Author: Mintel Group Ltd.
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Drug Store Retailing - US - February 2018

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

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