With more consumers using click-and-collect models and home delivery for prescription medications, eCommerce continued to drive double-digit growth in the non-traditional drug store channel, which generated $264.5 billion in sales, a $14.3 billion profit and a 1.4 percent growth rate from 2010-2015, according to IBISWorld’s December 2015 report titled “Pharmacies & Drug Stores in the US.”
Although consumers tend to be loyal to their preferred drug stores, 30 percent are more likely to patronize a drug store if it has a loyalty card that offers savings, thus increasing shopper loyalty, according to Diana Smith, senior research analyst of retail and apparel at Mintel.
National brands showing momentum in drug stores; private label standing out in mass/supercenter channel
January 20, 2015
During the recession, private-label products enjoyed increasing popularity as consumers looked for new ways to save on everyday purchases during the economic downturn. In fact, U.S. consumers spent $120 billion on private-label products during the past year, marking a year-over-year increase of 2.1 percent, according to Chicago-based Information Resources Inc. (IRI). However, this growth now seems to be leveling off, and this small uptick was largely driven by price increases, it reports.
A trip to the drug store is no longer just an opportunity to refill a prescription or restock the family first aid kit. Today’s retailers are instituting different programs to provide shoppers with a more value-added experience, experts note.
The drug store channel showed higher-than-average growth last year with unit sales increasing 2.2 percent versus a retail industry average decline of 0.6 percent in food, drug, convenience and mass merchandise stores, excluding Walmart, according to Susan Viamari, consumer insights expert at Chicago-based SymphonyIRI Group.
Convenience stores saw a sales growth of 2.6 percent in 2010, according to data from Euromonitor International, Chicago, which was a more robust increase than the grocery market overall during the same time period.