2010 Rx 2010 TOTAL TOTAL STORES RANK COMPANY SALES* CORP. SALES* STORES WITH Rx PAGE 1 Walgreens1 $44,400 $67,420 7,561 7,561 3 2 CVS Caremark 40,000 96,4132 7,182 7,123 4 3 Rite Aid 17,100 25,200 4,714 4,714 5 4 Walmart3,4 15,600 260,261 3,804 3,732 6 5 Good Neighbor Pharmacy 10,200 11,300 3,700 3,700 7 6 Cardinal5 9,000 10,300 4,300 4,300 8 7 Kroger 7,200 82,189 2,458 1,950 9 8 Health Mart 5,600 6,920 2,800 2,800 10 9 Safeway 3,700 41,050 1,694 1,320 11 10 Target 3,200 67,3906 1,755 1,565 12 11 American Associated Pharmacies 2,800 3,100 2,000 2,000 13 12 Kmart† 2,370 15,593 1,307 981 13 13 Supervalu7 2,300 28,911 2,394 805 14 14 Ahold† 2,100 23,523 751 555 14 15 Costco† 1,500 59,600 424 419 15 16 Publix 1,500 25,134 1,033 841 15 17 Sam’s Club 1,340 49,459 609 537 16 18 BioScrip 1,327 1,639 31 31 22 19 Medicine Shoppe International† 1,250 1,320 658 658 17 20 H-E-B 1,200 16,000 330 210 16 21 Giant Eagle 1,120 8,600 228 213 17 22 Hy-Vee 942 6,900 232 229 18 23 Albertsons 787 3,283 216 205 18 24 Fred’s 628 1,842 677 313 19 25 Kinney Drugs 602 789 90 90 20 FOOTNOTES 26 Shopko 592 2,010 136 135 20 1 Store count as 27 ShopRite 590 11,800 232 191 21 of end of fiscal 2010 — Aug. 31, 28 A&P 480 8,000 395 200 21 2010. Store count 29 Meijer 435 14,500 195 195 22 as of April 8, 2011, was 7,697. 30 Winn-Dixie 434 7,248 484 379 19 2 Includes pharma- 31 Hannaford 396 4,400 177 136 24 cy services segment revenue of $47.8 bil- 32 USA Drug8 390 650 140 140 23 lion, total retail sales 9 of $57.3 billion 33 Kerr Drug 370 570 76 76 23 85% — that’s more or less the combined market 3 Store count includes 34 Brookshire Grocery 308 2,200 155 113 25 2,907 supercenters, share for the companies that make up the 2011 DSN PoweRx50, approximately $185 708 discount stores 35 Raley’s 288 3,200 133 105 25 billion of the total $218 billion retail pharmacy industry. Numbering almost 50,000 stores and 189 Neighborhood 36 Sav-Mor 287 346 72 72 27 Market stores and other among them, or more than 8-of-10 of all the pharmacies in the United States — BAM! — small formats 37 Harris Teeter 285 4,100 204 126 24 the DSN PoweRx50 indisputably refl ects the true titans of the retail pharmacy industry. 4 Walmart reorganized its business in 2010 to in clude 38 Thrifty White Pharmacy 275 302 84 84 26 What makes the DSN PoweRx50 different? The DSN PoweRx50 is the ONLY truly results from its Puerto 39 Care Pharmacies 243 256 53 53 26 CHANNEL-AGNOSTIC ranking of the retail pharmacy industry that truly measures Rican operations in the U.S. business segment. 40 Discount Drug Mart 236 536 70 70 27 all of retail pharmacy, including traditional drug chains, independents, supermarkets, 5 Store count not including 41 Save Mart 233 4,700 241 114 28 mass and club stores — ALL of it. BA-BOOM! the Medicine Shoppe/Med- icap franchise stores, and 42 Weis Markets 233 2,620 164 128 28 Why do we do it that way? Because everybody sells everything everybody else prior to acquisition of Kinray 43 Schnucks 205 2,500 105 101 29 sells, and everyone shops everywhere for everything. Traditional drug stores fi ghting 6 Includes retail sales of $65.8 billion and credit card 44 K-VA-T Food City 200 2,000 106 76 29 for a share of that business no longer can afford to worry ONLY about competing revenues of $1.6 billion 45 Bartell Drugs 194 366 59 59 30 with other drug stores. Vendors looking to maximize distribution for their products 7 Excludes supply chain sales 8 Refl ects sale of Memphis 46 Marc Glassman 150 1,050 65 52 30 no longer can afford a myopic, single-channel view of the business. The lines that stores to Walgreens 10 once defi ned the different classes of trade haven’t just blurred — they’re GONE. 9 Including sales through spe- 47 Navarro Discount Pharmacy 114 320 28 27 30 cialty, mail-order and institu- 48 Fruth Pharmacy 111 134 25 25 31 The DSN PoweRx50 measures all of these very different companies by the one tional/clinical pharmacies metric that matters — pharmacy sales — and the relative commitment of senior 10 Store count includes one 49 Lewis Drug 80 145 32 31 31 small non-Rx location at Miami management to growing share of pharmacy, health and wellness. KA-POW! International Airport 50 Pharmaca Integrative Pharmacy 48 88 23 23 31 * All sales in millions; refl ect most recent fi scal year † U.S. stores only 1 • MAY 2, 2011 DRUGSTORENEWS.COM MAY 2, 2011 • 2 Fast, nimble