2013 Rx 2013 TOTAL TOTAL STORES RANK COMPANY SALES* CORP. SALES* STORES WITH Rx PAGE 1 CVS Caremark $45,600.1 $126,800.2 7,660.3 7,603 74 2 Walgreens 45,400 72,200 8,127.4 8,127.4 74 3 17,300.5 25,500.5 4,587 4,587 76 4 16,800.6 279,400.6 4,205 4,176 76 PowerRx 5 Cardinal Health 15,200 18,000 7,000 7,000 78 With Target having opened its first stores 6 7,900 98,400 2,640 2,109 78 in Canada, Loblaw’s buying Shoppers Drug 7 Health Mart 6,500 7,100 3,276 3,276 80 Mart and provinces increasing the pre- 8 Good Neighbor 6,200 7,300 3,154 3,154 80 x 9 Safeway/ 4,600 57,900 2,410 1,859 82 scribing power of pharmacists, the Cana- power Top 50 10 AAP 4,500 4,700 2,054 2,054 82 dian market is one to watch. DSN profiles 7 7 the top five Canadian pharmacy retailers, 11 Target 3,700. 71,300 1,924 1,749. 84 which represent approximately half of the 12 Ahold 2,100 26,100 767 565 84 8 Canadian pharmacy market. 13 Medicine Shoppe International 1,800 1,900 570 570 88 14 Costco9 1,700 75,500 462 455 88 2013 15 1,700 28,900 1,077 928 86 2013 Rx TOTAL CORP. TOTAL STORES RANK COMPANY SALES* SALES* STORES WITH Rx PAGE 16 1,700 13,100 1,215 841 86 1 Shoppers $5,200 $11,100 1,377 1,309 126 17 Sam's Club 1,600 57,200 634 584 90 2 Jean Coutu 1,800 2,700.1 407 407 128 18 H-E-B 1,500 20,000 352 235 90 3 1,200 1,900 387 387 129 19 1,200 9,300 218 213 92 10 4 Rexall 1,100 2,400 454 454 128 20 Hy-Vee 958 8,000 236 246. 92 11 5 Pharmasave 1,100 1,400 500 500 129 21 Bi-Lo 942 11,600 860 551 96 22 Shopko 870 3,000 326 274.12 100 * All sales in millions, $ Canadian; most recent fiscal year 23 735 7,000 83 83 104 1 For fiscal year ended March 2, 2013 24 Fred's Super Dollar 731 1,900 704 355 96 25 Wakefern Food 677 14,100 327.13 209.13 99 26 Delhaize America14 547 17,100 1,347 184 98 Footnotes for powerx players top 50 1. Based on retail sales 27 486 15,200 204 204 102 2. Includes pharmacy services segment revenue of $76.2 28 Kinney Drugs 470 829 99 99 100 billion and retail sales of $65.6 billion 3. Retail stores 29 A&P 462 7,700 301 170 102 4. Includes only retail and specialty pharmacies 30 Supervalu15 371 4,600 190 138 104 5. FY2014 for 52 weeks ended March 1, 2014 6. Sales include 3,290 supercenters, 508 discount stores, 346 31 Care Pharmacies 348 366 76 76 107 Neighborhood Markets and 61 small formats (i.e., Amigo, Supermercado, Walmart Express, Walmart on Campus and 32 Thrifty White Pharmacy 331 367 90 90 107 Super Ahorros) in the 33 Brookshire Grocery 297 2,200 152 116 108 7. As of March 2014, including 1,797 U.S. stores and 127 stores in Canada 34 Raley's 270 3,100 128 97 112 8. U.S. only 35 Sav-Mor 257 303 70 70 108 Profiles of leading pharmacy retailers 9. U.S. operations 10. Includes in-store pharmacies, offsite clinics, specialty phar- 36 Discount Drug Mart 250 576 71 71 110 macy and a central fill facility 37 232 2,700 165 134 112 11. Includes and Delhaize acquisitions 12. Includes six stand-alone pharmacy locations and two long- 38 Bartell Drugs 229 408 63 63 114 in the industry term care pharmacies 13. 266 ShopRite, 54 PriceRite and 7 stores 39 Schnuck Markets 212 2,600 101 95 114 14. U.S.-based stores ( and Hannaford) 40 Roundy's 191 3,900 166 113 118 With more than $195 billion in pharmacy sales and more 15. Excludes Save-A-Lot and supply chain sales; for fiscal year 2014 41 Save Mart 185 4,600 226 108 116 16. Includes 84 in-store pharmacies and three free-standing 42 K-VA-T Food City 162 2,200 107 77 116 than 54,000 stores, the retailers in the 2014 PoweRx pharmacies near health clinic 17. As of Dec. 31, 2013 43 Aurora Pharmacy 154 168 73 73 110 Top 50 represent more than 80% of the retail pharmacies in 18. For 21 stores, year ended December 2013 44 Marc Glassman 153 1,200 61 43 118 the United States across all classes of trade — chains and 45 Price Chopper 140 3,600 132 87.16 120 independents. And with the implementation of the Afford- 46 Lewis Drug 117 171 37.17 36.17 122 47 Navarro Discount Pharmacy 104 340 33 33 120 able Care Act, they are creating innovative programs and 48 Fruth Pharmacy 101 120 27 27 122 entering healthcare partnerships to move beyond dispens- 49 Pharmaca Integrative Pharmacy 60 112 24 24 124 50 Ritzman Pharmacy 58.18 60.18 26 26 124 ing and increase their role in the U.S. healthcare arena. * All sales in millions; reflect most recent fiscal year

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Expanding scope of health services

By Michael Johnsen have given health a hip factor with iPad-armed health guides cruising OTC aisles to answer Health is happening at Walgreens. questions. That’s in addition to the feel-good ser- Through such initiatives as the expanded vices available in its beauty department, which scope of healthcare services across its rebranded employs more than 26,000 beauty advisers. Healthcare Clinics, Walgreens clinics now as- And customers/patients are eating it up. sess, treat and manage chronic conditions, such That’s evidenced by Walgreens’ Balance Re- as diabetes, asthma, hypertension and hyperlip- wards loyalty program, which now numbers idemia. “We are experiencing growing interest more than 100 million enrolled and 80 million from customers ... and from payers who view active members. As many as 9 million customers Walgreens as an emerging health alternative touch the Walgreens brand every day — whether care model and an important part of the patients’ it’s through one of its physical locations or across walgreens daily care regime,” said Greg Wasson, Walgreens a very robust omnichannel offering. HQ: Deerfield, Ill. president and CEO in March. “We have a goal Some of the more notable initiatives in the 2013 sales: $72.2 billion to add nearly 100 new Healthcare Clinic loca- past year include the introduction of diagnostic % change vs. 2012: 0.8% No. of stores: 8,127* tions in calendar 2014 on top of our 400 current lab testing services that provide less invasive and No. of stores with Rx: 8,127* retail clinics.” more affordable clinician-directed lab testing. Avg. store size: 14,700 sq. ft. And in the first two quarters of fiscal 2014, Walgreens also continues to advance its spe- Rx sales: $45.4 billion Walgreens has administered 8.6 million vaccina- cialized pharmacies’ business that provides more % of sales from Rx: 62.9% tions, up 11% from the same period last year. personalized care for patients with such condi- Sales per store: $8.9 million Then there is the company’s Well Experience tions as HIV, with more than 700 locations, and *Includes only retail pharmacies and specialty pharmacies Source: Company reports stores, which now number 628 locations and hepatitis C, with more than 100 locations. Personalization key to retail strategy

By Antoinette Alexander analogous to Maintenance Choice as it connects mail and retail capabilities to provide choice and With an unmatched breadth of assets and a convenience for specialty pharmacy members. clear, long-term strategy, CVS Caremark is work- On the retail side, personalization remains ing to capitalize on the opportunities created by core to its retail strategy. This is evidenced by its the changing healthcare landscape. ongoing store clustering initiative, which devel- With a network of more than 7,600 retail phar- ops store designs that match the needs of cus- macies, a big PBM and a large retail clinic opera- tomers within a specific trade area, and its new tion, the company is leveraging these core parts myWeeklyAd digital circular. of its business — either individually or together One of the biggest moves on the retail side is cvs caremark — to improve access to care, lower costs and im- its decision to stop selling tobacco products in all HQ: Woonsocket, R.I. prove health outcomes. of its stores by Oct. 1. President and CEO Larry 2013 sales: $126.8 billion* The message is resonating on the PBM side Merlo said the tobacco category is inconsistent % change vs. 2012: 3% of the business, as CVS Caremark had net-new with CVS Caremark’s growing role within U.S. No. of stores: 7,660** wins for the 2014 selling season of about $2.4 bil- health care. The move — while bold — drew No. of stores with Rx: 7,603 Avg. store size: 8,000 sq. ft. to 15,000 sq. ft. lion, excluding attrition in its Medicare Part D overwhelmingly positive response across an ar- Rx sales: $45.6 billion*** business, with a 96% retention rate. With the 2015 ray of constituents, including consumers. % of sales from Rx: 69.5% selling season ahead, executives are optimistic Forging ahead on its longer-term goal of creat- Sales per store: $8.6 million that it is well-positioned to both retain business ing a national platform to support primary care, * Includes pharmacy services segment revenue of and gain share with its suite of capabilities. This the company looks to open at least 150 Minute- $76.2 billion and retail sales of $65.6 billion ** Retail stores includes its proprietary programs like Pharmacy Clinics this year and is now testing telehealth at *** Based on retail sales Advisor, Maintenance Choice and now Specialty more than two-dozen sites in California. By 2017, Source: Company reports Connect. Rolling out in 2014, Specialty Connect is it expects to have about 1,500 clinic locations.

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Adding wellness-themed initiatives

By Michael Johnsen ed beauty departments in several Wellness stores that feature a broader selection of prestige brands The fullness of Rite Aid’s wellness strategy and trained beauty advisers. Rite Aid also is test- came to fruition in March with the announce- ing new merchandising initiatives that focus on ment of its Rite Aid Health Alliance — an in- creating a more engaging shopping environment. tegrated care model that is a first for the drug Throughout the OTC department, for example, store industry, as it uniquely leverages the there are educational materials and interactive combined expertise of community pharmacists product displays. and in-store healthcare coaches in a collabora- Rite Aid’s wellness+ loyalty card, which to- tive care model that augments a physician’s day boasts 25 million active members, was reach and enables Rite Aid’s patient base to the first such program to incorporate health- pursue wellness. and-wellness solutions into its reward plat- rite aid It’s the kind of customer-focused care model form, including free health screenings and gym HQ: Camp Hill, Pa. people are beginning to expect from Rite Aid. membership discounts. 2013 sales: $25.5 billion* One of Rite Aid’s growth catalysts is its Genuine Since introducing the program in 2010, Rite % change vs. 2012: 0.5% Well Being format, which now makes up nearly Aid has developed some lifestyle-focused exten- No. of stores: 4,587 No. of stores with Rx: 4,587 25% of the company’s store base. These stores are sions of the program, including wellness+ for Avg. store size: 12,400 sq. ft. home to more than 1,900 specially trained Well- Diabetes and wellness65+, which offer special Rx sales: $17.3 billion ness Ambassadors, who engage the customer in consultations with Rite Aid pharmacists, among % of sales from Rx: 67.9% the aisles and help to serve as a bridge between other exclusive offerings. Rite Aid’s wellness65+ Sales per store: $5.6 million the front-end and the pharmacy. loyalty program now boasts more than 1.3 mil- *FY2014 for 52 weeks ended March 1, 2014 Source: Company reports Most recently, Rite Aid began piloting expand- lion senior members. Expanding smaller store formats

By Richard Monks usher in the next generation of retail,” Walmart U.S. president and CEO Bill Simon said. Already one of the most prominent players in Currently, Walmart has 346 Neighborhood the retail pharmacy and health and beauty aids Market and 20 Walmart Express stores. All of the arena, Walmart is turning up the heat with new Neighborhood Market stores have pharmacies, formats that many feel will further challenge average nearly 40,000 sq. ft. and offer fresh pro- traditional drug stores and supermarkets. duce and health and beauty aids. The Walmart Among the newest of these concepts is a Express stores measure about 15,000 sq. ft. and called Walmart to Go. Being carry groceries and general merchandise — not tested in a single pilot store near its Bentonville, all of them have pharmacies. Walmart Ark., headquarters, Walmart to Go is a 5,000-sq.- “Customers’ needs and expectations are ft. unit offering approximately 3,500 SKUs. Its changing,” Simon said. “They want to shop HQ: Bentonville, Ark. debut comes on the heels of the company’s when they want and how they want, and we are 2013 sales: $279.4 billion* % change vs. 2012: 1.8% announcement that it will step up the pace transforming our business to meet their expecta- No. of stores: 4,205 of expansion of its two other small formats, tions. We believe that accelerating our small store No. of stores with Rx: 4,176 Neighborhood Market and Walmart Express, expansion will allow customers to choose where Avg. store size: 182,000 sq. ft. which offer shoppers many of the same products and when to shop based on their needs.” Rx sales: $16.8 billion* found in a traditional pharmacy. In 2014, Walmart also made a series of execu- % of sales from Rx: 6% Sales per store: $65.2 million In February, Walmart announced that it plans tive changes. In February, Doug McMillan took to add 270 to 300 Neighborhood Markets and the reins as president and CEO of Wal-Mart Stores, * Sales include 3,290 supercenters, 508 discount stores, 346 Neighbor- hood Markets and 61 small formats (i.e., Amigo, Supermercado, Walmart Walmart Express stores this year, up from the 120 and in March Labeed Diab was named SVP and Express, Walmart on Campus and Super Ahorros) in the United States to 150 units it projected in October 2013. president health and wellness at Walmart, a posi- Source: Company reports, DSN estimates “Our small-store expansion ... will help us tion previously held by Dr. John Agwunobi.

