Rite Stores, 56 Price Rite Stores and Six the Fresh Grocer Stores 18

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Rite Stores, 56 Price Rite Stores and Six the Fresh Grocer Stores 18 POWERX Top Pharmacy Retailers 46 • APRIL 27, 2015 DRUGSTORENEWS.COM FOOTNOTES FOR TOP PHARMACY RETAILERS 1. Includes only retail pharmacies and specialty pharmacies Profiles of leading 2. Based on retail sales 3. Includes pharmacy services segment revenue of $88.4 billion and retail sales of $67.8 billion 4. Retail stores pharmacy retailers 5. Fiscal year 2015 for the 52 weeks ended Feb. 28 6. As of Feb. 28, not including 647 Sam’s Club stores. Total includes 3,407 supercenters, 470 discount stores, 603 Neighborhood Markets and 40 smaller-format units With more than $225 billion in pharmacy sales 7. DSN estimates for independent network sales 8. Excluding Medicine Shoppe and Medicap stores and more than 67,000 stores, the 2015 PoweRx 9. Includes results from Shoppers Drug Mart and Loblaw pharmacy locations 10. Includes total Loblaw sales plus Shoppers Drug Mart revenues 11. 2014 sales are lower due to fewer stores (had to sell about 300 stores to complete list represents more than 80% of the total retail merger) 12. Diplomat operates nine regional fill centers pharmacy business. And with the implementation 13. U.S. stores only, including Medicine Shoppe and Medicap pharmacies 14. U.S. operations of the Affordable Care Act, they are creating 15. Projected for fiscal year ended March 1, 2015 16. Including in-store pharmacies, offsite clinics, specialty pharmacy and central-fill center innovative programs and entering healthcare 17. 256 ShopRite stores, 56 Price Rite stores and six The Fresh Grocer stores 18. Excludes Save-A-Lot and supply chain sales; projected for fiscal year 2015 partnerships to move beyond dispensing and 19. Thrifty White operates a drug warehouse, which is included in the total sales number, but is not included in the Rx sales number increase their role in the U.S. healthcare arena. 20. For fiscal 2014 ended Dec. 27 2014 2014 2014 Rx TOTAL CORP. TOTAL STORES 2014 Rx TOTAL CORP. TOTAL STORES RANK COMPANY SALES* SALES* STORES WITH Rx PAGE RANK COMPANY SALES* SALES* STORES WITH Rx PAGE 1 1 1 Walgreens $49,000 $76,400 8,216. 8,216. 50 31 Delhaize America $722 $17,800 1,361 259 2 3 4 4 17 2 CVS Health 47,900. 139,400. 7,822. 7,765. 48 32 Wakefern Food 706 14,700 318. 214 84 3 Rite Aid5 18,100 26,300 4,570 4,570 52 33 London Drugs† 695 2,000 79 79 84 6 6 4 Walmart 17,300 288,050 4,520. 4,500. 55 34 Shopko 599 3,000 320 313 80 7 7 8 8 5 Cardinal Health 17,000. 18,300. 8,456. 8,456. 58 35 Wegmans 525 7,400 85 85 82 18 6 Kroger 8,500 108,500 2,625 2,111 58 36 Supervalu 517 4,800. 195 185 88 7 Health Mart 8,300 9,000 3,865 3,865 60 37 Kinney Drugs 510 616 100 100 86 8 Good Neighbor 7,800 8,100 3,162 3,162 60 38 Care Pharmacies 440 463 79 79 88 Pharmacy 39 A&P 350 6,000 301 172 9 AAP 4,800 5,250 2,115 2,115 64 40 Thrifty White 347 433 97 97 90 9 10 10 Loblaw/Shoppers 4,700. 36,800. 2,444 1,799 62 Pharmacy19 † Drug Mart 41 Haggen 344 4,200 164 106 90 11 11 Safeway/Albertsons 4,000 53,700 2,230 1,600 62 42 Sav-Mor 282 332 81 81 12 Target 3,900 72,600 1,795 1,669 56 43 Raley’s 276 2,900 118 95 86 12 12 13 Diplomat 2,200 2,200 9. 9. 71 44 Discount Drug Mart 271 610 72 72 92 14 Ahold USA 2,100 26,000 768 566 64 45 Brookshire Grocery 258 2,200 157 116 15 Publix 1,900 30,600 1,098 964 68 46 Brookshire Brothers 252 1,200 73 67 16 Medicine Shoppe 1,900 2,000 544 544 66 47 Weis Markets20 250 2,800 163 134 92 International13 48 Metro† 248 9,200 856 268 94 17 Costco14 1,850 80,500 468 459 68 49 Bartell Drugs 246 439 63 63 94 18 Sam’s Club 1,800 58,000 647 608 72 50 Schnuck Markets 235 2,800 103 96 19 H-E-B 1,600 21,000 354 245 72 51 Roundy’s 200 3,850 148 97 20 Kmart 1,500 31,200 979 723 71 52 Tops 158 2,510 158 52 21 Jean Coutu15† 1,400 2,200 416 416 66 53 Marc Glassman 157 1,300 63 48 22 Rexall† 1,200 2,400 461 461 79 54 Price Chopper 145 3,900 131 83 23 Sobeys† 1,100 16,700 1,500 415 74 55 Lewis Drug 138 196 46 44 96 16 24 Hy-Vee 1,040 8,700 235 247. 