Outside of its retail network, the company
owns Shoppers Drug Mart Specialty Health Network, a provider of specialty drug distribution,
pharmacy and comprehensive patient support
services; and MediSystem Technologies, a provider of pharmaceutical products and services to
long-term care facilities.
“In what remains a highly-competitive and
challenging marketplace, it is clear that our value
proposition and unwavering commitment to
provide the best in-patient care and customer
service continues to resonate with patients and
customers alike,” president and CEO Domenic
Pilla said.
DrugStoreNews.com
Canada PoweRx
Competing with beauty retailers
By Richard Monks
After selling off the final portion of its stake in
Rite Aid last summer, the Jean Coutu Group has
moved into what it says is the next phase in its
45-year history.
Executives noted that shedding the 32% interest in Rite Aid that it held since 2006 has given the
407-store franchise chain the financial resources
to evolve its business model, expanding its ability to be a frontline healthcare provider to patients across Quebec and parts of Newfoundland
and Ontario, as well as putting its stores on par
with some of Canada’s most prestigious beauty
care merchants.
The company points out that its beauty care
selection is among the most comprehensive in
North America, offering shoppers a wide selection of mass market and prestige brands — many
of them unique to Jean Coutu stores — in upscale
departments staffed by trained cosmeticians.
“Our continuous training program for cos-
meticians — one of the most demanding in
the industry — allows us to offer our customers the best beauty expertise in our sector, as
well as beauty tips of an outstanding quality,” a
Jean Coutu spokeswoman explained.
With the Canadian health system continuing
to evolve and pharmacies playing a more central
role in patient care, Jean Coutu has positioned itself to capitalize on these new market dynamics.
For instance, Pro Doc, the generic drug manufacturing unit it has operated for the past seven
years, has allowed the company to be at the center of the growing trend toward generic drug use.
In late 2012, Jean Coutu delved a little deeper into
health care with the acquisition of a 50% stake
in orthotic and prosthetic devices supplier Le
Groupe Medicus. These expanded healthcare
services complement such already established
programs as hypertension management, advanced pharmacy systems in its stores and mobile applications that give patients more prescription refilling options.
Emphasizing patient relationships
By Richard Monks
jean coutu
HQ: Longueuil, Quebec
2013 sales: $2.7 billion*†
% change vs. 2012: 0.2%
No. of stores: 407
No. of stores with Rx: 407
Avg. store size: 13,000 sq. ft.
Rx sales: $1.8 billion*
% of sales from Rx: 64.2%
Sales per store: $6.7 million*
* $ Canadian
†
For fiscal year ended March 2, 2013
Source: Company reports, DSN estimates
Executives at the Uniprix Group say the
chain’s objectives have never wavered far from
what they were when the company was formed
37 years ago.
“We are still focused on two objectives: significantly increasing both sales and Uniprix brand
awareness,” said Uniprix president and CEO
Francois Castonguay.
With community pharmacies playing a more
central role in patients’ health care, Uniprix has
put its pharmacists front and center in its promotional efforts. An advertising campaign launched
last year, for example, focuses on what Castonguay calls the “family pharmacist.”
The campaign, Castonguay said, anticipates
pending changes in Quebec laws that will expand pharmacists’ scope of practice and make
them even more involved in patient care.
“Because of this, we are focusing even
more on our close relationships with people,”
rexall pharma plus
HQ: Mississauga, Ontario
2013 sales: $2.4 billion*
% change vs. 2012: 2.5%
No. of stores: 454
No. of stores with Rx: 454
Avg. store size: 12,000 sq. ft.
Rx sales: $1.1 billion*
% of sales from Rx: 47%
Sales per store: $5.2 million*
* $ Canadian
Source: Company reports, DSN estimates
128 • april 28, 2014
Against the backdrop of a changing pharmacy
retail landscape in Canada that includes an expanded scope of pharmacy practice in some areas, Canadian retailer Rexall Pharma Plus continues to embark on the reinvention of its business.
As previously reported by DSN, the company
quietly opened in downtown Toronto in April
2012 its first new brand store, featuring a new
look, feel and flow. Fast-forward to today, and
35 of the company’s 454 store locations bear the
new brand. The company also is placing a greater
focus on urban retailing, and now has three twolevel stores — a first for the retailer.
The company also has launched a new website
and created a MyRexall concept so patients can
create a personalized account online and access
their medication profile. Going forward, it will
enhance the program so patients can view their
blood-pressure readings online, said CEO Frank
Scorpiniti. Also new is a mobile app.
