2012 Rx 2012 TOTAL TOTAL STORES RANK COMPANY SALES* CORP. SALES* STORES WITH Rx PAGE 1 Walgreens $45,300 $71,600 7,941.1 7,941.1 3 2 CVS Caremark 43,800 123,100.2 7,458.3 7,402 3 3 17,200.4 25,400.4 4,623 4,623 4 4 16,800 274,500.5 4,005 3,943 4 Kings of 5 Cardinal6 13,800 17,200 6,905 6,905 5 With Target opening its first stores 6 7,800 96,800 2,424 2,094 5 north of the border, Walmart upping its 7 Good Neighbor 7,200 8,500 3,452 3,452 6 ante in Canada, massive upheaval in 8 Health Mart 6,500 6,700 3,077 3,077 6 generic drug pricing across provinces, 9 3,900 44,200 1,641.7 1,300 7 DSN is profiling the leaders of the Cana- 10 Target 3,300.8 72,000.8 1,778 1,647 7 PoweR dian drug store market. The five retailers 11 Kmart 2,200 14,600 1,221 886 8 profiled in this issue represent approxi- 12 Ahold9 2,100 25,800 774 565 9 mately half of the Canadian phar- 13 1,800 21,400 1,069 780 16 macy market. 14 1,700 27,500 1,069 895 9 9 2012 15 1,600 68,900 448 442 10 2012 Rx TOTAL CORP. TOTAL STORES 16 Medicine Shoppe International 1,600 1,600 595 595 11 RANK COMPANY SALES* SALES* STORES WITH Rx PAGE 17 Sam’s Club 1,500 56,400 620 563 10 Pla ers 1 Shoppers 5,100 10,800 1,295.1 1,295 28 18 H-E-B 1,300 19,400 351 232 11 2 2 2 Jean Coutu 1,720. 2,730. 404 404 29 19 1,300 9,900 229 213 12 Profiles of the kings 3 Rexall 1,100 2,300 430 430 30 20 Hy-Vee 985 7,700 233 240.10 12 4 1,000 1,600 375 375 29 21 Bi-Lo 807 10,000 687 493 13 of retail pharmacy 5 Pharmasave 1,000 1,300 450 450 30 22 Fred’s 710 2,000 712 346 14 * All sales in millions, $ Canadian; most recent fiscal year 23 Delhaize America11 697 18,800 1,553 265 17 1 Not including 62 Shoppers Home Health Care stores 24 Shoprite 659 13,600 250 203 14 Eighty-five percent. That’s roughly the and six Murale stores 2 For fiscal year ended March 3, 2012 25 Kinney Drugs 602 802 95 95 15 26 Shopko 510 3,000 332.12 281.12 13 combined market share for the com- 27 A&P 480 8,000 320 189 15 Footnotes for powerx players top 50 28 456 14,800 199 199 16 panies that appear in the 2013 DSN 1. Includes only retail and specialty pharmacies 2. Includes pharmacy services segment revenue of $73.4 bil- 29 405 6,700 81 81 19 lion, total retail sales of $63.7 billion 30 Kerr Drug 40013 590.13 80 80 17 PoweRx50, representing more than 3. Retail stores 4. FY2013 31 Supervalu 381 4,800.14 191 139 8 5. Includes 3,158 supercenters, 561 discount stores, 267 su- 32 Care Pharmacies 360 379 79 79 18 $190 billion in pharmacy sales and permarkets and 19 small format stores 6. Excludes the Medicine Shoppe/Medicap stores 33 Thrifty White Pharmacy 312 343 90.15 90.15 20 7. Reflecting sale or closing of 25 Genuardi’s in more than 51,500 stores, or more than eastern United States in fall 2012, closing of additional 21 34 Brookshire Grocery 302 2,200 154 116 18 units in fiscal 2012 and opening of nine new Lifestyle stores 35 Sav-Mor 270 317 78 78 19 8. For fiscal 2012, ended Feb. 2, 2013 8-out-of-10 retail pharmacies in Amer- 9. U.S. stores only 36 Discount Drug Mart 248 571 71 71 20 10. Includes 221 in-store pharmacies and off-site and satellite 37 Aurora Pharmacy 239 265 71 71 23 pharmacies ica, across all classes of trade, chains 11. U.S. operations 38 Raley’s 235 3,000 128 98 21 12. Includes 17 stand-alone pharmacy locations 39 235 2,700 163 131 21 13. Including employer-based clinical services, specialty and in- and independents. The indisputable stitutional pharmacy sales, etc. 40 Bartell Drugs 231 406 58 58 22 14. Excludes Save-A-Lot and supply chain sales 16 15. Excludes 76 affiliate stores that buy from Thrifty White (sales 41 Schnuck Markets 212 2,600 100 96. 24 Kings of Retail Pharmacy. of $86 million) 42 K-VA-T 210 2,100 104 76 23 16. Excludes four specialty pharmacies 17. 76 in-store pharmacies and four free-standing pharmacies 43 184 4,600 226 108 22 near health clinics 44 Marc Glassman 148 1,100 62 43 24 45 Price Chopper 131 3,400 130 80.17 27 46 Navarro Discount Pharmacy 113 336 33 32 25 47 Lewis Drug 111 161 35 34 26 48 Fruth Pharmacy 111 130 27 27 25 49 Pharmaca Integrative Pharmacy 59 106 24 24 26 50 Ritzman Pharmacy 57 60 21 21 27 * All sales in millions; reflect most recent fiscal year

1 • april 22, 2013 DrugStoreNews.com DrugStoreNews.com april 22, 2013 • 2 Top 50

HQ: Deerfield, Ill.

Becoming first choice in health 2012 sales: $71.6 billion walgreens By Michael Johnsen ing generic medications. With that kind of buy- % change vs. 2011: -0.8% ing power, Walgreens can establish itself as a No. of stores: 7,941* Walgreens is on a mission to become the “first very attractive network to healthcare payers and No. of stores with Rx: 7,941* choice” for health and daily living in America. It’s large employers. Avg. store size: 14,700 sq. ft. one of the first statements that Walgreens presi- Walgreens also is engaging the shopper on her Rx sales: $45.3 billion dent and CEO Greg Wasson made when he ad- terms — a prerequisite for successful omnichan- % of sales from Rx: 63.2% dressed shareholders in January. nel retailing. As many as 60 million consumers But if you are of the assumption that “first have signed on for the company’s Balance Re- Sales per store: $9 million choice” is restricted to consumers or patients, wards loyalty card since the program was intro- * Includes only retail pharmacies and specialty pharmacies you’d be wrong — Walgreens aims to be the duced in September. Source: Company reports “first choice” of anybody who can possibly be And more of basket will be filled identified as a healthcare decision-maker. with prestige private-label brands because of That becomes evident when you take a close Walgreens’ acquisition of Alliance Boots. Alliance look at the two blockbuster strategic partner- Boots’ venerable No7 beauty brand already has ships Walgreens has negotiated in the past year. become a major customer draw for Walgreens’ Walgreens’ two-step acquisition of Alliance Boots flagship stores at its Hollywood and Washington, and a new 10-year sourcing agreement with D.C., locations. AmerisourceBergen help create a generic drug Walgreens’ emphasis on sourcing fresh and lo- purchasing power unequaled in scale. The in- cal produce and its commitment to health guides dustry is fast approaching generic penetration of in the OTC aisles rounds out a compelling draw 90%, which means in the not-too-distant future, to shop the company’s enhanced front-end across 57% of Walgreens sales will consist of dispens- a burgeoning Well Experience store base.

HQ: Woonsocket, R.I. Innovation drives retailer’s success 2012 sales: $123.1 billion* c v s caremark % change vs. 2011: 15% By Antoinette Alexander generation of Maintenance Choice. Maintenance No. of stores: 7,458** Choice 2.0 includes a less restrictive plan design No. of stores with Rx: 7,402 CVS Caremark is tirelessly leveraging its wide- option. For 2013, roughly 14.5 million lives have reaching assets to reinvent the face of pharmacy. adopted Maintenance Choice. Avg. store size: 8,000 to The short list: advancing new interventions to Meanwhile, MinuteClinic is expected to grow 15,000 sq. ft. improve medication adherence; transforming revenue 20% this year, hitting at least $225 mil- Rx sales: $43.8 billion*** primary care through the accelerated growth of lion. MinuteClinic continues to expand services % of sales from Rx: 68.8% MinuteClinic; expanding specialty pharmacy; and its clinical affiliations. Currently at about Sales per store: $8.5 million identifying opportunities to improve patient 640 clinics, the company plans to end 2013 with outcomes; partnering more closely with health slightly fewer than 800 and at least 1,500 by 2017. * Includes pharmacy services segment revenue of $73.4 billion, total retail sales of $63.7 billion. plans; and expanding digital capabilities to ad- In the stores, its MyCVS store clustering ini- ** Retail stores dress patient information and product needs. tiative, which develops store designs that match *** Based on retail sales Source: Company reports On the PBM side, the company garnered net the needs of customers within a specific trade new business for 2013 of about $400 million and area, remains a priority, as does expanding its a 96% retention rate. ExtraCare loyalty card program. The latest evo- Driving much of that is growing interest in lution: ExtraCare Pharmacy & Health Rewards proprietary programs like Pharmacy Advisor allows members to earn larger and more fre- and Maintenance Choice. Pharmacy Advisor, quent rewards by filling prescriptions or making which addresses nonadherence and gaps in care, healthy decisions. expanded in early 2013 to cover five more condi- And the company made its first foray into tions: asthma, breast cancer, COPD, depression international markets earlier this year with the and osteoporosis. acquisition of privately-held 44-store Brazilian The company also launched in 2013 the next drug chain Onofre.

3 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Camp Hill, Pa. Reinventing wellness retail 2012 sales: $25.4 billion* rite ai d By Alaric DeArment an updated version, which debuted at a store in % change vs. 2011: -3% Lemoyne, Pa. The stores have shown a 300-basis No. of stores: 4,623 As DSN showed in its December 2012 issue, point lift in front-end sales compared with older- No. of stores with Rx: 4,623 Rite Aid has come a long way in its quest to get format stores, helped along by Wellness Ambas- Avg. store size: 12,400 sq. ft. well. By third quarter 2013, the drug store chain sadors, more than 1,000 of whom walk the aisles Rx sales: $17.2 billion had already experienced seven consecutive quar- of Wellness stores armed with iPads. % of sales from Rx: 67.6% ters of growth in adjusted EBITDA and same- The chain recently expanded its NowClinic store prescription count. But sales numbers only Online Care, which combines the retail clinic Sales per store: $5.5 million tell part of the story. model with telehealth, allowing patients who * FY2013 Source: Company reports A major part of the chain’s growth has been its pay a $45 fee to converse through a secure on- Wellness+ loyalty card program, which is unique line video connection with doctors and nurses in its strong focus on pharmacy. Customers who from OptumHealth. After offering the program use the card receive the largest number of points at nine stores in the area since 2011, Rite by getting their prescriptions filled at Rite Aid. At Aid announced in March 2013 the rollout of the the end of 2012, Wellness+ had 25 million active program to 58 more stores in Baltimore, Boston, members, a 5% increase over the same period Philadelphia and Pittsburgh. the year before, and Rite Aid’s sales results have Other services include Rite Care Prescription consistently shown members to be the chain’s Advisor, which maps a patient’s medication ad- best customers. herence, and each report includes a compliance Wellness stores have been another compo- score for each medication. Since March 2012, nent of the retailer’s turnaround. The chain has pharmacists have conducted more than 1 million nearly 800 stores converted and plans to expand interventions with Rite Aid patients.

HQ: Bentonville, Ark. Offering healthy options, for less 2012 sales: $274.5 billion* % change vs. 2011: 3.9% walmart By Mike Troy annually. It also bolstered its Humana Walmart- No. of stores: 4,005 Preferred Rx Plan by offering members 10 hy- No. of stores with Rx: 3,943 The strides Walmart has made in the area of pertension drugs for only a penny. health and wellness were never more evident While Walmart remains relentless in position- Avg. store size: 182,300 sq. ft.** than earlier this year when First Lady Michelle ing itself as a destination for pharmacy, health- Rx sales: $16.8 billion Obama stood at a podium inside a Springfield, care products and increasingly fresh foods that % of sales from Rx: 6% Mo., supercenter and praised the company for comprise a healthy lifestyle, the company also is Sales per store: $68.5 million its efforts to make food healthier and to make looking to increase access to pharmacy services * Includes 3,158 supercenters, 561 discount stores, healthier food more affordable. by expanding its footprint more aggressively. 267 supermarkets and 19 small format stores The healthy food initiative began in 2011, and This was evident last year as more smaller-for- ** Average store size is supercenters only Source: Company reports, DSN estimates like the company’s efforts in the areas of health mat stores opened, and the pharmacy count in- and wellness, it aligns with Walmart’s brand creased by 193 units to 3,943 at the end of 2012. promise of helping people save money so they The pharmacy figure should grow at an even can live better. faster clip this year to easily surpass 4,000 loca- To that end, 2012 was a year of continuation tions, as the company has unlocked the sales and new beginnings. Walmart continues to ag- and profit formula of operating smaller stores gressively promote a $4 generic drug program and plans several hundred Neighborhood Mar- that was introduced seven years ago and that the kets and Walmart Express stores. If expansion company claims has saved people $4.8 billion. It of those formats, and perhaps others such as offered low-price immunizations for 10 diseases the on-campus concept, ramp at the pace some at 2,700 U.S. stores, and it expanded its offering analysts expect, Walmart could operate as many of private-label ReliOn brand diabetes products as 5,000 pharmacies within a matter of three to that are estimated to save customers $60 million four years.