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Meeting health reform demands

By Richard Monks EQuIPP, a web-based dashboard that shows a pharmacy its performance against the five As the nation’s healthcare system continues to pharmacy metrics used in the Centers for evolve, Cardinal Health is developing new ways Medicare and Medicaid Services’ Star Ratings to ensure that its network of independent phar- system. The solutions also offer an enhanced macies stay at the forefront of patient care. version of Cardinal’s Reconciliation Services “More than 10,000 people become eligible program, a HIPAA support program, compli- for Medicare each day, making such programs ance management service to assist with creden- as medication therapy management and Part tialing and regulatory mandates, and an online D performance networks a critical part of the legislative toolkit. community pharmacy business,” SVP indepen- A medication therapy management solution dent sales Steve Lawrence said. “We’re help- is being piloted to a small group of pharmacies ing our customers to take advantage of these to help Cardinal get a handle on how it can offer cardinal health new opportunities.” the best possible support for MTM cases, he said. HQ: Dublin, 2013 sales: $18 billion As the system shifts to one where providers These new programs are just the latest addi- % change vs. 2012: 4.7% are paid for performance and their ability to tions to Cardinal’s ongoing efforts to level the No. of stores: 7,000 drive patient outcomes, Cardinal is working to playing field for the independent pharmacies No. of stores with Rx: 7,000 help the 7,000 independents in its network meet it serves. Avg. store size: 2,300 sq. ft. these new demands. “We are constantly working to provide mem- Rx sales: $15.2 billion % of sales from Rx: 84.3% For instance, Lawrence said, a suite of new bers with the best tools to help them prosper not Sales per store: $2.6 million back-office solutions is available to Cardinal only in today’s marketplace, but in tomorrow’s,” Source: Company reports, DSN estimates network pharmacies that let them enroll in he said. Buoyed by buyout

By Jim Frederick component with its buyout of Lake Mary, Fla.- based Axium Healthcare Pharmacy. The nation’s premier operator “Our business is strong, and our merger muscled up with the sudden addition of more with Harris Teeter is going well,” said CEO than 200 high-end food stores and combo stores Rodney McMullen in a conference call in early this year — and gained one of the indus- March, citing the “remarkable consistency of try’s regional crown jewels in the bargain. Kroger’s performance.” The gains came with Kroger’s purchase in The company’s 2,000-plus pharmacies re- January of Matthews, N.C.-based Harris Teeter’s main “an important part of Kroger’s convenient 227 supermarkets, 147 of which include full- one-stop shopping strategy,” McMullen said, service pharmacies. Kroger officials were enthu- with 162 million prescriptions filled in fiscal siastic about the merger, and promised that the 2012, the most recent period for which figures chain “will continue to operate its stores under are available. kroger the Harris Teeter brand name as a subsidiary of “We are focusing on improving our custom- HQ: Cincinnati the Kroger Co.” ers’ pharmacy experience,” Kroger reports, with 2013 sales: $98.4 billion As of March 2014, Kroger operated 2,640 su- services like immunizations, diabetic counseling % change vs. 2012: 3.9% No. of stores: 2,640 permarkets, food/drug combo stores, discount and a new, opt-in service called AutoRefill, which No. of stores with Rx: 2,109 department stores and “price-impact warehouse refills prescriptions automatically and alerts Avg. store size: 63,000 sq. ft. stores” in 34 states under nearly two-dozen ban- customers when they’re ready via text, email Rx sales: $7.9 billion ners, including Kroger, Smith’s Food and Drug, or voicemail. % of sales from Rx: 8% Harris Teeter, , , , Also expanding: Kroger’s strength in acute Sales per store: $37.3 million Fry’s, Tom Thumb and . In late 2012, care. As of March 6, 114 stores included an in- Source: Company reports, DSN estimates the company also added a specialty pharmacy store clinic under the Little Clinic logo.

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Keeping pace with changing industry

By Richard Monks — and keep their ratings as high as possible. These pharmacies will be the ones that continue With the full rollout of the Affordable Care to be included in health plans’ networks, and Act altering the way community pharma- will be ensured a high degree of patient access, cies approach health care, AmerisourceBergen Robinson said. is working to ensure that its more than 3,100 “The way to ensure patient access is to provide Good Neighbor Pharmacies have the necessary the level of care that will keep patients adherent tools to meet the challenges posed by these new to their medications,” Robinson said. “The pay- market dynamics. ers only want pharmacies in their networks that “The business has changed quite a bit in the can provide a high level of care.” past few years,” GNP group VP Scott Robin- Just as outcomes-based care got its start in son said. “The ACA and Star ratings have had government-run healthcare programs and has a big impact, and we have to keep our member become adopted by the private sector, Robin- good neighbor pharmacies pharmacies focused on how these changes affect son said he thinks medication therapy manage- HQ: Valley Forge, Pa. their business.” ment will undergo a similar evolution, and GNP 2013 sales: $7.3 billion % change vs. 2012: -14.1% With more health plans compensating phar- store owners and other community pharmacies No. of stores: 3,154 macies based on their ability to drive patient out- should prepare for this shift. No. of stores with Rx: 3,154 comes, it has become essential, he explained, that “The way the government goes often deter- Avg. store size: 2,500 sq. ft. GNP store owners understand the importance of mines the direction private plans take,” he said. Rx sales: $6.2 billion Star ratings — a system developed by the Cen- “Over the next year or so we will see how MTM % of sales from Rx: 85% Sales per store: $2.3 million ters for Medicare and Medicaid Services to gauge works in Medicare, and I would be surprised if it Source: Company reports, DSN estimates a provider’s ability to improve patient health didn’t become part of more private plans.” Health Mart renews focus on adherence

By Michael Johnsen to their medications.” McKesson provides a suite of technology McKesson’s Health Mart is fully invested in solutions to help independents better manage helping members boost medication adherence — medication refills and efficiently deliver targeted an area where community pharmacies are uniq- adherence interventions. For example, Health uely positioned to excel due to their strong clinical Mart utilizes the McKesson Pharmacy Interven- expertise and personal patient relationships. tion Program technology to identify patients To that end, a major pharmacy initiative with adherence opportunities and to deliver tar- has been Health Mart’s “Know Your Num- geted behavioral coaching, all within the phar- bers” campaign, and Health Mart has devel- macy’s existing workflow. “Programs like PIP oped the tools and resources members need present a win-win situation, as they provide the to learn more about their pharmacy’s specific pharmacy an additional revenue stream tied di- quality performance and its potential impact rectly to the interventions, while improving pa- on Medicare plans’ Star ratings. “We’ve also tient medication adherence,” Hunter said. “For HEALTh mart partnered with Pharmacy Quality Solutions to example, results for our diabetes portfolio of HQ: San Francisco give our members access to EQuIPP, an online programs illustrated patients who received face- 2013 sales: $7.1 billion information management platform that makes to-face behavioral coaching showed an average % change vs. 2012: 6.5% No. of stores: 3,276 pharmacy quality performance data available of four incremental refills over 12 months, and No. of stores with Rx: 3,276 to health plans and community pharmacy or- adherence improved by 25%.” Avg. store size: 2,500 sq. ft. ganizations,” Kristin Hunter, McKesson man- A major health-and-wellness program for 2014 Rx sales: $6.5 billion ager strategic communications, told DSN. “By is its Health Mart Healthy Living Tour, which % of sales from Rx: 91% giving our members the tools they need to un- features a mobile screening vehicle that will visit Sales per store: $2.2 million derstand how they measure up, they can focus more than 130 communities to screen for diabetes, Source: DSN estimates on their patients to help them be more adherent high cholesterol, high blood pressure and obesity.

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Providing ‘high-touch’ service By Barbara White-Sax istration Organization is garnering high scores when it comes to the quality indicators used by American Associated Pharmacies, the collec- Centers for Medicare and Medicaid Services to tive of community pharmacies working together monitor adherence and treatment option mea- as a chain, has created a national presence in the sures for Medicare Advantage plans,” Berry said. pharmacy arena. “As a member-owned, national Last year, AAP introduced Compliance Guard- cooperative group, we have volume purchasing ian to help pharmacies comply with federally power, as well as access to merchandising, distri- mandated sanction checks and monitoring. “The bution, managed care contracting and back-end program is a suite of services created as a result business services that help our pharmacies com- of new laws that require pharmacists to perform pete more powerfully,” said Tamara McKinney a variety of tasks to meet federal requirements,” Berry, a spokeswoman for AAP. Berry said. “Compliance Guardian enhances reg- AAP stores position their pharmacies as ulatory protection for individual pharmacies and “high-touch” personalized service providers, for AAP membership as a whole.” aap offering flu shots, insights into the impact of AAP’s member-owned warehouses provide HQ: Scottsboro, Ala. 2013 sales: $4.7 billion the Affordable Care Act, medication adherence member pharmacies with more than 300 fast- % change vs. 2012: 3.6% programs, medication therapy management moving brand prescription products, as well as No. of stores: 2,054 and medication consultation for such chronic OTCs. AAP’s Memphis distribution center, pur- No. of stores with Rx: 2,054 diseases as diabetes. chased and modernized in 2012, became fully Avg. store size: 2,000 sq. ft. The position has gained the chain recognition operational in 2013, doubling its distribution ca- Rx sales: $4.5 billion % of sales from Rx: 96% among consumers and the healthcare industry. pacity. “For our pharmacies in the Mountain and Sales per store: $2.3 million “Initial feedback from PBMs and health plans Pacific Time zones, that’s meant more efficient Source: Company reports indicate that AAP’s Pharmacy Services Admin- and improved delivery service,” Berry said. Merger to create grocery Rx giant

By Richard Monks nutrition programs. Both Safeway and Albertsons upped their The recently announced merger of Albertsons healthcare offering last year when they added LLC and Safeway will create a new giant in the health test kiosks to many of their stores. The ki- supermarket pharmacy sector. osks provide patients with access to free health Under the $9.1 billion deal announced in early screenings, personalized assessments and other March, Albertsons will acquire nearly all of Safe- health data. way’s assets, creating a network of more than Before the merger, Safeway was looking to 2,400 stores. launch a new wellness platform with pharma- Executives at both companies say the merger cists accessible in aisles and a robust wellness will provide the combined Albertsons/Safeway service offering. with increased efficiencies and will lead to sav- Meanwhile, Albertsons has found that its ings for customers. The deal is expected to close MyRxCare program, offering certain prescrip- safeway/albertsons in the fourth quarter. tions for $3.99 a month and significant discounts HQ: Boise, Idaho Because each company is rooted in the grocery on most other medications, has proven popu- 2013 sales: $57.9 billion business, they have been able to promote their lar with patients who frequent its pharmacies. % change vs. 2012: NA No. of stores: 2,410 pharmacies as just one part of a greater health and In addition, the company offers an extensive No. of stores with Rx: 1,859 well-being offering. While the companies have diabetes care program that offers patients spe- Avg. store size: 48,500 sq. ft. followed the path of other community pharma- cialized training from Albertsons pharmacists, Rx sales: $4.6 billion cies — offering a range of immunizations, health diabetes seminars and a six-month program of % of sales from Rx: 7.9% screenings and prescription savings programs education and follow-up that executives say Sales per store: $24 million — they also have merged their pharmacy opera- is designed to encourage sustainable healthy Source: Company reports, DSN estimates tions with other aspects of their business, such as lifestyle choices.

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Post-data breach, retailer rebuilds trust By Jim Frederick cluding three CityTarget urban format stores. Target also will test TargetExpress, a 20,000-sq.- Target ended 2013 with one of the toughest ft. new-concept store that will open this July near challenges in its 52-year history: A serious data the University of Minnesota. TargetExpress will breach by criminal hackers, affecting as many feature a pharmacy, a Beauty Concierge advisor, as 70 million of its customers’ credit and debit revamped checkout lanes to accommodate small- card accounts. er basket sizes and a “larger selection of grab- The massive fraud led to “meaningfully weak- and-go food options,” according to John Griffith, er-than-expected sales,” according to the compa- EVP property development for Target. ny, with fourth-quarter sales plunging 6.6%. Also on tap: Plans to add “Beauty Concierge” Target reacted quickly. It accelerated its $100 experts to another 95 Target stores this year. million development of chip-enabled smart-card Beauty Concierge advisors are already available target technology for its REDcard loyalty card. And it in some 300 stores across the United States. HQ: Minneapolis invested $5 million in a campaign to educate con- In Canada, Target plans to open nine new 2013 sales: $71.3 billion* sumers about cyber-security and scams. stores in 2014. “The past year marked a major % change vs. 2012: -0.9% No. of stores: 1,924* “We will continue to work tirelessly to win milestone for Target as we delivered on the un- No. of stores with Rx: 1,749* back the confidence of our guests,” said - chair precedented goal of opening 124 Target stores Avg. store size: 186,000 sq. ft.** man, president and CEO Gregg Steinhafel. across 10 provinces,” said Target Canada presi- Rx sales: $3.7 billion The data breach hasn’t deterred Target. Com- dent Tony Fisher. % of sales from Rx: 5.2% ing off what Steinhafel called “the largest single- Target’s reach in pharmacy also continues to Sales per store: $37.1 million store expansion in Target’s history” in 2013, which expand. “We are constantly striving to deliver * As of March 2014, including 1,797 U.S. stores and 127 stores in Canada ** Average Super Target size saw the addition of 23 new units, the company an … affordable healthcare experience for our Source: Company reports, DSN estimates will open at least 10 more U.S. stores this year, in- guests,” said José Barra, SVP health and beauty.

Acting on customer service By Richard Monks discounts for branded and generic prescrip- tions, as well as savings on a wide range of With pharmacies in nearly three-quarters of its other health-related products. stores, Ahold USA offers patients a convenient More recently, Ahold rolled out a new cus- way to fill prescriptions and receive a compre- tomer service initiative that emphasizes the hensive health-and-wellness offering. role the company’s pharmacists play in pa- “For many of our customers, healthier tient’s health and well-being. McCall said the choices often begin in the supermarket as they program, dubbed ACT, seeks to make custom- are filling their shopping carts,” VP Raymond ers feel important and appreciated by having McCall said. “Therefore, we are able to pro- pharmacists be more interactive, and a focus on vide customers with a variety of health-and- counseling is at the heart of the effort. wellness resources for themselves and their “Counseling is our best opportunity to com- families both at the pharmacy and throughout municate the value we provide,” McCall said. the store.” “It’s key to creating customer awareness that ahold The company, the domestic arm of Dutch they are receiving more from us than just a HQ: Carlisle, Pa. supermarket giant Ahold NV, operates stores filled prescription; that they have an advocate 2013 sales: $26.1 billion in 12 states and Washington, D.C., under the who is concerned about their health and sees % change vs. 2012: 1.1% No. of stores: 767 Stop & Shop, Giant and Martin’s banners. them as a person, not just a prescription.” No. of stores with Rx: 565 Stressing the superior service it provides Ahold also is rapidly expanding its online Avg. store size: 41,000 sq. ft. its pharmacy patrons, Ahold continues to en- Peapod division. Ahold opened 120 pickup Rx sales: $2.1 billion hance its pharmacy offerings with savings points for online orders as of the end of 2013, % of sales from Rx: 8% programs, nutritional education and counsel- and Ahold CEO Dick Boer said, “Peapod is Sales per store: $34.0 million ing services. In June 2013, the chain launched expected to double its capacity in the United Source: Company reports, DSN estimates its Prescription Savings Card, offering patients States in 2014.”

