Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Overview
- The market
- Total market
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- Figure 1: Fan chart forecast of total U.S. drug store sales, 2007-17
- Segment performance
- Market factors
- Growth of aging population likely to drive drug store visits and sales
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- Figure 2: Population growth, by age group, percent change 2013-18
- Expansion of retail clinics may spur drug store visits
- Competition from other channels affects traditional drug stores
- Retail channels
- The consumer
- Walgreens and CVS most likely to be visited, online shopping less common
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- Figure 3: Drug stores shopped, October 2012
- CVS most visited for prescriptions, online ordering low
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- Figure 4: Drug stores where prescriptions are normally filled, October 2012
- Items purchased at drug stores
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- Figure 5: Items typically purchased at drug stores, October 2012
- Figure 6: Items typically purchased at drug stores, October 2012 (continued)
- Lower prices, more sales would encourage more drug store shopping
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- Figure 7: Factors that would encourage more drug store shopping, October 2012
- Location and price important to drug store shoppers
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- Figure 8: Attitudes/opinions toward drug stores, October 2012
- What we think
Issues in the Market
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- How is the aging population impacting the drug store market?
- As healthcare costs rise, how will consumers utilize drug stores?
- How has increased competition from other channels affected drug stores?
- How central are pharmacies to the drug store experience?
Insights and Opportunities
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- Improve the store experience to encourage more visits
- Expand product selection
- Revamp pharmacy experience
- Create dollar section to improve price perception of drug stores
Trend Application
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- Inspire Trend: Green Technology
- Inspire Trend: Cam Cam
- 2015 Trends
- Old Gold
Market Size and Forecast
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- Key points
- Steady growth expected for drug stores
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- Figure 9: Total U.S. drug store sales and forecast, at current prices, 2007-17
- Figure 10: Total U.S. drug store sales and forecast, at inflation-adjusted prices, 2007-17
- Fan chart forecast
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- Figure 11: Fan chart forecast of total U.S. drug store sales, 2007-17
Market Drivers
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- Key points
- Aging population will drive drug store visits and sales
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- Figure 12: Population, by age, 2008-18
- Obesity epidemic likely to have an impact on drug stores
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- Figure 13: Prevalence of being overweight, obese, or extremely obese, among adults aged 20 or older, 1988-2008
- Expansion of retail clinics spurs drug store visits
- Competition from other retail channels impacts the drug store market
Drug Stores Sales Segments
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- Segment overview
- Key points
- All drug store segments expected to grow
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- Figure 14: Drug store sales by segment, 2007-17
- HBC accounts for largest share of drug store sales
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- Figure 15: Drug store sales, by segment, 2010 and 2012
- HBC
- Key points
- HBC is the segment leader of drug store sales
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- Figure 16: Drug store sales and forecast of HBC products, 2007-17
- Private label HBC grows significantly
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- Figure 17: Drug store sales of HBC products, total vs. private label, 2007-12
- Food & beverages
- Key points
- Sales of food and beverages at drug stores poised for annual growth
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- Figure 18: Drug store sales and forecast of food and beverages, 2007-2017
- Private label food and drink accounts for less than 10% of segment sales
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- Figure 19: Drug store sales of food and beverages, total vs. private label, 2007-12
- Other merchandise
- Key points
- Other merchandise likely to experience growth
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- Figure 20: Drug store sales and forecast of other merchandise, 2007-2017
- Other merchandise accounts for 11% of total segment sales
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- Figure 21: Drug store sales of other merchandise, total vs. private label, 2007-12
Retailer Overview
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- Drug stores
- CVS Caremark
- Duane Reade
- Rite Aid
- Supervalu (Osco/Sav-On)
- Walgreens
- Market threats and opportunities for drug stores
- Mass merchandisers
- Target
- Walmart
- Market threats and opportunities for mass merchandisers
- Online-only retailers
- Drugstore.com
- Soap.com
- Amazon.com
- Market threats and opportunities for online retailers
- Other regional drug stores
- Bartell Drugs
- Kerr Drugs
- Navarro Discount Pharmacy
- Discount Drug Mart
Social Media
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- Social media metrics
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- Figure 22: Key brand metrics, December 2012
- Market overview
- Brand usage and awareness
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- Figure 23: Brand usage and awareness of drug stores, October 2012
- Interaction with brands
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- Figure 24: Interaction with brands, October 2012
- Motivations for interacting with brands
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- Figure 25: Why people interact with brands, October 2012
- Online conversations
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- Figure 26: Percentage of online consumer conversation, by selected drug store brand, Sept. 18-Dec. 18, 2012
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- Figure 27: Trends in online mentions of selected drug store brands, by day, Sept. 18-Dec. 18, 2012
- Where are people talking about drug store brands?