4 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Dublin, Ohio

Positioning for a new health era 2012 sales: $17.2 billion* car d inal By Jim Frederick like infusion therapy to homebound patients. % change vs. 2011: 8.2% The merger, Barrett said, “brings us into the No. of stores: 6,905* Wholesale drug and health service giant Car- home,” and “allows us to serve the growing No. of stores with Rx: 6,905* dinal Health took it on the chin when it revealed number of Americans treated in home settings Avg. store size: 2,600 sq. ft. its supply contract with Walgreens would not be … which will be increasingly important as Rx sales: $13.8 billion* renewed this summer. But Cardinal is adapting, the delivery of care continues to move to more % of sales from Rx: 80% say its leaders, with new opportunities in special- cost-effective settings.” ty pharmacy, home health and ambulatory care Cardinal’s focus on outcomes-based health is Sales per store: $2.5 million while it shores up its still massive base of com- driving many initiatives, including a partnership * Excludes the Medicine Shoppe/Medicap stores Source: Company reports, DSN estimates munity and institutional pharmacy customers. with Aetna aimed at identifying clinical prac- Cardinal continues to supply and service a tices that improve and lower the costs of cancer core network of thousands of owner-operated treatment. Cardinal also continues to ramp up its independent pharmacies, including some 2,000 healthcare service offerings for its retail pharma- drug store clients who joined the network via cy customers, with new tools to help community Cardinal’s purchase in 2011 of independent pharmacists educate patients about prevention wholesaler Kinray. “Today we serve over 7,500 and management of conditions like diabetes and independent pharmacies, a group that three cardiovascular disease. Those toolkits include years ago numbered around 4,000,” said chair- customizable posters and flyers, patient informa- man and CEO George Barrett. tion handouts and other materials, in addition In mid-March, Cardinal also completed its to a Specialized Care Center serving as a heart- $2 billion acquisition of AssuraMed, a lead- health information resource for pharmacists ing provider of medical supplies and services and patients.

HQ: Cincinatti Diversity emerges as key strength 2012 sales: $96.8 billion % change vs. 2011: 7.1%* Food and pharmacy giant Kroger classifies increasingly diverse, not only in terms of ethnic- No. of stores: 2,424 kroger 86% of its 2,424 stores as combination food and ity, but also in terms of income levels, household No. of stores with Rx: 2,094 drug stores, giving it nearly 2,100 in-store phar- mix and purchasing patterns.” Chairman and macies. As its “primary format,” combo stores CEO David Dillon unveiled plans last fall for an Avg. store size: 63,000 sq. ft.** “feature a complete and pharma- accelerated expansion strategy, including more Rx sales: $7.8 billion cy,” noted the company, and most also include stores in existing markets and Kroger’s first move % of sales from Rx: 8.1% bakeries, floral shops, delis, natural and organic into new markets — as yet unnamed — in years. Sales per store: $39.8 million selections, and other amenities. Pharmacy remains a key competitive differ- * For 53-week fiscal 2012 vs. 52-week year in 2011; Those food-drug stores operate across most entiator for Kroger, and includes $4 generics, adjusted for 52-week comparison, sales increased of Kroger’s 18 supermarket divisions, which an opt-in AutoRefill service and instant - phar 4.9% to $94.8 billion in fiscal 2012 ** Average for new food/drug combo prototype include the Kroger brand across the South and macy messaging, discounted diabetic supplies Source: Company reports, DSN estimates Midwest; in Colorado; , and an award-winning medication therapy Fry’s, Smith’s and in the western management program. United States; in the Northwest; and Kroger also maintains a strong presence in in the Midwest. Kroger also has opened ambulatory care through its wholly owned sub- some 70 Marketplace stores, with expanded sidiary and former partner, The Little Clinic, general merchandise and full-service grocery which operates some 80 walk-in care centers in and pharmacy departments, under a variety of Kroger pharmacies. “The reason why we cre- banners, including Kroger Marketplace, Smith’s ated that partnership three or four years ago is Marketplace and Dillons Marketplace. we believe there’s a long-term trend in health “Kroger’s wide variety of store formats is care, and we don’t think the current healthcare among our key strengths,” the company reported. system provides for it,” noted CFO and SVP “We believe that our customer base is becoming Michael Scholtman.

5 • april 22, 2013 DrugStoreNews.com Top 50

Indie network celebrates 30 years HQ: Valley Forge, Pa. 2012 sales: $8.5 billion By Jim Frederick GNP’s group VP. % change vs. 2011: 3.7% GNP’s customer loyalty rankings reflect the No. of stores: 3,452 gnp “Thirty years in the Neighborhood.” It’s an success of that approach. In the “2012 U.S. Phar- No. of stores with Rx: 3,452 effective tagline for Good Neighbor Pharmacy, macy Study” from J.D. Power and Associates, Avg. store size: 3,100 sq. ft. the independently owned pharmacy network GNP stores tied for second place with Medicine Rx sales: $7.2 billion backed by AmerisourceBergen. Adopted to Shoppe in overall customer satisfaction. % of sales from Rx: 85% mark GNP’s 30th year as a drug store brand, For 2013, Robinson told DSN, “we will remain that marketing catchphrase promotes its deeply focused on developing our immunization and Sales per store: $2.4 million rooted presence in thousands of communities. diabetes initiatives, along with supporting our Source: Company reports, DSN estimates GNP owners combine the wholesaler’s mas- members to develop adherence programs that sive purchasing and marketing clout, merchan- align with the future of health care. We also will dising expertise and data-enriched store op- be expanding our business coaching platform erations tools with their local familiarity with and pharmacy ownership services, as well as our patients’ health conditions. front-end marketing and promotions in an effort “Good Neighbor Pharmacy remains focused to expand sales and profits for our members.” on providing market leadership to our mem- GNP’s online Wellness Center offers advice bers by identifying and addressing emerging on virtually every health- and prevention-relat- business challenges and opportunities, while ed topic. Also offered on the GNP website: an providing a unique and comprehensive busi- arsenal of “Wellness Tools,” including a medical ness solutions portfolio that meets and sus- dictionary, a “symptom checker” and interac- tains the ongoing financial strength of the in- tive calculators to track “everything from calorie dependent pharmacy,” said Scott Robinson, burns to heart rates to pregnancy due dates.”

HQ: San Francisco health mart Providing the highest quality of care 2012 sales: $6.7 billion % change vs. 2011: -8.2% By Michael Johnsen comprehensive vaccine portfolio. “This year, we No. of stores: 3,077 expanded our flu vaccine pre-order program to No. of stores with Rx: 3,077 Health Mart achieved the highest ranking in address a number of challenges pharmacies face overall customer satisfaction among chain drug with traditional flu programs,” Kettler told DSN. Avg. store size: 2,500 sq. ft. store pharmacies this past year in the J.D. Power McKesson also has expanded its Pharmacy Rx sales: $6.5 billion and Associates “2012 U.S. National Pharmacy Intervention Program to support one-on-one be- % of sales from Rx: 97% Study.” While that’s no small feat for the collec- havioral coaching. It also supports the transition Sales per store: $2.4 million tion of more than 3,000 community pharmacists to a service-based business model, Kettler noted. who participate in McKesson’s franchise phar- “COPD patients who received coaching showed Source: DSN estimates macy program, it’s not the first time. In fact, it’s an average of 1.6 incremental fills over 12 months, the third time in four years that Health Mart has and patients coached in multiple diabetes pro- ranked the highest among chain drug stores. grams showed an average of 4 incremental refills “We are very proud of Health Mart’s suc- over 12 months when compared to patients who cess — due in large part to the effort and com- did not receive behavioral coaching,” he said. mitment of our community pharmacy owners And last year, participating pharmacies in and pharmacists to provide high-quality, afford- McKesson’s Sponsored Clinical Services Net- able patient care,” noted Kevin Kettler, SVP at work collectively generated $1 million in fees McKesson. And McKesson has developed a for services provided to approximately 250,000 comprehensive program to support the Health patients. In addition to these incremental service Mart program. fees, Health Mart pharmacies benefited from For example, immunizations have become a increased prescription volumes and revenues, key driver of growth for retail pharmacy. Health incremental front-end purchases and further en- Mart pharmacies have access to McKesson’s hanced customer loyalty.

6 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Pleasanton, Calif. Gaining a firm footing 2012 sales: $44.2 billion

y im rederick % change vs. 2011: 1.4% B J F prototype stores and completing four Lifestyle sa f eway store renovations. And the company continues to No. of stores: 1,641* On firmer ground — that’s where Safeway operate through a variety of store brands in addi- No. of stores with Rx: 1,300 finds itself in 2013, following its divestiture of tion to Safeway, including in Southern Cali- Avg. store size: 47,000 sq. ft. nearly four-dozen stores, modest but measure- fornia; Randall’s Food Markets and Tom Thumb Rx sales: $3.9 billion able improvements in same-store sales and mar- in Texas; Dominick’s Supermarkets in Chicago; % of sales from Rx: 8.9% ket share, and a 15.4% rise in net profits for the and Carr-Gottstein Foods in Alaska. fiscal year ended Dec. 29, 2012, to $596.5 million. Across that retail empire, Safeway’s pharmacy Sales per store: $26 million “We made progress in 2012 on a number of team is working to turn stores into a resource for * Reflecting sale or closing of 25 Genuardi’s super- markets in eastern United States in fall 2012, closing initiatives, which we believe helped achieve more health services, as well as healthier food of additional 21 units in fiscal 2012 and opening of market-share gains and positive volume in the choices. The chain has become a destination for nine new Lifestyle stores Source: Company reports, DSN estimates United States,” said chairman and CEO Steve flu shots, administered by its pharmacists “on a Burd. This year, he said, Safeway would focus walk-in basis” that SVP pharmacy Darren Singer on “innovation in-store and in private label,” calls “simple, convenient and affordable.” And along with other expanding offerings like its earlier this year, the company joined with the “just for U” savings program offered through University of California San Francisco School of its loyalty card that features digital coupons and Pharmacy in a stop-smoking program. mobile apps. Under that initiative, Safeway pharmacists are Chief among its divestitures was last fall’s trained in smoking-cessation counseling tech- sale of 25-store, -based Genuardi’s. niques developed by UCSF faculty. The program However, Safeway also invested $928 million launched in California, but will expand to hun- on stores and technology, opening nine Lifestyle dreds of additional pharmacies this year.

HQ: Minneapolis 2012 sales: $72 billion* Retail giant crosses border With its sales and earnings smashing new ada as possible,” said Bryan Berg, SVP stores

% change vs. 2011: 5.1% target No. of stores: 1,778 records, its long-anticipated march into Canada for Target Canada. No. of stores with Rx: 1,647 now underway and its new, smaller-footprint Target continues to offer a deft blend of up- urban store prototype being prepped for a wid- scale panache, one-stop shopping and value- Avg. store size: 186,000 sq. ft.** er rollout, Target is on a roll. priced, big-box-store appeal. But increasingly, Rx sales: $3.3 billion Of the 18 new stores Target plans to open this retail giant also is becoming synonymous % of sales from Rx: 4.5 % in 2013, 17 will feature pharmacies, according with a range of pharmacy-based health and Sales per store: $40.5 million to spokesperson Jamie Bastian. That expan- wellness offerings, including health screenings * For fiscal 2012, ended Feb. 2, 2013 sion plan includes three additional CityTarget and a wide range of pharmacist-delivered im- ** Average SuperTarget size stores, two of which will contain pharmacies munizations, a generic drug discount program, Source: Company reports, DSN estimates despite their smaller footprint. smoking cessation programs, online and mo- In addition, Target’s rapid incursion into Can- bile health apps, free medicine flavorings, and ada will include in-store pharmacies “wherever membership in a free Pharmacy Rewards pro- possible,” according to Bastian. That campaign gram that offers discounts throughout the store began this spring with the opening of three for prescription customers. pilot stores in March 5, with another Target also offers online prescription refills 21 units debuting in the province throughout and an opt-in auto refill program for patients the month. with chronic conditions, complete with a mo- Given the country’s regulatory framework bile or email alert system. requiring pharmacist ownership of drug store Target also operates 54 Target Clinics in six operations, those pharmacies will be run by states: Minnesota, Maryland, Illinois, Florida, franchise owners who “own and operate phar- Virginia and North Carolina. Those clinics, said macy businesses within as many stores in Can- Bastian, “are performing to expectations.”

7 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Hoffman Estates, Ill. Turning to integrated retail 2012 sales: $14.6 billion kmart By Alaric DeArment as well. In February, it revamped its Mygo- % change vs. 2011: -4.6% fer e-commerce business with Mygofer Ex- No. of stores: 1,221 When Lou D’Ambrosio stepped down as press, which allows customers to pick up an No. of stores with Rx: 886 CEO of Kmart parent company Sears Holdings expanded range of items preordered through Avg. store size: 93,000 sq. ft. in January, it’s no secret that he left in the hands Mygofer.com or the Mygofer app at the Sears Rx sales: $2.2 billion of new CEO and chairman Edward Lampert a Chicago flagship store. Mygofer also allows % of sales from Rx: 15% company that has had a rocky trip for the past customers to order prescriptions and buy OTC, few years. beauty and other products for pickup at Kmart Sales per store: $12 million But the company is looking to engineer a stores or same-day delivery in select markets. Source: Company reports, DSN estimates turnaround through what it calls “integrated Other retail initiatives include the introduc- retail” — which it defines as integration of the tion, in May 2012, of prescription pet drugs at customer experience across brick-and-mortar, the pharmacy and a walk-in bill payment ser- online and mobile channels — and using the vice that allows customers to pay bills from Shop Your Way loyalty program to become more than 3,000 companies, including utilities, more of a membership-based retailer. Some credit car companies and auto loan companies. signs of progress have emerged: For fourth Outreach to minorities also has been a major quarter and fiscal year 2012, Sears Holdings component of its business. In October 2012, the narrowed its losses from $2.4 billion to $489 company launched a Latina Smart internship million and $3.1 billion to $930 million, respec- program, which offers 10-week paid intern- tively, as comps at the company’s U.S. stores ships at the company’s headquarters. In Febru- posted a 0.8% increase for the quarter. ary 2013, it marked Black History Month with a The company has launched other initiatives financial empowerment campaign.

HQ: Eden Prairie, Minn. New leadership, new directions 2012 sales: $4.8 billion* s u per v % change vs. 2011: -7.2% By Michael Johnsen modeled stores with a stand-alone pharmacy for- No. of stores: 191 mat. He was characterized in the report as “hard- No. of stores with Rx: 139 The new Supervalu consists of five banners charging and results driven, [but] approachable.” that serve three broad regions. More than 50 Duncan’s more recent turnaround experience Avg. store size: 60,000 sq. ft. Shoppers Food and Pharmacy are located pri- at OfficeMax included streamlining the supply al u Rx sales: $381 million marily in and around Washington, D.C., and chain, and subsequently improving SKU man- % of sales from Rx: 8% Baltimore. A little further south are more than agement while augmenting the office supply Sales per store: $25 million 40 Farm Fresh stores serving the Richmond, Va., store’s e-commerce platform. area. The St. Louis area will boast 40 Shop ‘N Working with Duncan as nonexecutive chair- * Excludes Save-A-Lot and supply chain sales Source: DSN estimates Save stores, and more than 40 Stores man will be Bob Miller, who was at one time are located in Minnesota. Six Hornbacher loca- Duncan’s boss during stints at Albertsons and tions will serve Fargo, N.D. Fred Meyers. Miller has a strong turnaround Leading the business overall is former Office- pedigree as well, having brought Rite Aid Max chief Sam Duncan, who has a reputation from the brink of bankruptcy at the turn of as a turnaround specialist. He turned around the century. the performance at the office supply chain af- Mark Van Buskirk has been named EVP ter taking the helm in 2005. And before that it merchandising and marketing, a role that was ShopKo. will include directing Supervalu’s private- According to a 2005 Chicago Tribune business brand offerings and retail pharmacy teams. report, Duncan succeeded at ShopKo by boosting And Rob Woseth has been named EVP, chief private-label penetration and adding some non- strategy officer, and in that capacity will be re- traditional merchandising fare like electronics sponsible for strategic direction, real estate and and national-brand maternity clothes. He also re- corporate development.