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Specialty meds program expands Rx

By Barbara White-Sax The chain also developed and launched a dedi- cated section in its stores for “pharmacist-recom- “Kmart Pharmacy is always evaluating its mended” drug store items. marketing and merchandising to meet the needs Pharmacy education continues to be a big fo- of its diverse Shop Your Way members,” said cus at the chain. In 2013, Kmart partnered with Mark Panzer, the new president of pharmacy at Enroll America to educate its shoppers on the op- Kmart. “We have many more integrated and tar- tions available through the Affordable Care Act geted initiatives to offer our products and services and created a “Pharmacist Recommends” health in-store, online and via mobile devices, to include newsletter that offers customers valuable savings free home delivery, a new mobile app, and begin- for everyday drug store items. ning in May, access to specialty medications.” Panzer said that the chain’s focus on phar- In an effort to offer even more services to its macy and on its pharmacists keep customers patients, the chain announced a new specialty loyal to the chain. “Kmart offers great programs kmart HQ: Hoffman Estates, Ill. medications program and last year launched a like its Prescription Savings Club that provides 2013 sales: $13.1 billion mobile app that allows shoppers to access Kmart discounts on all medications,” Panzer said. “But % change vs. 2012: NA pharmacy 24/7. Kmart also has revitalized and it’s really our pharmacists that give us strength No. of stores: 1,215 expanded its diabetic category to offer more in our markets. The average Kmart pharma- No. of stores with Rx: 841 products to its customers. cist has been with us 11.8 years, translating into Avg. store size: 70,000 sq. ft. Rx sales: $1.7 billion The chain has focused on the pharmacy’s strong community relationships and improved % of sales from Rx: 13% presence in the store with an update of signage patient care.” Sales per store: $10.8 million throughout its pharmacies that give the depart- All Kmart pharmacists are medication therapy Source: Company reports, DSN estimates ment a cleaner and more prominent presence. management trained and certified immunizers. Exceeding customer expectations By Richard Monks programs they want. One of those offerings, the company’s Sync Your Refills program, was Offering pharmacies in 928 of its 1,077 stores extended to all of the chain’s pharmacies ear- across Florida, Georgia, Alabama, South Caro- lier this year after a test in the Publix Atlanta lina, North Carolina and Tennessee, Publix division deemed the program to be something Supermarkets has consistently won accolades that would significantly impact the quality of from patients for the level of service it pro- patient care the company could provide. vides. The company’s pharmacies are ranked “As both a supermarket and pharmacy, at or near the top of the annual J.D. Power and we are focused on providing convenient pro- Associates pharmacy satisfaction poll, and grams and services to our customers,” media have been the poll’s top-rated supermarket and community relations director Maria Brous pharmacy for the past four years. In 2012, Pub- said when the program was expanded in late lix was the highest-ranked pharmacy chain in January. “Our Sync Your Refills program is any trade class, and last year it was the overall designed to respect the time of our customers, publix No. 2 pharmacy chain. and continue to build on a strong relationship HQ: Lakeland, Fla. Earlier this year, that support was backed up between patient and pharmacist. Prescription 2013 sales: $28.9 billion when 3,600 consumers queried by customer synchronization assists in medication adher- % change vs. 2012: 5.2% No. of stores: 1,077 intelligence solutions provider Market Force ence for happier, healthier customers.” No. of stores with Rx: 928 Information ranked Publix as offering the best Pharmacy patients using the Sync Your Avg. store size: 45,000 sq. ft. customer service of any pharmacy provider in Refills program have all of their medications Rx sales: $1.7 billion . refilled on the same day of the month. Doing % of sales from Rx: 5.8% Executives say Publix has been able to main- this, Brous explained, makes Publix’ pharma- Sales per store: $26.8 million tain its high level of customer satisfaction by cists better equipped to engage with patients Source: Company reports, DSN estimates offering its pharmacy patients the services and and discuss their care.

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Ramping up care management

By Antoinette Alexander hope to be able to offer to our [members] and po- tentially work in conjunction with some of our As healthcare reform gives rise to new models managed care and PBM partners to deliver care of care and new quality standards, pharmacy re- plans to them,” said Mastromonica, who noted tailers are increasingly aligning themselves with that company is looking to find the right oppor- the longer-term trends in healthcare, and tunities, partners and tools to leverage. is no exception. He added, “the focus, I think, in the short term “We are actively moving toward a more care- is going to be on the chronic disease states, par- centric model in our pharmacies,” Michael Mas- ticularly those that are impacted by [the Star rat- tromonica, Costco’s assistant VP pharmacy ser- ing system].” Photo provided by Costco Wholesale vices, told Drug Store News. Costco also is working to ramp up its immuni- As part of this effort, Costco is sharpening its zation services and plans to further explore travel costco focus on medication therapy management. The medicine via a pilot program in the Seattle-area HQ: Issaquah, Wash. company also has been in the screening business in the coming months. 2013 sales: $75.5 billion* for some time, offering screenings for such condi- Costco pharmacists currently administer most % change vs. 2012: 5.2% tions as osteoporosis and cardiovascular disease, adult immunizations, as permitted by state laws, No. of stores: 462* No. of stores with Rx: 455* but within the next year, it plans to ramp up its but the company sees a significant opportunity in Avg. store size: 143,000 sq. ft. care management initiatives. travel medicine. Rx sales: $1.7 billion “I would like to become more proactive rela- “[Travel medicine] is a little bit more compli- % of sales from Rx: 2.2% tive to MTM/care management for patients as cated of a business, and we’ve been looking for Sales per store: $163.4 million Costco initiatives. … So, we are in the process awhile now. … But I want to make sure we do it * U.S. operations Source: Company reports of putting together some programs here that we right,” Mastromonica said. Emphasizing MTM across franchise

By Richard Monks the advantages of operating under a recogniz- able and respected brand name. For shoppers, At Medicine Shoppe International, the em- the franchised network provides one of the phasis this year is on performance. industry’s most pharmacy-centric operations, John Fiacco, the vice president who oversees with nearly everything Medicine Shoppe and the Medicine Shoppe and Medicap Pharma- Medicap stores offer revolving around its pre- cies franchised network for parent company scription and healthcare services. Cardinal Health, said 2014 is seeing the roll- Fiacco says that because pharmacy is so vi- out of programs to improve patient care and tal to the company’s success, it is working to pharmacy performance, especially as it relates ensure that its franchisees stay on top of the to managed health care. nation’s rapidly evolving healthcare system “We continue to put an emphasis on medi- and shifting patient needs. medicine shoppe cation therapy management across the sys- “We also are working to improve medica- HQ: Dublin, Ohio tem,” he said. “We have resources dedicated tion adherence and compliance by piloting 2013 sales: $1.9 billion* to monitoring MTM from the providers and a medication synchronization program,” he % change vs. 2012: 1.1% coordinating the efforts of our field staff as said, explaining that MSI offers store owners No. of stores: 570* they work with our franchisees to complete in its network two different synchronization No. of stores with Rx: 570* Avg. store size: 2,500 sq. ft. MTM cases.” programs. A select number of MSI franchisees Rx sales: $1.8 billion* With 570 franchised stores in 44 states across also are part of a pilot program for Pharmacy % of sales from Rx: 93.4% the United States and another 232 in Canada, Quality Solutions’ EQuIPP tool — a national Sales per store: $3.4 million* Japan, the United Arab Emirates, India and platform that provides objective performance * U.S only China, MSI offers its franchisees the opportu- data to health plans, prescription benefit man- Source: Company reports, DSN estimates nity to be independent store owners who get agers and community pharmacies.

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Sam’s Club: Screening programs key

By Richard Monks several hundred dollars per patient. At the company’s breast cancer screenings Sam’s Club has made free health screenings last fall, Sam’s Club gave away more than 25,000 a centerpiece of its operation. breast self-exam kits. Turner-Mitchael said that With more than 47 million people across the the breast cancer and related women’s health country enrolled as Sam’s Club members, execu- screenings are among Sam’s Club’s most popular tives say the health clinics have helped improve events, attracting nearly 700,000 women a year. the lives of millions of Americans suffering from Screenings are just one way that Sam’s Club a wide range of conditions. seeks to differentiate its pharmacies. The compa- Over the past year, Sam’s Club has offered ny also offers its members a discounted generics screenings for seasonal allergies, breast cancer, program, with 30-day prescriptions for $4 and diabetes and prostate cancer. Many of the 90-day prescriptions for $10. In addition, club Sam’s club screening events also offered tests for related members enrolled in the company’s Savings and HQ: Bentonville, Ark. conditions, such as high blood pressure, thyroid Plus programs get reduced prices on a wide va- 2013 sales: $57.2 billion disease and body mass index. riety of branded and generic medications. % change vs. 2012: 1.3% “Our screening program helps Sam’s Club In addition, Sam’s Club pharmacies offer im- No. of stores: 634 pharmacy patients pinpoint causes, prevent munizations for adults, including flu shots and No. of stores with Rx: 584 symptoms and actively maintain daily wellness vaccines to protect against such conditions as Avg. store size: 133,000 sq. ft. Rx sales: $1.6 billion at an amazing savings,” SVP of health and well- pneumonia, shingles and whooping cough, and % of sales from Rx: 2.8% ness Jill Turner-Mitchael said. She noted that almost all of its pharmacies offer patients health- Sales per store: $89.0 million many of the screenings provide members with screening kiosks. More than 250 clubs aslo have Source: Company reports, DSN estimates free exams and test kits that could otherwise cost optical and hearing aid centers. H-E-B’s ‘total wellness destination’

By Jim Frederick Norman calls H-E-B’s expanding immuniza- tion program “the cornerstone of our profession- With more than 350 supermarkets and 235 al service offerings,” with pharmacists providing in-store pharmacies, H-E-B means food and “immunizations without a prescription, based on drug store retailing — not to mention health the protocol agreements we have with doctors.” services, natural foods and nutritional coun- Coming up: H-E-B’s first outpatient pharma- seling — to millions of Texas residents. cy in a medical center hospital in Odessa, Texas. “We want to be known as the premier health- “This will be our entry into … having a stand- care provider in Texas, recognizing H-E-B as a alone outpatient pharmacy in a hospital setting,” total wellness destination,” said Craig Norman, Norman said. “The focus … is going to be inte- SVP pharmacy. “That encompasses pharmacy grating with the hospital care team, and provid- and the rest of the store, including the services ing medications and discharge counseling to pa- we provide with our dietitians and nutrition- tients prior to their leaving the hospital.” h-e-b ists, the health information and education we “Our intention is to follow up with those HQ: San Antonio provide online, and of course, a lot of programs patients post-discharge as well,” he added. 2013 sales: $20 billion % change vs. 2012: 3.1% in pharmacy.” “Our overall goal … will be to hopefully im- No. of stores: 352 Among those programs: H-E-B’s “Second prove adherence and compliance, and lower No. of stores with Rx: 235 Saturday” health screenings, available the sec- hospital readmission rates for those patients.” Avg. store size: 68,000 sq. ft. ond Saturday of every month at all of its phar- H-E-B also is developing a full-range of spe- Rx sales: $1.5 billion macies. The screenings, Norman said, “have cialty pharmacy services. “As soon as we’re % of sales from Rx: 7.5% Sales per store: $56.8 million become a total store event,” with “healthy able to turn on a disease state, we’ll start going product demonstrations and other activities after that business, and we’ll expand disease Source: Company reports, DSN estimates … to promote health and wellness.” state by disease state,” Norman said.

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Shifting focus to patient care

By Antoinette Alexander gram, funded by the National Association of Chain Drug Stores Foundation, which is exam- In 2014 and beyond, supermarket chain Hy- ining the ACO-MTM model, and it currently Vee is shifting its health-and-wellness efforts has four pharmacies in central Iowa participat- into high gear as it leverages its new central fill ing in the ACO project. facility to help free up pharmacists, bolsters it Recognizing the rapid growth within the specialty pharmacy business and expands its specialty pharmacy segment, the company number of in-store health clinics. is bolstering its specialty pharmacy business The grocer, which has more than 200 phar- by acquiring Amber Pharmacy, a specialty macy locations and more than 900 pharmacists pharmacy solutions provider based in Omaha, companywide, is working to further improve Neb. The deal is expected to close in mid-May. Hy-Vee patient outcomes by leveraging its new cen- “We did have a specialty pharmacy called HQ: West Des Moines, Iowa tral fill facility that opened in late 2013 and is Hy-Vee Pharmacy Solutions, but now we have 2013 sales: $8 billion currently filling about 20,000 prescriptions per combined Amber Pharmacy, which is one of % change vs. 2012: 4.3% eight-hour shift — a number that is expected the larger specialty pharmacies in the United No. of stores: 236 to grow to upward of 30,000 prescriptions. States,” Egeland said. No. of stores with Rx: 246* Avg. store size: 70,000 sq. ft. “The idea behind the central fill is not cost- In 2014, Hy-Vee also is looking to expand Rx sales: $958 million driven, the reason was because we wanted to its number of retail-based health clinics. The % of sales from Rx: 12% provide more time for our pharmacists to in- company currently has about 20 in-store clin- Sales per store: $34 million teract with their patients,” said Bob Egeland, ics through several health system partners, * Includes in-store pharmacies, offsite clinics, specialty pharmacy and VP pharmacy at Hy-Vee. and will open three in Columbia, Mo., in May a central fill facility Source: Company reports, DSN estimates The company also is part of a grant pro- with the University of Missouri. Entering into specialty Rx, delivery

By Michael Johnsen Along with its entry into specialty pharmacy, Giant Eagle also expanded its services to include Giant Eagle last year got into specialty phar- prescription drug delivery in the Columbus macy in a big way with its acquisition of Rx21 market. “Currently, pharmacy home delivery is Specialty Pharmacy. The acquisition enables marketwide in Columbus, with an additional 20 the company to provide enhanced services to locations providing the service,” patients with cancer, Hepatitis C and chronic Donovan said. “We continue to evaluate op- inflammatory disease. portunities to expand home delivery into other “Our specialty pharmacy clinical care services markets, as well as including over-the-counter and patient care advocates provide the essential medications and health-related items.” tools, enabling access to financial support, crucial Through 2014, Giant Eagle pharmacy will therapy and medication management,” Daniel be increasing convenience for customers by Donovan, Giant Eagle spokesman, told DSN. “In enhancing digital services and expanding giant eagle 2014, we are making significant enhancements to medication offerings, Donovan said. “Addi- HQ: our current clinical care plan and expanding the tionally, we will continue to offer free prenatal 2013 sales: $9.3 billion services provided both centrally and at our retail vitamins and $4 and $10 generic medications.” % change vs. 2012: -6.1% No. of stores: 218 locations, allowing for the best possible patient Known for its penchant for trying new store No. of stores with Rx: 213 experience and clinical outcome.” formats, Giant Eagle’s latest introduction is a Avg. store size: 80,000 sq. ft. In addition to access to Rx21’s expertise cross between its gourmet Market District stores Rx sales: $1.2 billion and clinical support, Giant Eagle Specialty and the smaller footprint of its GetGo conve- % of sales from Rx: 13% Pharmacy customers have 24-hour-a-day ac- nience stores called Market District Express. The Sales per store: $42.7 million cess to pharmacists ready to provide counsel 15,500-sq.-ft. Market District Express includes an Source: Company reports, published reports on medication management. in-store pharmacy with drive-through access.

