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Drug Store Retailing - US - May 2017

Published By :

Mintel

Published Date : Jun 2017

Category :

Drug Delivery

No. of Pages : N/A

The effects of an aging population focused on health management are positive for the drug channel, which is projected to continue on its path of upward sales growth over the next five years.

Table of Content

OVERVIEW
What you need to know
Definition

EXECUTIVE SUMMARY
The issues
Many drug store trips occur outside the channel
Figure 1: Retailers shopped, February 2017
Most consumers have issues with price
Figure 2: Attitudes toward drug store shopping, by age and gender, February 2017
Many shoppers aren’t using all that drug stores provide
Figure 3: Attitudes toward drug store shopping, February 2017
The opportunities
Unlock private label/store brand potential
Figure 4: Attitudes toward drug store shopping, by generation, February 2017
Tailored healthy assortments could appeal to more shoppers
Figure 5: Influencers to encourage more shopping, February 2017
Upgrade digital services
Figure 6: Influencers to encourage more shopping, February 2017
What it means

THE MARKET – WHAT YOU NEED TO KNOW
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
Positive growth expected to continue
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
Positive sales forecasted for all segments, driven by prescription medicine
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
55+ consumer group continues to grow
Figure 11: Number of households, by age of householder, 2006 and 2016
Healthcare changes are a concern for many consumers
Figure 12: Election impact, by gender, February 2017
Figure 13: Median household income, by age of householder, 2015
Obesity is still an issue
Figure 14: Prevalence of obesity among adults aged 20 and over, by sex and age: United States, 2011-14
Rural areas represent opportunity
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
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?
Health, wellness, and personal care most purchased items
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
Figure 18: Items purchased, by gender and age, February 2017
An opportunity to grow store brands
Figure 19: Walgreens E-mail, March 2017

WHAT’S STRUGGLING?
Other channels are winning drug store related trips
Figure 20: Retailers shopped, by parental status, February 2017
Customers have trust and price issues with drug stores
Figure 21: Attitudes toward drug store shopping, by age, February 2017
Most consumers not using provided services

WHAT’S NEXT?
Tailored assortments for healthy living
Expanded digital offerings and services

THE CONSUMER – WHAT YOU NEED TO KNOW
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
Drug stores face increased competition
Figure 22: Retailers shopped, by gender and age, February 2017
Mass merchandisers winning over customers
Figure 23: Retailers shopped, by Hispanic origin, February 2017
Online is a key channel
Figure 24: Retailers shopped online, by age, February 2017
Warehouse club stores and supermarkets see slippage
Figure 25: Retailers shopped, by parental status, February 2017

ITEMS PURCHASED
Medicine, beauty, and healthcare items most purchased
Figure 26: Items purchased, part 1, February 2017
Figure 27: Items purchased, part 2, February 2017
Drug stores destinations for health and wellness, BPC
Figure 28: Select items purchased, February 2017
Food and household items are fill-in trip purchases
Figure 29: Items purchased, by age, February 2017
Online purchases are growing
Figure 30: Select items purchased, by age, February 2017

ATTITUDES TOWARD DRUG STORE SHOPPING
An opportunity for private brand products
Figure 31: Attitudes toward drug store shopping, by age, February 2017
Services are underutilized
Figure 32: Attitudes toward drug store shopping, by parental status and number of children in household, February 2017
Price versus convenience
Figure 33: Attitudes toward drug store shopping, by parental status, February 2017

INFLUENCERS TO ENCOURAGE MORE SHOPPING
Better prices, products and services can boost shopping
Figure 34: Influencers to encourage more shopping, February 2017
Shoppers seek improved prices and products
Figure 35: Influencers to encourage more shopping, by age and gender, February 2017
Shoppers want more
Figure 36: Influencers to encourage more shopping, by age and Hispanic generation, February 2017

RETAIL CLINICS
Overall usage is low, but those who visit are mostly pleased
Figure 37: Retail clinics visited, February 2017
Reasons for not visiting clinics range from no identified needs to skepticism
Figure 38: Reasons for not visiting clinics, February 2017
Young men visit retail clinics the most
Figure 39: Retail clinics visited, by gender and age, February 2017
Thoughts on retail clinics visited
Figure 40: Perception of retail clinics visited, February 2017

APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations

APPENDIX – MARKET
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

APPENDIX – CONSUMER
Repertoire analysis description
Other supporting data
Figure 43: Retailers shopped - any visitation, by repertoire any in-store or online purchase, February 2017

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