8 • april 22, 2013 DrugStoreNews.com Top 50

Adding food into wellness equation HQ: Amsterdam 2012 sales: $25.8 billion* By Alaric DeArment partnership with the local health department and

Greater Richmond Fit4Kids, the “Healthy Ideas” % change vs. 2011: 3.1% ahol d Ahold — which operates the Stop & Shop, checkout lanes include fruit, nuts, snack packs No. of stores: 774 Giant-Carlisle and Giant-Landover supermarket and 100% fruit juice. Meanwhile, in April 2012, No. of stores with Rx: 565 banners and the Peapod online grocery service Stop & Shop launched Kid Healthy Ideas magazine Avg. store size: 55,000 sq. ft. — continues to grow through the innovations it at its stores. The magazine, aimed at children ages Rx sales: $2.1 billion has brought to its business and its health-and- 8 years to 12 years, features health-related edu- % of sales from Rx: 8% wellness initiatives. cational articles, games and recipes. And in May In particular, Peapod has undergone rapid 2012, Stop & Shop and Giant-Carlisle launched Sales per store: $33.3 million * U.S. stores only expansion. In October 2012, the company placed pet medication programs under a partnership Source: Company reports, DSN estimates more “virtual grocery store” billboards at com- with pet pharmacy PetCareRx. muter rail stations in Boston, New York, Phila- Overall, combining food with pharmacy has delphia, Washington, Chicago, New Jersey and been a major part of Ahold’s efforts to promote , allowing commuters to use tablets health and wellness. The company has partnered and smartphones to shop by scanning bar codes with Unilever to sponsor in-store clinic programs on pictures of the products. Peapod opened eight and with Quaker Oats to promote oatmeal as a new pickup points in 2012 and a ninth in March way of lowering cholesterol among patients tak- 2013 in New York. ing cholesterol-lowering drugs. Brick-and-mortar stores have seen a lot of in- In 2012, the company began giving pharma- vestment as well. In August 2012, Martin’s Food cists specialized training for diabetes, with the Markets, part of the Giant-Carlisle banner, in- goal of having one diabetes care specialist in each troduced healthy checkout lanes at eight stores store, and a small but growing retail clinic opera- in the Richmond, Va., area. Launched under a tion is expected to see expansion as well.

HQ: Lakeland, Fla. Expanding in the Southeast 2012 sales: $27.5 billion By Mike Troy % change vs. 2011: 1.9%* p u bli x remodeling activity, its pharmacy count is grow- No. of stores: 1,069 ing more rapidly than its store count. For exam- No. of stores with Rx: 895 Publix continued its record of operational ple, last year the retailer’s store count increased excellence in 2012 and going forward plans to by 23 units to 1,069 stores, but the pharmacy total Avg. store size: 46,500 sq. ft. maintain a deliberate pace of expansion that will advanced by 54 units to 895 pharmacies. Rx sales: $1.7 billion see the supermarket retailer enter North Carolina The pharmacy business is a fundamental com- % of sales from Rx: 6% by this time next year. ponent of the company’s emphasis on customer Sales per store: $25.7 million Publix already has signed leases for new stores service, which — along with product quality, a * The 2011 fiscal year included a 53rd week in North Carolina with its first store in Charlotte pleasant shopping environment, competitive Source: Company reports, DSN estimates expected to open in spring 2014. The northern ex- pricing and convenient locations — has allowed pansion will allow the Southeast’s leading food for steady growth. Customers continued to re- retailer to further diversify its geographic pres- ward Publix for its commitment to pharmacy. ence away from Florida, where 71%, or 757, of For the third year, Publix was ranked the No. 1 the 1,069 Publix stores are located. pharmacy retailer in the supermarket channel, ac- The company continues to offer free medica- cording to the J.D. Power and Associates annual tions, such as lisinopril for blood pressure, met- pharmacy satisfaction survey. formin for diabetes and several types of antibi- Publix expects to open 24 new stores in 2013 otics. It also regularly provides immunizations and remodel upward of 100 stores as part of an for flu and other conditions, as well as health estimated $810 million capital budget. That is screenings. Recently, it began experimenting the highest level of spending in five years and with a wellness initiative called Publix Dietician enables the company to keep its store fresh and Services at a store in Riverview, Fla. live up to its “where shopping is a pleasure” As Publix has maintained an aggressive pace of value proposition.

9 • april 22, 2013 DrugStoreNews.com Top 50

Offering health perks to members HQ: Issaquah, Wash. 2012 sales: $68.9 billion* costco By Alaric DeArment nally launched in May 2012. The app includes a % change vs. 2011: 6.2% pharmacy feature that allows customers to refill No. of stores: 448 As with any nondrug store pharmacy retailer, prescriptions for pickup at the warehouse or to No. of stores with Rx: 442 pharmacy is a relatively small part of Costco’s check the status of a prescription. Meanwhile, the Avg. store size: 142,000 sq. ft. business, but as this year’s first issue of the club chain’s online pharmacy section includes a pric- Rx sales: $1.6 billion retailer’s Costco Connection magazine shows, the ing guide, free ground shipping for prescriptions, % of sales from Rx: 2.3% company is hoping to make it a much bigger refill reminders by email, a prescription status piece of the pie. link and streamlined checkout. Sales per store: $154 million Pharmacy was the central theme of the maga- Another healthcare initiative is a partnership * U.S. stores only Source: Company reports zine’s cover story, which touted the chain as a with Aetna to offer health insurance plans to destination for low-cost prescriptions, as well Costco members through the Costco Personal as promoted the company as one of the largest Health Insurance program. The program is of- providers of retail immunizations and pushed fered to members in Florida, California, Arizona, its pet medication program. But a big part of the Connecticut, Georgia, Illinois, Michigan, Nevada, story was the announcement of the company’s Pennsylvania, Texas and Virginia. own pharmacy benefit manager, Costco Health All of this has helped contribute to Costco’s Solutions. The new PBM offers prescription recent success as the company saw significant drugs through the chain’s own pharmacies or a increases in sales and profits during second network of 64,000 independent pharmacies that quarter 2013, to $24.3 billion and $547 million, have agreed to pre-negotiated prices. respectively. Online sales increased 14% in fourth Another big initiative has been the club retail- quarter 2012 and 9% in fiscal year 2012, the er’s app for Android and Apple devices, origi- company said.

HQ: Bentonville, Ark. sam ’ s cl u b Health screenings drive growth 2012 sales: $56.4 billion % change vs. 2011: 4.9% By Mike Troy pharmacy, were regularly cited during quarterly No. of stores: 620 updates as top performers with same-store sales No. of stores with Rx: 563 Sam’s Club will embark on its most aggressive growth in the mid-single digits, even with the expansion in years, and a solid performance in headwind caused by generic drug conversions. Avg. store size: 133,000 sq. ft. the health-and-wellness area is helping underpin From a 30,000-ft. view, Sam’s Club’s merchan- Rx sales: $1.5 billion the company’s growth. dising strategy in health and wellness is built % of sales from Rx: 2.7% Sam’s expects to add between 15 and 20 new around three core pillars: awareness, prevention Sales per store: $91 million clubs this year, which marks the most aggressive and solutions. rate of expansion the $56.4 billion Walmart divi- To help drive the business, Sam’s introduced Source: Company reports, DSN estimates sion has seen in roughly a decade. its new Simply Right brand to select health-and- “Sam’s Club has a great opportunity to engage wellness categories and kept its foot on the ac- more and more members in both new and exist- celerator with frequent health screening events ing markets,” Sam’s Club president and CEO throughout 2012. During the past two years, Rosalind Brewer said during a fourth-quarter Sam’s has offered more than 2.2 million screen- conference call. ings, and that figure is likely to increase consider- Those price investments hurt Sam’s fourth- ably in 2013 with screening events planned at lo- quarter operating profit, which declined 6% to cations with pharmacies every second Saturday $489 million. Meanwhile, fourth-quarter same- of the month through October. store sales decelerated throughout 2012 and ad- Sam’s is now in the second year of publishing vanced only 2.3% in the fourth quarter, the lowest its bimonthly magazine, Healthy Living Made Sim- level since second quarter 2010. ple, and has equipped clubs with interactive Solo- Despite the weak finish to the past fiscal year, Health Stations that provide free screenings for Sam’s health-and-wellness businesses, including vision, blood pressure, weight and body mass.

10 • april 22, 2013 DrugStoreNews.com Top 50 me d icine shoppe HQ: Dublin, Ohio Franchisees specialize care 2012 sales: $1.6 billion By Barbara White-Sax the short term, but also for years to come. % change vs. 2011: NA Franchisees continue to expand patient care No. of stores: 595 “Medicine Shoppe franchisees have always services by tapping into its Medicine Shoppe’s No. of stores with Rx: 595 been committed to delivering truly personalized, Specialized Care Centers for diabetes, heart Avg. store size: 1,800 sq. ft. convenient care to their patients,” said John Fi- health, immunizations and home health pro- Rx sales: $1.6 billion acco, VP of Medicine Shoppe and Medicap phar- grams, which provide pharmacy owners with % of sales from Rx: 95% macies. “They’re seen as more than pharmacists; the tools and resources they need to position they’re healthcare leaders in their communities. themselves as local patient resources. Sales per store: $2.8 million And they understand that now more than ever, Medicine Shoppe’s Specialized Care Centers Source: DSN estimates their patients are looking to them to help them are a win-win for franchise owners and patients, manage not just their medications, but [also] their Fiacco said. Offering diverse healthcare services overall health.” allows franchisees to diversify their revenue Fiacco said that Medicine Shoppe is squarely streams, while strengthening their relationships focused on helping its franchise owners meet with patients — a strategy for long-term success. the evolving healthcare needs of today’s more “We provide the patient education resources, engaged and demanding consumer. It’s also fo- marketing materials, even planograms and prod- cusing on empowering franchisees to operate as uct recommendations to empower pharmacy profitably and cost-effectively as possible. owners to position themselves as local ‘destina- Medicine Shoppe’s franchise business con- tions’ for diabetes, heart health, home health or sultants work with each franchise as a strategic immunizations,” Fiacco said. It’s also good for adviser. The personalized coaching helps franchi- patients who can look at Medicine Shoppe as a sees build a business that can succeed not just in one-stop destination for health care.

HQ: San Antonio Creating a Texas-sized health plan 2012 sales: $19.4 billion 7.8% By Jim Frederick mon nutritional attributes of many products, % change vs. 2011: h - e b No. of stores: 351 including their fiber, salt, sugar and saturated fat No. of stores with Rx: 232 H-E-B has become synonymous with content. The company also sponsors dietitian- high-touch, low-priced food and drug retail- led shopping tours in some of its stores to steer Avg. store size: 65,000 sq. ft. ing in Texas and northern Mexico. This year, customers to healthier eating choices. Those di- Rx sales: $1.3 billion the 350-plus-store chain will expand its ef- etitians “work side by side with the pharmacist,” % of sales from Rx: 6.7% forts to integrate the disease management, Wiesner said, to “tie in the medical side from the Sales per store: $55.3 million health screening and wellness services pro- pharmacy perspective along with the dietitian’s vided at its more than 230 in-store pharmacies expertise … in helping customers understand Source: Company reports, DSN estimates with a whole range of nutritional and disease their eating habits and diets.” prevention offerings. Last June, H-E-B launched its first Community Its umbrella strategy, marketed as “Healthy at Slim Down Showdown competition. Participants H-E-B,” encompasses a range of programs pro- went through health screenings and an intensive vided by the company’s pharmacists, in-store di- week-long seminar on nutrition, exercise and etitians and by the nurse practitioners who staff other topics from nutritionists at H-E-B, Method- its 30 RediClinic pharmacy-based walk-in care ist Healthcare and Cooper Aerobics Center, along centers. “We’re looking at anything we can do with ongoing support and coaching. to expand our outreach into the community and That initiative extends “Weigh Forward,” a supplement the primary healthcare providers,” 10-week weight-loss program conducted by said Dennis Wiesner, senior director of privacy, RediClinic staff that includes patient counseling, pharmacy and government affairs. weekly meal plans, shopping lists for healthier To that end, H-E-B now offers a shelf label- foods and a customized guide to weight manage- ing system with icons that identify seven com- ment and behavioral changes.

11 • april 22, 2013 DrugStoreNews.com Top 50

Grocer caters to all demographics HQ: Pittsburgh giant eagle 2012 sales: $9.9 billion By Michael Johnsen permarkets. Good Cents reflects the real fresh, not real fancy experience for customers who % change vs. 2011: 6.5% One year into taking the reigns of Pitts- know how to recognize a great deal on high- No. of stores: 229 burgh’s pre-eminent multiformat food and fuel quality products,” he said. “Good Cents comes No. of stores with Rx: 213 retailer Giant Eagle, CEO Laura Karet helped to Pittsburgh at the perfect time, as families Avg. store size: 80,000 sq. ft. realize 6.5% in year-over-year sales growth to continue to struggle through a sluggish econo- Rx sales: $1.3 billion $9.9 billion. Over fiscal 2012 Giant Eagle opened my and rising food and commodity costs.” % of sales from Rx: 13% nine supermarket operations, including six Gi- Giant Eagle effectively serves the other end ant Eagle supermarkets, a Market District gro- of the consumer spectrum, too. Last year the Sales per store: $43.2 million cery and two Valu King locations — soon to be company remodeled one of its Giant Eagle Source: Company reports, published reports rebranded Good Cents Grocery + More. In ad- banners into its fifth overall Market District. dition, the Pittsburgh retailer opened its second Beyond catering to a higher income house- Giant Eagle Express and 10 GetGo gas stations. hold, the Market District stores feature a deep- In November, Giant Eagle opened its first er dive into natural food, with more than 7,000 value grocer in the Pittsburgh market, and natural, organic and specialty items on hand. the first to bear the Good Cents brand. It’s the Market District locations are known for an on- next evolution of Giant Eagle’s Valu King for- going schedule of in-store events, including mat, which includes six discount supermarkets cooking demonstrations from resident and ce- across Ohio and western Pennsylvania. “This is lebrity chefs, and an expanded health, beauty the format people have been waiting for,” stat- and wellness department that is staffed with a ed Good Cents SVP John Tedesco in a release licensed skin care professional and a licensed announcing the new store. “Think of it as the dietitian conducting ongoing wellness events missing link between discount stores and su- and activities.

