Market Research Logo

Drug Store Retailing - US - February 2016

Drug Store Retailing - US - February 2016

"The drug store market has expanded well beyond traditional drug stores to include other channels such as mass merchandisers, supermarkets, and warehouse clubs as well as mail order options that also fulfil consumers’ drug store needs."

- Diana Smith, Senior Research Analyst - Retail & Apparel

This report looks at the following issues:

Drug stores can expect continued moderate growth
Drug stores in fierce competition with Walmart and "other" channels
Lack of awareness about in-store retail health clinics


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Total US drug store revenues and fan chart forecast, at current prices, 2010-20
Figure 2: Drug stores shopped, November 2015
Figure 3: Reasons for not visiting health care clinics, by age, November 2015
The opportunities
Figure 4: Items purchased, November 2015
Figure 5: Ways of managing health, November 2015
Figure 6: Select influencers that would encourage more drug store shopping and attitudes about drug store shopping, by generations,
November 2015
What it means
THE MARKET
What you need to know
Slow but steady growth expected for drug stores
Over one third of Americans are obese, but will the tide shift in light of new tools and technology to aid in health
management?
Healthcare costs are unruly
Market size and forecast
Drug stores’ sales continue to slowly rise
Figure 7: Total US drug store revenues and fan chart forecast, at current prices, 2010-20
Figure 8: Total US drug store revenues and forecast, at current prices, 2010-20
Market breakdown
Prescriptions continue to drive the majority of drug store sales
Figure 9: Total US drug store revenues and forecast, by segment, at current prices, 2010-20
Figure 10: Total US drug store revenues and forecast, by segment, at current prices, 2013 and 2015
Market factors
Drug stores in prime position to aid America’s elderly
Marketing outreach to Hispanics and Blacks should be a priority among drug store retailers
Figure 11: US population, by race and Hispanic origin, percentage of total population, 2010-20
America’s obesity problem worsens
People are investing in their health and wellness
Healthcare and medical care costs keep rising
Figure 12: Personal consumption expenditures on healthcare, 2005-15
Smaller store formats and stand-alone health clinics make healthcare more accessible
Figure 13: Drug stores shopped, by area and select retailers, November 2015
KEY PLAYERS
What you need to know
Consolidation continues, giving leading drug stores more leverage
Retail health clinic visitation remains low, but is expected to pick up quickly as drug stores place emphasis on these
assets
Healthcare is becoming more personal
What’s working?
Consolidation escalates leverage
What’s struggling?
Retail health clinic visitation remains low but is expected to develop
Figure 14: Retail health clinic visitation, 2013- 15
Who will drive this growth and what motivates them?
Figure 15: Retail health clinic visitation, by select demographics, November 2015
Figure 16: Reasons for visiting health care clinics, November 2015
What are the barriers to adoption?
Figure 17: Reasons for not visiting health care clinics, November 2015
Recent retail advancements support growth estimates
What’s next?
Expect more personalization in all forms
Figure 18: Role technology plays – Any usage/interest, by generation, November 2015
Figure 19: Personal health management, health record and personal health record, November 2015
What you need to know
Most people get drug store needs from places other than drug stores
Drug stores are becoming more of a destination for HBC buyers
Drug stores can foster better health management
Building loyalty in a fickle landscape
Drug stores shopped
Cross-channel competition intensifies
Figure 20: Drug stores shopped – Any, November 2015
Figure 21: Retailers or channels shopped, November 2015
Drug stores must retain share of older and multicultural consumers
Figure 22: Any traditional drug stores shopped, by select demographics, November 2015
Items purchased
Drug stores are a key destination for beauty products
Figure 23: Items purchased, in-store or online, November 2015
Figure 24: Select items purchased online, November 2015
Figure 25: Select attitudes about drug store shopping, by select demographics, November 2015
Influencers that would encourage more drug store shopping
Consumers can earn incentives just by taking better care of themselves
Figure 26: Influencers that would encourage more drug store shopping, November 2015
Multicultural consumers are especially influenced by loyalty program benefits
Figure 27: Agreement that better loyalty program benefits would encourage more drug store shopping, by race and Hispanic origin, November
2015
Drug stores should shoulder the responsibility of caring for an aging society
Figure 28: Select influencers that would encourage more drug store shopping, by generations, November 2015
Ways of managing health
High interest in new and engaging ways to track and monitor health
Figure 29: Ways of managing health, November 2015
Hispanics highly interested in ways to manage their health
Figure 30: Ways of managinghealth, by race and Hispanic origin, November 2015
Knowing how customers want to manage their health can guide drug stores’ targeting efforts
Figure 31: Ways of managing health, by drug stores shopped, November 2015
Attitudes toward drug store shopping
More drug stores extending into private label and store brand
Figure 32: Attitudes toward drug store shopping, November 2015
Figure 33: Nice! private label brand display in Duane Reade, New York City, January 2016
Brands’ allegiance toward “healthiness” can appeal to customers who share those values
Figure 34: Agreement to shopping more at stores that support a healthful lifestyle, by generation, November 2015
Telehealth options appeal to multicultural drug store shoppers
Figure 35: Select attitudes toward drug store shopping, by race and Hispanic origin, November 2015
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
The market
Figure 36: Total US drug store revenues and forecast, at inflation-adjusted prices, 2010-20
Figure 37: Drug store sales and forecast of health, beauty, and personal care products, at current prices, 2010-20
Figure 38: Drug store sales and forecast of health, beauty, and personal care products, at inflation-adjusted prices, 2010-20
Figure 39: Drug store sales and forecast of food and beverages, at current prices, 2010-20
Figure 40: Drug store sales and forecast of food and beverages, at inflation-adjusted prices, 2010-20
Figure 41: Drug stores sales and forecast of other products*, at current prices, 2010-20
Figure 42: Drug stores sales and forecast of other products*, at inflation-adjusted prices, 2010-20
Figure 43: Population by age, 2010-20
Figure 44: Percentage of people aged 20 or older who are at a healthy weight, overweight, or obese, 2009-12
The consumer
Figure 45: Drug stores shopped – Past four weeks, July 2010-September 2015
Figure 46: Drug store shopping frequency – Past four weeks, July 2014-September 2015
Figure 47: Coupon redemption at drug stores, July 2010-September 2015
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report