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The Drug Store Shopper - US - February 2015

The Drug Store Shopper - US - February 2015

“Retail channel lines continue to blur with more outlets like mass merchandisers and supermarkets clambering to become consumers’ primary destinations for their drug store needs including OTC and prescription medications. Traditional drug stores can no longer afford to be just drug stores, and should continue evolving their positioning as health and wellness authorities to capture a greater share of younger shoppers highly interested in more effectively managing their health, and who will drive the future of the market.”

– Diana Smith, Senior Research & Apparel Analyst

This report answers the following questions:

Are older consumers really drug stores’ core customers?
What role do Hispanics play in the current drug store retailing environment?
How can drug stores continue to solidify their commitment to consumers’ health and well-being?


SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Figure 1: Total US Drug store revenues and fan chart forecast, at current prices, 2009-19
Market drivers
Aging population is a positive driver for drug stores
Figure 2: Population aged 55 or older, by age group, 2010-20
Drug store chains will also benefit from growing Hispanic population
Figure 3: Population by Hispanic origin, 2010-20
Over one third of Americans remain obese
Figure 4: Prevalence of obesity among adults aged 20 and over, by gender, 2011-12
Drug stores should see gains from the rollout of Obamacare
The consumer
Drug store shopping is primarily done in-store
Figure 5: Drug stores shopped in last 12 months, November 2014
Hispanics and Blacks most likely to shop at drug stores
Figure 6: Drug stores shopped in-store in last 12 months, by race/Hispanic origin, November 2014
Prescriptions are primarily filled in-store at CVS and Walgreens
Figure 7: Where and how prescriptions are filled, November 2014
Over three quarters of adults are not visiting health clinics
Figure 8: Retail health clinics visited for treatment for self in last 12 months, November 2014
Lower income consumers may be leaving some savings on the table
Figure 9: Attitudes toward drug store shopping, by household income, November 2014
What we think
ISSUES AND INSIGHTS
Are older consumers really drug stores’ core customers?
The issues
The implications
What role do Hispanics play in the current drug store retailing environment?
The issues
The implications
How can drug stores continue to solidify their commitment to consumers’ health and wellbeing?
The issues
The implications
TREND APPLICATIONS
Trend: Second Skin
Trend: Data Creators
Trend: Let’s Make a Deal
MARKET SIZE AND FORECAST
Key points
Sales at drug stores expected to rise
Figure 10: Total US drug store revenues and forecast, at current prices, 2009-19
Figure 11: Total US drugstore revenues and forecast, at inflation-adjusted prices, 2009-19
HBC comprises majority of monitored drug store segments
Figure 12: Total US drugstore revenues, by segment, at current prices, 2013-14
Fan chart forecast
Figure 13: Total US Drug store revenues and fan chart forecast, at current prices, 2009-19
MARKET DRIVERS
Key points
Aging population is a positive driver for drug stores
Figure 14: Population by age, 2010-20
Hispanic growth will also benefit drug store chains
Figure 15: Population by Hispanic origin, 2010-20
Figure 16: Hispanic population by age, 2010-20
Over one third of Americans are obese
Figure 17: Percent of people aged 20 or older who are at a healthy weight, overweight, or obese, 2009-
12
Figure 18: Prevalence of obesity among adults aged 20 and over, 2011-12
Online and mobile shopping continues to impact retail landscape
Affordable Care Act should positively benefit drug stores
Retail health clinic expansion should bode well for drug store retailers
Battle for share intensifies causing drug store leaders to rethink go-to-market strategies
RETAILER OVERVIEW
Drug stores
Quick Facts
Company overview
Marketing strategies
Figure 19: CVS, E-mail, January 2015
Figure 20: CVS, Twitter page, January 2015
Recent news and innovations
Quick facts
Company overview
Marketing Strategies
Figure 21: Walgreens, E-mail, January 2015
Figure 22: Walgreens, E-mail, January 2015
Recent news and innovations
Quick Facts
Company Overview
Marketing strategies
Figure 23: Duane Reade, E-mail, January 2014
Figure 24: Duane Reade, E-mail, February, 2014
Recent news and innovations
Quick Facts
Company overview
Marketing strategies
Figure 25: Rite Aid, Direct mail, July 2014
Recent news and innovations
Quick Facts
Company overview
Marketing strategies
Figure 26: Drugstore.com, Landing page, January 2015
Figure 27: Drugstore.com, Email ads, July and December 2014
Mass Merchandisers
Quick facts
Company overview
Pharmacy and clinic overview