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- Figure 28: Online mentions of selected drug store brands, by page type, Sept. 18-Dec. 18, 2012
- What are people talking about?
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- Figure 29: Online mentions by types of conversations concerning selected drug store brands, Sept. 18-Dec. 18, 2012
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- Figure 30: Online mentions by types of conversations concerning selected drug store brands, by day, Sept. 18-Dec. 18, 2012
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- Figure 31: Types of online conversations regarding selected drug store brands, by type of website, Sept. 18-Dec. 18, 2012
- Analysis by brand
- Walgreens
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- Figure 32: Walgreens—key social media indicators, Dec. 13, 2012
- Key online campaigns
- What we think
- Target
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- Figure 33: Target—key social media indicators, Dec. 13, 2012
- Key online campaigns
- What we think
- CVS
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- Figure 34: CVS—key social media indicators, Dec. 13, 2012
- Key online campaigns
- What we think
- Rite Aid
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- Figure 35: Rite Aid—key social media indicators, Dec. 13, 2012
- Key online campaigns
- What we think
- Walmart
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- Figure 36: Walmart—key social media indicators, Dec. 13, 2012
- Key online campaigns
- What we think
- Duane Reade
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- Figure 37: Duane Reade—key social media indicators, Dec. 13, 2012
- Key online campaigns
- What we think
Innovations and Innovators
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- Walgreens expands upscale store format
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- Figure 38: Vitamin vault at Walgreens Bucktown Store in Chicago, December 2012
- Rite Aid’s Next Generation Wellness store revives a dated format
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- Figure 39: Rite Aid’s next generation store vision center kiosk, October 2012
- Figure 40: Rite Aid’s next generation store diabetes diagnostics, October 2012
- Drug stores offer more products for men
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- Figure 41: Duane Reade’s men’s grooming aisle, April 2012
Marketing Strategies
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- Television advertising
- CVS
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- Figure 42: CVS TV ad, “Checkup ($10 off sports physicals),” August 2012
- Duane Reade
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- Figure 43: Duane Reade TV ad, “Two home run savings,” June 2012
- Rite Aid
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- Figure 44: Rite Aid TV ad, “More Plus,” September 2012
- Target
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- Figure 45: Target TV ad, “Dander,” April 2012
- Walmart
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- Figure 46: Walmart TV ad, “Tricia from Atlanta,” September 2012
- Print advertising
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- Figure 47: Walgreens’ happy and healthy magazine cover, October 2012
- Figure 48: Walgreens’ “ology” pages from happy and healthy magazine, October 2012
- Other marketing activity
Drug Stores Shopped
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- Key points
- Walgreens and CVS see most visits, online shopping less common
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- Figure 49: Drug stores shopped, in-store vs. online, October 2012
- Men and women have similar shopping preferences among drug stores
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- Figure 50: Drug stores shopped, by gender, October 2012
- Walgreens visited most often by all ages, younger adults shop online
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- Figure 51: Drug stores shopped, by age, October 2012
- Highest-income earners shopping at a variety of drug store retailers
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- Figure 52: Drug stores shopped, by household income, October 2012
Where Prescriptions are Filled
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- Key points
- CVS most visited for prescriptions, online ordering low
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- Figure 53: Drug stores where prescriptions are filled, October 2012
- Men fill prescriptions at a wider variety of stores compared to women
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- Figure 54: Drug stores where prescriptions are filled, by gender, October 2012
- Younger adults prefer CVS and Walgreens, 65+ prefer mail order
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- Figure 55: Drug stores where prescriptions are filled, by age, October 2012
- CVS favored across all incomes for prescriptions, lower-income earners use Walmart
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- Figure 56: Drug stores where prescriptions are filled, by household income, October 2012
Factors that Would Encourage More Drug Store Shopping
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- Key points
- Lower prices, more sales would encourage more drug store shopping
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- Figure 57: Factors that would encourage more drug store shopping, October 2012
- Women savvier shoppers than men, look for better prices more often
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- Figure 58: Factors that would encourage more drug store shopping, by gender, October 2012
- Younger adults motivated by lower prices, more promotions
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- Figure 59: Factors that would encourage more drug store shopping, by age, October 2012
- Regardless of household income, lower prices and special offers appeal to those in various groups
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- Figure 60: Factors that would encourage more drug store shopping, by household income, October 2012