HQ: West Des Moines, Iowa Making Iowa the healthiest state 2012 sales: $7.7 billion % change vs. 2011: 5.5% By Alaric DeArment to make Iowa the healthiest state in the coun- No. of stores: 233 hy try by 2016. In August 2012, Hy-Vee promoted A big part of health and wellness begins with healthy living at the Iowa State Fair by sponsor- No. of stores with Rx: 240* -v ee what people put in their mouths, so any re- ing yoga sessions and showing fairgoers how to Avg. store size: 70,000 sq. ft. tailer that sells food is naturally in a position to make healthy, on-the-go breakfasts. Rx sales: $984.5 million influence customers. Like state fairs, public schools are another % of sales from Rx: 12.8% Supermarket pharmacy chain Hy-Vee, source for often unhealthy food, prompting Sales per store: $33 million which operates 233 stores around the Midwest, the chain to take part in the First Lady’s “Let’s * Includes 221 in-store pharmacies and off-site and is one company that has sought to position it- Move Salad Bars to Schools” initiative and part- satellite pharmacies. self as not just a place to pick up groceries and ner with Dole to donate salad bars to schools Source: Company reports, DSN estimates prescriptions, but also as a center for health in Boone, Centerville, Fairfield, Denison and and wellness. Shenandoah, Iowa. Most recently, in March 2013, Hy-Vee joined But while the chain promotes health and the LDM Group’s network to offer LDM’s Care- wellness, it also has added a touch of luxury Points, a direct-to-patient messaging program to its stores. For example, one of its new stores, designed to improve medication adherence by in Overland Park, Kan., will feature a beer and targeting patients based on behavior, history wine bar, making it the first in the Kansas City, and demographics. Mo., area. Meanwhile, an Urbandale, Iowa, store But Hy-Vee also does a lot to promote well- that the company called its “most innovative” being outside of pharmacy. The company has featured a full-service restaurant called Market been a key sponsor of the Healthiest State Ini- Fresh Grille, including trained servers, dishes tiative, a program launched in 2011 by Iowa created by the store’s chefs and a selection of Gov. Terry Branstad and Lt. Gov. Kim Reynolds wines and craft beers.

12 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Greenbay, Wis. Smaller format for greater focus 2012 sales: $3 billion

By Barbara White-Sax % change vs. 2011: 33%

which combine general merchandise, phar- shopko macy and optical services in stores averaging No. of stores: 332* Shopko may be a discount chain, but the cen- about 80,000 sq. ft. and located in small to mid- No. of stores with Rx: 280* ter of the retailer’s operations is still pharmacy. sized cities; five Shopko Express Rx drug stores, Avg. store size: 80,000 sq. ft. The retailer, which operates more than 330 stores convenient neighborhood drug store formats; and 25,000 to 30,000 sq. ft.** across 13 states, began as a pharmacy chain and 176 Shopko Hometown locations; 14 Shopko Rx sales: $509.5 million remains committed to health care. Pharmacy locations; and two RxCare long-term Last year was a growth year for the chain, care facilities. % of sales from Rx: 17% which reported revenues at about $3 billion. In The company fills more than 11 million phar- Sales per store: $9 million 2012, Shopko completed its merger with the macy prescriptions, manufactures more than * Includes 17 stand-alone pharmacy locations ** Shopko Hometown format 122-store Pamida chain, expanding its store 250,000 pairs of eyeglasses and fulfills 500,000 Source: Company reports, DSN estimates count significantly. All Pamida stores have now optical prescriptions per year. been converted to the Shopko banner. Last year, the chain launched a mobile phar- The chain has been focused on increasing the macy app, allowing users to quickly and easily number of its Hometown formats, smaller stores refill and manage their pharmacy prescriptions developed to meet the needs of smaller commu- from their smartphones. Shopko president, nities. The Hometown stores range from 15,000 chairman and CEO Paul Jones called the app sq. ft. to 30,000 sq. ft. and are located in rural — which allows customers to request refills, communities. Shopko plans to add five to seven review prescription details, set up dosage re- Hometown stores in 2013 and up to 30 a year be- minders and receive email and text notifications ginning in 2014. when a refill is ready — a “direct response to Shopko’s formats include 134 Shopko stores, consumer demand.

HQ: Jacksonville, Fla. Grocer expands chain, programs 2012 sales: $10 billion % change vs. 2011: 2.7% By Michael Johnsen enhances its offerings. The expanded program bi - lo No. of stores: 687 runs through the Bi-Lo BonusCard and offers No. of stores with Rx: 493 Bi-Lo Holding, which includes both the Bi-Lo deep discounts on more than 450 generic medi- and Winn-Dixie grocery banners, is two-thirds cations and varied discounts on name-brand Avg. store size: 46,500 sq. ft. of the way through a complete assimilation of and other generic medication. Rx sales: $806.9 million the two companies, Bi-Lo president and CEO “Not everyone has insurance or health ben- % of sales from Rx: 8.1% Randall Onstead recently told the Jacksonville efits that adequately cover prescriptions,” stated Sales per store: $14.5 million Business Journal. John Fegan, VP pharmacy for Bi-Lo. “This ex- Full assimilation is expected by the end of panded program offers significantly deeper ser- Source: DSN estimates summer, he said, and then it’s off to the mar- vices to our customers, provides a wider array ketshare races as the 687-store chain focuses on of discounted medications and is significantly growing its business. Already in the past year, Bi- easier for our customers to use now that it runs Lo has revealed at least 13 newly updated stores directly through our BonusCard.” across the Carolinas, with donations of more than And this past fall Bi-Lo launched an annual $19,000 to community organizations on behalf of campaign to promote flu vaccinations. The chain Bi-Lo charities. The enhanced departments and offers three vaccination options, including the signature food items in the updated stores in- standard vaccination, a high-dose vaccination clude the addition of a Gold Star line of meat fea- for elderly patients and an intradermal vac- turing a selection of locally raised chicken, pork cination delivered with a microneedle that is and certified Angus beef; a produce department 90% smaller than traditional needles. Custom- with an open-market feel; and a free Wi-Fi café. ers receiving the vaccines had been given cou- And Bi-Lo recently launched in all of its phar- pon books with $15 in savings on health-and- macies a prescription program that significantly wellness products.

13 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Memphis, Tenn. Pharmacy meets dollar format 2012 sales: $2 billion By Michael Johnsen 25 and 30 stores each year, also will include a % change vs. 2011: 4% f re d’ s pharmacy operation. No. of stores: 712 Fred’s Super Dollar is all about the pharmacy. And Fred’s will continue its pursuit of be- No. of stores with Rx: 346 Pharmacy has been considered a key growth tween five and 10 independent pharmacy acqui- Avg. store size: 18,300 sq. ft. driver at Fred’s for some time now. And with sitions per year. “We are very bullish about the Rx sales: $709.8 million the expected surge in patients after Jan. 1, 2014, acquisition market,” Chambers said. More than % of sales from Rx: 36.3% Fred’s is positioning itself to effectively serve its 2,900 independent pharmacies currently operate value-sensitive customer base with a comprehen- within Fred’s footprint, Chambers added. More Sales per store: $2.7 million sive pharmacy service offering. than half of those pharmacies serve in communi- Source: Company reports “Over the next three years, we will continue to ties with fewer than 10,000 residents. transition Fred’s pharmacy from being primarily To effectively reach these communities with a dispenser of products to a provider of health- Fred’s pharmacy with value proposition, the care services, while we also increase our pharma- company is currently piloting a new store concept cy penetration across our store base,” Rick Cham- called GetWell Drug and Dollar. The 8,000-sq.-ft. bers, Fred’s EVP pharmacy operations, recently locations, half the size of a typical Fred’s, feature told analysts. a heavy focus on pharmacy, OTC and value-ori- The Southeast deep discounter will be look- ented convenience basics. ing to extend its pharmacy penetration to as Fred’s also is engaging the high-touch spe- high as 70% of all stores — right now it’s about cialty pharmacy business through a partnership 49%. In 2013, Fred’s plans to remodel between with Diplomat Specialty pharmacy as more of 15 and 20 stores, which includes adding a the company’s core consumers may be eligible pharmacy. All new store openings, between for specialty pharmaceutical coverage come 2014.

HQ: Keasbey, N.J. Making departments health-centered 2012 sales: $13.6 billion % change vs. 2011: 6.2% By Antoinette Alexander in-store dietitian to help plan a healthy diet No. of stores: 250 when eating for two. No. of stores with Rx: 203 Supermarket chain ShopRite, which is part The retailer’s in-store dietitian program of Wakefern Food Corp., continues to set its continues to play an important role in help- Avg. store size: 65,000 sq. ft. sights on improving the health and wellness ing its customers live healthier lives. Today, Rx sales: $659 million of its shoppers. there are currently more than 50 in-store reg- % of sales from Rx: 4.8% Looking to 2013, the LiveRight with Shop- istered dietitians working in ShopRite stores, Sales per store: $54.4 million Rite health-and-wellness initiative will ex- and, according to the company, it continues to pand beyond ShopRite’s dietitian and phar- add to the program, looking at new ways to Source: Company reports, DSN estimates macy services to include all departments in better serve customers and to help them live the store, helping customers to read labels healthier lives. and choose the healthiest options for their As previously reported by DSN, Wakefern families, the company stated. These will be implemented in 2006 its retail dietitian pro- communicated via shelf tags, education ma- gram, which offers shoppers the opportunity terials and in-store seminars, as well as the to discuss their health and dietary needs with weekly circular. a nutrition professional. Retail dietitians cov- Meanwhile, in pharmacy, the grocer an- er a number of issues with shoppers, includ- nounced in mid-2012 it will offer free prenatal ing learning how to shop for healthy meals vitamins. ShopRite customers can receive a and proper nutrition for specific medical con- free 30-day supply of Prenatal Plus or Prena- ditions. Retail dietitians also can work with tal Plus FE vitamins with a valid prescription. customers to schedule monthly screenings In addition to speaking with a pharmacist, for specific health issues, such as diabetes or expecting mothers also can speak with an high cholesterol.

14 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Gouverneur, N.Y. Expanding pharmacists’ practice 2012 sales: $802 million kinney By Antoinette Alexander to provide exceptional patient care that results in % change vs. 2011: -1% healthier outcomes.” No. of stores: 95 Kinney Drugs is not only focused on en- Duteau noted that industry medication ad- No. of stores with Rx: 95 hancing customer service and patient care, herence statistics indicate the average patient Avg. store size: 10,500 sq. ft. but also has set its sights on programs that will fills only 50% of available refills; however, Kin- Rx sales: $601.7 million further improve medication adherence and ney Drugs has been able to substantiate that its % of sales from Rx: 75% professional services. patient population is closer to a 75% medica- “Poor medication adherence is a direct result tion adherence rate as a result of such initiatives Sales per store: $7.1 million of patients forgetting to refill and pick up their as ReadyScripts. Source: Company reports prescriptions. Once they [patients] opt in, our Looking ahead, the company will continue to pharmacy teams process their prescriptions au- champion the expansion of scope of practice for tomatically each month, ensuring the medication pharmacists and, according to Duteau, is “cur- is always available and any insurance issues are rently working on collaborative practice initia- resolved prior to the patient needing the medi- tives as well as health information exchange plat- cation,” said Mike Duteau, VP pharmacy op- forms, providing us with better opportunities to erations at Kinney Drugs, referring to the com- partner with other healthcare providers as we pany’s automated refill program ReadyScripts. strive to improve patient care outcomes.” “Our pharmacy teams then call the patients to In other company developments, Rick Cog- notify them that their prescriptions are ready to netti, VP merchandising, was recently promoted be picked up. While we always maintain con- to VP marketing and merchandising. Cognetti’s venience and customer service as two of our top promotion comes on the heels of the retirement priorities, Kinney’s philosophy has always been of Jim Wuest, VP of marketing.

HQ: Montvale, N.J. Grocer focuses on ‘Live Better’ 2012 sales: $8 billion % change vs. 2011: -1% Since emerging from bankruptcy about a year healthy recipes. No. of stores: 320 A&P ago, A&P has been working to improve opera- Another component of the program is the No. of stores with Rx: 189 tions, as well as improve the health and wellness improved Live Better Wellness Club, which is a of its shoppers. money-saving program that affords registered Avg. store size: 42,000 sq. ft. One of the more recent initiatives is the com- customers special discounts on healthy foods, Rx sales: $480 million pany’s new “Live Better” health and wellness like fruits and vegetables, as well as generic % of sales from Rx: 6% platform, which launched in early 2012 across all pharmaceuticals and healthcare items. Sales per store: $25 million of its A&P, , , The Food Em- In addition, the grocer has revamped its porium and Waldbaum’s banner stores. website to now include an online circular and Source: DSN estimates A major component of the program is the mobile view. By visiting the online Pharmacy Wellness Factor shelf-labeling system that Center, patients can get information, refill a pre- highlights various nutritional attributes re- scription and check the status of a prescription. lated to four specific health areas: heart health, The grocer has more than 500 certified-im- diabetes, weight management and prevention. munizing pharmacists, and its vaccination ser- These labels are designed to serve as a quick vices include HPV, whooping cough and travel. and convenient way for customers to identify The company also has been looking to bet- foods that are calorie smart; low in saturated ter reflect the culture and preferences of local fats, sodium and sugar; gluten-free; and a good customers — an initiative that is evident in its source of vitamins and minerals. The tags also Pathmark store renovated in spring 2012 in contain QR codes that enable shoppers with Weehawken, N.J. The store features a larger se- smartphones to use a QR code app to instantly lection of multicultural foods influenced by the connect to its LiveBetterWellness.com website, local Hispanic culture and other preferences of an online source for nutrition information and customers in the Weehawken community.