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Expanding base through acquisition By Michael Johnsen how you can improve the health of the patients will be a key metric in appealing to health pay- Bi-Lo Holdings, parent company of Bi-Lo ers going forward,” Fegan said. and Winn-Dixie supermarkets, grew by leaps Bi-Lo recently rolled out “Refill Sync,” a free and bounds last year with the merger of the service that synchronizes customers’ mainte- two supermarket entities. And acquisition nance medication prescriptions so that all scripts continues to be a key part of the company’s — regardless of refill dates — can be filled at growth strategy as it considers whether or not the same time. “We have done almost 40,000 to go public. refill syncs,” Fegan said. Adherence initiatives Bi-Lo Holdings recently closed on the deal to are imperative, he said, because “the Star rating buy three chains (153 stores net) from Belgium- program is going to become more important in based , including the Sweetbay, the way networks choose their participants.” To Harveys and Reid’s banners. And last year, Bi- that end, Bi-Lo and Winn-Dixie’s pharmacies are Bi-Lo Lo Holdings acquired 22 Piggly Wiggly stores members of the Pharmacy Quality Alliance. HQ: Jacksonville, Fla. across South Carolina and coastal Georgia. Bi-Lo makes it convenient for patients to 2013 sales: $11.6 billion* As the company’s store base continues to ex- order prescriptions through the chain’s phar- % change vs. 2012: 16% No. of stores: 860* pand, so does its pharmacy heft — which, un- macy mobile app. In addition, patients can ac- No. of stores with Rx: 551* der the guidance of SVP pharmacy John Fegan, cess their prescription records, which include a Avg. store size: 46,000 sq. ft. is focused on improving the health of its pa- visual depiction of their medicines. Rx sales: $941.8 million* trons. Four times a year, for example, each store Bi-Lo also is involved with the Diabetes % of sales from Rx: 8.1% hosts a wellness screening with free screenings Prevention and Control Alliance. “We have Sales per store: $13.5 million for cholesterol, diabetes and blood pressure. 30 pharmacies that have specialized diabetes * Includes Piggly Wiggly and Delhaize acquisitions Source: Company reports, DSN estimates “The services we offer are so important, and offerings,” Fegan said. Pharmacy is ‘crown ’ of Fred’s

Fred’s Super Dollar in January placed itself on of reconfiguration continue to be positive, with the sales bloc in retaining Bank of America Mer- comparative sales of retrofitted stores realizing a rill Lynch and Peter J. Solomon Co. to review 1.6% comp gain over the chain store average.” strategic opportunities to enhance shareholder Beyond reconfiguring stores to better em- value. And the jewel in Fred’s crown? Pharmacy. phasize pharmacy, Fred’s also is expanding For Fred’s, it’s all about building out its phar- its specialty pharmacy business. “One of our macy business. Last month, Fred’s announced most exciting opportunities for the future [is] it will be exiting a number of front-end catego- our specialty pharmacy division, EIRIS,” Efird ries — including footwear, televisions/home recently told investors. “EIRIS provides us an theater and select home furnishings — in an opportunity to accelerate our penetration into effort to expand an assortment better suited the fastest growing segment of the pharmacy for a retail drug store setting. “By exiting these industry, specialty drugs. We believe Fred’s is product lines, the company will better tailor uniquely positioned to participate in this seg- fred’s super dollar its health and beauty care products to be more ment by leveraging our network of rural and HQ: Memphis, Tenn. reflective of a pharmacy’s product offering,” local pharmacies.” 2013 sales: $1.9 billion said Bruce Efird, Fred’s CEO. EIRIS is a stand-alone specialty pharmacy % change vs. 2012: -0.8% No. of stores: 704 “As we continue to accelerate our pharmacy that supports Fred’s ongoing relationship with No. of stores with Rx: 355 presence, we are further leveraging our pharma- Diplomat Specialty Pharmacy. “With 2013 be- Avg. store size: 18,300 sq. ft. cy department by tailoring our general merchan- ing our initial entry into the specialty phar- Rx sales: $731 million dise mix toward our pharmacy customers in macy segment, we are experiencing an 8% in- % of sales from Rx: 37.7% stores with pharmacies,” Efird said. “We will be crease in specialty scripts and a 13% increase Sales per store: $2.8 million retrofitting 80 stores in the first half of 2014 with in sales associated with those scripts,” Efird Source: Company reports the reconfiguration program as well. The results told analysts in November.

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Delhaize: Spotlight on Food Lion ShopRite’s eye on health and wellness

By Antoinette Alexander the addition of MVP Savings Centers in each of With a growing list of Wellness Centers, in- There are currently more than 80 in-store regis- its stores. Shoppers can scan their MVP Card to store registered dietitians and even a fitness tered dietitians serving ShopRite stores. As Delhaize Group wraps up its deal with receive personalized offers for additional sav- center with exercise classes, there’s no denying Also, the QCare in-store health clinic located Bi-Lo Holdings — in which Bi-Lo will acquire ings during their shopping trip. that Wakefern Food’s ShopRite grocery chain inside a ShopRite store in Philadelphia will Sweetbay, Harveys and Reid’s supermarket The company has now embarked on the next is ramping up its focus on health and wellness. soon become home to a new pilot program. chains from the Belgium-based company — step of its transformation, and has 77 market Looking to help its shoppers live a healthier The clinic location will house in mid-May Delhaize shifts much of its future focus to the test stores that it is planning for the second half life and to serve as a resource for health and a mental health online assessment tool — a Food Lion banner. of the year. This testing involves different front- wellness, ShopRite has expanded its number first for a retail-based clinic. The Philadelphia With a geographic footprint of more than 1,100 end labor models from a software and labor of Wellness Centers in the past year, bringing Department of Behavioral Health and the supermarkets in 10 Southeastern and Mid-Atlan- perspective, and a sealed fresh beef program. delhaize group wakefern food the current number of locations to 10. Among Intellectual Disability Services, in collaboration tic states, of which about 29 have pharmacy loca- In addition, the company will test changing HQ: Salisbury, N.C. HQ: Keasbey, N.J. the more notable is the ShopRite of Greater with Screening for Mental Health Inc., will tions, Food Lion has not been immune to intense the assortment only in a given market to 2013 sales: $17.1 billion* 2013 sales: $14.1 billion Morristown, N.J. This location, which opened create a private area at the clinic where patients 1.9% competition — especially in the Southeast where understand the stand-alone impact. % change vs. 2012: % change vs. 2012: 3.9% in November, boasts not only an in-store can use an iPad to access its online behavioral No. of stores: 1,347* No. of stores: 327* there’s a high concentration of low-cost players. “If we are successful within the next step of No. of stores with Rx: 184* No. of stores with Rx: 209 dietitian and full-service pharmacy, but also health-screening tool. Facing strong rivalry and declining market our strategy, we believe that we should have Avg. store size: 34,000 sq. ft. Avg. store size: 65,000 sq. ft. a fitness studio featuring yoga, Zumba and “The Department of Behavioral Health has a share, Delhaize set into motion several years ago the ambition to aim for a higher share of wallet Rx sales: $547.2 million Rx sales: $677 million other exercise classes. The fitness classes are ‘train-the-trainer model,’ so they will be training a phase plan for Food Lion that it rolled out in of our customers. … We have only 18% share % of sales from Rx: 3.2% % of sales from Rx: 4.8% free to Price Plus card members. the QCare staff on how to use this tool and how different regions between May 2011 and Novem- of wallet compared to an average of around Sales per store: $12.7 million* Sales per store: $43.1 million The retailer’s in-store dietitian program, which to assess the information,” said Gregory Caplan a * U.S.-based stores (Food Lion and Hannaford) * 266 ShopRite, 54 PriceRite and 7 The Fresh Grocer stores ber 2013. The results: Lower prices on thousands 26% for a selected group of local peers,” Del- Source: Company reports, DSN estimates Source: Company reports, DSN estimates was implemented in 2006, continues to play an master’s student at Drexler University School of of items and other store enhancements, such as haize Group CEO Frans Muller said. important role in its focus on health and wellness. Public Health and Scattergood Foundation intern.

Innovating Today To Lower The Cost Of Tomorrow’s Most Needed Medicines

The investments we’re making today at Dr. Reddy’s – in our infrastructure, technology and operations – are done to deliver value to you and ensure critical drugs reach those individuals who require them in the future. It’s all part of an exciting, yet complex journey that the company began when it was founded more than two decades ago in an eff ort to improve access to more aff ordable, innovative medicines. Looking ahead, we will continue to bring you the fl exibility, quality assurance, and service that you’ve come to expect from Dr. Reddy’s. We look forward to delivering on this commitment for years to come.

Dr. Reddy’s Laboratories, Inc. 107 College Road East Princeton, NJ 08540 Tel: 866-733-3952 www.drreddys.com ©2014 Dr. Reddy’s Laboratories, Inc. All right reserved. January 2014

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Collaborating on affordable health care By Barbara White-Sax and Noble Health Services specialty pharmacy remain unchanged. Regional chain Kinney Drugs, which operates In a collaborative effort designed to address in central and northern New York and adjacent the need for greater access to affordable health areas of Vermont, appointed a new president in services in the Syracuse market, Kinney Drugs 2013. Jim Spencer, who had served as COO, was has partnered with Pulmonary Health Physi- named president of the 100-store chain and will cians, PC and Franciscan Companies (an affili- continue to report to Bridget-Ann Hart, president ate of St. Joseph’s Hospital), to open a Healthy and CEO of KPH Healthcare Services. You Wellness Center at one of the chain’s lo- Spencer will be responsible for the total cus- cations in Syracuse. The center will be staffed tomer experience and strategic growth of the by specialists from Pulmonary Health Physi- company’s retail drug stores. In addition to over- cians and will focus on disease state manage- seeing pharmacy and retail operations, market- ment, as well as immediate care for certain ing and merchandising, he will assume oversight health concerns. kinney drugs responsibilities for company logistics. Services will include assessment, treatment HQ: Gouverneur, N.Y. 2013 sales: $829 million In April, the regional operator changed its and management of such chronic conditions as % change vs. 2012: 3.4% name to better reflect its evolving focus on health- COPD, emphysema, bronchitis and asthma, as No. of stores: 99 care services. The newly named KPH Healthcare well as diagnosis and treatment of such illnesses No. of stores with Rx: 99 Services still has the same ownership structure. as the common cold, flu, allergies and sinus in- Avg. store size: 10,500 sq. ft. The identity and branding of its Kinney Drugs fections. The wellness center also will provide Rx sales: $469.7 million % of sales from Rx: 77% store division, Health Direct Institutional Phar- counseling for patients with sleep apnea and Sales per store: $6.9 million questions regarding smoking-cessation options, macy Services long-term care services, ProAct Source: Company reports Inc. pharmacy benefit management company as well as oxygen therapy.

Maximizing the ‘Hometown’ convenience Shopko remains true to its founder’s vision communities that combines pharmacy ser- of being a mass retailer whose cornerstone vices with a broad and dynamic offering is community health. Pharmacy service is of strong national brands and high-value a key feature in all of the formats the chain private-label brands of apparel, toys, con- operates. The chain operates its original sumer electronics, seasonal items, and lawn Shopko big-box mass merchant formats and garden products,” said Peter McMahon, that include pharmacy and optical services president and CEO. “Shopko is filling a void in small to mid-sized cities. It also operates that previously existed in these markets, Shopko Express Rx, neighborhood drug and is saving consumers time and money as stores in mid-sized communities throughout they no longer need to travel to larger mar- Wisconsin, and Shopko Hometown stores, kets for items they couldn’t previously find Shopko smaller-format mass merchant/pharmacy in their hometown.” stores in communities with populations The pharmacy part of the stores’ equation is HQ: Green Bay, Wis. 2013 sales: $3 billion under 10,000. focused on providing an array of services to pa- % change vs. 2012: 0% After merging with the Pamida chain in tients. FastCare clinics allow patients to walk in No. of stores: 326 early 2012, Shopko acquired and converted the with minor ailments and be treated without an No. of stores with Rx: 274* Pamida stores to its Hometown format in an appointment. Along with consulting services, Avg. store size: 80,000 sq. ft. (Shopko) and 27,000 sq. effort to expand convenient healthcare options the chain offers flu immunizations and work- ft. (Shopko Hometown) Rx sales: $870 million for patients. site immunizations. Shopko also provides long- % of sales from Rx: 29% “Our Shopko Hometown store format is term care pharmacy services to nursing homes, Sales per store: $8.8 million focused on serving the needs of consumers skilled nursing facilities and assisted living fa- * Includes six stand-alone pharmacy locations and two long-term in smaller, more rural communities where cilities in the communities it serves. care pharmacies Source: Company reports, DSN estimates there are limited retail options. Shopko The chain plans to open two new Home- Hometown is the only retail option in these town format stores in May 2014.

