Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: Fan chart forecast of total U.S. drug store sales and expected forecast, with best and worst cases, 2006-16
- Market factors
- The aging population drives drug store visits
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- Figure 2: Population, by age, 2006-16
- Levels of obesity and diabetes on the rise
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- Figure 3: Age-adjusted prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2006
- Rising healthcare costs cause people to self-diagnose, self-medicate
- Retailer overview
- Other retail channels compete for health and wellness needs
- The consumer
- Physical stores preferred, Walgreens most visited drug store
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- Figure 4: Drug store retailers shopped (physical store), October 2011
- Drug store needs bought from other retailers limits visits to drug stores
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- Figure 5: Reasons for not shopping at drug stores, October 2011
- Most shoppers prefer to leave the store or browse and shop while they wait for prescriptions
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- Figure 6: Prescription refills at drug stores – shopping behavior, October 2011
- Price most important factor among drug store shoppers, convenience also a priority
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- Figure 7: Attitudes toward drug stores, October 2011
Insights and Opportunities
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- Offering faster home delivery can appeal to busy, incapacitated shoppers
- Support local business to drive affinity
- Help combat obesity through initiatives and incentives
- Expand photo and gift offerings
- Offer savings on prescriptions, healthcare
Inspire Insights
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- Inspire Trend: Experience is All
- Inspire Trend: Creature Comforts
Market Drivers
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- Key points
- The aging population drives drug store visits
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- Figure 8: Population, by age, 2006-16
- Levels of obesity and diabetes on the rise
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- Figure 9: Age-adjusted prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2006
- Rising healthcare costs cause people to self-diagnose, self-medicate
- Other retail channels visited for health and wellness needs
Market Size and Forecast
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- Key points
- Positive outlook for drug store industry
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- Figure 10: Total U.S. drug store sales and forecast, at current prices, 2006-16
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- Figure 11: Total U.S. drug store sales and forecast, at inflation-adjusted prices, 2006-16
- Fan chart forecast
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- Figure 12: Fan chart forecast of total U.S. drug store sales and expected forecast, with best and worst cases, 2006-16
Competitive Context
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- Competition heats up from other retail channels
- Mass merchandisers and warehouse clubs
- Traditional grocery
- Online and mail order
Segment Overview
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- Drug stores invest in private label
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- Figure 13: Drug store sales and forecast, by key segments, 2006-16
- Figure 14: Share of drug store sales and forecast, by key segments, 2006-16
- Figure 15: Drug store private label sales and share, by key segments, 2010 and 2011
Segment Performance—HBC
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- Key points
- HBC segment sees strong growth, favorable outlook
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- Figure 16: Drug store sales and forecast of HBC products, 2006-16
- Drug store retailers offer considerable amount of private label HBC items
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- Figure 17: Drug store sales of HBC products, total vs. private label, 2006-11
- Figure 18: CVS pharmacy daily moisture lotion for sensitive skin, 2011
- Figure 19: CVS pharmacy homeopathic cold relief lozenges, 2012
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- Figure 20: Rite Aid pure spring bath and shower gel, 2011
- Figure 21: Rite Aid pharmacy nighttime sleep aid, 2011
Segment Performance—General
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- Key points
- General segment sales will rebound
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- Figure 22: Drug store sales and forecast of general products, 2006-16
- Private label share has increased in the general segment
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- Figure 23: Drug store sales of general products, total vs. private label, 2006-11
- Figure 24: CVS private label just the basics baby diapers, 2011
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- Figure 25: CVS private label just the basics paper plates, 2011
Segment Performance—Refrigerated
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- Key points
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- Figure 26: Drug store sales and forecast of dairy products, 2006-16
- Private label share in drug store refrigerated segment sales dwindles
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- Figure 27: Drug store sales of refrigerated products, total vs. private label, 2006-11
- Figure 28: Walgreens private label “Nice” sweet cream butter, 2011
Segment Performance—Frozen
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- Key points
- Frozen segment sales lag behind other sectors at drug stores
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- Figure 29: Drug store sales and forecast of frozen products, 2006-16
- Expansion of private label brands into frozen will drive growth
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- Figure 30: Drug store sales of frozen products, total vs. private label, 2006-11
- Figure 31: Duane Reade’s “good & delish” lemon sorbet, 2012
Retailer Overview
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- Walgreens
- Duane Reade
- CVS Caremark
- Rite Aid
- Drugstore.com
- Target
- Walmart
- Supervalu (Osco/Sav-on)
- Other regional drug stores
- Bartell Drugs
- Kerr Drugs
- Navarro Discount Pharmacy (Hispanic owned)
- Discount Drug Mart
Marketing Strategies
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- Key points
- In-store merchandising and displays
- TV advertising