Walgreens aims to own ‘well’ BY JIM FREDERICK Walgreens, the kaleidoscopic company that wants to “own well,” is shuffl ing management and realigning operations as it works to knock down its remaining internal silos and create a seamless, broad-based retail health-and- wellness dynamo. Any snapshot of Walgreens can only present a blurred portrait. At 110 years old, the com- pany is moving so fast on so many fronts that Wall Street analysts and business journalists — not to mention drug, supermarket and mass merchandise competitors on all sides — con- stantly are trying to draw a complete picture of a shifting and multifaceted retail entity. What- ever picture emerges is likely to be outdated before you can say “8,000 points of care.” Consider Walgreens’ strategic moves just and-wellness president Hal Rosenbluth, a co- since the start of this year. In the fi rst four founder of Take Care Health Systems, which HQ: Deerfi eld, Ill. WALGREENS months of 2011, Walgreens has: Walgreens acquired in 2007. Wasson credited 2010 sales: $67.4 billion • Moved to acquire online retailer Drugstore.com Rosenbluth with a big role in the expansion % change vs. 2009: 6.4% for about $409 million. The acquisition will of “pharmacy, health and wellness services No. of stores: 7,561* add about 60,000 products to Walgreens’ on- through our Take Care retail clinics and work- No. of stores with Rx: 7,561* line offering and “signifi cantly accelerates site health centers.” Henceforth, the Take Care Avg. store size: 14,700 sq. ft. our online strategy to leverage the best com- retail and worksite division under Peter Hotz Rx sales: $44.4 billion munity store network in America,” asserted will report to Mark Wagner, president of a % of sales from Rx: 65.9% president and CEO Greg Wasson; new community management division, while Sales per store: $8.9 million • Agreed to sell its managed care division, Wal- health-and-wellness sales and clinical services, * As of end of fi scal 2010, Aug. 31, 2010, including 116 greens Health Initiatives, to Catalyst Health led respectively by chief client offi cer Joe Ter- hospital on-site pharmacies. Store count as of April 8, Solutions for $525 million in cash. Behind the rion and chief medical offi cer Cheryl Pegus, 2011, was 7,697 drugs stores in all 50 states, the District of Columbia and Puerto Rico. Source: Company reports decision to get out of the pharmacy benefi t will become part of the Walgreens pharmacy, management business, Wasson said, was the health- and-wellness services and solutions divi- need to focus on “delivering ... high-quality sion led by division president Kermit Crawford; to highlight its new Refi ll by Scan technol- pharmacy, health and wellness solutions ... to • Piloted its fi rst loyalty card program as it ap- ogy, which enables smartphone users to scan become America’s fi rst choice for health and plies the expertise it acquired with its pur- prescription label bar codes with their camera daily living needs.” As part of the deal, Cata- chase of New York’s 258-store Duane Reade phones to order refi lls — and to obtain text lyst will provide PBM services for Walgreens’ chain, a loyalty card innovator; alerts, browse Walgreens’ product selection employee and retiree drug plans, as well as • Unveiled, in early April, the fi rst of a planned and process photos. other Walgreens programs, such as the Wal- 18 rapid car-charging stations it said will open Walgreens’ underlying goal, Wasson said, is greens Prescription Savings Club. More to at Walgreens drug stores in the Dallas/Fort to be the nation’s premier destination for retail the point, Walgreens said it would retain and Worth market. Launched in partnership with health-and-wellness needs across a broad spec- continue growing its specialty pharmacy and NRG Energy, the eVgo Freedom Stations will trum of American life, including the retail are- mail-service businesses in support of Wal- comprise the nation’s fi rst privately funded na, the workplace, the home for patients with greens, WHI and Catalyst patients. “Our spe- large-scale electric vehicle charging network; serious conditions in need of specialty medica- cialty, infusion and mail pharmacy services • Named Loblaw and Duane Reade veteran tions and infusion, and the hospital and clinic are an important extension of our drug stores, Joseph Magnacca president of daily living setting.