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A&P focuses on fresh start

By Antoinette Alexander cy services. The move will help A&P provide product and full medication therapy manage- Still working to turn around its business ment support for its patients. since emerging from bankruptcy two years Through Innovatix Specialty Pharmacy Man- ago, grocer A&P is likely to have an interesting agement, a turnkey and à la carte solution for retail year as a new leader takes the helm, it ramps pharmacies to expand into the specialty market, up its specialty pharmacy business and specu- A&P will receive access to specialty medications, lation of a sale is fresh in the air. as well as back office services including dispens- In March, the company announced that COO ing, data management, clinical and reimburse- Paul Hertz would step into the role of president ment support, and patient financial assistance. and CEO, succeeding Sam Martin. In January, However, not so far in the past, speculation A&P had confirmed Martin’s departure. Martin, a of a sale sparked intrigue as supermarket op- former OfficeMax executive, joined A&P as CEO erators continue to battle big box-rivals and A&P in July 2010. niche, health-oriented grocers. HQ: Montvale, N.J. 2013 sales: $7.7 billion Hertz, a 27-year veteran of the retail indus- In mid-2013, The Wall Street Journal reported % change vs. 2012: -3.7% try, also joined A&P in 2010. Before that he was that it had obtained an internal memo that out- No. of stores: 301 EVP of retail stores for OfficeMax. lined several ways in which the grocer could No. of stores with Rx: 170 Seeing the fast-growing specialty pharmacy fund its growth, such as refinancing, and the Avg. store size: 42,000 sq. ft. market as one key area of opportunity, the memo also reportedly indicated that a sale of the Rx sales: $462 million % of sales from Rx: 6% company recently signed a three-year agree- company was a possibility. The WSJ reported that Sales per store: $25 million ment with Innovatix, whereby it will serve as a sale to another grocer or private-equity firm Source: DSN estimates A&P’s exclusive provider of specialty pharma- could value the company at $1 billion or more. Serving an expanded customer base

By Barbara White-Sax It was a busy year for the chain’s pharmacy operations, as well. Pharmacists at select Mei- Meijer pharmacy has set its sights on expand- jer stores in Michigan were involved in a study ing into new territories and positioning itself in in which they gave patients rapid diagnostic the healthcare arena. Meijer is investing $146 mil- influenza or Group A Streptococcus tests, then lion to purchase and remodel an existing Super- treated with prescriptions when appropriate un- valu facility in Pleasant Prairie, Wis., for a new der the direction of a physician participating in distribution center. The 770,000-sq.-ft. facility, the study. which will be located in the LakeView Corporate In early 2014, the chain also leased space in Park, is expected to serve stores in Wisconsin, Il- one of its locations to Bronson FastCare, a retail linois and possibly other states. healthcare provider offering convenient and in- “We are opening nine new stores in 2014, so expensive treatment for walk-in patients. So far, we’ll be at 213 stores at the end of this year. We there are no plans to extend the arrangement to meijer currently have stores in Michigan, Ohio, Indi- other Meijer locations. Meijer also partnered with HQ: Grand Rapids, Mich. ana, Illinois and Kentucky. This year we will be Priority Health, Michigan’s leading health plan, 2013 sales: $15.2 billion opening our southernmost store [in Bowling to raise awareness and help customers obtain in- % change vs. 2012: 2.7% No. of stores: 204 Green, Ky.], and we have announced plans that formation about health insurance under the Af- No. of stores with Rx: 204 we will be opening stores in Wisconsin begin- fordable Care Act. Avg. store size: 205,000 sq. ft. ning as early as 2015,” said Frank J. Guglielmi, a In addition, the chain enhanced its mPerks Rx sales: $486 million Meijer spokesman. digital coupon program to allow customers to % of sales from Rx: 3.2% Meijer currently has plans to open stores in store digital receipts from purchases in a single Sales per store: $74.4 million Grafton, Oak Creek, Kenosha, Wauwatosa, Sus- place. The retailer also expanded the couponing Source: DSN estimates sex and Waukesha, Wis., over the next two years. program in 2013 to include pharmacy purchases.

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New programs target adherence

By Michael Johnsen operations, told DSN. “By the end of the year we’ll have a disease-state management pro- Enabling their customer-focused pharmacists gram around Type 2 diabetes. The idea is to to practice at the top of their license, Wegmans will get it right with our own employees first, and introduce a blood-pressure screening program from there, take it to the community.” later this year in an effort to improve adherence. And there is a natural synergy between Patients identified as at-risk — prehypertensive disease state management and eating healthy or hypertensive — and who are taking at least tours. “Something we’ve been saying a lot one blood-pressure medicine are enrolled into lately is we try to tie food into pharmacy and one-on-one medication therapy management pharmacy into food,” Ferrara explained. For consultations with their pharmacist. example, the healthy foods promoted through Wegmans employees are already well- Wegmans’ “Eat Well Live Well” challenge are wegmans versed on the program; they’ve been partici- cross-merchandised in the pharmacy “to drive HQ: Rochester, N.Y. pating in the program in-house for the past conversations around that item,” Ferrara said. 2013 sales: $7 billion four years. According to a white paper Weg- Brian Pompo, who leads Wegmans’ wellness % change vs. 2012: 4.5% mans published on its own employee results, and clinical services, will be responsible for ex- No. of stores: 83 83 Wegmans was able to boost adherence by 50% panding the program to the general public. And No. of stores with Rx: Avg. store size: 110,000 sq. ft. across a nonadherent group. the supermarket operator already has signed Rx sales: $735 million And the in-house program is expanding. two employee groups. “We have one with a lo- % of sales from Rx: 10.5% “The idea was to first start with blood pres- cal employer here in Rochester, [N.Y.], and then Sales per store: $84.3 million we have one with a local PBM,” John Carlo, Weg- sure. We are now also doing lipids [for] cho- Source: Company reports, DSN estimates lesterol,” Dan Ferrara, Wegmans VP pharmacy mans SVP pharmacy, said. Growth top-of-mind for Supervalu

One year following the divestiture of 877 ‘90s, where center store was more of a focus,” stores to New Albertsons, Supervalu operates he said. “We are going to focus on fixing the five retail banners — (Minnesota), sales of that retail side of our company.” Farm Fresh (Richmond, Va.), Hornbachers Supervalu has made several notable im- (Fargo, N.D.), Shop ‘N Save (St. Louis) and provements across its perishable departments Shoppers (Washington, D.C./Baltimore) and is now focused on expanding pet and — across seven states and Washington, D.C. baby care. Gradually, it will add 25 to 50 new Last year was about stabilizing. “This items in the coming months. past year has been about reorganizing Private brand is another focus, Duncan and [navigating] new directions for our said. “Our private-brand sales penetration company, stabilizing and decentralizing,” has increased 75 basis points on a year-to- supervalu Sam Duncan, Supervalu president and CEO, date basis compared with last year, and we HQ: Eden Prairie, Minn. told analysts. know we still have a significant opportunity 2013 sales: $4.6 billion* But this coming year is about growing. in front of us.” % change vs. 2012: NA Supervalu in January committed to investing Supervalu also plans to grow its store base No. of stores: 190 into its retail supermarket banners with a soon, even expanding into markets not yet ser- No. of stores with Rx: 138 makeover for all of the banners, a review of viced by the new Supervalu. “We have begun Avg. store size: 60,000 sq. ft. the planograms within those banners and a to hire additional real estate and development Rx sales: $370.6 million concentration on private-label launches. personnel,” Duncan said. “We are also in ne- % of sales from Rx: 8% There’s much work to be done in turning gotiations for a new dry warehouse facility Sales per store: $24.4 million around the supermarket banners, Duncan that will allow us to more effectively serve a * Excludes Save-A-Lot and supply chain sales; for fiscal year 2014 acknowledged. “In some of our banners, the number of new markets and provide the foun- Source: Company reports, DSN estimates store layouts are still [reflective of] the ‘80s and dation for future store openings.”

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Boosting Medicare Star rating scores By Michael Johnsen the programs and services that they provide,” Wysong said. The independent network Care Pharmacies in And in August, Care Pharmacies was award- the past year has been institutionalizing its inter- ed a grant from the Pharmacy Quality Alliance to nal infrastructure to support high scores across support the implementation of a medication syn- the Medicare plan Star ratings. “We want a seat chronization program using the appointment- at the table with the payers and the local [health- based model. care] systems to show them that if they send their Care Pharmacies have always been early patient into our pharmacies, they’ll have a posi- adapters. It’s not only evident in its early com- tive outcome because we have the infrastructure mitment to acing the five-star ratings, but also in and the quality processes in place to ensure that its 20-year heritage of specialty pharmacy excel- outcome,” Michael Wysong, Care Pharmacies lence. And a year ago, Care Pharmacies was one CEO, told DSN. of the founding companies of the National Asso- As part of that, Care Pharmacies earlier this ciation of Specialty Pharmacy. care pharmacies year implemented Pharmacy Quality Solutions’ Today the network includes 76 locations across HQ: Linthicum, Md. 2013 sales: $366 million EQuIPP software to benchmark and identify 11 states. Outside of the Route 95 corridor stretch- % change vs. 2012: -3.4% areas for improvement in each of its locations ing from the Washington, D.C., market on up to No. of stores: 76 aimed at improving patient care and clinical out- New York, Care has pharmacies in Alabama, No. of stores with Rx: 76 comes. “As more performance networks evolve Florida and Georgia, as well as in Michigan and Avg. store size: 3,500 sq. ft. and payer models continue to shift from fee- Wisconsin. “You’re going to continue to see us Rx sales: $347.7 million % of sales from Rx: 95% for-service to fee-for-value, it is imperative that venturing out of our normal operating area,” Sales per store: $4.8 million our members have the tools to stay competitive Wysong said, as the company expects at least 12 Source: DSN estimates and to retain access to the patients that value stores to join the network in the coming year. Building adherence using med sync

By Antoinette Alexander that for all disease states studied, the propor- tion of days covered, or PDC, score jumps dra- With roots that stretch back more than 120 matically,” said Dave Rueter, EVP personnel at years, regional player Thrifty White remains Thrifty White. focused on enhancing customer service, and Thrifty White now has more than 40,000 pa- today much of that centers around improving tients enrolled in its med-sync program. adherence rates and providing shoppers with Meanwhile, the company continues to build greater convenience. on its clinical and immunization programs. Much of the spotlight today revolves around The time saved in the local stores by “sync- Thrifty White’s medication synchronization pro- ing” patients’ prescriptions and filling them gram, which launched several years ago. Under in a central facility allows the pharmacists to this program, all of a patient’s prescriptions are spend more time with their patients. Rueters synchronized so that patients on multiple medi- said: “Community pharmacists have an im- thrifty white cations can pick up all of their prescriptions at portant role to play in helping their patients HQ: Maple Grove, Minn. once. On pickup day, the pharmacist will review live healthier lives, and at the same time, drive 2013 sales: $367 million the prescription regimen, monitor changes from shared savings for the insurer or employer that % change vs. 2012: 7% No. of stores: 90 any doctor or hospital visits, and check for any pays much of the bill.” No. of stores with Rx: 90 possible drug interactions. Rueter also stated that the Affiliated Phar- Avg. store size: 4,500 sq. ft. “[The program] continues to grow, as our macy Program continues to enjoy growth. Rx sales: $331 million patients really enjoy being able to pick up all This program provides 99 independently % of sales from Rx: 90% of the prescriptions for the month with one owned pharmacies with access to some of Sales per store: $4.1 million trip to the pharmacy. Not only is this conve- Thrifty White’s programs so they can grow Source: Company reports nient, but a study conducted by Ateb shows their businesses.

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Screenings draw in customers

By Amanda Baltazar more than 80 health fairs in stores and in its com- munities. At them, it has offered free glucose and Last year Brookshire Grocery opened a ware- cholesterol screenings, blood-pressure checks house for generic prescriptions, and it’s had and body fat composition screenings. “Health “a significant and positive impact to our gross fairs where free screenings are offered bring profit,” said Jim Cousineau, SVP pharmacy op- people into the stores,” Cousineau said. “It is my erations. The Tyler, Texas-based retailer continues hope that they bring awareness to the services we to increase the number of generics housed there, offer, which will translate to repeat business.” and patients appreciate the consistency of having Brookshire’s is considering adding pharmacy the same generic product every time. items in 2014 to the Baby Club it kicked off last “Patient acceptance and confidence in accu- year. The program is designed to provide savings racy is at risk when the appearance of the prod- for families with a child younger than 3 years old, uct changes with practically every refill,” he said. as well as loyalty card points. brookshire grocery “Procuring and distributing generics from our All of Brookshire’s 116 pharmacies continue to HQ: Tyler, Texas 2013 sales: $2.2 billion own facility allows us to significantly minimize offer flu, pneumonia, shingles, tetanus, whoop- % change vs. 2012: 1.2% the number of product changes.” ing cough, chicken pox, measles and menin- No. of stores: 152 Brookshire’s continues to offer diagnostic ser- gococcal shots. Hepatitis A and B and HPV are No. of stores with Rx: 116 vices, which include such screenings as blood available upon request. Two stores also specialize Avg. store size: 40,000 sq. ft. glucose, cholesterol and body fat composition for in travel vaccines, and offer polio, typhoid, rabies Rx sales: $297 million % of sales from Rx: 13.5% a fee. Around 20 stores now offer them, and all and Japanese encephalitis vaccines. They also ad- Sales per store: $14.3 million new and remodeled stores will offer them. vise patients on the vaccinations recommended Source: DSN estimates Over the last year, Brookshire’s also has held for their specific destination. Trending with technology

Sav-Mor is all about technology. great success stories where patients were un- Over the past year, the fanchisor has beta- aware of a blood-pressure problem until they tested new workflow software, and it will signed up for the program.” Each kiosk, she decide which to recommend to pharmacists said, can be customized and designed to ap- at the end of the third quarter. In addition, peal to a specific store’s customer base. the company last year beta-tested new optics Beyond technology, Sav-Mor is aiming to be technology from Innovation that photographs a central part of the communities in which it prescriptions, and is now recommending the operates. “We all live busy lives, and often all technology to its pharmacies. it takes is opening up the patients’ awareness Late last year, Sav-Mor signed on that the community pharmacy is there to serve PharmaSmart International, a producer and the patients’ needs,” Gallagher said. distributor of blood-pressure screening sys- Customers have responded favorably to sav-mor tems, and 40 pharmacies now contain their its wellness programs around hypertension, HQ: Novi, Mich. blood pressure and pulse kiosks. Using the ki- asthma, diabetes and smoking cessation. “Our 2013 sales: $302.5 million osks, Sav-Mor has launched a Blood Pressure programs have increased prescription adher- % change vs. 2012: -4.5% Tracker program with PharmaSmart in which ence by simply opening up a dialog between No. of stores: 70 smartcards store blood-pressure results that the patient and the pharmacy,” Gallagher said. No. of stores with Rx: 70 Avg. store size: 10,000 sq. ft. and 17,500 sq. ft* can be accessed online. “One of our pharmacies was using a pro- Rx sales: $257.1 million “Customers and pharmacists really like it,” gram that educates the child patient about % of sales from Rx: 85% said EVP Yvonne Gallagher. “Many of the pa- the importance of completing their antibiotic Sales per store: $4.3 million tients’ physicians also are involved and send regimen. Not only did the kids enjoy it, the * Two store formats us some of their critical patients that require physicians commented on it favorably, too,” Source: Company reports, DSN estimates a more individualized program. We’ve had she said.

