Table of Contents
Overview
-
- What you need to know
- Definition
Executive Summary
-
- Overview
- The issues
- Competition and online shopping play a role in driving trips outside the drug channel
-
- Figure 1: Retailers shopped – Drug stores versus other retailers, November 2017
- Lack of awareness and skepticism deter most consumers from using healthcare clinics
-
- Figure 2: Retail clinics – Reasons for not visiting, November 2017
- The opportunities
- Store brands can help drug stores address price and loyalty issues
-
- Figure 3: Attitudes toward drug store shopping, November 2017
- Some shoppers turn to drug stores to manage health needs
-
- Figure 4: Influencers to encourage more shopping, November 2017
- What it means
The Market – What You Need to Know
-
- Growth is expected, but challenges inside and outside the channel remain
- Health and wellness items are a source of growth
- Favorable market factors will likely benefit drug stores
Market Size and Forecast
-
- Positive market conditions fueling expected growth
-
- Figure 5: Total US drug store revenues and fan chart forecast at current prices, 2012-22
- Figure 6: Total US drug store revenues and forecast, at current prices, 2012-22
Market Breakdown
-
- Drug store growth driven by prescriptions and BPC items
-
- Figure 7: Total US drug store revenues and forecast, by segment, at current prices, 2012-22
- Figure 8: Total US retail sales of drug store retailing, by segment, at current prices, 2015 and 2017
Market Perspective
-
- Competitive changes present future challenges for some retailers
Market Factors
-
- Drug stores could reap the benefits of aging population growth
-
- Figure 9: Population by age, 2013-23
- Positive market factors could help consumers’ pricing sensitivity
-
- Figure 10: Consumer confidence and unemployment, 2000-December 2017
Key Players – What You Need to Know
-
- Store brands help drug retailers stay competitive
- Drug stores are not capturing the most drug store related trips
- Opportunities to help shoppers help themselves
What’s Working?
-
- Drug stores are solidifying their spots as health and wellness destinations
-
- Figure 11: Attitudes toward and influencers to encourage more drug store shopping, by select demographics, November 2017
- The price is right: store brands are appealing to deal-seeking shoppers
What’s Struggling?
-
- The most shopped retailer is not a drug store
-
- Figure 12: Retailers shopped – Drug stores versus other retailers, November 2017
What’s Next?
-
- New drug store concepts innovate the market
- Helping consumers combat opioid addictions
-
- Figure 13: Attitudes toward drug store shopping, November 2017
The Consumer – What You Need to Know
-
- More consumers are shopping outside the drug channel, while online shopping is on the rise
- Drug stores are a destination for health and wellness, even online
- Drug stores should leverage loyalty programs and better pricing to drive traffic
- Clinic visits positively influence store perception, but few utilize them
Retailers Shopped
-
- Most consumers are doing more shopping outside the drug channel
-
- Figure 14: Retailers shopped, November 2017
- Women are likely fulfilling their drug store needs during other shopping trips
-
- Figure 15: Retailers shopped, by select demographics, November 2017
- Who’s shopping for drug store needs online?
-
- Figure 16: Retailers shopped online, by gender and age, November 2017
- Hispanic consumers shop around
-
- Figure 17: Retailers shopped, by Hispanic origin, November 2017
Items Purchased
-
- Medication still a top priority, but other health related categories are popular purchases
-
- Figure 18: Items purchased, November 2017
- Online is a destination for health and wellness items, especially for women
-
- Figure 19: Items purchased – Online, by gender and age, November 2017
- Single shoppers are buying more than just medicine
-
- Figure 20: Items purchased, by gender and marital status, November 2017
- Hispanic shoppers are fulfilling grocery needs on drug store trips
-
- Figure 21: Items purchased, by Hispanic origin, November 2017
Attitudes Toward Drug Store Shopping
-
- Lack of loyalty among drug store shoppers
-
- Figure 22: Attitudes toward drug store shopping, November 2017
- Parents likely choosing to shop other retailers for convenience and price
-
- Figure 23: Attitudes toward drug store shopping, by parental status, November 2017
- Using store brands to engage more shoppers
-
- Figure 24: Attitudes toward drug store shopping, by select demographics, November 2017
-
- Figure 25: CVS e-mail campaign, October 2017
- Figure 26: Walgreens e-mail campaign, January 2018
Influencers to Encourage More Shopping
-
- What consumers want: fewer coupons, more rewards
-
- Figure 27: Influencers to encourage more shopping, November 2017
- Parents are highly influenced by price and rewards
-
- Figure 28: Walgreens e-mail campaign, January 2018
-
- Figure 29: Influencers to encourage more shopping, by select demographics, November 2017
- Men are seeking healthier options
-
- Figure 30: Influencers to encourage more shopping, by select demographics, November 2017
- Better delivery options could engage Black and Hispanic consumers
-
- Figure 31: Influencers to encourage more shopping, by race and Hispanic origin, November 2017
Retail Clinics
-
- Visitation is low, but drug stores see highest visitation
-
- Figure 32: Retail clinics visited, November 2017
- Young men most likely to visit, while older women appear less inclined
-
- Figure 33: Retail clinics visited, by select demographics, November 2017
- Reasons for not visiting retail clinics
-
- Figure 34: Retail clinics – Reasons for not visiting, by select demographics, November 2017
- Influence on store perception
-
- Figure 35: Influence on store perception, November 2017
- Older consumers likely to show favoritism to clinics, younger adults could increase frequency and spend
-
- Figure 36: Influence on store perception, by age, November 2017
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Turf analysis methodology
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
-
-
- Figure 37: Total US sales and forecast of market, at inflation-adjusted prices, 2012-22
-
Appendix – The Consumer
-
-
- Figure 38: Retailers shopped, in-store versus online, November 2017
-
- Figure 39: Items purchased – In-store versus online, November 2017
-
- Figure 40: TURF analysis – Influencers to encourage more shopping, November 2017
-
Back to top