Super D Drug Store
Building a new future for pharmacy - statistics on the drug store chain industry - Statistical Data Included The past 12 months have gone by in a whirlwind for executives in the chain pharmacy sector. And the next 12 months promise more of the same--from the battle over President Bush's proposed prescription discount card to the daily pressure to stave off margin erosion in the retail pharmacy.
New threats to the traditional retail pharmacy model also have arisen. One of the more significant threats comes from pharmacy benefit managers, who are trying to move between the physician and pharmacist relationship via a connectivity hub that would control the prescription processing and adjudicating function.
In this special report, Drug Store News looks at both the challenges to pharmacy's future viability and at some of the solutions being tried in thousands of stores around the country.
We've also tried to offer a snapshot of what's happening with more than two dozen of the nation's top pharmacy retailers, including powerhouse chains, such as Walgreens, and nimble regional players, such as Snyder's Drug Stores and Familymeds.
The result is a rambling portrait of an industry and a profession hammered by change, but regaining its footing in the new healthcare landscape--an industry building a new future. It's a promising picture.
Top 10 pharmaceutical suppliers
Company $ Sales % Market
in billions change share
1 Pfizer * $11.7 11% 11.5%
2 GlaxoSmithKline 9.9 18 9.6
3 Merck & Co. 7.0 23 6.8
4 Bristol-Myers Squibb 6.1 23 6.0
5 AstraZeneca 5.9 14 5.7
6 Johnson & Johnson 5.6 5 5.5
7 Eli Lilly 4.7 12 4.6
8 Schering-Plough 4.6 1 4.4
9 American Home Products 4.4 6 4.3
10 Pharmacia 4.3 11 4.2
Total chain pharmacy 102.5 13 100.0
Source: IMS Health Based on results for calendar 2000
(*) includes Warner-Lambert
Top 10 chains in pharmacy sales
Company 2000 % % of sales
rx sales * change from Rx
1 CVS $12.6 17.0% 63.0%
2 Walgreen Co. 11.7 25.3 55.0
3 Rite Aid 8.6 10.5 60.0
4 Eckerd 7.7 8.8 64.0
5 Wal-Mart Stores 7.3 ** 16.4 4.0
6 Albertson's 5.5 ** 13.0 14.8
7 Kroger 3.9 21.9 8.0
8 Safeway 2.2 7.0 6.2
9 Kmart 1.9 3.5 5.0
10 Medicine Shoppe
International 1.8 ** 17.9 96.0
(*) sales in billions
(**) denotes estimate
Source: Drug Store News and Retail Intelligence Group
Top 100 by Rx sales
Company Headquarters
1 CVS Woonsocket, R.I.
2 Walgreen Co. Deerfield, Ill.
3 Rite Aid Camp Hill, Pa.
4 Eckerd Largo, Fla.
5 Wal-Mart Stores Bentonville, Ark.
6 Albertson's Boise, Idaho
7 Kroger Cincinnati, Ohio
8 Safeway Pleasanton, Calif.
9 Kmart Troy, Mich.
10 Medicine Shoppe International St. Louis
11 Ahold USA Chantilly, Va.
12 Longs Drug Stores Walnut Creek, Calif.
13 Winn-Dixie Stores Jacksonville, Fla.
14 H.E. Butt Grocery San Antonio
15 Costco Wholesale Issaquah, Wash.
16 ShopKo Stores Green Bay, Wis.
17 Publix Super Markets Lakeland, Fla.
18 Brooks Pharmacy Warwick, R.I.
19 Kerr Drug Durham, N.C.
20 Phar-Mor Youngstown, Ohio
21 Target Minneapolis
22 Duane Reade New York
23 Great Atlantic & Pacific Tea Co. Montvale, N.J.
24 Pathmark Stores Carteret, N.J.
25 Meijer Grand Rapids, Mich.
26 Drug Emporium Powell, Ohio
27 Wegmans Food Markets Rochester, N.Y.
28 Fred's Memphis, Tenn.
29 Giant Eagle Pittsburgh, Pa.
30 Medicap Pharmacies W. Des Moines, Iowa
31 Wakefern Food Elizabeth, N.J.