- CVS
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- Figure 32: CVS TV ad “I’m Laura and this is my CVS,” may 2011
- Kroger
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- Figure 33: Kroger TV ad “pet meds, prescriptions,” March 2011
- Rite Aid
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- Figure 34: Rite Aid TV ad “Prescription delivery,” February 2011
- Target
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- Figure 35: Target TV ad “Throat untickler,” September 2011
- Walmart
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- Figure 36: Walmart TV ad “Cheap Co-pay,” August 2011
- Walgreens
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- Figure 37: Walgreens TV ad “Staying on top,” April 2011
- Online and mobile initiatives
- Social media presence
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- Figure 38: Profiled companies retail stores and social media reach, Dec. 13, 2011
Innovations and Innovators
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- Rethinking the traditional drug store
- A new “Look” for Walgreens
- Rite Aid’s virtual health clinics
Drug Store Retailers Shopped
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- Key points
- Physical stores preferred over online drug stores, Walgreens most visited
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- Figure 39: Drug store retailers shopped (in-store vs. online), October 2011
- Women more likely than men to shop at Walgreens, CVS
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- Figure 40: Drug store retailers shopped (physical store), by gender, October 2011
- Younger shoppers least likely to shop at drug stores
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- Figure 41: Drug store retailers shopped (physical store), by age, October 2011
- Shoppers with highest household incomes shop at top two chains
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- Figure 42: Drug store retailers shopped (physical store), by household income, October 2011
- Shoppers with children likely to shop at Walgreens, CVS
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- Figure 43: Drug store retailers shopped (physical store), by presence of children in household, October 2011
Reasons For Not Shopping at Drug Stores
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- Key points
- Consumers buy drug store needs at other retailers, avoid shopping at drug stores
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- Figure 44: Reasons for not shopping at drug stores, by gender, October 2011
- Younger shoppers more likely to visit drug stores only when filling prescriptions
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- Figure 45: Reasons for not shopping at drug stores, by age, October 2011
- Little differences in reasons for not shopping at drug stores across household income groups
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- Figure 46: Reasons for not shopping at drug stores, by household income, October 2011
Type and Frequency of Items Purchased at Drug Stores
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- Key point
- Prescription medication most likely to be purchased every time shoppers visit drug stores
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- Figure 47: Frequency of purchasing select products at drug stores, October 2011
Online Drug Store Shopping
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- Key points
- Men more likely than women to purchase a variety of drug store items online
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- Figure 48: Items purchased at online drug store in last 12 months, by gender, October 2011
- Items purchased online varies with age
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- Figure 49: Items purchased at online drug store in last 12 months, by age, October 2011
- Household income plays little role in online shopping
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- Figure 50: Items purchased at online drug store in last 12 months, by household income, October 2011
Retailers Shopped for Prescriptions
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- Key points
- Walgreens is most common destination for prescription refills, CVS not far behind
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- Figure 51: Retailers visited for prescription refills in last 12 months (online vs. in-store), October 2011
- Walgreens leads, CVS and big box stores compete
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- Figure 52: Retailers visited for prescription refills in last 12 months (in-store), by gender, October 2011
- Younger shoppers more likely to fill prescriptions at Walmart, Target
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- Figure 53: Retailers visited for prescription refills in last 12 months (in-store), by age, October 2011
- Lower household income shoppers prefer Walgreens, Walmart
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- Figure 54: Retailers visited for prescription refills in past 12 months (in-store), by household income, October 2011
Prescription Shopping Behavior
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- Key points
- Women more likely than men to browse, shop while waiting for prescriptions
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- Figure 55: Shopping behavior when refilling prescriptions, by gender, October 2011
- Younger shoppers less likely to shop for other items while they wait for prescriptions
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- Figure 56: Shopping behavior when refilling prescriptions, by age, October 2011
- Little differences in behavior across household-income groups
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- Figure 57: Shopping behavior when refilling prescriptions, by household income, October 2011
Attitudes Toward Drug Store Shopping
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- Key points
- Price sensitivity among drug store shoppers
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- Figure 58: Attitudes toward drug stores, October 2011
- Women more discerning shoppers compared to men
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- Figure 59: Attitudes toward drug stores, by gender, October 2011
- Older consumers partial to particular drug store retailers
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- Figure 60: Attitudes toward drug stores, by age, October 2011
- Consumers with lower household incomes aim to stretch their dollars at drug stores
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- Figure 61: Attitudes toward drug stores, by household income, October 2011