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Benefiting from community ties

By Barbara White-Sax facturer partners and consumers. Discount Drug Mart has expanded its grocery Discount Drug Mart positions itself as a con- offerings. “A majority of Discount Drug Mart lo- venient shopping option with strong community cations now have delis that provide sliced-to-or- ties. “We like to advertise ourselves as the ‘home- der meats and cheese, as well as a variety of pasta town pharmacy,’ focusing on the idea that we salads, macaroni salads and other deli products,” don’t have a large store that you have to walk too Stefanski said. far inside to get what you need. You’re able to get In the pharmacy department, Discount in and out,” said Amanda Stefanski, marketing Drug Mart began a conversion to a new coordinator for the chain. pharmacy management system, Pioneer Rx, The chain also makes the most of its commu- and will roll the new system out chainwide by nities. “Upper management lives in the commu- second quarter 2014. nities in which our stores are located, and that al- The chain has been steadily adding consulting discount drug mart lows us to make adjustments to each location to rooms to existing pharmacies. “In the past year, we HQ: Medina, Ohio 2013 sales: $575.9 million appeal to people in that particular area,” she said. have continued to emphasize our immunization % change vs. 2012: 0.8% The chain recently expanded its Courtesy program available in our pharmacy, including the No. of stores: 71 Card Plus loyalty card program to the health and common flu shot, as well as shingles, pneumonia No. of stores with Rx: 71 beauty department. The new program, Premier and other vaccinations,” Stefanski said. Discount Avg. store size: 26,000 sq. ft. Beauty Club, highlights a particular brand each Drug Mart also focused on the expansion of the Rx sales: $249.6 million % of sales from Rx: 43% month, giving customers who purchase $25 of Pet Meds program, which offers medications for Sales per store: $8.1 million that brand’s product an instant $5 back at the reg- pets, often at lower prices than those offered at Source: Company reports ister. It’s a win-win-win for the retailer, its manu- the veterinarian. Health team integration key for Aurora

By Amanda Baltazar which reduces preventable and costly readmis- sions and post discharge complications.” Aurora Healthcare’s approach to health care Aurora Healthcare has 73 Aurora Pharma- is an integrated model. Pharmacists work in cies, two of which opened this year, and 15 hos- coordination with the entire team responsible pital pharmacies, all of which offer medication for caring for a patient —­ from doctors to therapy management. Aurora is working with nurses, and including in-patient, outpatient an MTM program developed by the state phar- and pharmacy treatment. maceutical society, the Wisconsin Pharmacy All members of the care team use one shared, Quality Collaborative, to clarify the value MTM electronic medical record system so all carers brings to its patients. have access to lab results, physicians’ notes and In 2013, the company built out the Aurora pharmacy interventions. This integration, Auro- Specialty Pharmacy, which provides compre- ra said, helps improve patient safety and the pa- hensive, coordinated delivery and support ser- aurora healthcare tient experience, and controls unnecessary costs. vices for high-cost oral or injectable medications HQ: Elm Grove, Wis. Aurora Pharmacy partners with the Aurora used to treat complex, chronic conditions. The $167.5 million 2013 sales: in-patient care team to provide the DischargeRx program provides high-touch patient care, sup- % change vs. 2012: NA No. of stores: 73 program, designed to improve the continuity of port and education to ensure patient compliance. No. of stores with Rx: 73 pharmaceutical care as patients transition from Aurora has worked with the Agency for Avg. store size: 1,000 sq. ft and 2,300 sq. ft.* the in-patient to the outpatient setting. Before Healthcare Research and Quality to pilot a pa- Rx sales: $154.1 million patients are discharged they receive a detailed tient safety survey for retail pharmacies, and this % of sales from Rx: 92% medication review, including discharge instruc- year it will have all pharmacy staff complete the Sales per store: $2.3 million tions by an Aurora pharmacist. According to Au- survey. The results will show where the company * Operates a clinic and free-standing format Source: Company reports, DSN estimates rora, the program offers “an extra level of safety needs to improve its patient safety, as well as any and improved medication therapy compliance, issues specific to certain stores.

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Raley’s ranked best in the West

By Amanda Baltazar Revionics and offers customers time-sensitive and limited-quantity offers on the condition Earlier this year, readers of a national con- that they then post the offer on their social sumer magazine rated the family-owned media networks. supermarket retailer Raley’s one of the best The program will complement and drive pharmacies in the western United States in Raley’s loyalty program, Something Extra, an annual ranking of the top pharmacies and through which customers earn one point for drug stores. The magazine ranked pharma- every $1 spent. Co-pays and cash payments cies on personal service, knowledge, speed, in the pharmacy earn points, as well. accuracy, helpfulness and courtesy. In the pharmacy, Raley’s offers a range of “We are thrilled to learn of this recognition immunizations, including flu, shingles, pneu- based shopper feedback,” said Lee Worthy, monia, HPV and hepatitis A and B, as well as a pharmacist and Raley’s VP pharmacy and travel vaccinations. Raley’s wellness. “Clearly, our customers appreciate Raley’s also has a compounding HQ: West Sacramento, Calif. 2013 sales: $3.1 billion our focus on meeting their health-and-well- pharmacy at its central fill site that prepares % change vs. 2012: 0.8% ness needs through our personalized service prescriptions for all of its pharmacies. No. of stores: 128 and offerings like our online prescription ser- Compounded drugs are prepared for No. of stores with Rx: 97 vice, our wide range of generic prescriptions children and the elderly so they are in a Avg. store size: 42,000 sq. ft. and our in-store immunizations.” suitable dose, as well as medications in Rx sales: $269.7 million % of sales from Rx: 8.7% Also at the beginning of this year, Raley’s different formats — such as suppositories Sales per store: $24.2 million or transdermal doses — for those who can’t began using a new social commerce solution Source: DSN estimates called Extra Friendzy. The program is run by tolerate oral medicines. Weis committed to growth, tech By Michael Johnson features expansive fresh departments and a full-service pharmacy. Weis Markets has a Weis at the helm, again. The store also includes advanced refrigera- The Pennsylvania retailer in February named tion and climate-control technologies designed Jonathan Weis as company president and to lessen the store’s impact on the environment CEO. Weis also will retain his role as company and global warming. These technologies will vice chairman. reduce the store’s refrigerant usage by 60% Jonathan Weis is the son of Robert Weis, compared with a conventional supermarket. who remains chairman of Weis Markets, and As a result, it is expected to achieve the U.S. grandson of one of the company’s co-found- EPA’s GreenChill Gold-Level Certification. ers, Harry Weis. Along with the elevation of Weis Markets also is focused on expanding Jonathan Weis to president and CEO, five-year its portfolio of pharmacy services. Weis veteran Kurt Schertle was promoted to The 2013 wave of generic drug launches COO. In that capacity, he will oversee the com- caused a decline of 2.2% in comparable phar- weis markets pany’s day-to-day operations and will con- macy sales, according to Weis Markets’ an- HQ: Sunbury, Pa. tinue to oversee all aspects of the company’s nual report. In response to that decline, Weis 2013 sales: $2.7 billion marketing, merchandising, procurement and Markets is doubling down on health-and- % change vs. 2012: -0.3 % No. of stores: 165 advertising for its center store, perishable and wellness initiatives. No. of stores with Rx: 134 pharmacy departments. “As part of management’s strategy to off- Avg. store size: 50,000 sq. ft. And the company is committed to grow- set this decline, Weis Markets is emphasizing Rx sales: $231.6 million ing. For 2014, Weis Markets has committed a continued focus on immunizations, while % of sales from Rx: 8.6% $100 million to capital spending. The com- implementing in-store pet medications and Sales per store: $16.3 million pany’s most recent new store, which held a medication synchronization program,” the Source: Company reports its grand opening March 2 in Flanders, N.J., company noted in its annual report.

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Bartell pushes ‘next generation’ stores By Antoinette Alexander program is called CareClinic: Group Health at Bartell Drugs or, for short, CareClinic. The clinics Likely still reeling from the thrill of the Seattle are staffed by Group Health nurse practitioners. Seahawks landing their first Super Bowl vic- For the past few years, Bartell has held tory, Seattle-based Bartell Drugs celebrated the Health & Beauty Events, and this spring was no event in style by hoisting the world’s largest No. different. Aside from beauty demos and sam- 12 flag onto a flag pole at its headquarter office, ples, the event this March also included mo- but it never took its eye off the main objective — bile digital mammography screenings at select providing healthcare services to residents in the locations. Additional health services included Pacific Northwest. blood-glucose testing, cholesterol testing, bone Bartell Drugs may be the oldest family- density screenings for osteoporosis and blood- owned drug store chain in the United States, pressure testing. but don’t let that fool you. This retailer remains Meanwhile, the company continues to roll bartell drugs on the cutting edge, as evidenced by its array out its “next generation” format. Among the HQ: Seattle of in-store healthcare services and events, as more recent openings was a store in the Green- 2013 sales: $408 million well as its “next generation” store renovations. wood neighborhood. This “next generation” % change vs. 2012: 0.5% Among the more recent developments was store opened in October and includes an “Ur- No. of stores: 63 the company’s announcement in late 2013 that ban Market” with regionally produced prod- No. of stores with Rx: 63 it had entered the retail-based clinic space via ucts, an enlarged pharmacy and the “Green- Avg. store size: 15,000 sq. ft. Rx sales: $228.5 million a partnership with a local health organization. wood Growler Station,” which offers an % of sales from Rx: 56% Bartell has teamed up with Group Health Co- on-tap selection of six rotating regional beers Sales per store: $6.5 million operative to open clinics in two stores in Seattle and ales. Shoppers also can elect to take home Source: DSN estimates and one in the nearby city of Bellevue, Wash. The draft brews in half-gallon “growler” glass jugs.

Remodels, infusion drugs mark 75th year By Barbara White-Sax locations. In one location, added a drive-through pharmacy window; in another, Schnuck Markets will celebrate its 75th it expanded the pharmacy to allow for a pa- year in business in 2014. The chain, which was tient consultation area. Several additional sites founded as a mom-and-pop shop in north St. are slated for remodels this year. Louis in 1939, has grown to 101 stores serving Last year, Schnucks opened an infusion five states and employing nearly 15,000 people. healthcare facility, a state-of-the art, 6,500-sq.- Schnucks’ spokesman Paul Simon said ft. site that also includes Schnucks regional that the family-owned and operated chain’s specialty pharmacy. Infusion is a “natural unique combination of variety, value, qual- progression of the company’s specialty phar- ity and service set it apart from its competi- macy division launched in 2008,” the chain tion. Scott Schnuck, who served as chairman said. The specialty pharmacy is devoted to and CEO since 2006, handed the reins of the medications that treat chronic conditions and company to his brother Todd Schnuck in provides support to all Schnucks in-store schnucks January 2014. pharmacy patients. HQ: St. Louis A big focus for the new CEO is security, The chain has expanded its existing $4 and 2013 sales: $2.6 billion since the company suffered a data breach in $10 prescription program to include $2 oral % change vs. 2012: 0% No. of stores: 101 2013 in which 2 million of its customers’ pay- diabetes mediations in several categories. The No. of stores with Rx: 95 ment card information was compromised in a program also includes free prescription prena- Avg. store size: 60,000 sq. ft. cyber attack. Schnucks has since hired a new tal vitamins and free generic oral antibiotics. Rx sales: $212.3 million director of information security and continues “Schnucks pharmacies are very excited % of sales from Rx: 8.2% to look for ways to tighten data security. about our new $2 oral diabetes medicine pro- Sales per store: $2.6 million The chain is focused on remodeling stores gram,” Simon said. Many of the chain’s phar- Source: DSN estimates based on the special needs of specific store macies also have diabetes specialists.

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K-VA-T boosts marketing efforts

By Amanda Baltazar appointments, refills and prescriptions that are ready also has been popular, with more than K-VA-T has been getting the word out 20% of customers opting for texts rather than about Food City pharmacies in the past year phone calls. Likewise, the company’s health with a robust marketing campaign. A TV portal has been hugely popular, and online commercial, three radio spots, outdoor bul- refills are starting to gain momentum. letins, pump toppers for Gas & Goes gas sta- “We can now offer services that pharmacy pa- tions and a pharmacy app were all designed tients not only want, but expect in today’s com- to bring more customers into the stores. petitive environment,” Mickey Blazer, director In the digital world, it has promoted its flu of pharmacy operations, said. “The challenge shot and marketed its pharmacy app on the is making sure the services are communicated to company’s website and via social media. The the patient, and educating the patient how to best new app allows patients to refill prescriptions, utilize them to their advantage.” k-va-t access health and drug information, and get K-VA-T also has added durable medical HQ: Abingdon, Va. 2013 sales: $2.2 billion discounts and coupons. Other pharmacy ser- equipment to its website, including shower seats % change vs. 2012: 2.4% vices are promoted through the app, such as and wheelchairs, and has added 150 items to its No. of stores: 107 its prescription discount club and text remind- prescription discount club, which has 30-day No. of stores with Rx: 77 ers when prescriptions are filled. supplies for $4 and 90-day supplies for $9.99. Avg. store size: 42,000 sq. ft. Technology added over the last couple of In the past year, K-VA-T purchased a Kmart Rx sales: $162 million % of sales from Rx: 7.5% years has been successful. Outbound Interactive patient file in Wise, Va., an independent Sales per store: $20.2 million Voice Response to provide personalized pharmacy in Grundy, Va., and an independent Source: Company reports, DSN estimates phone messages informing customers of pharmacy in Vansant, Va. Looking at the big picture

Privately held op- continued to raise money through its BEAT erates stores throughout the Central Valley campaign in collaboration with the American of California, the San Francisco Bay Area and Heart Association. By mid-year, the company Northern Nevada under the banners Save Mart, had collected more than $300,000 of the Lucky and FoodMaxx. In March, the company $400,000 it had pledged for the year from online reorganized to focus on these three banners and donations and sales of heart icons in stores. to restructure its corporate governance. “Heart disease is the No. 1 killer of women in The company’s plan is to be a health-and- our country, with 1-in-3 being diagnosed each wellness resource for its customers, integrat- year. We, as a company and as individuals, ing food and health into its pharmacies. are committed to building awareness and “Our ultimate goal is to ensure the quality of raising funds to help protect the heartbeat of our customers’ lives. At the end of the day, you our homes,” said Steve Junquiero, Save Mart’s don’t just want to increase the quantity of some- president and CEO. save mart one’s life, but the quality,” said Robert Vaughan, Save Mart planned a series of initiatives HQ: Modesto, Calif. senior director of pharmacy operations. for the campaign, including specially 2013 sales: $4.6 billion It also is looking at the big picture. In March, produced television and radio commercials, % change vs. 2012: .5% No. of stores: 226 Save Mart agreed to provide organic waste digital media featuring real-life survivors, No. of stores with Rx: 108 to California Safe Soil, which recycles organic heart-healthy recipe Pinterest sweepstakes, Avg. store size: 60,000 sq. ft. waste into a liquid fertilizer. This product, called pharmacy health fairs with preventive Rx sales: $184.9 million Harvest-to-Harvest replenishes the nutrient screenings, shelf tags placed throughout the % of sales from Rx: 4% value of the soil to increase plant growth and stores identifying heart-healthy products and Sales per store: $20.3 million crop yields. participation in the AHA’s Heart Walks, as Source: DSN estimates Last year, Save Mart Supermarkets also well as employee events.

