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.
For cold and flu season, allergy season and everything in between, drug stores provide consumers with the advice and relief they need for their ailments.
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.