Visits to Retail Health Clinics
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- Key points
- Most don’t use retail health clinics, among those visited Walgreens, CVS are tops
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- Figure 62: Visits to retail clinics (for self or others), October 2011
- Men more likely than women to visit retail health clinics
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- Figure 63: Visits to retail clinics for self, by gender, October 2011
- Younger shoppers more likely to visit retail health clinics
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- Figure 64: Visits to retail clinics for self, by age, October 2011
- Few differences in clinic visits among household income groups
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- Figure 65: Visits to retail clinics for self, by household income, October 2011
Attitudes toward Retail Health Clinics
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- Key points
- Immunizations primary reason for visiting retail health clinics
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- Figure 66: Reasons for visiting a retail health clinic, by gender, October 2011
- Younger shoppers more likely to visit retail health clinics for a variety of reasons
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- Figure 67: Reasons for visiting a retail health clinic, by age, October 2011
- Consumers with low household incomes visit clinics due to lack of health insurance
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- Figure 68: Reasons for visiting a retail health clinic, by household income, October 2011
Attitudes toward Treatment at Retail Health Clinics
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- Key points
- Half of visitors to retail clinics received treatment in timely manner
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- Figure 69: Success of treatment at a retail health clinic, by gender, October 2011
- Older consumers most satisfied with efficiency, treatment at retail clinics
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- Figure 70: Success of treatment at a retail health clinic, by age, October 2011
- Lower-income households least satisfied with health clinics
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- Figure 71: Success of treatment at a retail health clinic, by household income, October 2011
- High incidence of repeat visits among consumers
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- Figure 72: Likelihood of repeat visit to a drug store retail health clinic, October 2011
- Men likely to accompany spouses, women likely to accompany children to retail health clinics
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- Figure 73: Who received treatment at retail health clinic, by gender, October 2011
- Grown children accompany older parents to health clinics
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- Figure 74: Who received treatment at retail health clinic, by age, October 2011
- Highest earners likely to visit health clinics for spouse/partner’s treatment
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- Figure 75: Who received treatment at retail health clinic, by household income, October 2011
- Nonusers likely to recommend health clinics to friends and family
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- Figure 76: Likelihood of recommending a health clinic to friend or family member, October 2011
Impact of Race and Hispanic Origin
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- Key points
- Hispanics, blacks most likely to shop at Walgreens
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- Figure 77: Drug store retailers shopped (physical store), by race/Hispanic origin, October 2011
- Hispanics likely to purchase vitamins/supplements, OTC online
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- Figure 78: Items purchased at online drug store in last 12 months, by race/Hispanic origin, October 2011
- Hispanics prefer Walgreens for prescriptions
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- Figure 79: Retailers visited for prescription refills in last 12 months (In-store), by race/Hispanic origin, October 2011
- Across all race/ethnic groups consumers don’t like to wait for prescriptions
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- Figure 80: Prescription refills at drug stores—shopping behavior, by race/Hispanic origin, October 2011
- Price, convenience most important when shopping at drug stores
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- Figure 81: Attitudes toward drug stores, by race/Hispanic origin, October 2011
- Hispanics prefer Walgreens, Asian/Pacific Islanders choose CVS among health clinics
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- Figure 82: Visits to retail clinics for self, by race/Hispanic origin, October 2011
- Blacks choose clinics for convenience, affordability
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- Figure 83: Reasons for visiting a retail health clinic, by race/Hispanic origin, October 2011
- Blacks least satisfied with treatment at health clinics
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- Figure 84: Treatment at a retail health clinic, by race/Hispanic origin, October 2011
- Two thirds of consumers are likely to repeat visits to retail clinics, whites most likely
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- Figure 85: Likelihood of repeat visit, by race/Hispanic origin, October 2011
- Hispanics likely to accompany older family member to health clinics
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- Figure 86: Who received treatment at retail health clinic, by race/Hispanic origin, October 2011
- All groups likely to recommend clinic
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- Figure 87: Likelihood of repeat visit, by race/Hispanic origin, October 2011
Custom Consumer Tables—Boomers vs. non-Boomers
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- Boomers slightly more likely to visit Walgreens, non-Boomers more likely to avoid drug stores
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- Figure 88: Drug store retailers shopped (physical store), by boomers/non-boomers, October 2011
- Non-Boomers more likely to purchase most categories online
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- Figure 89: Items purchased at online drug store in last 12 months, by boomers/non-boomers, October 2011
- Non-Boomers shopping at a variety of retailers for prescriptions