Scorpiniti noted that the company has a “sig-
nificant acquisition program” underway. In 2012,
it acquired 18 stores, and in 2013 it acquired
20 stores. This year it plans to accelerate that
acquisition program.
The developments and growth happening at
Rexall are not only meant to enhance the shopping experience, but also to improve patient
outcomes and leverage the changing pharmacy
landscape within Canada. Parts of the country
— most notably Alberta, Saskatchewan and Ontario — have implemented an expanded scope
of pharmacy practice. For example, pharmacists
in Saskatchewan and Alberta can now assess patients and write prescriptions outside of a collaborative practice agreement. Scorpiniti anticipates
that Ontario will soon follow suit.
“Pharmacists in Alberta, Saskatchewan and
Ontario can really help improve the health status
of Canadians, create better patient outcomes and
lower overall healthcare costs,” Scorpiniti said.
“Rexall is now — and we are determined to continue to be — the market leader in bringing these
programs to life in community pharmacy.”
DrugStoreNews.com
uniprix
HQ: Saint-Leonard, Quebec
2013 sales: $1.9 billion*
% change vs. 2012: NA
No. of stores: 387
No. of stores with Rx: 387
Avg. store size: 8,500 sq. ft.
Rx sales: $1.2 billion*
% of sales from Rx: 65%
Sales per store: $4.9 million*
* $ Canadian
Source: Company reports, DSN estimates
National banner with indie touch
Reinventing the pharmacy practice
By Antoinette Alexander
Castonguay said.
As important as its pharmacy business is, Uniprix also has ensured that it stays on the cutting
edge in other core drug store areas.
The company’s protoype store design, for instance, makes its dermo-cosmetic centers the first
thing shoppers see when they enter the store.
Executives say the departments offer a sleek layout with very soft lighting and allow shoppers to
have their skin analyzed to ensure they get the
products that are best suited to their needs.
Meanwhile, one of the anchors of Uniprix’s
front end has been its private-label brand, Option
Plus. Offering store brand products across a wide
range of categories, Option Plus has been part of
the chain’s mix for 25 years and has been an integral part of building Uniprix’s reputation among
shoppers in Quebec.
“A recent survey found that 75% of Quebecers not only recognized the Option Plus graphic
signature, but also associated it with Uniprix,”
Castonguay said.
pharmasave
HQ: Langley, British Columbia
2013 sales: $1.4 billion*
% change vs. 2012: 7.7%
No. of stores: 500
No. of stores with Rx: 500
Avg. store size: 5,000 sq. ft.
Rx sales: $1.1 billion*
% of sales from Rx: 80%
Sales per store: $2.8 million*
* $ Canadian
Source: DSN estimates
DrugStoreNews.com
With 500 stores in nine provinces, Pharmasave
is 1-of-only-2 Canadian drug chains with stores
from coast to coast.
A 33-year-old cooperative that is owned and
governed by its members, Pharmasave offers
independent store owners across Canada the opportunity to tailor their businesses to local needs
while operating under a national banner. The
company’s stores range in size from 300-sq.-ft.
apothecary-style units to 15,000-sq.-ft. full-service drug stores. Some stores carry a full range
of home healthcare items, and many offer all or
some of the more than 700 Pharmasave brand
products provided by the company.
While each Pharmasave owner has complete
autonomy to run his or her business the way they
want, executives said the one thing that all of the
stores have in common is their insistence that
they provide the utmost in health-related products and services.
“Pharmasave pharmacists are available to provide services that go beyond dispensing the prescription,” the company said.
For instance, many of the company’s stores offer Pharmasaves Medication Manager, a program
that uses blister packaging to make it easier for
patients taking multiple medications to organize
their prescriptions, vitamins and supplements.
Almost all Pharmasave stores offer phone and
online refill reminders, and also many provide
patients with home delivery. The majority of
stores provide compounding services.
In addition, Pharmasave store owners give
customers access to the company’s Live Well
Consultations that let patients meet one-on-one
with a pharmacist to discuss their drug regimens and a wide range of other health-related topics. Executives noted that by working
closely with patients, Pharmasave pharmacists
have been able to drive outcomes and improve
patients’ health.
Many Pharmasave store owners also participate in the company’s Live Well Community
Seminars program, in which they provide educational forums on health-related topics to local
groups and organizations.
april 28, 2014 •
129