Items Purchased at Drug Stores
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- Key points
- OTC and prescription medication most commonly purchased items at drug stores
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- Figure 61: Items purchased at drug stores, October 2012
- Men do buy beauty and personal care items at drug stores
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- Figure 62: Items purchased at drug stores, by gender, October 2012
- Younger shoppers more likely than other groups to buy food, drinks at drug stores
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- Figure 63: Items purchased at drug stores, by age, October 2012
- Highest-income earners most likely to buy OTC meds at drug stores
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- Figure 64: Items purchased at drug stores, by household income, October 2012
Attitudes/Opinions Toward Drug Stores
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- Key points
- Location and price important to drug store shoppers
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- Figure 65: Attitudes/opinions toward drug stores, October 2012
- Women browse product selection, men shop for convenience
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- Figure 66: Attitudes/opinions toward drug stores, by gender, October 2012
- Older shoppers less concerned about price at drug stores
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- Figure 67: Attitudes/opinions toward drug stores, by age, October 2012
- Similar attitudes toward drug stores seen across all household incomes
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- Figure 68: Attitudes/opinions toward drug stores, by household income, October 2012
Visits to Retail Clinics
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- Key points
- Retail health clinic usage relatively low
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- Figure 69: Visits to retail health clinics, October 2012
- Younger consumers most likely to take advantage of retail health clinics
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- Figure 70: Visits to retail health clinics, by gender, age, and household income, October 2012
- Online shoppers tend to visit stores for clinic visits
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- Figure 71: Visits to retail health clinics, by drug stores shopped in previous 12 months, October 2012
Type of Treatment Received and Reasons for Visiting Retail Health Clinics
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- Key points
- Most visit retail clinics for an immunization or shot
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- Figure 72: Type of treatment received at retail health clinic, by gender, age and household income, October 2012
- Walgreens shoppers likely to visit clinics for immunization/shots
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- Figure 73: Type of treatment received at retail health clinic, by drug stores shopped in the last 12 months, October 2012
- Reasons for visiting
- Most visit clinics for convenience
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- Figure 74: Reasons for visiting retail health clinic, October 2012
- Younger, lower-income consumers visit clinics as they don’t have health insurance
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- Figure 75: Reasons for visiting retail health clinic, by gender, age and household income, October 2012
- Convenience drives most visits to retail clinics
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- Figure 76: Reasons for visiting retail health clinic, by drug stores shopped in the last 12 months, October 2012
Satisfaction and Likelihood of Repeat Visits to Retail Health Clinics
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- Key points
- More than 70% satisfied with treatment at retail clinics
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- Figure 77: Satisfaction with treatment at retail health clinic, October 2012
- Women more likely than men to be satisfied with timeliness of treatment
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- Figure 78: Satisfaction with treatment at retail health clinic, by gender, October 2012
- Older adults satisfied with timeliness of treatment at retail clinics
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- Figure 79: Satisfaction with treatment at retail health clinic, by age and household income, October 2012
- Walgreens shoppers most likely to say treatment received in a timely manner
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- Figure 80: Satisfaction with treatment at retail health clinic, by drug stores shopped in past 12 months, October 2012
- Most are likely to return to retail health clinics
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- Figure 81: Likelihood of repeat visit to retail health clinic, by gender, age and household income, October 2012
- Major drug store chain shoppers likely to repeat visits to clinics
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- Figure 82: Likelihood of repeat visit to retail health clinic, by drug stores shopped in last 12 months, October 2012
Impact of Race and Hispanic Origin
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- Key points
- Hispanics more likely than other groups to shop at Walgreens
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- Figure 83: Drug stores shopped, by race/Hispanic origin, October 2012
- Hispanics fill prescriptions at a variety of stores
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- Figure 84: Drug stores where prescriptions are filled, by race/Hispanic origin, October 2012
- Lower prices would appeal to whites and Hispanics
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- Figure 85: Factors that would encourage more drug store shopping, by race/Hispanic origin, October 2012
- Whites purchase medicine, blacks and Hispanics buy convenience products
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- Figure 86: Items purchased at drug stores, by race/Hispanic origin, October 2012