Figure 28: Target, Email, December 2014
Figure 29: Target, Direct mail, September 2014
Quick facts
Company overview
Pharmacy and clinic overview
Figure 30: Walmart, Direct mail, November 2014
Figure 31: Walmart, Website landing page, October 2014
Other retail store types
SOCIAL MEDIA
Key findings
Market overview
KEY SOCIAL MEDIA METRICS
Figure 32: Key social media metrics for select drug store retailers, Jan. 2015
Brand usage and awareness
Figure 33: Brand usage and awareness for select drug store retailers, Nov. 2014
Interactions with drug store retailers
Figure 34: Interaction levels with select drug store retailers, Nov. 2014
LEADING ONLINE CAMPAIGNS
Charitable initiatives
Digital and mobile campaigns
Health and wellness
What we think
ONLINE CONVERSATIONS
Figure 35: Online mentions for select drug store retailers, by week, Jan. 12, 2014-Jan. 11, 2015
Where are people talking about drug store retailers?
Figure 36: Online mentions for select drug store retailers, by page type, Jan. 12, 2014-Jan. 11, 2015
What are people talking about?
Figure 37: Topics of conversation for select drug store retailers, Jan. 12, 2014-Jan. 11, 2015
DRUG STORES SHOPPED
Key points
Drug store shopping is primarily done in-store
Figure 38: Drug stores shopped in last 12 months, November 2014
Women are the primary in-store drug store shoppers
Figure 39: Drug stores shopped in-store in last 12 months, by gender, November 2014
Boomers continue to obtain drug store needs from CVS and Walgreens, while younger
counterparts opt for Walmart
Figure 40: Drug stores shopped in-store in last 12 months, by age, November 2014
Nearly half of the most affluent consumers choose CVS
Figure 41: Drug stores shopped in-store in last 12 months, by household income, November 2014
Among traditional drug stores, Walgreens is consistent leader
Figure 42: Drug store shopping frequency, July 2009-September 2014
Figure 43: Drug store shopping frequency, August 2013-September 2014
Insight into the shopping process
ITEMS PURCHASED AT DRUG STORES
Key points
While medications and vitamins lead, beauty and personal care among top items
purchased at drug stores
Figure 44: Items purchased at drug stores, November 2014
Over half of women buy beauty products at drug stores
Figure 45: Any item purchased in-store at a drug store, by gender, November 2014
Younger consumers buy significantly more food and drink items than older adults
Figure 46: Any item purchased in-store at a drug store, by age, November 2014
WHERE AND HOW PRESCRIPTIONS ARE FILLED
Key points
Prescriptions are primarily filled in-store at CVS and Walgreens
Figure 47: How prescriptions are filled, November 2014
Figure 48: Where prescriptions are filled, November 2014
Young adults most likely to use mobile apps to fill prescriptions
Figure 49: Where and how prescriptions are filled, by gender and age, November 2014
RETAIL HEALTH CLINIC VISITATION
Key points
Over three quarters of adults are not visiting health clinics, leaving ample opportunity for
retailers to grow these services
Figure 50: Retail health clinics visited for treatment for self in last 12 months, November 2014
CVS MinuteClinic most visited retail health clinic
Figure 51: Retail health clinics visited for treatment for self in last 12 months, November 2014
Low cost and fast treatment are key advantages of retail health clinics
Figure 52: Description of health care providers, November 2014
Figure 53: Description of health care providers, By retail health clinics visited for treatment for self in
last 12 months, November 2014
Adults 18-34 are the primary retail health clinics goers
Figure 54: Retail health clinics visited for treatment for self in last 12 months, by gender and age,
November 2014
Opportunity exists to increase health clinic visitation among lower income consumers
Figure 55: Retail health clinics visited for treatment for self in last 12 months, by household income,
November 2014
Figure 56: Retail health clinics visited for treatment for self in last 12 months, by employment,
November 2014
Immunizations and shots sought by majority of retail clinic visitors
Figure 57: Type of treatment received at retail health clinic, November 2014
Most retail health clinic users think quality is comparable to doctors and hospitals
Figure 58: Quality of treatment/service at retail health clinic vs. that of a doctor or hospital, by gender,
November 2014
Nearly all retail clinic visitors expect to return
Figure 59: Likelihood of a repeat visit to a retail health clinic, November 2014
Figure 60: Likelihood of a repeat visit to a retail health clinic, By age, November 2014
ATTITUDES TOWARD DRUG STORE SHOPPING
Key points
One in three say a loyalty card could influence where they shop
Figure 61: Attitudes toward drug store shopping, November 2014
Older generations more likely to shop where they fill prescriptions
