Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Many drug store trips occur outside the channel
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- Figure 1: Retailers shopped, February 2017
- Most consumers have issues with price
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- Figure 2: Attitudes toward drug store shopping, by age and gender, February 2017
- Many shoppers aren’t using all that drug stores provide
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- Figure 3: Attitudes toward drug store shopping, February 2017
- The opportunities
- Unlock private label/store brand potential
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- Figure 4: Attitudes toward drug store shopping, by generation, February 2017
- Tailored healthy assortments could appeal to more shoppers
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- Figure 5: Influencers to encourage more shopping, February 2017
- Upgrade digital services
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- Figure 6: Influencers to encourage more shopping, February 2017
- What it means
The Market – What You Need to Know
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- Positive growth expected to continue
- Medicine and BPC drive segment sales
- Growth among those 55+
- Online will play a key role
Market Size and Forecast
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- Positive growth expected to continue
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- Figure 7: Total US sales and fan chart forecast of market, at current prices, 2011-21
- Figure 8: Total US sales and forecast of market, at current prices, 2011-21
Market Breakdown
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- Positive sales forecasted for all segments, driven by prescription medicine
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- Figure 9: Total US drug store revenues and forecast, by segment, at current prices, 2011-21
- Figure 10: Total US retail sales of Drug Store Retailing, by segment, at current prices, 2014 and 2016
Market Factors
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- 55+ consumer group continues to grow
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- Figure 11: Number of households, by age of householder, 2006 and 2016
- Healthcare changes are a concern for many consumers
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- Figure 12: Election impact, by gender, February 2017
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- Figure 13: Median household income, by age of householder, 2015
- Obesity is still an issue
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- Figure 14: Prevalence of obesity among adults aged 20 and over, by sex and age: United States, 2011-14
- Rural areas represent opportunity
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- Figure 15: Image of Walgreens community pharmacy in Iowa, April 2017
- Figure 16: Rural vs urban population, December 2016
- Connectivity changes shopping
- Walgreens, Rite Aid merger could influence the market
Key Players – What You Need to Know
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- Drug stores winning with certain consumers, but others shifting elsewhere
- Health and wellness items remain products of interest
- Walmart is the most shopped retailer for drug
- Online shopping is growing in the channel
What’s Working?
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- Health, wellness, and personal care most purchased items
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- Figure 17: Items purchased – Any in-store or online purchase, by repertoire any in-store or online purchase, February 2017
- Other categories capturing consumer interest
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- Figure 18: Items purchased, by gender and age, February 2017
- An opportunity to grow store brands
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- Figure 19: Walgreens E-mail, March 2017
What’s Struggling?
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- Other channels are winning drug store related trips
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- Figure 20: Retailers shopped, by parental status, February 2017
- Customers have trust and price issues with drug stores
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- Figure 21: Attitudes toward drug store shopping, by age, February 2017
- Most consumers not using provided services
What’s Next?
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- Tailored assortments for healthy living
- Expanded digital offerings and services
The Consumer – What You Need to Know
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- Channel shifting is occurring
- Destinations for BPC, healthcare, and private brand
- A need for better prices and products
- Promote transparency and awareness of provided healthcare services
- Enhance shopping options to win online and in-store
Retailers Shopped
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- Drug stores face increased competition
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- Figure 22: Retailers shopped, by gender and age, February 2017
- Mass merchandisers winning over customers
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- Figure 23: Retailers shopped, by Hispanic origin, February 2017
- Online is a key channel
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- Figure 24: Retailers shopped online, by age, February 2017
- Warehouse club stores and supermarkets see slippage
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- Figure 25: Retailers shopped, by parental status, February 2017
Items Purchased
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- Medicine, beauty, and healthcare items most purchased
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- Figure 26: Items purchased, part 1, February 2017
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- Figure 27: Items purchased, part 2, February 2017
- Drug stores destinations for health and wellness, BPC
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- Figure 28: Select items purchased, February 2017
- Food and household items are fill-in trip purchases
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- Figure 29: Items purchased, by age, February 2017
- Online purchases are growing
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- Figure 30: Select items purchased, by age, February 2017
Attitudes toward Drug Store Shopping
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- An opportunity for private brand products
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- Figure 31: Attitudes toward drug store shopping, by age, February 2017
- Services are underutilized
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- Figure 32: Attitudes toward drug store shopping, by parental status and number of children in household, February 2017
- Price versus convenience
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- Figure 33: Attitudes toward drug store shopping, by parental status, February 2017
Influencers to Encourage More Shopping
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- Better prices, products and services can boost shopping
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- Figure 34: Influencers to encourage more shopping, February 2017
- Shoppers seek improved prices and products
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- Figure 35: Influencers to encourage more shopping, by age and gender, February 2017
- Shoppers want more
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- Figure 36: Influencers to encourage more shopping, by age and Hispanic generation, February 2017
Retail Clinics
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- Overall usage is low, but those who visit are mostly pleased
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- Figure 37: Retail clinics visited, February 2017
- Reasons for not visiting clinics range from no identified needs to skepticism
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- Figure 38: Reasons for not visiting clinics, February 2017
- Young men visit retail clinics the most
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- Figure 39: Retail clinics visited, by gender and age, February 2017
- Thoughts on retail clinics visited
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- Figure 40: Perception of retail clinics visited, February 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 41: Total US drug store revenues and forecast, at inflation-adjusted prices, 2011-21
- Figure 42: Households by number of members, 2016
- Mintel post-election survey methodology
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Appendix – Consumer
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- Repertoire analysis description
- Other supporting data
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- Figure 43: Retailers shopped - any visitation, by repertoire any in-store or online purchase, February 2017
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