76 56 Basha’s 109 1,500 129 48 25 Uniprix† 1,000 1,600 376 376 74 57 Fruth Pharmacy 102 121 26 26 96 26 Pharmasave† 1,000 1,200 500 500 80 58 Hi-School Pharmacy 84 107 33 33 27 Bi-Lo 927 11,300 800 527 78 Services 28 Giant Eagle 890 9,600 223 219 76 59 Ritzman Pharmacies 79 82 26 26 98 29 Fred’s Super Dollar 867 2,000 660 370 82 60 Pharmaca Integrative 61 117 27 26 98 30 Meijer 752 15,000 213 204 Pharmacy * All sales in millions; reflect most recent fiscal year † Converted to US$ at .793847 DRUGSTORENEWS.COM APRIL 27, 2015 • 47 PoweRx Report New name reflects broad care commitment BY ANTOINETTE ALEXANDER With a new moniker designed to reflect its broader commitment to health care, CVS Health is “positioned for today, preparing for tomorrow,” executives told Wall Street during its 2014 Analyst Day in December. “We expect that reform and demographic changes will increase the number of [insured] lives, and that will provide a long-term secular tailwind for the industry,” Larry Merlo, presi- dent and CEO of CVS Health, told analysts. For 2014, total revenue in the pharmacy services segment increased 16.1% to $88.4 billion, fueled in part by specialty pharmacy, including the acquisition of Coram and the impact of CVS Health’s Specialty Connect ena Foulkes, EVP and president of CVS/phar- offering rolled out in May 2014. Like Main- macy, told analysts. tenance Choice, Specialty Connect connects Foulkes said the company has outlined five mail and retail to provide choice and conve- strategic themes to drive growth: nience for members. • Better health made easy For 2015, the company expects to gener- • Elevate beauty ate roughly $37 billion in specialty revenues, • Customer-driven personalization up from an estimated $31 billion in 2014, • MyCVS store Merlo explained. • Digital innovation CVS Health’s integrated PBM offerings are As part of the strategy, the company is look- not only resonating with payers and translat- ing to deliver a better in-store experience and ing into a growing list of new healthcare alli- showcase its healthcare expertise. For exam- ances, but the PBM business model has afford- ple, it is expanding OTC and making it an inte- ed the company a lever to help offset lost sales gral part of adherence and post-care support. at retail, following its decision last year to pull CVS/pharmacy also is bolstering its selec- CVS HEALTH the plug on all tobacco sales. tion of on-the-go healthy food. HQ: Woonsocket, R.I. Despite the tobacco headwind, the impact Beauty will get a facelift with exclusive of- 2014 sales: $139.4 billion* on front-end sales was less than company ex- ferings and enhanced merchandising. Over % change vs. 2013: 9.9% ecutives anticipated and resulted in “no dis- the next year, shoppers will see an upgraded No. of stores: 7,822** cernible” impact on its pharmacy business, the cosmetics wall in many stores, a stepped up No. of stores with Rx: 7,765 company stated in February. facial care look and feel, endcaps dedicated to Avg. store size: 10,000 sq. ft. Rx sales: $47.9 billion *** The bold move to exit speaks to CVS beauty elevation, and an increased focus on % of sales from Rx: 70.7% Health’s larger mission as a health-and-beau- naturals and healthy solutions. Sales per store: $8.7 billion ty destination. Health and beauty has grown “Our very best stores are going to get the *Includes pharmacy services segment revenue of $88.4 billion and rapidly for the company with overall sales up full effect and a total revamp with all of the retail sales of $67.8 billion. **Retail stores more than 30% over the past five years. above and much more,” Foulkes told analysts. *** Based on retail sales “Looking ahead, there are significant The company also is leveraging Minute- Source: Company reports health-and-beauty opportunities we can tap Clinic in beauty, offering, for example, eyelash into in the drug channel. Our market is poised lengthening consultations and services. In addition to the ongoing clinic growth, the between two worlds: the convenience sphere, The company’s MinuteClinic business op- company also is expanding its scope of ser- which is the quick foods and general mer- erates 960 clinics, and over the past two years vices. Along with preventive and acute care chandise we sell, and the destinations sphere, has opened more than 340 clinics, while en- services, MinuteClinic also is looking to pro- which is all the health-and-beauty products tering 20 new markets.
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