32 USA/Super D Pine Bluff, Ark.
33 Marc Glassman Cleveland
34 Hy-Vee West Des Moines, Iowa
35 Discount Drug Mart Medina, Ohio
36 Raley's West Sacramento
37 Happy Harry's Newark, Del.
38 Hannaford Bros. Scarborough, Maine
39 Sav-Mor Franchising Novi, Mich.
40 Familymeds Farmington, Conn.
41 Snyder's Drug Stores Minnetonka, Minn.
42 Kinney Drug Gouverneur, N.Y.
43 Aurora Pharmacy Milwaukee
44 Schnuck Markets St. Louis
45 Community Distributors Somerset, N.J.
46 Thrifty Drug Stores Minneapolis
47 Bi-Mart Eugene, Ore.
48 Penn Traffic Columbus, Ohio
49 Seaway Food Town Maumee, Ohio
50 Horizon Pharmacies Dension, Texas
2000
Rx sales in %
Company millions change
1 CVS $12,900 17.0%
2 Walgreen Co. 11,700 25.3
3 Rite Aid 8,637 10.5
4 Eckerd 7,739 8.8
5 Wal-Mart Stores 7,250 16.4
6 Albertson's 5,400 13.0
7 Kroger 3,900 21.9
8 Safeway 2,150 7.0
9 Kmart 1,863 3.5
10 Medicine Shoppe International 1,760 17.9
11 Ahold USA 1,700 22.2
12 Longs Drug Stores 1,650 15.2
13 Winn-Dixie Stores 1,000 1.1
14 H.E. Butt Grocery 656 31.0
15 Costco Wholesale 643 76.2
16 ShopKo Stores 596 14.8
17 Publix Super Markets 575 46.3
18 Brooks Pharmacy 570 23.1
19 Kerr Drug 439 20.3
20 Phar-Mor 426 6.8
21 Target 400 NA
22 Duane Reade 366 33.1
23 Great Atlantic & Pacific Tea Co. 350 75.0
24 Pathmark Stores 339 30.9
25 Meijer 308 10.0
26 Drug Emporium 295 6.1
27 Wegmans Food Markets 288 60.0
28 Fred's 256 42.0
29 Giant Eagle 253 24.0
30 Medicap Pharmacies 253 19.0
31 Wakefern Food 232 5.5
32 USA/Super D 227 7.5
33 Marc Glassman 220 NA
34 Hy-Vee 216 20.0
35 Discount Drug Mart 215 11.9
36 Raley's 210 3.4
37 Happy Harry's 203 22.2
38 Hannaford Bros. 200 3.5
39 Sav-Mor Franchising 195 23.4
40 Familymeds 194 19.0
41 Snyder's Drug Stores 178 17.5
42 Kinney Drug 171 26.7
43 Aurora Pharmacy 146 43.5
44 Schnuck Markets 138 15.0
45 Community Distributors 120 33.0
46 Thrifty Drug Stores 120 33.0
47 Bi-Mart 114 18.8
48 Penn Traffic 109 22.5
49 Seaway Food Town 109 18.5
50 Horizon Pharmacies 107 9.6
2000 % No. of stores
of sales from with
Company pharmacy pharmacies
1 CVS 63.0% 3,975
2 Walgreen Co. 55.0 3,428
3 Rite Aid 59.6 3,736
4 Eckerd 64.0 2,641
5 Wal-Mart Stores 4.0 2,788
6 Albertson's 14.8 2,062
7 Kroger 8.0 1,602
8 Safeway 6.2 1,166
9 Kmart 5.0 1,589
10 Medicine Shoppe International 96.0 1,320
11 Ahold USA 6.5 587
12 Longs Drug Stores 41.0 431
13 Winn-Dixie Stores 7.2 1,157
14 H.E. Butt Grocery 8.0 145
15 Costco Wholesale 2.0 237
16 ShopKo Stores 22.0 210
17 Publix Super Markets 3.0 380
18 Brooks Pharmacy 57.0 249
19 Kerr Drug 70.0 138
20 Phar-Mor 33.0 137
21 Target 1.0 507
22 Duane Reade 36.7 184
23 Great Atlantic & Pacific Tea Co. 3.3 285
24 Pathmark Stores 8.3 131
25 Meijer 2.8 135
26 Drug Emporium 34.0 NA
27 Wegmans Food Markets 10.9 59
28 Fred's 32.8 196
29 Giant Eagle 6.0 152
30 Medicap Pharmacies 95.0 176
31 Wakefern Food 4.0 134
32 USA/Super D 75.0 114
33 Marc Glassman 32.7 45
34 Hy-Vee 6.0 142
35 Discount Drug Mart 49.0 114
36 Raley's 7.0 103
37 Happy Harry's 69.0 53
38 Hannaford Bros. 5.7 84
39 Sav-Mor Franchising 71.0 78
40 Familymeds 94.6 118
41 Snyder's Drug Stores 53.0 81
42 Kinney Drug 67.0 58
43 Aurora Pharmacy 94.2 105
44 Schnuck Markets 6.6 84
45 Community Distributors 37.0 43
46 Thrifty Drug Stores 81.9 49
47 Bi-Mart 22.2 40
48 Penn Traffic 4.0 97
49 Seaway Food Town 16.0 43
50 Horizon Pharmacies 76.8 46
Average No.