- Hispanics like to shop for groceries at drug stores
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- Figure 87: Attitudes/opinions toward drug stores, by race/Hispanic origin, October 2012
- Hispanics most likely to visit retail health clinics
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- Figure 88: Visits to retail health clinics, by race/Hispanic origin, October 2012
Cluster Analysis
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- Online Averse
- Demographics
- Characteristics
- Opportunity
- Just the Basics
- Demographics
- Characteristics
- Opportunity
- Pharmacy Centrics
- Demographics
- Opportunity
- Price Sensitive Shoppers
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics tables
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- Figure 89: Drug stores shopped, by target clusters, October 2012
- Figure 90: Drug stores shopped–in-store, by target clusters, October 2012
- Figure 91: Drug stores shopped–online, by target clusters, October 2012
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- Figure 92: Drug stores where prescriptions are filled, by target clusters, October 2012
- Figure 93: Drug stores where prescriptions are filled–in-store, by target clusters, October 2012
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- Figure 94: Factors that would encourage more drug store shopping, by target clusters, October 2012
- Figure 95: Items purchased at drug stores, by target clusters, October 2012
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- Figure 96: Attitudes/opinions toward drug stores, by target clusters, October 2012
- Figure 97: Visits to retail health clinics, by target clusters, October 2012
- Cluster demographic tables
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- Figure 98: Target clusters, by demographics, October 2012
- Cluster methodology
Appendix: Other Useful Consumer Tables
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- Drug stores shopped
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- Figure 99: Drug stores shopped, by marital/relationship status, October 2012
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- Figure 100: Drug stores shopped, by number of people in household, October 2012
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- Figure 101: Drug stores shopped, by generation, October 2012
- Drug stores shopped—In-store
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- Figure 102: Drug stores shopped–in-store, by gender, October 2012
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- Figure 103: Drug stores shopped–in-store, by age, October 2012
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- Figure 104: Drug stores shopped–in-store, by household income, October 2012
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- Figure 105: Drug stores shopped–in-store, by race/Hispanic origin, October 2012
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- Figure 106: Drug stores shopped–in-store, by marital/relationship status, October 2012
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- Figure 107: Drug stores shopped–in-store, by number of people in household, October 2012
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- Figure 108: Drug stores shopped–in-store, by generation, October 2012
- Drug stores shopped - Online
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- Figure 109: Drug stores shopped–online, by gender, October 2012
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- Figure 110: Drug stores shopped–online, by age, October 2012
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- Figure 111: Drug stores shopped–online, by household income, October 2012
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- Figure 112: Drug stores shopped–online, by race/Hispanic origin, October 2012
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- Figure 113: Drug stores shopped–online, by marital/relationship status, October 2012
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- Figure 114: Drug stores shopped–online, by number of people in household, October 2012
- Where prescriptions are filled
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- Figure 115: Drug stores where prescriptions are filled, by marital/relationship status, October 2012
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- Figure 116: Drug stores where prescriptions are filled, by number of people in household, October 2012
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- Figure 117: Drug stores where prescriptions are filled, by generation, October 2012
- Where prescriptions are filled—In-store
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- Figure 118: Drug stores where prescriptions are filled–in-store, by gender, October 2012
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- Figure 119: Drug stores where prescriptions are filled–in-store, by age, October 2012
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- Figure 120: Drug stores where prescriptions are filled–in-store, by household income, October 2012
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- Figure 121: Drug stores where prescriptions are filled–in-store, by race/Hispanic origin, October 2012
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- Figure 122: Drug stores where prescriptions are filled–in-store, by generation, October 2012
- Factors that would encourage more drug store shopping
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- Figure 123: Factors that would encourage more drug store shopping, by marital/relationship status, October 2012
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- Figure 124: Factors that would encourage more drug store shopping, by number of people in household, October 2012
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- Figure 125: Factors that would encourage more drug store shopping, by generation, October 2012
- Items purchased at drug stores
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- Figure 126: Items purchased at drug stores, by marital/relationship status, October 2012