15 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Grand Rapids, Mich. Embracing local initiatives 2012 sales: $14.8 billion mei j er By Alaric DeArment gan State University, to include 55 new Michigan- % change vs. 2011: 5.7% made packaged food products. The company ex- No. of stores: 199 “Slow” and “steady” is how Hank Meijer de- pects the program to pump more than $1 million No. of stores with Rx: 199 scribed the growth plan for mass merchandise into the state’s long-troubled economy. Avg. store size: 205,000 sq. ft. retailer Meijer, of which he is co-CEO and co- In health and wellness, the chain also has Rx sales: $456 million chairman. But given what’s been happening at shown a propensity for innovation. In March % of sales from Rx: 3% the chain lately, “slow” might not have been the 2013, Meijer announced it would act as a co-spon- best choice of words. sor with nutrition-scoring company NuVal of the Sales per store: $76.4 million The company is planning to invest more than Nu-Me Weight Loss Challenge, enlisting 60,000 Source: DSN estimates $160 million this year, building six new stores employees to compete in teams for $15,000; the and remodeling five. That might not seem like a competition lasts through May. whole lot, but considering the 199-store chain’s Meijer also has proven that it can be a relatively small footprint — spread across Michi- world-class pharmacy provider. In March, gan, Ohio, Indiana, Illinois and Kentucky — it’s OutcomesMTM, a medication therapy man- a pretty big expansion. The company’s growth agement delivery system, recognized a Meijer also is exemplified by its digital coupon program, store as one of the 25 top-performing MTM pro- mPerks, which generated 101,000 new members, viders in the United States, among chain and 13.7 million clipped offers and more than $5 mil- independent pharmacies. And in November lion in savings in December. 2012, it partnered with the American Diabetes In March 2013, the company expanded its Association as a regional sponsor of the Stop Made in Michigan initiative, originally launched Diabetes Movement, helping to sponsor diabetes in January 2012 under a partnership with Michi- camps, walks and other activities.

HQ: Boise, Idaho albertsons Acquisitions push retailer forward 2012 sales: $21.4 billion % change vs. 2011: NA By Antoinette Alexander than 650 Albertsons stores — a deal that has No. of stores: 1,069 proven to be a win, thanks in part to store sales No. of stores with Rx: 780 Albertson’s LLC kicked off 2013 with a ma- and real-estate moves over the years. jor bang as its parent company, AB Acquisition, “In 2006, we acquired a set of stores that lacked Avg. store size: 51,000 sq. ft. snapped up from Supervalu more than 870 stores investment and were in tough shape, but with Rx sales: $1.8 billion in a deal that reunites all Albertsons stores under our great associates taking care of our customers % of sales from Rx: 8.4% one operator. every day, we have grown into a solid regional Sales per store: $20 million Under the agreement, Supervalu sold grocery supermarket chain with growing sales. I believe banners Albertsons, Acme, -Osco, Shaw’s we can be successful again,” stated Albertson’s Source: DSN estimates and , as well as related Osco and LLC CEO and retail veteran Bob Miller, who as- Sav-on in-store pharmacies, to the investment sumed the role of nonexecutive chairman of Su- group led by hedge fund Cerberus Capital Man- pervalu and will oversee the Supervalu stores the agement. The company now operates more than consortium has acquired. 1,000 stores and 12 distribution centers. Following the transaction, AB Acquisition an- Now that the transaction has closed and the nounced a string of executive moves, including dust has largely settled, industry observers are the appointment of Daniel Salemi as president of watching to see what the new Albertsons will the company’s pharmacy division. bring to the retail landscape. Tom Rousonelos and Stewart Edington have “We believe that similar to the last Albertsons’ been named VP pharmacy operations for its New transaction, that this is also a tremendous asset Albertsons Inc. and Albertson’s LLC divisions, play for Cerberus,” stated Citi Research analyst respectively. On the front end, Mike Massimino Deborah Weinswig in a research note. has been named SVP marketing and merchandis- In 2006, the Cerberus-led group acquired more ing; Rick Bunnell, SVP supply chain.

16 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Salisbury, N.C. Setting priorities for growth 2012 sales: $18.8 billion* d elhai z e By Antoinette Alexander 2012, Smith has been working to revamp the % change vs. 2011: -2.2% company by restructuring his senior manage- No. of stores: 1,553** Delhaize America, which is part of Belgium’s ment team and shuttering underperforming No. of stores with Rx: 265 , continues to go through sig- stores. And there’s no doubt that more changes Avg. store size: 34,000 sq. ft. nificant changes as its recently appointed CEO, are on the way. Rx sales: $697 million Roland Smith, focuses on driving profitable Smith said the “most important priority” is % of sales from Rx: 3.7% growth and improving productivity across its accelerating the transformation of its store banners. business. Since May 2011, Food Lion has been in Sales per store: $12.1 million “I believe it’s important that we focus our the midst of a transformation aimed at reducing * U.S. operations ** U.S.-based stores resources, people, money and time on the few prices, enhancing quality and improving service. Source: Company reports, DSN estimates critical priorities that will ensure we achieve our Come May of this year, the total number of trans- goals in 2013 and beyond,” Smith told analysts formed stores will be nearly 80%, and Smith said during the company’s fourth-quarter conference he is now “focused on more clearly identifying call in March. He added that he and his team Food Lion’s unique selling proposition.” evaluated “the hundreds of initiatives” that Del- Another priority is its Hannaford banner. In haize America was working on and narrowed it 2012, the company invested in targeted price down to several critical priorities for 2013. reductions, and this year it will continue to im- At the end of 2012, Delhaize Group’s network prove its overall price competitiveness. consisted of 3,451 stores. In the United States, that The key focus for is to includes about 1,500 Sweetbay, Hannaford and grow sales and reduce operating costs to ensure Food Lion stores. the right economic model before further expan- Since coming aboard as CEO in mid-October sion, Smith told analysts.

HQ: Raleigh, N.C. 2012 sales: $590 million* Placing patient care first % change vs. 2011: 2.1% By Jim Frederick ence and outcomes for Medicare beneficiaries

No. of stores: 80 kerr through pharmacist interventions. ChecKmeds No. of stores with Rx: 80 With its clinically oriented PharmDs, its returned average savings of $13.55 in reduced strong ties to schools of pharmacy and its hospitalizations and other acute-care costs for ev- Avg. store size: 8,400 sq. ft. constantly evolving ability to develop and ery dollar invested. Rx sales: $400 million* market a higher level of pharmacy practice, Another adherence tool is Kerr’s “Your Refill % of sales from Rx: 68% Kerr Drug has emerged as a vital community – Your Way” program. Eliezer described it as “a Sales per store: $7.4 million healthcare resource. campaign to embrace all the different ways cus- * Including employer-based clinical services, spe- “Our main focus … continues to be on phar- tomers can manage their prescription activity,” cialty and institutional pharmacy sales, etc. macy-based patient care services,” Kerr market- via auto refill, text messaging and computer- Source: DSN estimates ing chief Diane Eliezer told DSN. To that end, based reorders, among others. she said, “we have expanded the pharmacists’ In other moves, Kerr completed the chain- role and expertise for [medication therapy man- wide rollout of a new EPS/PDX pharmacy sys- agement] activity. We are focusing on MTM, im- tem, and its 2012 alliance with the national phar- munizations, diabetes-related education and ser- macy network RxAlly paid dividends. vices, and adherence/compliance.” While patient care remains Kerr’s prime mis- Patients enrolled in Kerr’s Diabetes Educa- sion, the chain has a knack for front-end innova- tion Program, for instance, get classroom in- tion. Among recent examples: an in-store wine struction by one of the chain’s clinical pharma- shop, a growing food and beverage department cists or a dietitian, along with a free glucometer and eye-catching informational shelf signage for and pedometer. OTC remedies. Kerr also continues to operate a Kerr pharmacists also helped drive ChecK- popular Kerr Café at its Wakefield, N.C., store, meds NC, aimed at boosting medication adher- selling sandwiches, ice cream and coffee.

17 • april 22, 2013 DrugStoreNews.com Top 50

Serving the 21st-century customer HQ: Linthicum, Md. 2012 sales: $379 million By Michael Johnsen a profitability perspective, but also from a % change vs. 2011: 10.5%

‘serving your customer’ perspective,” Wysong care In the past year, Care Pharmacies relocated said, noting that specialty pharmacy and med- No. of stores: 79 its headquarter offices from northern Virginia to ication therapy management are two strengths No. of stores with Rx: 79 the Baltimore suburb of Linthicum, Md. Also, in across Care’s members. “If the customer has Avg. store size: 3,500 sq. ft. the past month Care Pharmacies has remade its a positive experience in one of our locations Rx sales: $360.1 million web presence. and we’re able to keep them compliant and % of sales from Rx: 95% “[And] we’ve launched some new social me- adherent on those medications, they’re going dia platforms,” Michael Wysong, Care CEO, told to come back. And they’re going to come back Sales per store: $4.8 million DSN, to help underline the fact that Care Phar- with demands and needs other than their pre- Source: DSN estimates macies are not only serving the local commu- scription,” he said. “It becomes a ground-up nity, but also are a part of that community. That strategy for us.” sense of local community is a core strength across Pharmacy as a business model is becoming Care’s base, Wysong said. “The [pharmacists] both more service-oriented and outcomes- running these stores are your neighbors. So the oriented. And independent pharmacy has his- social media site will highlight [for example] the torically excelled in these areas, Wysong said. ice cream social that takes place on a Friday night “Our challenge is going to be that we continue at Grubb’s Pharmacy. ... That stuff matters.” to have the right infrastructure that these inde- Along with aligning Care with the 21st- pendent owner operators are going to need to century shopper, Care is likewise helping to function at a high level.” align its members with 21st-century pharmacy Care Pharmacies is an operating group that profit centers. “Diversification of [pharmacy is owned by each of its 79 pharmacies across services] is not only going to be critical from nine states.

HQ: Tyler, Texas brookshire A holistic approach to health 2012 sales: $2.2 billion % change vs. 2011: 2.7% By Amanda Baltazar shire’s launched a warehouse in Tyler, Texas, to No. of stores: 154 house generic prescription items, and this is go- No. of stores with Rx: 116 Brookshire Grocery’s approach to health is all- ing well, Cousineau pointed out. “We were very encompassing. While they offer standard OTC conservative in growth during the first year but Avg. store size: 40,000 sq. ft. and prescription medications, they also sell al- plan to be much more aggressive in 2013.” Rx sales: $302 million ternative and complementary therapies, such as Linked with this warehouse, Brookshire’s con- % of sales from Rx: 13.7% herbs and natural products. A full list of all the tinues to offer a 30-day supply of generic drugs Sales per store: $14 million alternative therapies is available on Brookshire’s for $3.99; 60-day supply for $6.99; and 90-day website, along with a comprehensive list of their supply for $9.99. Source: DSN estimates interactions, the depletions they can cause in the Another area that’s growing is diagnostic body and a list of medical conditions with alter- services that include such screenings as blood nate therapies provided for each one. glucose and body mass index. “We are growing However, despite this more holistic approach slowly with diagnostic services,” Cousineau said. to health, plans for nutrition centers that were “We have roughly two dozen [pharmacies that] piloted last year have been canceled. “There are offer some level of extra diagnostic services.” two key components to this project, and changes Brookshire’s continues to offer a wide se- to reimbursement pending with the [Patient Pro- lection of health-and-beauty, durable medical tection and Affordable Care Act] have caused equipment and diagnostic products. us to put part of the project on hold,” said Jim The pharmacy at Fresh By Brookshire’s — as Cousineau, SVP pharmacy operations. “The food well as one other pharmacy in Tyler, Texas — of- nutrition component falls under grocery and is fers travel vaccinations by appointment, includ- slated for future development.” ing hepatitis A and B, tetanus, pneumonia, chick- More positive news is that last year Brook- enpox and shingles.

18 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Novi, Mich.

Partnering with patients 2012 sales: $316.8 million sa By Amanda Baltazar move those good employees to a position % change vs. 2011: -1% more fitting to their talents.” No. of stores: 78 v- mor Sav-Mor Drug Stores’ pharmacies revolve • Optics technology from Innovation, which No. of stores with Rx: 78 around a partnership approach to health. also is being beta tested, in two pharmacies. Avg. store size: 12,000 sq. ft. New technologies and services are being in- CEO Richard Grossman described this tech- Rx sales: $270.3 million troduced in order to free up pharmacists, so they nology as “a very unique way of counting. % of sales from Rx: 85.3% can spend more time with patients. It will take a picture of the tablets that we “We believe that the changes within the phar- count and keep it in our database.” Sales per store: $4.1 million macy industry … are an opportunity for phar- • And by the third or fourth quarter of this Source: Company reports, DSN estimates macy to engage with customers in a more whole- year, Sav-Mor hopes to start moving toward health-centric routing,” said Yvonne Gallagher, central fill. The goal of this will be both ac- Sav-Mor EVP. curacy and freeing up pharmacists’ time, Among the technologies Sav-Mor is according to Grossman. adding are: Sav-Mor also is beta testing some new well- • New workflow software, which is in beta ness initiatives — around such issues as hyper- testing — four pharmacies are testing two tension, asthma, diabetes and smoking cessation different systems. “While the majority of — in its pharmacies this year. employees actually embrace new technolo- “One of our goals this year is to position each gies, some do not,” Gallagher explained. of our pharmacies as a place for the healthcare “We’ve found that in some instances, we community to partner with in managing patients have good employees in the wrong posi- in their disease states, along with the proper use tions and have therefore made changes to of their medications,” Gallagher said.

HQ: Rochester, N.Y. Helping customers live better 2012 sales: $6.7 billion wegmans % change vs. 2011: 8% By Michael Johnsen Wegmans’ contributors, including Wegmans’ No. of stores: 81 SVP consumer affairs Mary Ellen Burris and No. of stores with Rx: 81 Wegmans Food Markets is a progressive registered dietitian Jennifer Felice. New York grocer with 81 locations across Wegmans most recently extended its offer to Avg. store size: 110,000 sq. ft. six states that is positioned as a sort of mass- fill generic Lipitor (atorvastatin) prescriptions Rx sales: $405 million oriented — only better. without charge through the end of 2013 as part % of sales from Rx: 6% The chain fields the same wellness-oriented of its mission of “helping people live better Sales per store: $82.7 million cache as its specialty channel cousin, but with lives through healthy living.” a greater attention to customer service and Wegmans is certainly aligned with the Source: DSN estimates sharper pricing. At least that’s how the New times. In January, the grocer announced that York Times Style section juxtaposed the two re- the latest version of its 2-year-old mobile shop- tailers a decade ago. ping app was available from the Apple Store And Wegmans may even have gotten bet- with an Android version soon to follow. With ter since then. They’re certainly bigger than the upgraded app, shoppers can link to their your average grocer, with store sizes ranging past purchases through their Shoppers Club between 80,000 sq. ft. to 140,000 sq. ft. loyalty account and organize their shopping In 2010 Wegmans launched its “Eat Well. Live lists by aisle using the store’s layout. Well.” stations located adjacent to its pharma- And the chain is growing in new markets. cies to help showcase the links between health, Wegmans plans to open a 123,000-sq.-ft. store wellness and a good diet. The program serves in Germantown, Md., in the fall of 2013 and as an interactive touchpoint with its shoppers, a second Massachusetts store in Newton this and as part of the grocer’s focus on wellness, year. According to reports, Wegmans also is includes a regular blog from a number of eyeing a new store in Montvale, N.J.