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Increasing pharmacists’ visibility

By Barbara White-Sax zation room that is used to enhance the patient- pharmacist interaction and relationship.” Roundy’s Supermarkets operates stores under Roundy’s automated refill program ended five retail banners in Wisconsin, Minneapolis/St. its first full year and has exceeded expectations. Paul and in the greater Chicago area. “Our pharmacists have been exemplary in ex- In the fourth quarter, Roundy’s acquired 11 plaining the clinical value and convenience that Dominick’s locations in the Chicagoland area this valuable program offers,” Hyland said. “We from Safeway. The stores will be reopened under anticipate an even greater expansion of this pro- Roundy’s Mariano’s banner, with each location gram in 2014.” tailoring its merchandise to its customer base. In late 2013, Roundy’s added a manager of Roundy’s also embarked on a renewal cam- clinical care to its team to coordinate immuniza- paign designed to position its 69 Milwaukee met- tion and MTM programs, and to assist in pursu- ro area Pick ’n Save stores as the premier grocery ing new partnerships within its operating area. roundy’s operator in that market. Hyland said that Roundy’s pharmacists are HQ: Milwaukee, Wis. 2013 sales: $3.9 billion Pharmacy is a key component of all Roundy’s unique in the communities in which they prac- % change vs. 2012: 1.5% stores. “Our newest stores feature a format that tice since they provide a distinct level of service No. of stores: 166 lends itself to increased consumer interaction unavailable in big box or conventional chain No. of stores with Rx: 113 with lower counters and a greater area of visibil- pharmacy. “They offer convenience, a full slate of Avg. store size: 62,000 sq. ft. ity for our patients and customers,” said James retail and clinical services,” he said. “We are very Rx sales: $191.1 million % of sales from Rx: 4.9% Hyland, Roundy’s VP of investor relations and proud of the pharmacy team we’ve assembled Sales per store: $23.5 million corporate communications. “Most of our new and look forward to advancing both our business Source: Company reports, DSN estimates pharmacies incorporate a consultation/immuni- and the profession of pharmacy.” Staying true to discount Rx roots

Marc’s is about deals. The stores feature $1.98 and 90-days for $3.99. All pharmacies grocery, health and beauty aids, but the star have a pharmacist that is certified to admin- attraction is the chain’s ever-changing mix of ister flu, hepatitis, pneumonia, shingles or hot deals and closeout merchandise. The deep Tdap immunizations. Medication therapy discount retailer also offers a huge selection in management services also are available at housewares, toys and seasonal merchandise. all the chain’s pharmacies, and customers The chain began as a deep-discount drug can refill prescriptions using Marc’s online store, and CEO Marc Glassman says the chain prescription refills. is good at “buying well and selling fast.” In an Pet medicines for customers’ furry compan- effort to find other items that turn quickly, the ions also are a strength at the chain, with many chain added more food to its merchandise mix. pet prescriptions included on Marc’s discount- “We just want to turn product fast at the lowest ed generic savings program. prices,” Glassman said. Marc Glassman closed the pharmacy depart- marc glassman The fresh produce department is a big focus ments in 2-of-its-4 XPect Discounts stores in its HQ: at the chain. Marc’s is dedicated to buying the Milford and Cromwell, Conn., locations in 2013. 2013 sales: $1.2 billion freshest, highest-quality fruits, nuts and veg- The decision came after the company recently % change vs. 2012: 1.8% No. of stores: 61 etables directly from small local farms and from “updated and modernized” those locations. No. of stores with Rx: 43 around the world to offer the best quality at the Marc’s now operates four locations in Avg. store size: 40,000 sq. ft. and 50,000 sq. ft lowest prices to its customers. under the Xpect Discount ban- Rx sales: $152.5 million True to its discount pharmacy roots, price ner and 57 in Ohio under the Marc’s ban- % of sales from Rx: 13.2% is a focus in Marc’s pharmacy department as ner. Stores range in size from 18,000 sq. ft. to Sales per store: $18.9 million well. The chain features generic savings pro- 48,000 sq. ft., and more than 40 of the locations Source: DSN estimates grams with 30-day generic medications for have pharmacies.

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Offering full menu of health services

By Antoinette Alexander and Ellis Medicine. The first QuickCare clinic is located in a Price Chopper store in Malta, N.Y. Price Chopper Supermarkets, which is owned The clinics, staffed by an Ellis Medicine nurse by Golub, prides itself on innovative food mer- practitioner, mark the first such facilities within chandising and leadership in community ser- retail stores in New York’s Capital Region. vice, and judging by several recent initiatives, it Meanwhile, the grocer announced in late 2013 should add health services to the list. that it has partnered with CDPHP to offer health Providing health services has long been a fo- services and screenings at new Health Stations cus for the supermarket chain as all of its phar- located at Price Chopper pharmacies throughout macists are certified immunizers and its menu of Upstate New York. Located in at least a half-doz- signature programs includes Diabetes Advant- en Price Chopper stores, the Health Stations pro- price chopper Edge, which provides members with free and vide free blood pressure, weight, heart rate, blood HQ: Schenectady, N.Y. discounted medications and supplies; Rx Ad- oxygen and temperature readings. In addition, 2013 sales: $3.6 billion vantEdge, a prescription drug savings plan; and patients can create a personal health assessment % change vs. 2012: 2.5% free antibiotics. But with the Affordable Care Act that can be printed at the Health Station or online No. of stores: 132 placing a greater focus on the need for preventive at PriceChopper.com. No. of stores with Rx: 87* Avg. store size: 60,000 sq. ft. and efficient health care, Price Chopper is work- “Pharmacies can play an integral role by provid- Rx sales: $140 million ing to offer even greater access and further im- ing greater access to screenings and valuable health % of sales from Rx: 3.9% prove patient outcomes. services. Price Chopper is in a unique position to Sales per store: $27.3 million One of the more recent developments is the offer access and advocate wellness programs,” * Includes 84 in-store pharmacies and three free-standing pharmacies opening of a second QuickCare health clinic in said Kathy Bryant, Price Chopper’s VP pharmacy, near health clinics Source: Company reports, DSN estimates Latham, N.Y., via a partnership with QuickCare when announcing the new Health Stations. New services to boost adherence

During the last year or so, Navarro HIV/AIDS medications. Ortiz noted that the Discount Pharmacy has undergone a strategic growth in its specialty pharmacy division planning process and, looking ahead, the also is a key focus this year as it continues to regional player will continue emphasizing to expand its network and serve patients with its patients the importance of healthy living personalized attention. and medication adherence. Furthermore, the company introduced a According to Juan Ortiz, president and CEO, Mobile Health and Wellness RV to the commu- the company went through a strategic planning nity as another way to better promote healthy process during the last 12 months that focused living, according to Ortiz. The new Mobile RV on improving efficiencies, strengthening its offers free health exams, including glucose core business, analyzing retail store locations and blood-pressure checks by pharmacists, as by product assortment, reviewing pricing and well as workshops and vaccinations. navarro discount pharmacy enhancing customer service. Meanwhile, the pharmacy retailer is cel- HQ: Miami As part of the effort, the company introduced ebrating the two-year anniversary of its pri- 2013 sales: $340.1 million this past year various new services and products, vate-label brand Vida Mia, the first brand in % change vs. 2012: 1.2% such as Navarro Express Online order/store pick the United States targeting Hispanics across No. of stores: 33 up and the EZ Meds pharmacy program. EZ a variety of categories with bilingual prod- No. of stores with Rx: 33 Meds aims to improve medication adherence and uct packaging and ingredients in English and Avg. store size: 16,200 sq. ft. Rx sales: $104.2 million accuracy by pre-packaging a customer’s medica- Spanish. During the last two years, Vida Mia, % of sales from Rx: 30.6% tions and providing easy-to-follow instructions. which includes products across a wide range Sales per store: $9.4 million* Its specialty pharmacy, Navarro Health of categories, including OTC and beauty, has * All retail Rx and front end Services, also introduced additional offer- sold more than 7 million product units com- Source: Company reports ings, such as hard-to-find chemotherapy and prised of approximately 1,000 SKUs.

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Expanding chain hones Rx focus

By Barbara White-Sax and convenient,” he said. New stores include cosmetic boutiques and feature lower-profile Lewis Drug is on an expansion tear — last fixtures to make the stores easier to navigate. year the chain added two stores, and it plans to Pharmacy was a strong department for the acquire an additional 10 stores in 2014. The ac- chain last year. The chain focused store remod- quisitions will increase the regional chain’s store els on creating state-of-the-art pharmacies, count by 30%. which include consultation/immunization While the chain is growing its store count, rooms at a number of stores. it also continues to experiment with its mer- The chain is expanding its pharmacy ser- chandise mix, testing out new strategies and vices in 2013. “Our SmartSync medication syn- finding new opportunities in the markets it chronization program that allows customers to lewis drug operates in South Dakota, Iowa and Minne- pick up their prescriptions once a month con- HQ: Sioux Falls, S.D. sota. Last year, the chain had strong growth in tinues to grow rapidly,” Griffin said. “We also 2013 sales: $171 million both prescription and front-end sales. have expanded our immunization services % change vs. 2012: 6.2% Mark Griffin, president and CEO, said one last year.” No. of stores: 37* of the chain’s strengths was “the ability to In the front end, the chain significantly ex- No. of stores with Rx: 36* adapt quickly to changes in our markets.” The panded its pet, grocery, and lawn and outdoor Avg. store size: 4,000 sq. ft. and 40,000 sq. ft.** Rx sales: $117 million chain, he said, aims to always be the first stop garden centers, a department that has had % of sales from Rx: 68% for everything on its customers’ shopping lists. particularly strong sales at the chain. “We also Sales per store: $4.6 million “We have listened to our customers and increased our television advertising, empha- * As of Dec. 31, 2013 have designed a store that will make their sizing seasonal merchandise and pharmacy ** Operates two formats Source: Company reports shopping experience at Lewis more enjoyable services,” Griffin said. Catering to a smaller, rural market

Customer service and strong customer re- expanded immunization services and patient lationships continue to be Fruth Pharmacy’s counseling, and continues to grow in 340B part- strengths in a competitive market. “We cater to nerships. “We also are in the beginning phase smaller markets by offering them a wider prod- of a central fill/central processing/call center, uct selection, and we have the ability to special which should be up and running this calendar order products for our customers as well. We also year,” Fruth said. have strong gift and seasonal offerings that give Fruth has been creative with its promotions. rural customers an alternative to the malls,” said The chain has been successful with customer- Fruth president and CEO Lynne Fruth. loyalty programs, and it continues to grow those With an eye on being a worthy competitor to programs. “We expanded our Rewards Program, mall-shopping, the chain continues to experi- which includes the buy-six-get-one-free promos, ment with new categories to offer its customers which have been very effective in soda and elec- a wide selection of products in a convenient, tronic cigarettes,” Fruth said. “We also changed fruth pharmacy close-to-home location. “We expanded the pet our rewards to be immediate at the register with HQ: Point Pleasant, W.Va. category — which includes pet prescriptions and dollar-off offers, and those have been very popu- 2013 sales: $120 million heartworm, flea and tick medications — as well lar with our customers.” % change vs. 2012: NA No. of stores: 27 as additional food offerings and other supplies,” Recognizing the success of the rewards pro- No. of stores with Rx: 27 she said. The chain also has experimented with gram in the front of the store, the chain also is Avg. store size: 10,000 sq. ft. gluten-free foods in its expanded grocery aisles. now providing rewards on prescriptions that Rx sales: $101 million In the pharmacy department, the chain re- meet with federal guidelines. Fruth is experi- % of sales from Rx: 83% modeled the pharmacy to provide counseling menting with an Every Day Low Price program Sales per store: $4.4 million and immunization space in the four stores the on staple items and has seen that program’s pop- Source: Company reports chain remodeled or moved last year. The chain ularity grow steadily.

