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DrugstoresPublished by: First Research, Inc. Published: Sep. 21, 2009 - 10 Pages Table of Contents
AbstractThe US drugstores industry includes about 20,000 companies with combined annual revenue of about $200 billion. Large companies include Walgreens, CVS Caremark, and Rite Aid. The industry is concentrated: the 50 largest companies generate about 70 percent of revenue.Pharmacy locations inside discount stores such as Wal-Mart and grocery stores such as Kroger are competitors and are not included in the overall drugstore industry numbers. They are covered in the Discount Stores and Grocery Stores and Supermarkets profiles. COMPETITIVE LANDSCAPE Demand is driven by the aging of the US population and advances in medical treatment. The profitability of individual companies depends on access to medical insurance groups. Large companies have economies of scale in purchasing and in access to large groups of customers. Small companies can compete effectively through convenient location or special merchandising. PRODUCTS, OPERATIONS & TECHNOLOGY Drugstores sell two types of products: prescription drugs, and "front-store" products, including over-the-counter (OTC) drugs, health and beauty aids, greeting cards, photo-finishing services, and general merchandise. Prescription drugs draw customers to the store, and stores focus their efforts on the number of new prescriptions they fill. The larger drugstore chains typically generate about two-thirds of their sales from prescriptions, while front-end items account for about a third of sales. The number of front-end items has increased in recent years, as stores have started to offer a wider variety of items to customers. The operations of drugstores ... Get Full Details About This Report >> |
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