19 • april 22, 2013 DrugStoreNews.com Top 50

Closing the pharmacist-patient gap HQ: Maple Grove, Minn. thri f ty white 2012 sales: $343 million By Antoinette Alexander The company also is working to take the % change vs. 2011: 4% pharmacist out from behind the counter by No. of stores: 90* Thrifty White is taking a proactive approach adding counseling in front of the pharmacy No. of stores with Rx: 90* to health care and is leveraging technology — now in about a dozen remodeled stores Avg. store size: 4,500 sq. ft. and innovation to better serve patients in the and could be expanded to more over the next Rx sales: $312 million small towns and cities in the rural Midwest. few years. % of sales from Rx: 91% The company recently introduced a tab- Meanwhile, the company continues to see let computer that patients can use to access success with its Medication Synchronization Sales per store: $3.8 million healthcare information and even consult with Program, which launched just over a year ago * Excludes 76 affiliate stores that buy from Thrifty White (sales $186 million) a pharmacist at the central pharmacy over an and currently has about 22,000 patients. Under Source: Company reports audio-video link if the local pharmacist is busy the program, all of a patient’s prescriptions are helping other patients. synchronized. So patients on multiple medica- The pharmacy retailer, however, is no tions can pick up all of their prescriptions at stranger to the technology, as it opened its once. On pickup day, the pharmacist will re- first telepharmacy site in 2003 and currently view the prescription regimen, monitor chang- has eight. es from any doctor or hospital visits and check “[W]e can have a pharmacist in our central for any possible drug interactions. pharmacy actually sit down and have [a con- According to a study conducted by Virginia versation] with the patient to answer questions Commonwealth University in 2012, patients or to counsel them — or maybe it is even to do enrolled in the program have 3.4 to 6.1 times a comprehensive medication review,” Dave better adherence rates vs. people not enrolled Rueter, EVP personnel at Thrifty White, said. in the program.

HQ: Medina, Ohio Streamlining prescription pick-up

2012 sales: $571 million d r u g mart

% change vs. 2011: 2% d isco u nt By Barbara White-Sax neric drugs to customers in 30-day supplies No. of stores: 71 for $1.99. The program has several additional No. of stores with Rx: 71 Last year, Discount Drug Mart rolled out a levels, with other drugs available for $3.99 new pharmacy program and continued to re- and a 60-day supply for $5.89. Avg. store size: 26,000 sq. ft. model its older stores. The pharmacy chain continued to add deli Rx sales: $248 million The chain introduced the Sync Your Meds departments to stores in an effort to position % of sales from Rx: 43.4% program that encourages customers to pick up the chain as a one-stop shopping destination. Sales per store: $8 million all their prescription refills in one visit. “It’s a Deli departments were added to six stores in great program,” said Amanda Stefanski, mar- 2012, bringing the total of stores offering fresh Source: Company reports, DSN estimates keting coordinator for the chain. “It makes it sandwiches and salads up to 26. Discount easier for many customers to have a scheduled Drug Mart will continue to experiment with visit once a month, and it’s a great opportunity new grocery departments, as well as gen- for them to speak with a pharmacist who can eral merchandise categories. The chain also review all their prescriptions at one time.” is committed to remodeling existing stores, Under the program, the pharmacist calls with a special focus on giving older locations patients when all their refills are ready once a a brighter, cleaner feel. month and spends time reviewing, responding The company continues to add new stores to questions and suggesting generics where ap- at a one-per-year rate. In 2012, the chain propriate. “It’s a better experience for the cus- opened a store in Strongsville, Ohio — a tomer, designed to increase compliance, save market the company has wanted to be in [the customer] money and give them one-on- for some time. This year’s Brunswick Hills one time with the pharmacist,” Stefanski said. location will bring the chain to 72 locations Discount Drug Mart offers hundreds of ge- throughout Ohio.

20 • april 22, 2013 DrugStoreNews.com Top 50

Working to fit the current economy HQ: Sunbury, Pa. 2012 sales: $2.7 billion By Michael Johnsen many as 15 clinics — both within Weis’ locations and elsewhere. % change vs. 2011: -1.9% weis Weis Markets is preparing for the future of In addition, Weis plans to continue a signifi- No. of stores: 163 Pennsylvania health offerings with another Key- cant investment in remodels for the year. No. of stores with Rx: 131 stone State mainstay — Geisinger Health System. “We continue to operate in an economy sig- Avg. store size: 49,000 sq. ft. Weis and Geisinger already partner on at least nificantly impacted by slow economic growth, Rx sales: $235 million three retail clinics, but the companies are getting high unemployment and declining household % of sales from Rx: 8.7% set to expand that partnership with the imple- income,” noted David Hepfinger, Weis president mentation of the Patient Protection and Afford- and CEO, commenting on the chain’s year-end Sales per store: $16.6 million able Care Act on Jan. 1, 2014. results. “We successfully worked through these Source: DSN estimates “With payers moving toward paying for qual- challenges by efficiently managing and improv- ity, … the only way to have solid quality is to ing our stores and supply chain, which helped us protect the continuum of care,” Ken Berndt, CEO drive strong net income increases and maintain of Careworks Convenient Healthcare, the clinic our market share. Our results also benefited from division of Danville, Pa.-based Geisinger Health record investments in our store base, which will System, told DSN last year as part of a special re- continue in 2013.” port on accountable care organizations. “If we’re And while sales for fiscal 2012 were down going to get paid that way, you’ve got to have slightly, the board’s confidence in its manage- an ACO, and you have to have some retail for ment team remains high. In March, Weis Markets patient access.” re-upped Hepfinger’s contract for a new five- Geisinger and Weis Markets have been work- year term. Weis also promoted Mike Mignola ing together on a handful of clinics for four to SVP store operations and recently appointed years. And in 2013 Geisinger plans to open as Rick Seipp to VP pharmacy.

HQ: West Sacramento, Calif. Compounding differentiates retailer 2012 sales: $3 billion % change vs. 2011: 0% raley ’ s By Amanda Baltazar Last fall Raley’s launched a new loyalty pro- No. of stores: 128 gram, Something Extra, which it created with No. of stores with Rx: 98 With approximately 13,000 employees, Ral- dunnhumbyUSA. Through the program, cus- ey’s is the largest family-owned company in the tomers earn one point for every $1 spent, and Avg. store size: 42,000 sq. ft. greater Sacramento, Calif., region. these points go toward quarterly rewards vouch- Rx sales: $235.2 million The company owns and operates 128 stores ers that can be used for savings on future pur- % of sales from Rx: 7.8% in California and Nevada. There are 78 Raley’s, chases. The program also provides personalized Sales per store: $23.4 million 20 Bel Air Markets, 22 Nob Hill Foods supermar- offers to consumers based on their shopping his- kets and eight Food Source stores. In addition, tory. Co-pays and cash payments in the pharma- Source: Company reports Raley’s owns and operates 12 Aisle 1 fuel stations cy also earn points, said spokesman John Segale. throughout northern California and Nevada. Raley’s continues to push its immunization Ninety-eight of Raley’s supermarkets have program, Segale said, adding that flu, pneumo- pharmacies, down from 100 locations in 2012. nia and herpes zoster (i.e., shingles) are the top Last year the company added a compounding three immunizations. It also maintains its $3.99 pharmacy at its central fill site that prepares pre- 30-day generic drug refill program and its $9.99 scriptions — for humans and pets — for all of 90-day refill program. its pharmacies. Raley’s website provides a host of health in- The compounding pharmacy prepares drugs formation, blending medicine with food under for children and the elderly so they are in a suit- its pharmacy banner, including Healthnotes, ar- able dose; it also produces medication in differ- ticles on vitamins, heart attacks and recipes; a list ent formats — such as suppositories or trans- of gluten-free products in stores; immunizations; dermal doses — for those who can’t tolerate and its AutoFill program, which is used mostly oral medicine. for maintenance drugs.

21 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Modesto, Calif. Becoming a health resource 2012 sales: $4.6 billion sa

By Amanda Baltazar with health resources to provide health informa- % change vs. 2011: 0% v e mart tion based on disease states. No. of stores: 226 Save Mart’s immunization season started last Save Mart’s plan is to be a health-and-wellness No. of stores with Rx: 108 fall with a discount: Any customer spending $30 resource for its customers, integrating food and Avg. store size: 60,000 sq. ft. or more in the grocery store received a $10-off health into its pharmacies. “We’re hoping to Rx sales: $184 million coupon to be used toward an immunization. The migrate down the path where we can offer in- % of sales from Rx: 4% promotion ran until the end of 2012. Save Mart store screenings, but we haven’t been there yet,” pharmacies offer immunizations to walk-in cus- Vaughan said last year. “Our ultimate goal is to Sales per store: $20.3 million tomers, and even stores with no pharmacy of- ensure the quality of our customers’ lives. At the Source: DSN estimates fered them through mobile flu-shot clinics, which end of the day, you don’t just want to increase the are advertised in-store and on individual web- quantity of someone’s life, but the quality.” sites. The immunizations included flu, whooping Save Mart Supermarkets is a privately held cough, pneumonia and shingles. company that operates stores throughout the A side benefit of the immunization clinics, said central valley of California, San Francisco Bay Robert Vaughan, senior director of pharmacy op- area and northern Nevada under the names Save erations, is that pharmacists administer the vac- Mart, S-Mart Foods, Lucky and FoodMaxx. cines, which gives them an opportunity for one- Earlier this year, the grocer committed to rais- on-one time with customers. ing more than $400,000 to help increase aware- Pharmacists aren’t the only ones working ness about the risks of heart disease and to foster closely with consumers. A Save Mart nutritionist education on the topic. The year-long campaign provides healthy recipes that are provided with is being run in collaboration with the American each prescription. The company also partners Heart Association.

HQ: Seattle Placing community at the center 2012 sales: $406 million bartell % change vs. 2011: 2% By Alaric DeArment States. The program focuses mainly in the No. of stores: 58 nearby cities of Tukwila and SeaTac. No. of stores with Rx: 58 For every pharmacy retailer, whether a In addition to Global to Local, the chain mom-and-pop independent or a national has a “local-to-global” initiative of its own Avg. store size: 15,000 sq. ft. chain, staying in touch with the community, in the form of travel clinics at 12 of its stores. Rx sales: $230.5 million building relationships within it and catering to The clinics allow customers planning to travel % of sales from Rx: 56.8% its needs are of the utmost importance. For a abroad to obtain immunizations against dis- Sales per store: $7 million regional chain like Seattle-based Bartell Drugs, eases for which they might be at risk, while the that rule has stood the test of time. pharmacists — working under the supervision Source: DSN estimates As the family-owned, 123-year-old chain of local physicians and within strict, collabora- prepares to open its 59th store this sum- tive protocols — can initiate prescriptions for mer, it has gone to great lengths to stay certain prophylactic medications for prevent- true to its roots. One way it has done ing conditions like malaria and also provide this is by participating in the “Global to consultative services. Local Initiative,” a program led by the The company also sponsors a host of oth- government of King County, Wash., and er health-and-wellness programs, including Seattle-based Swedish Medical Center, health and beauty fairs. In October 2012, it which focuses on providing medical also partnered with Seattle-based EveryMove, services and education to recent immi- an online rewards program, to encourage cus- grants, particularly those with limited tomers to make healthy lifestyle choices — English and little or no understanding such as walking, running and visiting the gym of the U.S. healthcare system, including — rewarding them with items like Bartell’s the prescription process in the United gift cards.

22 • april 22, 2013 DrugStoreNews.com Top 50

HQ: Elm Grove, Wis. Connecting hospital, home care 2012 sales: $265 million A By Barbara White-Sax % change vs. 2011: NA operations. Aurora recognizes that health care is U RORA changing rapidly, and it is our job to responsibly No. of stores: 71 Aurora Pharmacy, part of Aurora Health Care, manage our resources and provide the best care No. of stores with Rx: 71 operates more than 70 pharmacies in Wisconsin possible to our patients.” Avg. store size: 2,500 sq. ft. and Illinois. Many pharmacy locations are full- Beeson said the company has implemented Rx sales: $238.5 million service drug stores offering prescription services, some adjustments that streamline operations and % of sales from Rx: 90% as well as OTC products and home healthcare better align its stores with its medical offerings. supplies. The company also operates 15 hospitals “We concentrated on optimizing our telepharma- Sales per store: $3.7 million and more than 150 clinics. cy [remote dispensing], our nationally recognized Source: DSN estimates As an integrated healthcare system, Aurora medication therapy management program, auto- has a strategic alignment between its hospital matic prescription refill and mail-order services,” and retail pharmacy operations. The company he said. More of Aurora’s patients are receiving believes that coordinated care is the best care, their medication and refills in the mail, limiting and it has focused on implementing standarized the need for as many frequent visits to a store. medication reconciliation and discharge prescrip- “We recognize that delivering medication tion programs for patients leaving the hospital. therapy in a fiscally responsible manner is im- “This emphasis has allowed our patients to portant to our future,” Beeson said. “We also are benefit from a seamless transition between their able to offer additional locations, as a single phar- hospital and home care,” said Adam Beeson, a macist can support multiple facilities through spokesman for the company. “Our work with our telepharmacy operations. Meanwhile, we’ve our system’s electronic health record has been streamlined our operational costs to help drive a key component to our ability to connect these down the cost of health care.”