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Elevating in-store beauty services

By Michael Johnsen than [in] our existing store base,” she said. On the pharmacy side, Pharmaca has expand- Pharmaca Integrative Pharmacy’s point of dif- ed its immunization offerings to the full portfolio ference is a high-touch service model featuring of vaccines available at retail. “We were origi- licensed health and beauty professionals — from nally focused on flu, pneumonia and whooping practitioners in the aisle, the pharmacist behind cough,” Coblentz said. “Now we’re offering a the counter to the aesthetician in an expanded full suite of travel vaccinations, as well as HPV, beauty offering. And the company this past year meningitis, etc.” has focused on cementing those points of differ- With partner LDM Group, Pharmaca has ence by expanding the services available. identified two large patient groups for- tar For beauty patrons, that means offering new geted messaging and couponing — patients services like mini-facials, brow shaping and wax- taking a statin and patients taking an antibi- pharmaca ing. “This is one of our biggest opportunities otic. Those patients taking a statin are made HQ: Boulder, Colo. going forward — the expansion of the natural aware of the nutrient depletions associated 2013 sales: $112 million beauty area,” Laura Coblentz, Pharmaca VP mar- with that therapy, such as Co Q-10, and are of- % change vs. 2012: 5.7% No. of stores: 24 keting, told DSN. “We are expanding our prod- fered a coupon for a store-brand supplement. No. of stores with Rx: 24 uct offerings [to] more specialty beauty [and] The same goes for antibiotics, only a probiotic Avg. store size: 4,200 sq. ft. specialty cosmetics.” is offered. Rx sales: $59.8 million The company’s new store in Greenwood Vil- And the company is expanding into the pet % of sales from Rx: 53.4% lage, Colo., opening in May, will showcase Phar- meds business. “We have brought in a suite of Sales per store: $4.7 million maca’s latest approach to beauty. “That will have pet medications, as well as expanding our pet Source: DSN estimates an expanded beauty department — 50% bigger sections in our store,” Coblentz said. Serving more customers, faster

By Barbara White-Sax “We now have the ability to serve more custom- ers faster with this service,” Barnby said. “We are Wadsworth, Ohio-based Ritzman Pharmacies one of the few pharmacies that offer this service, significantly increased its store count in 2013 with since it’s usually done in facilities. The ability to the acquisition of five Mast Pharmacies. “The have medicines packaged this way is very impor- acquisition fills out our footprint and puts us in tant to families with an elderly family member south Ohio in rural markets, which we do well who takes many medications. It’s something that in,” said Robin Barnby, Ritzman’s VP marketing enables patients to be in their homes rather than and medical services. move to a facility.” In the pharmacy arena, Ritzman concentrated Ritzman named Beth Husted as its new direc- on immunizations and medication therapy man- tor of pharmacy practices. “Under Beth’s direc- agement. “We do all immunizations allowed by tion, that department will continue to grow and ritzman pharmacies the state of Ohio,” Barnby said. The chain also add new services and new programs,” Barnby HQ: Wadsworth, Ohio remodeled one store to accommodate a larger said. Yet Barnby said the chain’s success depends 2013 sales: $60 million* consulting area — a model Ritzman is following more on its staff than on any efforts to add new % change vs. 2012: NA whenever it remodels a location. pharmacy services or remodel pharmacy depart- No. of stores: 26 The regional chain is focused on its med- ments. “All of the services that we offer are pretty No. of stores with Rx: 26 Avg. store size: 1,800 sq. ft. sync program, which is rolling out chainwide. much the industry standard,” she said. “It’s im- Rx sales: $58 million* Ritzman also won preferred pharmacy status portant for us to offer them to our customers, but % of sales from Rx: 95.3% from the largest employer in Ohio’s Summit our area of differentiation is our customer service. Sales per store: $2.9 million* County, Summa Health Systems. It’s our philosophy to know our customers and *For 21 stores, year ended December 2013 In an effort to reach more consumers, the chain serve them well. We have amazing employees Source: Company reports added automation to its compliance packaging. that go above and beyond to serve customers.”

124 • april 28, 2014 DrugStoreNews.com Canada PowerRx

Canadian pharmacists focus on health services

By Richard Monks Association chairman Carlo Beradi said. katchewan, Manitoba and Nova Scotia — can As pharmacists take on a greater role in pa- prescribe drugs to treat minor ailments, and the The drug store and pharmacy business in tients’ care, Canada’s overall healthcare system governments of and are Canada is flourishing. A recent report from the is benefitting, Beradi said. The “9,000 Points of considering extending that power to pharma- Canadian Institute of Health Information found Care” report issued last year by the Canadian cists in those provinces as well. And in , that spent a record $29.3 billion on Association of Chain Drug Stores said that na- pharmacists can now write prescriptions for prescription drugs last year. tion’s chain and independent pharmacies pro- smoking-cessation products. While Canadians spent more than ever on vide $12.5 billion in economic value to Canada’s Meanwhile, just as has been the case across prescription drugs, the CIHI report noted that healthcare system every year. the United States, retail pharmacies in Canada the type of drugs being dispensed is changing That value, the report said, comes from pre- have become the go-to outlets for immuniza- and having an impact on growth in the pharma- venting hospitalizations, offering a strong portfo- tions. In Ontario, the country’s most populous cy sector. A greater availability of generics, the lio of generic medications and making the most of province, 750,000 people received free flu vacci- report said, has slowed the country’s annual rate an efficient distribution system and supply chain. nations through the end of March — that’s three of spending growth to its lowest point in almost Yet, while pharmacy is definitely playing a times the number of a year ago. two decades. central role in controlling healthcare costs, a Ontario Pharmacists Association CEO Dennis Still, drug stores north of the border continue majority of Canadians remain unaware of the Darby said the growth in the number of people to prosper as pharmacists take on more responsi- industry’s capabilities. For instance, Beradi who received the flu shot at a pharmacy this bilities and provide more health-related services. noted that a survey done last year in Ontario season is a testament to the fact that Canadi- “Pharmacists are on the frontlines of health showed that only 53% of people in the prov- ans have developed a high level of trust in their care and offer a variety of convenient and acces- ince were aware that pharmacists do more than pharmacist to provide convenient, high-quality sible services for their patients up to 24 hours a dispense medication. healthcare services. “It’s a win for the public and day with no appointment,” Ontario Pharmacists Pharmacists in four provinces — Alberta, Sas- government,” he said. Rx giant evolves with consumers needs With government regulators giving their fi- strengthen its position in the company’s chang- nal approval to Loblaw Cos.’ $12.4 billion take- ing healthcare system. over of late last month, SDM operates 1,253 Shoppers Drug Mart and the 1,377-store drug chain has become part Pharmaprix stores in all 10 Canadian provinces of one of Canada’s largest and most potent and the country’s two territories. In addition, retailing groups. the company licenses or owns 56 medical clinic SDM — which in many observers’ opinions, pharmacies under the Shoppers Simply Phar- represents the epitome of the chain drug retail- macy banner, as well as six Murale luxury beau- ing north of the border — will give Loblaws a ty stores. SDM’s network is rounded out by 62 network of approximately 2,738 stores and 1,824 Shoppers Home Health Care stores. pharmacies across the country. The company is Outside of its retail network, the company expected to generate more than $42 billion in owns Shoppers Drug Mart Specialty Health Net- annual revenue. work, a provider of specialty drug distribution, shoppers drug mart Despite becoming part of the Loblaws em- pharmacy and comprehensive patient support HQ: Toronto pire, SDM will continue to operate as a sepa- services; and MediSystem Technologies, a pro- 2013 sales: $11.1 billion* rate company. Executives said it would not vider of pharmaceutical products and services to % change vs. 2012: 2.6% have made sense to dissolve a highly respected long-term care facilities. No. of stores: 1,377 50-year-old brand. “In what remains a highly-competitive and No. of stores with Rx: 1,309 As it moves into the next phase of its history, challenging marketplace, it is clear that our value Avg. store size: 10,000 sq. ft. Rx sales: $5.2 billion* SDM will continue to evolve with consumers’ proposition and unwavering commitment to % of sales from Rx: 47.3% needs and desires, the company said. provide the best in-patient care and customer Sales per store: $8 million* Over the past few years, that strategy has service continues to resonate with patients and * $ Canadian seen the company bolster its presence in Cana- customers alike,” president and CEO Domenic Source: Company reports da’s highly competitive beauty care space and Pilla said.

126 • april 28, 2014 DrugStoreNews.com Canada PoweRx

Competing with beauty retailers Emphasizing patient relationships

By Richard Monks meticians — one of the most demanding in By Richard Monks Castonguay said. the industry — allows us to offer our custom- As important as its pharmacy business is, Uni- After selling off the final portion of its stake in ers the best beauty expertise in our sector, as Executives at the Uniprix Group say the prix also has ensured that it stays on the cutting Rite Aid last summer, the Jean Coutu Group has well as beauty tips of an outstanding quality,” a chain’s objectives have never wavered far from edge in other core drug store areas. moved into what it says is the next phase in its Jean Coutu spokeswoman explained. what they were when the company was formed The company’s protoype store design, for in- 45-year history. With the Canadian health system continuing 37 years ago. stance, makes its dermo-cosmetic centers the first Executives noted that shedding the 32% inter- to evolve and pharmacies playing a more central “We are still focused on two objectives: signifi- thing shoppers see when they enter the store. est in Rite Aid that it held since 2006 has given the role in patient care, Jean Coutu has positioned it- cantly increasing both sales and Uniprix brand Executives say the departments offer a sleek lay- 407-store franchise chain the financial resources self to capitalize on these new market dynamics. awareness,” said Uniprix president and CEO out with very soft lighting and allow shoppers to to evolve its business model, expanding its abil- For instance, Pro Doc, the generic drug manu- Francois Castonguay. have their skin analyzed to ensure they get the ity to be a frontline healthcare provider to pa- facturing unit it has operated for the past seven jean coutu With community pharmacies playing a more products that are best suited to their needs. tients across Quebec and parts of Newfoundland years, has allowed the company to be at the cen- HQ: , Quebec central role in patients’ health care, Uniprix has Meanwhile, one of the anchors of Uniprix’s uniprix and Ontario, as well as putting its stores on par ter of the growing trend toward generic drug use. 2013 sales: $2.7 billion*† put its pharmacists front and center in its promo- front end has been its private-label brand, Option HQ: Saint-Leonard, Quebec with some of Canada’s most prestigious beauty In late 2012, Jean Coutu delved a little deeper into % change vs. 2012: 0.2% tional efforts. An advertising campaign launched Plus. Offering store brand products across a wide 2013 sales: $1.9 billion* care merchants. health care with the acquisition of a 50% stake No. of stores: 407 last year, for example, focuses on what Caston- range of categories, Option Plus has been part of % change vs. 2012: NA No. of stores: 387 The company points out that its beauty care in orthotic and prosthetic devices supplier Le No. of stores with Rx: 407 guay calls the “family pharmacist.” the chain’s mix for 25 years and has been an inte- Avg. store size: 13,000 sq. ft. No. of stores with Rx: 387 selection is among the most comprehensive in Groupe Medicus. These expanded healthcare Rx sales: $1.8 billion* The campaign, Castonguay said, anticipates gral part of building Uniprix’s reputation among Avg. store size: 8,500 sq. ft. North America, offering shoppers a wide selec- services complement such already established % of sales from Rx: 64.2% pending changes in Quebec laws that will ex- shoppers in Quebec. Rx sales: $1.2 billion* tion of mass market and prestige brands — many programs as hypertension management, ad- Sales per store: $6.7 million* pand pharmacists’ scope of practice and make “A recent survey found that 75% of Quebec- % of sales from Rx: 65% Sales per store: $4.9 million* of them unique to Jean Coutu stores — in upscale vanced pharmacy systems in its stores and mo- * $ Canadian them even more involved in patient care. ers not only recognized the Option Plus graphic † departments staffed by trained cosmeticians. bile applications that give patients more prescrip- For fiscal year ended March 2, 2013 “Because of this, we are focusing even signature, but also associated it with Uniprix,” * $ Canadian Source: Company reports, DSN estimates Source: Company reports, DSN estimates “Our continuous training program for cos- tion refilling options. more on our close relationships with people,” Castonguay said. Reinventing the pharmacy practice National banner with indie touch

By Antoinette Alexander nificant acquisition program” underway. In 2012, With 500 stores in nine provinces, Pharmasave For instance, many of the company’s stores of- it acquired 18 stores, and in 2013 it acquired is 1-of-only-2 Canadian drug chains with stores fer Pharmasaves Medication Manager, a program Against the backdrop of a changing pharmacy 20 stores. This year it plans to accelerate that from coast to coast. that uses blister packaging to make it easier for retail landscape in Canada that includes an ex- acquisition program. A 33-year-old cooperative that is owned and patients taking multiple medications to organize panded scope of pharmacy practice in some ar- The developments and growth happening at governed by its members, Pharmasave offers their prescriptions, vitamins and supplements. eas, Canadian retailer Rexall Pharma Plus contin- Rexall are not only meant to enhance the shop- independent store owners across Canada the op- Almost all Pharmasave stores offer phone and ues to embark on the reinvention of its business. ping experience, but also to improve patient portunity to tailor their businesses to local needs online refill reminders, and also many provide As previously reported by DSN, the company outcomes and leverage the changing pharmacy while operating under a national banner. The patients with home delivery. The majority of quietly opened in downtown Toronto in April landscape within Canada. Parts of the country company’s stores range in size from 300-sq.-ft. stores provide compounding services. 2012 its first new brand store, featuring a new — most notably Alberta, Saskatchewan and On- apothecary-style units to 15,000-sq.-ft. full-ser- In addition, Pharmasave store owners give look, feel and flow. Fast-forward to today, and tario — have implemented an expanded scope vice drug stores. Some stores carry a full range customers access to the company’s Live Well 35 of the company’s 454 store locations bear the of pharmacy practice. For example, pharmacists of home healthcare items, and many offer all or Consultations that let patients meet one-on-one rexall pharma plus new brand. The company also is placing a greater in Saskatchewan and Alberta can now assess pa- pharmasave some of the more than 700 Pharmasave brand with a pharmacist to discuss their drug regi- HQ: Mississauga, Ontario focus on urban retailing, and now has three two- tients and write prescriptions outside of a collab- HQ: Langley, British Columbia products provided by the company. mens and a wide range of other health-relat- 2013 sales: $2.4 billion* level stores — a first for the retailer. orative practice agreement. Scorpiniti anticipates 2013 sales: $1.4 billion* While each Pharmasave owner has complete ed topics. Executives noted that by working % change vs. 2012: 2.5% The company also has launched a new website that Ontario will soon follow suit. % change vs. 2012: 7.7% autonomy to run his or her business the way they closely with patients, Pharmasave pharmacists No. of stores: 454 and created a MyRexall concept so patients can “Pharmacists in Alberta, Saskatchewan and No. of stores: 500 want, executives said the one thing that all of the have been able to drive outcomes and improve No. of stores with Rx: 454 No. of stores with Rx: 500 Avg. store size: 12,000 sq. ft. create a personalized account online and access Ontario can really help improve the health status Avg. store size: 5,000 sq. ft. stores have in common is their insistence that patients’ health. Rx sales: $1.1 billion* their medication profile. Going forward, it will of Canadians, create better patient outcomes and Rx sales: $1.1 billion* they provide the utmost in health-related prod- Many Pharmasave store owners also par- % of sales from Rx: 47% enhance the program so patients can view their lower overall healthcare costs,” Scorpiniti said. % of sales from Rx: 80% ucts and services. ticipate in the company’s Live Well Community Sales per store: $5.2 million* blood-pressure readings online, said CEO Frank “Rexall is now — and we are determined to con- Sales per store: $2.8 million* “Pharmasave pharmacists are available to pro- Seminars program, in which they provide edu- * $ Canadian Scorpiniti. Also new is a mobile app. tinue to be — leader in bringing these * $ Canadian vide services that go beyond dispensing the pre- cational forums on health-related topics to local Source: Company reports, DSN estimates Source: DSN estimates Scorpiniti noted that the company has a “sig- programs to life in community pharmacy.” scription,” the company said. groups and organizations.

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