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- Figure 90: Retailers visited for prescription refills in past 12 months (In-store), by boomers/non-boomers, October 2011
- Boomers and non-Boomers prefer to drop off prescriptions, return later for pickup
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- Figure 91: Prescription refills at drug stores—shopping behavior, by boomers/non-boomers, October 2011
- Price, convenience important to Boomers and non-Boomers
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- Figure 92: Attitudes toward drug stores, by boomers/non-boomers, October 2011
- Non-Boomers more likely than Boomers to visit retail health clinics
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- Figure 93: Visits to retail clinics for self, by boomers/non-boomers, October 2011
- Regardless of generation, consumers visit clinics primarily for immunizations
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- Figure 94: Reasons for visiting a retail health clinic, by boomers/non-boomers, October 2011
- Both groups mostly remedied by treatment at retail clinics
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- Figure 95: Treatment at a retail health clinic, by boomers/non-boomers, October 2011
Appendix: Other Useful Consumer Tables
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- Drug store retailers shopped
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- Figure 96: Drug store retailers shopped (physical store), by gender and age, October 2011
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- Figure 97: Drug store retailers shopped (physical store), by gender and household income, October 2011
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- Figure 98: Drug store retailers shopped (physical store), by marital/relationship status, October 2011
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- Figure 99: Drug store retailers shopped (physical store), by household size, October 2011
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- Figure 100: Drug store retailers shopped (physical store), by education, October 2011
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- Figure 101: Drug store retailers shopped (physical store), by employment, October 2011
- Reasons for not shopping at drug stores
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- Figure 102: Reasons for not shopping at drug stores, by marital status, October 2011
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- Figure 103: Reasons for not shopping at drug stores, by household size, October 2011
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- Figure 104: Reasons for not shopping at drug stores, by employment, October 2011
- Online drug store shopping
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- Figure 105: Items purchased at online drug store in past 12 months, by gender and age, October 2011
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- Figure 106: Items purchased at online drug store in last 12 months, by gender and household income, October 2011
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- Figure 107: Items purchased at online drug store in last 12 months, by household size, October 2011
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- Figure 108: Items purchased at online drug store in last 12 months, by presence of children in household, October 2011
- Retailers shopped for prescriptions
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- Figure 109: Retailers visited for prescription refills in past 12 months (in-store), by gender and age, October 2011
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- Figure 110: Retailers visited for prescription refills in last 12 months (in-store), by gender and household income, October 2011
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- Figure 111: Retailers visited for prescription refills in past 12 months (in-store), by presence of children in household, October 2011
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- Figure 112: Retailers visited for prescription refills in last 12 months (in-store), by region, October 2011
- Prescription shopping behavior
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- Figure 113: Prescription refills at drug stores—shopping behavior, by gender and age, October 2011
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- Figure 114: Prescription refills at drug stores—shopping behavior, by gender and household income, October 2011
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- Figure 115: Prescription refills at drug stores—shopping behavior, by presence of children in household, October 2011
- Attitudes toward drug store shopping
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- Figure 116: Attitudes toward drug stores, by gender and age, October 2011
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- Figure 117: Attitudes toward drug stores, by gender and household income, October 2011
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- Figure 118: Attitudes toward drug stores, by presence of children in household, October 2011
- Visits to retail health clinics
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- Figure 119: Visits to retail clinics for self, by gender and age, October 2011
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- Figure 120: Visits to retail clinics for self, by gender and household income, October 2011
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- Figure 121: Visits to retail clinics for self, by marital/relationship status, October 2011
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- Figure 122: Visits to retail clinics for self, by presence of children in household, October 2011
- Attitudes toward retail health clinics
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- Figure 123: Reasons for visiting a retail health clinic, by gender and age, October 2011
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- Figure 124: Reasons for visiting a retail health clinic, by gender and household income, October 2011
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- Figure 125: Reasons for visiting a retail health clinic, by household size, October 2011
- Attitudes toward treatment at retail health clinics
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- Figure 126: Treatment at a retail health clinic, by marital status, October 2011
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- Figure 127: Treatment at a retail health clinic, by presence of children in household, October 2011
Appendix: Trade Associations
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