HQ: Abingdon, Texas Technology as key to wellness 2012 sales: $2.1 billion y manda altazar % change vs. 2011: 0% K- V B A B That’s not all that’s new with Food City No. of stores: 104 pharmacies. “This past year we have fo- Pharmacies within K-VA-T’s Food City cused on getting our technology on par with

No. of stores with Rx: 76 A-T stores are geared not only to look after custom- our competition,” Blazer said, pointing to Avg. store size: 42,000 sq. ft. ers’ health but also the health of employees. the number of new services the pharmacies Rx sales: $210 million Three years ago the company hired a regis- have introduced: % of sales from Rx: 10% tered nurse, the director of healthy initiatives. • Travel vaccines in two locations; Sales per store: $20.2 million “She is focused on developing programs to • ERP (i.e., enhanced refilled prescriptions); help [employees] stay healthy and be proac- • Outbound Interactive Voice Response to Source: Company reports, DSN estimates tive, rather than an associate going to her when provide personalized phone messages they are sick,” said Mickey Blazer, director of informing customers of appointments, pharmacy operations. refills and prescriptions that are ready; K-VA-T is taking other measures to take care • A pharmacy app, coming this spring, to of its employees’ health and the health of their help patients with prescription refills, of- families. It’s training pharmacists in diabetes fers and advertisements; certification with 30 trained to date. They of- • Online refills, coming this spring; and fer blood-pressure measurements, feet checks, • A health information portal, coming this ACL discussions and medication compliance, spring, that offers a health library, a drug Blazer said. identifier, a symptom checker and details Stores also offer education for customers about common recommended tests. on such subjects as celiac disease, irritable Also growing is the number of drive- bowel syndrome, diverticulosis, and herbs throughs, and 20% of Food City pharmacies and supplements. now offer this service.

23 • april 22, 2013 DrugStoreNews.com Top 50

Coordinating wellness with technology HQ: St. Louis

2012 sales: $2.6 billion schn u cks By Amanda Baltazar Joseph’s Hospital. ’ specialty pharmacies offer: % change vs. 2011: 1% Schnuck Markets’ pharmacies are embrac- • Coordinated care management; No. of stores: 100 ing technology. In November, the supermar- • Patient education, including treatment and No. of stores with Rx: 96* ket retailer launched a pharmacy portal for compliance; Avg. store size: 61,000 sq. ft. customers. Through this, registered customers • Refill reminder calls; Rx sales: $212.3 million can refill their prescriptions with two clicks, • Free home delivery or overnight UPS; % of sales from Rx: 8.2% set up automatic refills, check on the status of • Disease state management services; refills, print tax reports and view established • Infusion and compounding; and Sales per store: $27.4 million account information. • Limited-distribution medications. * Exludes four specialty pharmacies Its website also allows customers to read Schnucks continues to offer $4 30-day and Source: Company reports, DSN estimates health tips, find out about pet medications and $10 90-day generic prescriptions. It also pro- immunizations, and learn about different types vides free generic oral antibiotics and free of cancer and clinical trials. prenatal vitamins. For pets, it dispenses medica- In 2009, Schnucks opened the first of four spe- tions, including Heartgard Plus and Rimadyl, as cialty pharmacies offering services for patients well as OTC medications like Vet Guard Plus and living with such chronic conditions as HIV/ Frontline Plus. AIDS, hepatitis, multiple sclerosis, cancer and Mammography services are available through rheumatoid arthritis. While the four continue a van that travels to different Schnucks stores. to operate, the company is not currently open- Appointments are required, and fees are billed ing any more. A fifth specialty pharmacy was to a woman’s insurance. Schnucks also offers converted last spring into a 2,000-sq.-ft. stand- free blood-pressure screenings and a free crutch alone pharmacy run in conjunction with St. loan program.

HQ: Cleveland marc glassman Conquering NE Ohio with closeout ‘fun’ 2012 sales: $1.1 billion By Jim Frederick ity to “work on a shorter mark-up than most re- % change vs. 2011: 0% tailers” and generate droves of customer traffic No. of stores: 62 Marc’s is fun. As much as anything, that’s the with consistently low prices. No. of stores with Rx: 43 quality behind the sustained success of Marc Nevertheless, the chain hasn’t taken its eye Glassman, the deep discount chain that keeps off its core pharmacy and health mission. Most Avg. store size: 40,000 sq. ft. its shoppers coming back, week after week, in Marc’s pharmacies are now open at 7 a.m., to to 50,000 sq. ft. search of hot deals and unusual buy-it-now-or- make it easier for commuters to refill prescrip- Rx sales: $147.5 million lose-the-chance items. tions. Marc’s provides vaccinations for influen- % of sales from Rx: 13.4% “Smart Marc’s customers know that if za and shingles at all its pharmacy locations, by Sales per store: $18 million you see something you like, you’d bet- appointment. The company now also promotes Source: DSN estimates ter buy it then,” the company asserts in its its pharmacists’ ability to provide medication marketing messages. therapy management, “which addresses spe- Marc’s aims those messages at “the value- cific areas like drug interactions, compliance conscious family grocery shopper” looking to or cost effectiveness” and “is covered by most save on groceries, health and beauty aids, paper insurance plans.” products and other basics. But what generates Marc’s also provides “Smart Living Health the most buzz is its closeouts section, featuring Tips” on its pharmacy website, along with “the best buys our buyers can find worldwide.” online refills. In keeping with its rock-bottom- The section has triggered a treasure-hunt mind- price strategy, its pharmacies also maintain set among many local consumers. a generic prescription savings program that The chain now operates nearly 60 stores in makes available more than 400 commonly pre- northeast Ohio, as well as five Xpect Discounts scribed medications for $3.99 for a 30-day sup- stores in Connecticut. Glassman credits “tre- ply; some generics are priced at just $1.98 for a mendous store volume” for the company’s abil- 30-day supply.

24 • april 22, 2013 DrugStoreNews.com Top 50

Understanding Hispanic diversity HQ: Miami 2012 sales: $336 million na By Antoinette Alexander expanding its footprint by identifying new store % change vs. 2011: 2.8% locations in south Florida. No. of stores: 33 v Navarro Discount Pharmacy has its sights set Meanwhile, Navarro is working to advance No. of stores with Rx: 32 arro not only on expanding its footprint within south the pharmacy profession. “The Hispanic popu- Avg. store size: 16,186 sq. ft. Florida, but also on ensuring that its pharmacists lation, as well as the uninsured, have always Rx sales: $113 million have more time to consult with patients. looked upon pharmacists as the neighborhood % of sales from Rx: 33.6% Navarro expanded its presence in the Miami/ ‘doctor.’ We are working to remove the pharma- south Florida market and has opened in the last cists from being product-driven to being service- Sales per store: $10.5 million two years four additional stores in North Miami, driven,” Garcia explained. “Allowing the RPh Source: Company reports Homestead, Pembroke Pines and Kendall. registered pharmacist more time to spend with The stores — which are stocked with such the patient in one-on-one consultation is our goal. products as Café La Llave Expresso coffee, Fabu- We are looking to collaborative agreements with loso multipurpose cleaner and popular brands physicians, immunization programs, providers like Valentini, El Sembrador and La Fe — cater to of 340B drug programs and acting in-house phar- the Hispanic market in which it serves. macies at local clinics.” “A big misnomer is that all Hispanics are alike, Navarro has expanded, through its Navarro and nothing could be further from the truth. Health Services, its services in the specialty pre- At Navarro, we understand the different His- scription arena. The fulfillment facility gives in- panic nationalities and cater to each in their own store pharmacies the opportunity to improve unique ethnic, religious and traditional ways,” patient care and shifts the pharmacy workload said Albert Garcia, EVP pharmacy operations. of maintenance, automatic refills and delivery of The retailer has indicated that it will continue prescriptions to the fulfillment center.

HQ: Point Pleasant, W. Va. 2012 sales: $130 million Regional player grows in number

% change vs. 2011: -3% f r u th Fruth Pharmacy is a regional player nestled Lynne Fruth, president and chairman, said No. of stores: 27 in Point Pleasant, W.Va., and this pharmacy that going forward the company will continue No. of stores with Rx: 27 chain is proving that it remains on the growth to “actively” look at acquiring independents. fast track with an eye on acquisitions and Meanwhile, the retailer is eyeing a medi- Avg. store size: 10,000 sq. ft. pharmacy initiatives. cation synchronization program for the Rx sales: $110.8 million In late 2012, the company not only celebrated coming year. % of sales from Rx: 85% 60 years of business, but also celebrated the “We are really looking at a lot of initiatives Sales per store: $5.2 million grand opening of its 26th store in Ironton, Ohio. on that side to really help with adherence,” said The 10,000-sq-ft store is located across from the Fruth, who noted that the company began roll- Source: Company reports St. Mary’s Medical Center, providing Fruth the ing out in March its new mobile app to help pa- opportunity to further bolster its grow- tients monitor their prescriptions. ing 340B pharmacy business. Fruth added, “we started some conversa- More recently, the company, which tions with some healthcare systems about some is in the midst of implementing a new accountable care organization-type partner- pharmacy system chainwide, snapped ships, potentially, and how we can partner with up two independent pharmacies, also local hospital systems to provide services that located in Ironton. The pharmacy files might help on cutting down readmissions for of one acquired store have been trans- some [chronic conditions] that they will no lon- ferred to the new Ironton location. The ger be reimbursed for. So we are looking to roll second acquired location was — within some of that out in 2013.” 48 hours — refurbished and rebranded In the second half of 2013, the company under the Fruth banner and marks the also is looking to possibly establish a central company’s 27th store. fill facility.

25 • april 22, 2013 DrugStoreNews.com Top 50

Upscaling the pharmacy experience HQ: Sioux Falls, S.D. 2012 sales: $161 million By Antoinette Alexander tablished a beauty boutique with wood plank % change vs. 2011: 6.5%

flooring and mirrors to give it an upscale look No. of stores: 35 lewis Lewis Drug, which turned 70 years old and feel. No. of stores with Rx: 34 in 2012, is working to revamp a handful “We think about convenience and selection of Avg. store size: 40,000 sq. ft.; of store locations as it also keeps an eye on product. Convenience isn’t only price and loca- 5,000 sq. ft.* pharmacy innovation. tion, but it also is the whole shopping experience Rx sales: $111 million As previously reported by DSN, Lewis Drug — location of products [and] price of products,” has a new prototype in Sioux Falls, S.D., and the Griffin said. % of sales from Rx: 69% company is now working to bring that prototype Meanwhile, the retailer’s healthcare partner, Sales per store: $10 million; to a handful of additional locations in the Sioux Sanford Health, is building a clinic attached to $2.5 million* Falls, S.D., area. the Lewis Drug at 69th Street and Louise Avenue * Operates two formats. Source: Company reports “We have upscaled the whole pharmacy ex- in Sioux Falls that will house 15 physicians. The perience with colors, with lifestyle murals, wood clinic is expected to be operational by year-end. pine floors and a lounge area with flat screen There are currently about six such clinics that [TVs] and refreshments. Upgrading the comfort are adjacent to Lewis Drug store locations. level of that area ... has been very well-accepted,” In the pharmacy department, a top initiative said Mark Griffin, president and CEO of the com- for 2012 and 2013 is its medication synchroniza- pany, which was established in 1942 as the first tion program named EZ Fill. Other pharmacy self-service drug store in South Dakota and the initiatives include expansion of immunization surrounding region. services offered in each of its pharmacies and Under the new prototype, beauty also has the launch of the Lewis pharmacy app for smart- been given a makeover. The retailer has es- phones to facilitate prescription refills.

HQ: Boulder, Colo. Personalizing high-touch retailing 2012 sales: $106 million P harmaca % change vs. 2011: 12.7% By Michael Johnsen for example. The offers also can assist in “brand No. of stores: 24 migration” and help identify additional, syner- No. of stores with Rx: 24 Pharmaca Integrative Pharmacy has always gistic products for the customer. been progressive in its approach to pharmacy And it enables Pharmaca to pursue lifestyle Avg. store size: 4,200 sq. ft. retailing. From its inception more than a decade marketing. At first it captures the interest of the Rx sales: $59.4 million ago, the chain has placed actual healthcare pro- 20-something shopper with prestige beauty and % of sales from Rx: 56% fessionals in the aisle. Similarly in beauty, Phar- health products, and then adjusts the marketing Sales per store: $4.4 million maca has fielded aestheticians in many locations. message as she ages. It’s a customer service model predicated on be- Coupled with that, Pharmaca has a strong Source: DSN estimates ing readily available to the shopper with relevant e-commerce component that helps extend its service and product recommendations across a brand beyond its physical footprint. Pharmaca’s wide range of prestige items. Web business may have even identified future That high-touch model has continued to expansion potential — geographically three of evolve with the advent of personalized retailing. the top five best-selling e-commerce markets do For example, for more than two years, Phar- not have a Pharmaca in their area. “You already maca has fielded its own loyalty program with have a customer base that’s acclimated to these which Pharmaca personalizes promotions products,” Panzer said. through a trademarked email communication Pharmaca plans to open three new stores this program called WellM@il. “We’re personalizing year, though likely in existing markets. And with [offers] based on purchasing habits,” Mark Pan- those new store openings — the first of which zer, Pharmaca president and CEO, told DSN. should open in the fall — Pharmaca will intro- And these personalized offers can help prompt a duce a new store format. Panzer, however, wasn’t visit — to replenish a 30-day supply of a product, sharing details yet.

26 • april 22, 2013 DrugStoreNews.com Top 50

Providing comprehensive programs HQ: Schenectady, N.Y. price chopper 2012 sales: $3.4 billion By Barbara White-Sax The chain is committed to providing cus- tomers with helpful tools that help them make % change vs. 2011: 3% The Price Chopper supermarket chain contin- healthy choices. The pharmacy health kiosk al- No. of stores: 130 ually updates its stores. Over the past five years, lows patients to receive free blood-pressure, No. of stores with Rx: 80* the chain has invested $46 million in revamping weight and pulse oximetry readings. Patients Avg. store size: 60,000 sq. ft. 11 of its stores and plans to spend $61 million up- can create a personal health record that can store Rx sales: $131 million dating an additional 11 locations. Price Chopper results and can be accessed through a secure % of sales from Rx: 3.9% has created a new concept store that is set to open online portal. Through the telehealth option, in Latham, N.Y., and will total 90,000 sq. ft. The patients can have their cholesterol screened and Sales per store: $26.2 million * 76 in-store pharmacies and four free-standing new concept store’s pharmacy will have an out- connect right away with a physician to discuss pharmacies near health clinics door entrance and a drive-through window. the results. Source: DSN estimates The chain has continued to focus on health Price Chopper dietitians coordinate with and wellness through its existing pharmacy pro- pharmacists on programs, such as gluten-free grams, new pharmacy design and the introduc- diet or diabetic diet store health tours, that help tion of a new health kiosk. “Guests now enjoy patients choose the right foods and lifestyles. shopping in a supermarket with health-and- Through its free diabetes medication and sup- wellness information in every aisle,” said Jon plies programs, free antibiotic programs and free Pierce, a spokesman for the company. children’s and prenatal vitamin programs, the A new pharmacy design is being rolled out in chain is ensuring greater patient compliance. Im- the chain’s Webster, Mass., location. A new pa- munizations continue to be a primary focus for tient care center, drive-through services, digital pharmacists; all Price Chopper pharmacists are signage and a health kiosk complete with tele- certified immunizers and are specially trained to health are all part of the design. administer vaccines.

