Careers in Retail Pharmacy

Industry takes its stand

direct control of Part D.

Chain and independent pharmacy’s overall response to the challenges posed by Medicare, Medicaid and mail order has been an unprecedented spate of coalition building. One highlight occurred in April, when the NACDS, the NCPA and the APhA joined with the National Con-

sumers League, the insurance industry, CMS and other consumer and employer groups to launch the Pharmacy Quality Alliance. The goal, according to its backers, is to shift the focus of health care cost-saving efforts away from simply cutting reimbursements to pharmacies and to lead the search for more innovative and cost-

Total stores

No. of stores w/Rx

Comments

6,171

6,071

As it continues to reap the benefits of its half of the breakup of Eckerd, posting monster comp-store sales numbers, CVS has the fruits of the Osco/Sav-on acquisition to look forward to—and the MinuteClinic deal puts it at the front of a new revolution in American health care.

4,953

4,953

Its recent acquisition of Happy Harry’s and the spate of specialty pharmacy operations it has bought up in recent months are strong indications that the one-time, self-styled “hedgehog” has found new ways to grow. Meanwhile, it continues to open stores at a rate of about one a day.

3,289

3,289

3,323

3,323

1,853

1,853

Pharmacy is a prime example of Wal-Mart’s efforts to enhance its image and upgrade the customer experience. In new supercenters, pharmacy moves front and center; glass barriers are removed for greater pharmacist interaction. Technology enhancements like Rx Network improve customer service. And a new multi-million dollar ad campaign around “The Pharmacy at Wal-Mart.”

After several years idling its growth engines, Rite Aid has committed some $500 million in CapEx spending in fiscal 2007; plans to open 125 new or relocated stores by March 3. Several initiatives focus on driving pharmacy, including new Customer World prototype, and in-store pilot Rite Care, which explores MTM in a retail pharmacy setting.

Realizing this year that it was about a year behind, Jean Coutu Group executives named board member Pierre LeGault to lead the company through the Eckerd integration. Committed $250 million to fix up the Eckerd stores in fiscal 2007—about 30 percent is for IT conversions, namely, new POS and Rx Care pharmacy management systems.

2,507

1,913

Continues to become a larger focus in retail pharmacy—with the breakup of Albertsons, Kroger is the No. 1 supermarket pharmacy in America. Continues to expand its 105,000 sq. ft. Kroger Food & Drug, a food super-center format, which features a mini-drug store at the front of the store.

2,653

956

The new No. 2 supermarket chain in the country also greatly enhanced its position as a pharmacy retailer—from 234 pharmacy departments to almost 1,000. Bringing in savvy industry veteran Kevin Tripp from Albertsons to run pharmacy should help shorten the learning curve.

effective ways to deliver care.

Besides trying to broaden their own pharmacists’ roles beyond dispensing with a more progressive patient-care practice model, retailers also are turning increasingly to in-store walk-in clinics to boost their service offerings and build customer traffic. Walgreens, CVS,

Wal-Mart, Kerr Drug and other chains are expanding the model aggresively, partnering with outside specialty companies that build in-store centers and staff them with nurse practitioners who can provide minor emergency care, screen for a variety of diseases and write prescriptions.

It is, in short, a time of unprecedented upheaval and challenge for chain and independent pharmacy.

Even so, the changing dynamics of the U.S. health care system also point to a steady elevation of the pharmacist as a vital member of the health provider network. And they ensure both a broader and more patient-centered role for pharmacists and a rock-solid future for the pharmacy profession.

“I think the opportunities for retail pharmacy have never been greater,” said David Yost, chief executive officer of drug distribution giant AmerisourceBergen.

1,775

1,332

1,066

1,066

3,900

1,117

Despite being one of the oldest and best-known supermarkets, Safeway was in dire straits in 2004 when it unveiled its Lifestyle store concept— two years later it is one of the great comeback stories of the year, reversing a three-year trend of negative comp sales last year.

Having seen a number of is franchisees retire or simply not renew, Medicine Shoppe’s U.S. store base had been shrinking in recent years. Since Longs vet Terry Burnside took the helm last year the company has introduced several new initiatives to rebuild the franchise base, including disease state programs, such as diabetes.

Even as the company continues to wrestle with ways to marry the best of all of its brands—late last year it pulled the plug on plans to expand the Sears Essentials GM/drug/food concept to some 400 former Kmarts, opting instead to make the stores Sears Grands—the chain remains committed to pharmacy.

Source: Drug Store News research,
Chain Store Guides, company reports
*All sales in millions
**Includes results from 701 stand-alone
Osco and Sav-on drug stores acquired
from Albertsons
^†Includes results from 76 acquired Hap-
py Harry’s stores ^††Includes U.S. su-
percenters, DDS and Neighborhood
Market ^†††Includes results from 1,124
stores acquired from Albertsons
^U.S. Sears and Kmart stores only
^^Includes only U.S. stores

Fall 2006

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