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- Figure 127: Items purchased at drug stores, by number of people in household, October 2012
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- Figure 128: Items purchased at drug stores, by generation, October 2012
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- Figure 129: Items purchased at drug stores, by drug stores shopped, October 2012
- Coupon use at drug stores
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- Figure 130: Coupon use, by gender, April 2011-June 2012
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- Figure 131: Coupon use, by age, April 2011-June 2012
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- Figure 132: Coupon use, by household income, April 2011-June 2012
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- Figure 133: Coupon use, by race/Hispanic origin, April 2011-June 2012
- Attitudes/opinions toward drug stores
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- Figure 134: Attitudes/opinions toward drug stores, by marital/relationship status, October 2012
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- Figure 135: Attitudes/opinions toward drug stores, by number of people in household, October 2012
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- Figure 136: Attitudes/opinions toward drug stores, by generation, October 2012
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- Figure 137: Attitudes/opinions toward drug stores, by drug stores shopped, October 2012
- Visits to retail health clinics
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- Figure 138: Visits to retail health clinics, by generation, October 2012
- Type of treatment received
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- Figure 139: Type of treatment received at retail health clinic, by race/Hispanic origin, October 2012
- Reasons for visiting retail health clinic
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- Figure 140: Reasons for visiting retail health clinic, by race/Hispanic origin, October 2012
- Satisfaction with treatment at retail health clinic
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- Figure 141: Satisfaction with treatment at retail health clinic, by race/Hispanic origin, October 2012
- Likelihood of repeat visit to retail health clinic
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- Figure 142: Likelihood of repeat visit to retail health clinic, by race/Hispanic origin, October 2012
Appendix – Social Media
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- Brand awareness
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- Figure 143: Brand awareness, Walgreens, October 2012
- Figure 144: Brand awareness, CVS, October 2012
- Figure 145: Brand awareness, Duane Reade, October 2012
- Figure 146: Brand awareness, Rite Aid, October 2012
- Figure 147: Brand awareness, Walmart, October 2012
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- Figure 148: Brand Awareness, Target, October 2012
- Interaction with brands
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- Figure 149: Interaction with Walgreens, October 2012
- Figure 150: Interaction with Walgreens, October 2012 (continued)
- Figure 151: Interactions with brands, CVS, October 2012
- Figure 152: Interactions with brands, CVS, October 2012 (continued)
- Figure 153: Brand awareness, Duane Reade, October 2012
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- Figure 154: Brand awareness, Duane Reade, October 2012 (continued)
- Figure 155: Brand Interaction, Rite Aid, October 2012
- Figure 156: Brand Interaction, Rite Aid, October 2012 (continued)
- Figure 157: Brand interaction, Walmart, October 2012
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- Figure 158: Brand interaction, Walmart, October 2012 (continued)
- Figure 159: Brand interaction, Target, October 2012
- Figure 160: Brand interaction, Target, October 2012 (continued)
- Motivations for interacting with brands
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- Figure 161: Motivations for interacting with brands, Walgreens, October 2012
- Figure 162: Motivations for interacting with brands, Walgreens, October 2012 (continued)
- Figure 163: Motivations for interacting with brands, CVS, October 2012
- Figure 164: Motivations for interacting with brands, CVS, October 2012 (continued)
- Figure 165: Motivations for interacting with brands, Duane Reade, October 2012
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- Figure 166: Motivations for interacting with brands, Duane Reade, October 2012 (continued)
- Figure 167: Motivations for interacting with brands, Rite Aid, October 2012
- Figure 168: Motivations for interacting with brands, Rite Aid, October 2012 (continued)
- Figure 169: Motivations for interacting with brands, Walmart, October 2012
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- Figure 170: Motivations for interacting with brands, Walmart, October 2012 (continued)
- Figure 171: Motivations for interacting with brands, Target, October 2012
- Figure 172: Motivations for interacting with brands, Target, October 2012
- Online conversations
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- Figure 173: Percentage of online consumer conversation, by selected drug store brand, Sept. 18-Dec. 18, 2012
- Figure 174: Trends in online mentions of selected drug store brands, by day, Sept. 18-Dec. 18, 2012
- Figure 175: Online mentions of selected drug store brands, by page type, Sept. 18-Dec. 18, 2012
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- Figure 176: Online mentions by types of conversations concerning selected drug store brands, Sept. 18-Dec. 18, 2012
- Figure 177: Online mentions by types of conversations concerning selected drug store brands, by day, Sept. 18-Dec. 18, 2012
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- Figure 178: Types of online conversations regarding selected drug store brands, by type of website, Sept. 18-Dec. 18, 2012
Appendix: Trade Associations
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