of scripts per
Company day, per store
1 CVS 206
2 Walgreen Co. 270
3 Rite Aid NA
4 Eckerd NA
5 Wal-Mart Stores NA
6 Albertson's 200
7 Kroger 175
8 Safeway 145
9 Kmart NA
10 Medicine Shoppe International 151
11 Ahold USA 190
12 Longs Drug Stores 247
13 Winn-Dixie Stores 95
14 H.E. Butt Grocery 296
15 Costco Wholesale 147
16 ShopKo Stores 200
17 Publix Super Markets 135
18 Brooks Pharmacy 181
19 Kerr Drug NA
20 Phar-Mor 270
21 Target NA
22 Duane Reade 176
23 Great Atlantic & Pacific Tea Co. 125
24 Pathmark Stores 180
25 Meijer 110
26 Drug Emporium 160
27 Wegmans Food Markets 293
28 Fred's 135
29 Giant Eagle 144
30 Medicap Pharmacies 161
31 Wakefern Food 152
32 USA/Super D 245
33 Marc Glassman 122
34 Hy-Vee 130
35 Discount Drug Mart 255
36 Raley's 240
37 Happy Harry's 260
38 Hannaford Bros. 185
39 Sav-Mor Franchising 260
40 Familymeds 200
41 Snyder's Drug Stores 240
42 Kinney Drug 221
43 Aurora Pharmacy 120
44 Schnuck Markets 137
45 Community Distributors 200
46 Thrifty Drug Stores 187
47 Bi-Mart 196
48 Penn Traffic 150
49 Seaway Food Town 176
50 Horizon Pharmacies 200
51 May's Drug Stores Tulsa, Okla. $97.7
52 Hi-School Pharmacy Vancouver, Wash. 88.0
53 Grand Union Wayne, N.J. 85.0
54 Neighbor Care Baltimore 78.4
55 Farmacias El Amal San Juan, P.R. 75.0
56 Medic Drug Cleveland 74.1
57 The Bartell Drug Co. Seattle 72.9
58 Marsh Supermarkets Indianapolis 70.0
59 Bruno's Birmingham, Ala. 70.0
60 Minyard Food Stores Coppell, Texas 66.3
61 Cub Foods Stillwater, Minn. 64.5
62 United Supermarkets Lubbock, Texas 63.0
63 Fedco Miami Beach 62.0
64 Golub Schenectady, N.Y. 60.0
65 Fruth Pharmacy Point Pleasant, W.Va. 55.4
66 Shaw's Supermarkets W. Bridgewater, Mass. 54.6
67 Kash n' Karry Food Stores Tampa, Fla. 52.0
68 Save Mart Supermarkets Modesto, Calif. 52.0
69 Lewis Drugs Sioux Falls, S.D. 50.0
70 Coborn's St. Cloud, Minn. 45.0
71 Med-X Tulsa, Okla. 42.0
72 Navarro Discount Miami 41.3
73 Homeland Stores Oklahoma City 41.0
74 Haggen Bellingham, Wash. 40.2
75 Nash Finch Minneapolis 40.1
76 Ukrop's Supermarkets Richmond, Va. 40.0
77 Foodarama Supermarkets Freehold, N.J. 39.9
78 D&W Food Center Grand Rapids, Mich. 39.0
79 Doc's Drugs Ltd. West Chicago, III. 34.0
80 Brookshire Grocery Tyler, Texas 34.0
81 Inserra Supermarkets Mahwah, N.J. 32.0
82 Mediserv Columbus, Ohio 32.0
83 Anchor Pharmacies Hampstead, Md. 30.6
84 Big A Drug Stores South Gate, Calif. 29.3
85 Quik Chek Food Stores Whitehouse Station 29.0