HQ: Wadsworth, Ohio Promoting drug adherence

2012 sales: $60 million rit z man % change vs. 2011: NA By Michael Johnsen accept the new federally qualified Medicare No. of stores: 21 Prescription Drug Plan SmartD Rx. No. of stores with Rx: 21 For a hometown pharmacy that’s been serv- In addition to MTM, Ritzman provides the ing the northeast Ohio area for more than 60 option of compliance blister packaging to its Avg. store size: 1,800 sq. ft. years, success all comes down to one common individual patients. Long used as a tool to Rx sales: $57 million denominator — superior patient service. For help institutions manage medicine regimens % of sales from Rx: 95% the 20 pharmacies flying under the Ritzman for the patients under their care, more seniors Sales per store: $2.9 million banner, that commitment to superior patient are taking advantage of that service. “Most service is a precursor to delivering greater of our patients [who utilize this service] have Source: DSN estimates healthcare value. It’s not only knowing the pa- 10 to 13 medications,” said Robin Barnby, tient on a first-name basis, it’s also Ritzman VP marketing medical services. “If ensuring that patient is adhering to you’re able to help manage that, it helps them his or her medical regimen. to stay in their homes and independent a little “We’re aggressively pursu- bit longer.” ing [medication therapy manage- Ritzman also is exploring the use of tech- ment],” noted Jon Fiume, Ritzman nology to enhance its healthcare value propo- VP retail operations. Ritzman has sition. Soon, Ritzman will begin texting refill partnered with Mirixa, a provider reminders in an effort to better communicate of MTM founded by the National to what is fast becoming a smartphone soci- Community Pharmacists Associa- ety. And the Ohio-based chain is seeking to tion. Ritzman also has signed with enhance its position as the go-to source for RxAlly, an alliance of more than supplement and nutrition information by 22,000 pharmacies nationwide that arming its pharmacists with iPads.

27 • april 22, 2013 DrugStoreNews.com Kings of Canada

U.S. competition, generics spark pharmacy up North hile U.S.-based pharmacy retailers are tion from U.S.-based retailers that is spilling into ously, individual provinces and territories paid working tirelessly to play a greater role the market has placed greater pressure on the between 25% and 40% of brand-name prices. W along the front lines of U.S. healthcare, more than 8,900 Canadian community pharma- The new prices went into effect April 1. It is ex- there’s a significant sea of change taking place cies, prompting many to further enhance the pected that when fully implemented, the initia- north of the border. Recognizing the importance shopping experience. And also fueling the fire is tive could result in savings of up to $100 million of the developments currently unfolding within government reform. for provincial and territorial drug plans. the Canadian pharmacy retail market, DSN is “We are seeing this increase in activity in terms “I think we are going to continue to see some profiling the top five Canadian retail pharmacy of consolidation or in terms of new pharmacy incremental headwinds just from the legisla- operators and the innovation taking place within development in Canada because right now it is tive front as governments across the country each of those companies. a very challenging time for the actual pharmacy are looking to reign in healthcare spending,” In recent months, Canada has seen increased operator in Canada with the recent changes to Dley said. competitive activity in retail. Target Canada is generic drug legislation that have been going on Meanwhile, as governments are increasingly disrupting the market with the recent openings since 2010,” Canaccord Genuity research analyst collaborating with retail and community phar- of its first stores in the country and its goal to Derek Dley told DSN. He noted that, going for- macy to find new ways to provide better access open 124 stores across Canada throughout 2013. ward, he expects to see more consolidation within to health care, a significant expansion of -phar Meanwhile, recently announced the market. macy practice is under way and gaining speed in that it will invest $450 million for supercentre and In January, nine provinces and three territo- Canada. Pharmacists in some provinces are now distribution center projects. As of Jan. 31, Walmart ries were working together to cap the prices on assessing patients and prescribing for minor Canada operated 379 stores, including 209 su- six widely used generic drugs, which represent ailments, and in Ontario, pharmacists are cre- percentres, and the recent announcement on ex- roughly 20% of the publicly funded spending on ating smoking-cessation plans and prescribing pansion is expected to bring the company’s store generic drugs in Canada. Under the agreement, smoking-cessation products. New regulations count to 388 by the end of January 2014. the price cap for those six generic drugs is 18% in Ontario also allow pharmacists to administer There’s no doubt that the emerging competi- of the equivalent brand-name medication. Previ- flu shots.

HQ: Canadian colossus continues expansion 2012 sales: $10.8 billion* % change vs. 2011: 3.1% shoppers By Jim Frederick scription delivery, automated refills and email No. of stores: 1,295** reminders, and a portable record of each pa- No. of stores with Rx: 1,295 is a health and beauty tient’s prescription history, called My File, that colossus that retains its innovative edge. Besides patients can share with their doctors. Avg. store size: 10,300 sq. ft. its 1,245 Shoppers drug stores — called Phar- Another service, called Pharma Track, comes Rx sales: $5.1 billion maprix in — the chain licenses or owns with every new prescription and provides newly % of sales from Rx: 47.3% 55 medical clinic pharmacies under the name diagnosed patients with information about their Sales per store: $8.3 million Shoppers Simply Pharmacy and six Murale health conditions, tools to help them monitor *Canadian dollars luxury beauty destinations that offer premier and manage those conditions, and nutritional **Not including 62 Shoppers Home Health Care stores cosmetics and skin care products in dramatically and lifestyle advice. and six Murale stores Source: Company reports designed retail boutiques. Shoppers also owns Another clever innovation: an in-store pager, 62 Home Health Care stores; a specialty phar- given to patients filling a prescription, that alerts macy operation; and MediSystem Tech- them when their script is ready. The pager en- nologies, a provider of pharmaceuticals courages customers to stay in the store and add and services to long-term care facilities. to their shopping baskets while waiting for It also hosts one of the most successful their order. private-label programs in drug retailing, In 2012, Shoppers also moved to more closely with brands like Life, a massive offer- integrate the efforts of physicians, pharmacists, ing of OTC and personal care products, nurses and patients by launching the Shoppers and Quo, an exclusive line of cosmetics Health Care Portal. and accessories. And, of course, Shoppers continues to show Shoppers markets a wide range of massive innovation as a beauty retailer. (For pharmacy services, including free pre- more, see Beauty Hot Concepts, page 52.)

28 • april 22, 2013 DrugStoreNews.com Kings of Canada

Leading Quebec with location, service HQ: , Quebec 2012 sales: $2.73 billion*† j ean co u t By Jim Frederick diabetes, hypertension and other conditions. One example: “Caution Hypertension,” which % change vs. 2011: 4.6% Combine these ingredients: a solid reputa- Coutu described as a program “to monitor your No. of stores: 404 tion as a patient-friendly, high-service and lo- blood pressure in collaboration with your phar- No. of stores with Rx: 404 cally owned neighborhood health resource; macist and your doctor,” using automated de- Avg. store size: 13,000 sq. ft. beautifully designed and merchandised vices at any store that record blood pressure and Rx sales: $1.72 billion* stores; and the motivation to provide good upload readings to a protected website and a per- % of sales from Rx: 63% service that comes with owning your own sonalized “PJC Health Record” for each patient. drug store while enjoying the backing of Que- That Internet-accessible personal record pro- Sales per store: $6.8 million bec’s most powerful drug store marketing and vides a patient’s complete list of medications * $ Canadian † For fiscal year ended March 3, 2012 merchandising company. and allergies for doctors and emergency services, Source: Company reports What do you get? The kind of performance along with such tools as online prescription re- benchmarks that many drug store operators cords and refills, and a depository and reporting would envy. Jean Coutu Group, the Montré- tool for records on blood-glucose levels, weight al-based chain of 404 franchised drug stores, gain or loss and other health benchmarks. notched average per-store sales of $11.8 million Over the past year, Coutu marked several Canadian in fiscal 2012. Retail sales per square major accomplishments. It celebrated the open- foot reached a stunning $1,315. ing of its 400th franchised store last August, Coutu franchise owner-pharmacists filled an launched a new online gift and beauty boutique average of 3,815 prescriptions each week in each in November, and later that month announced store last year and extended their outreach into it had purchased a 50% stake in Le Groupe the community via health fairs and ongoing dis- Medicus, which specializes in orthotic and ease-management and monitoring programs for prosthetic devices.

HQ: Saint-Leonard, Quebec Building on health, beauty image 2012 sales: $1.6 billion* % change vs. 2011: 4% u nipri x One of Quebec’s top names in pharmacy also bases its appeal on the “dermo-cosmetic centers” No. of stores: 375 is one of the province’s go-to destinations for skin and “boutiques for personalized care” in many of No. of stores with Rx: 375 care products and dermatologic expertise. Uniprix stores, where women — and men — can The company is Montréal-based Uniprix, a consult with a skin care specialist on their par- Avg. store size: 12,000 sq. ft. well-known network of drug stores and profes- ticular skin types, and purchase a wide range of Rx sales: $1 billion* sionally staffed beauty boutiques. As the fran- products for healthier skin and hair formulated % of sales from Rx: 65% chisor, and product and service source, for some by dermatologists. Sales per store: $4.3 million 375 independent, pharmacist-owned drug stores “A dermo-cosmetic centre is … a special- * $ Canadian operating throughout the province under the ized skin care boutique at the very heart of Source: Company reports, DSN estimates Uniprix logo and marketing/merchandising [the] Uniprix store,” the company reported, umbrella, the retail group runs a close second where “a dermo-cosmetic consultant … will be to Jean Coutu Group among Quebec’s largest able to accurately assess the condition of your pharmacy networks. skin and prescribe a beauty regimen tailored to “With annual sales reaching more than $1.6 your needs.” Many of the products carried in the billion, the Uniprix Group — and its banners “dermo” centers are “aimed at treating such spe- Uniprix, Uniprix Santé, Uniprix Clinique and Cli- cific skin problems as acne, rosacea, eczema or nique Santé — employs some 4,000 employees … aging,” Uniprix noted. in all four corners of the province,” the company At the front end of its franchised stores, Uni- reported recently. prix’s private label brand, Option+, now encom- Uniprix has crafted its market image around passes hundreds of products ranging from pain two core capabilities. Its franchise owners are relievers and other OTC medicines to cosmetics, pharmacists and “health professionals concerned skin care items, snack foods, bottled water, baby for [patients’] well-being.” But the company also care products and household cleaners.

29 • april 22, 2013 DrugStoreNews.com Kings of Canada

New store, brand initiate reinvention HQ: , Ontario 2012 sales: $2.3 billion* By Antoinette Alexander begin to take on the enhanced look and feel. re x all At the shelf level, much of the reinvention is % change vs. 2011: NA Changes have been underway north of the playing out in the form of new product offer- No. of stores: 430 border at Rexall Pharma Plus as the Canadian ings, such as the exclusive beauty and accessories No. of stores with Rx: 430 pharmacy retailer has been in the throws of a re- line called Kit and Rexall’s new flagship private Avg. store size: 12,000 sq. ft. invention of its entire business. brand known as Be.better, which is a line of more Rx sales: $1.1 billion* The reinvention is playing out within the than 100 products available exclusively at Rexall % of sales from Rx: 47% stores through a new look, feel and flow, and and Rexall Pharma Plus stores. in April 2012, the company quietly opened the “Along with cosmetic changes is a deep focus Sales per store: $5.4 million* * $ Canadian Richmond-Adelaide Centre store in downtown on new and enhanced services, products and Source: DSN estimates Toronto, marking its first new brand store. programs. Our new strategy really comes alive in “We put our first new store in the ground as the customer experience we’re creating now and we were evolving our strategic offering because in the years to come. This is just the beginning of we felt it was important to bring this brand to a strategy rollout, and at Rexall we’re all excited life in our organization,” Frank Scorpiniti, CEO by what’s next,” Scorpiniti said. of Rexall Pharma Plus, told DSN in a recent in- Meanwhile, the accelerated pace of change in terview. He noted that a second location opened the Canadian drug retail environment has served in October 2012 at First Canadian Place in down- Rexall Pharma Plus well, providing the com- town Toronto. pany an opportunity to move quickly to market. Of the company’s 430 stores, there currently Recently the company announced that Rexall are 10 locations that are completely brand- Pharma Plus pharmacists administered 190,000 reinvented stores, Scorpiniti said, and that “over of the more than 200,000 flu shots administered the appropriate time frame,” all of its stores will by pharmacists in the province of Ontario.

HQ: Langley, Franchise network thrives off collaboration P harma S a 2012 sales: $1.3 billion* By Jim Frederick array of online tools, including health and pre- % change vs. 2011: NA vention information and web-based prescription No. of stores: 450 Pharmasave has thrived under Canada’s own- reorders and refill reminders. Pharmasave phar- No. of stores with Rx: 450 er-operated pharmacy model by creating a fran- macists also present periodic “Live Well” com- chise and cooperative-ownership network with munity seminars on a variety of health topics. Avg. store size: 300 sq. ft. to central management and support that merges Drug store owners gain significant ben- 15,000 sq. ft. the advantages of big chain economies of scale, efits from their membership in the cooperative. Rx sales: $1 billion* purchasing power and reach with the local focus Among the pluses: a strong brand identity in the % of sales from Rx: 80% v e and flexibility of an independent pharmacy. Pharmasave logo and umbrella marketing pro- Sales per store: $4 million* Since its founding in 1981, the network has gram, sophisticated front-end merchandising * $ Canadian leapfrogged from western Canada to become and market pricing strategies, a powerful price- Source: DSN estimates one of the country’s top names in pharmacy, oriented circular program and a broad-based with more than 450 stores in nine provinces private-label program that encompasses more that range in size from 300-sq.-ft. apothecar- than 700 Pharmasave brand products. ies to 15,000-sq.-ft. full-service drug stores. And The Pharmasave brand appears across a wide more independent drug stores continue to join variety of front-end categories, from paper prod- the network, including more than a dozen re- ucts and other household items to pain relievers, cent enlistees in Ontario and a half-dozen in skin care and nutritional drinks. Pharmasave British Columbia. owners reap high margins from those private Among its services are private consultations brands and drive sales with attractive packag- and medication reviews with the pharmacist; ing, an emphasis on product quality comparable drug compounding; home delivery of prescrip- to the national brand, and a popular “Buy 10, tions; a blister-pack option for patients who need Get 1 Free” offer that extends to all Pharmasave help adhering to their drug regimens; and a full branded items.

30 • april 22, 2013 DrugStoreNews.com