86 Village Supermarkets Springfield, N.J. 28.9
87 Sedano's Pharmacy Hialeah, Fla. 27.8
88 Harris Teeter Mathews, N.C. 27.5
89 Mast Drug Co. Henderson, N.C. 26.0
90 Rosauers Supermarkets Spokane, Wash. 26.0
91 Carle RX Express Urbana, III. 25.5
92 Fagen Pharmacy Demotte, Ind. 25.3
93 Merwin Drug Co. Minneapolis 25.2
94 RxD Pharmacies Collingswood, N.J. 25.2
95 McAuley Pharmacy Ypsilanti, Mich. 25.0
96 biggs Hyper Shoppes Cincinnati, Ohio 25.0
97 Diebergs Markets Chesterfield, Mo. 25.0
98 DAW Inc. Wellesley Hills, Mass. 24.7
99 Ritzmann Pharmacies Wadsworth, Ohio 24.7
100 Elm Drug New York 24.0
51 May's Drug Stores 15.4% 66.0% 39 190
52 Hi-School Pharmacy 3.5 55.0 38 200
53 Grand Union NA 4.0 54 95
54 Neighbor Care 17.0 98.0 30 175
55 Farmacias El Amal 4.2 37.5 54 285
56 Medic Drug 15.8 57.0 27 170
57 The Bartell Drug Co. 8.9 41.0 50 210
58 Marsh Supermarkets 8.6 3.3 30 130
59 Bruno's 34.6 3.9 56 120
60 Minyard Food Stores 54.2 6.5 48 120
61 Cub Foods no change 1.5 68 150
62 United Supermarkets 31.3 10.0 30 176
63 Fedco 12.7 41.3 22 211
64 Golub no change 3.0 38 140
65 Fruth Pharmacy 17.9 70.0 22 200
66 Shaw's Supermarkets 3.7 1.3 50 121
67 Kash n' Karry Food Stores 57.8 4.5 65 125
68 Save Mart Supermarkets 18.2 3.0 28 130
69 Lewis Drugs 11.1 54.0 21 215
70 Coborn's NA 9.8 21 120
71 Med-X 7.8 60.0 22 200
72 Navarro Discount 8.6 33.0 12 420
73 Homeland Stores 5.1 7.0 48 120
74 Haggen 91.4 6.7 25 140
75 Nash Finch 14.6 1.0 44 125
76 Ukrop's Supermarkets 66.7 6.9 19 175
77 Foodarama Supermarkets 17.4 4.5 19 150
78 D&W Food Center 11.4 8.9 21 160
79 Doc's Drugs Ltd. 21.4 68.0 16 215
80 Brookshire Grocery no change 2.0 84 100
81 Inserra Supermarkets 6.7 4.0 17 140
82 Mediserv no change 97.0 14 150
83 Anchor Pharmacies 56.9 85.0 14 200
84 Big A Drug Stores 17.0 45.0 7 300
85 Quik Chek Food Stores 52.6 11.0 13 125
86 Village Supermarkets 34.9 3.6 17 115
87 Sedano's Pharmacy 7.1 48.0 13 165
88 Harris Teeter 19.6 1.0 26 68
89 Mast Drug Co. 71.1 90.0 6 29
90 Rosauers Supermarkets 4.0 9.7 13 137
91 Carle RX Express 7.4 97.0 9 271
92 Fagen Pharmacy NA 77.0 22 178
93 Merwin Drug Co. NA 70.0 7 275
94 RxD Pharmacies NA 90.0 13 140
95 McAuley Pharmacy NA 93.0 9 200
96 biggs Hyper Shoppes 3.0 22.0 52 145
97 Diebergs Markets 19.0 5.0 15 126
98 DAW Inc. NA 85.0 11 240
99 Ritzmann Pharmacies 2.7 85.0 8 230
100 Elm Drug NA 70.0 4 275
Source: The data in this list was compiled by Retail Intelligence Group
and Drug Store News staff.
Industry stats
Company Primary Wholesaler
1 CVS Cardinal Health
2 Walgreen Co. Cardinal Health
3 Rite Aid Mckesson
4 Eckerd Mckesson
5 Wal-Mart Stores Mckesson
6 Albertson's McKesson
7 Kroger Cardinal Health
8 Safeway Mckesson
9 Kmart Cardinal Health
10 Medicine Shoppe International Cardinal Health
11 Ahold USA Cardinal Health
12 Longs Drug Stores Bergen Brunswig
13 Winn-Dixie Stores Bindley/Cardinal Health
14 H-E-B Grocery Cardinal Health
15 Costco Wholesale Mckesson
16 ShopKo Stores Mckesson
17 Brooks Pharmacy Mckesson
18 Publix Super Markets Bergen Brunswig
19 Kerr Drug Cardinal Health
20 Phar-Mor McKesson
21 Target McKesson
22 Duane Reade Bergen Brunswig
23 Great Atlantic & Pacific Tea Cc. Mckesson
24 Pathmark Stores AmeriSource
25 Meijer AmeriSource
26 Drug Emporium N/A
27 Wegmans' Food Markets Mckesson
28 Fred's Bergen Brunswig
29 Medicap Pharmacies AmeriSource
30 Giant Eagle McKesson
31 Familymeds AmeriSource
32 Wakefern Food Cardinal Health
33 USA/Super D Mckesson
34 Marc Glassman Bindley/Cardinal Health
35 Hy-Vee Mckesson
36 Raley's Bergen Brunswig
37 Happy Harry's Cardinal Health
38 Hannaford Bros. Co. Cardinal Health
39 Discount Drug Mart Bergen Brunswig
40 Sav-Mor Franchising Frank W. kerr
41 Snyder's Drug Stores Mckesson
42 Kinney Drugs Cardinal Health
43 Aurora Pharmacy F. Dohmen Co.
44 Schnuck Markets D&K Healthcare Resources
45 Community Distributors/Drug Fair Cardinal Health
46 Thrifty Drug Stores F. Dohmen Co.
47 Bi-Mart Corp. Mckesson
48 Penn Traffic Co. Bindley/Cardinal Health
49 Horizon Pharmacies AmeriSource
50 Seaway Food Town Bergen Brunswig
51 May's Drug Stores Bergen Brunswig
Chains lead in prescription volume
2000 Rx
Channel volume % change % of market
in millions vs. 1999
Drug chains 1,336 7.1% 47.0%
Mass 293 1.1 10.3
Food 389 8.7 13.7
Independent drug stores 682 0.3 24.0
Mail order 144 5.1 5.1
Source: National Association of Chain Drug Stores
Food stores, mail order gain share
Channel 2000 $ sales % change vs. % of market
in billions 1999
Drug chains $59.7 15.6% 42.4%
Mass 12.0 15.7 9.9
Food 16.9 25.7 12.0
Independent drug stores 30.4 8.4 21.6
Mail order 20.6 24.3 14.6
Source: National Association of Chain Drug Stores
Retail prescription scorecard
Total prescriptions 2000 1999
% branded 58% 57%
% generic 42 43
New prescriptions 2000 1999
% branded 53.7 52.7
% generic 46.3 47.3
% third party 70 68
% Medicaid 11 11
% cash 19 21
Source: National Association of Chain Drug Stores, Scott-Levin
Top 10 suppliers by number of prescriptions
2000 total
Company scripts % change % of market
in millions vs. 1999
Pfizer/Warner-Lambert 233.9 9% 8.3%
GlaxoSmithKline 163.5 6 5.8
Watson 160.1 2 5.6
Mylan 156.5 13 5.5
Teva 154.6 5 5.5
Bristol-Myers Squibb 148.7 1 5.2
Novartis 146.9 9 5.2
American Home Products 145.1 -3 5.1
Schering Plough 124.2 -3 4.4
Merck & Co. 115.6 18 4.1
Source: IMS Health
COPYRIGHT 2001 Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
COPYRIGHT 2001 Gale Group
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