Figure 62: Attitudes toward drug store shopping, by gender and age, November 2014
Lower income consumers may be unaware of savings they are missing from loyalty
programs
Figure 63: Attitudes toward drug store shopping, by household income, November 2014
Figure 64: Drug store shopping frequency, By household income, August 2013-September 2014
Are consumers loyal to certain drug stores? Why or why not?
INFLUENCERS TO ENCOURAGE MORE DRUG STORE SHOPPING
Key points
Consumers want savings and convenience from drug store retailers
Figure 65: Factors that would influence more frequent drug store shopping, November 2014
Women more open to enhancements from drug stores
Figure 66: Factors that would influence more frequent drug store shopping, by gender, November 2014
On-the-go young adults value convenience in all forms
Figure 67: Factors that would influence more frequent drug store shopping, by age, November 2014
More than one third of consumers redeem coupons at drug stores
Figure 68: Coupon redemption at drug stores, July 2009-September 2014
Figure 69: Types of coupons used, August 2013-September 2014
WAYS OF MANAGING HEALTH
Key points
Drug stores can help customers manage their health via enhanced services
Figure 70: Usage and interest in tools to manage health, November 2014
Opportunity to increase penetration among young adults who are extremely interested in
managing their health
Figure 71: Usage and interest in tools to manage health, By age, November 2014
Much crossover exists among drug store shoppers and those interested in tools to
manage health
Figure 72: Ways of managing health – Any usage/interest, by drug stores shopped in last 12 months –
Any drug store shopped, November 2014
RACE AND HISPANIC ORIGIN
Key points
Blacks are the heaviest shoppers at traditional drug stores
Figure 73: Drug stores shopped in-store in last 12 months, by race/Hispanic origin, November 2014
Figure 74: Drug store shopping frequency, by race/Hispanic origin, August 2013-September 2014
Figure 75: Drug store shopping frequency - mean monthly visits, By race/Hispanic origin, August 2013-
September 2014
Beauty and personal care items top the shopping lists of minority drug store consumers
Figure 76: Any item purchased in-store at a drug store, by race/Hispanic origin, November 2014
CVS and Walgreens pharmacies in a share battle for Hispanics and Blacks
Figure 77: how prescriptions are filled, by race/Hispanic origin, November 2014
Figure 78: Where prescriptions are filled, by race/Hispanic origin, November 2014
Retail health clinics draw a sizable Hispanic consumer base
Figure 79: Retail health clinics visited for treatment for self in last 12 months, by race/Hispanic origin,
November 2014
Half of non-whites go to health clinics for reasons other than to get shots
Figure 80: Type of treatment received at retail health clinic, by race/Hispanic origin, November 2014
Overall satisfaction levels with health clinics high among all visitors
Figure 81: Satisfaction regarding treatment/service received at retail health clinic and Likelihood of a
repeat visit to a retail health clinic, By race/Hispanic origin, November 2014
Blacks willing to shop at drug stores that actively support healthy lifestyles
Figure 82: Attitudes toward drug store shopping, by race/Hispanic origin, November 2014
Experiential rewards can drive incremental foot traffic to drug stores
Figure 83: Factors that would influence more frequent drug store shopping, by race/Hispanic origin,
November 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Drug stores shopped in the last 12 months – In-store
Figure 84: Drug stores shopped in-store in last 12 months, by age, November 2014
Figure 85: Drug stores shopped in-store in last 12 months, by employment, November 2014
Drug stores shopped in the last 12 months – Online
Figure 86: Drug stores shopped online in last 12 months, by gender, November 2014
Figure 87: Drug stores shopped online in last 12 months, by age, November 2014
Figure 88: Drug stores shopped online in last 12 months, by race/Hispanic origin, November 2014
Figure 89: Drug stores shopped online in last 12 months, by household income, November 2014
Figure 90: Drug stores shopped online in last 12 months, by employment, November 2014
Where and how prescriptions are filled
Figure 91: Where and how prescriptions are filled, November 2014
Figure 92: Where and how prescriptions are filled, by household income, November 2014
Figure 93: Where and how prescriptions are filled, by employment, November 2014
Figure 94: Where and how prescriptions are filled, by mobile device ownership, November 2014
Items purchased at drug stores – in-store
Figure 95: Any item purchased in-store at a drug store, by household income, November 2014
Figure 96: Any item purchased in-store at a drug store, by employment, November 2014
Items purchased at drug stores – online
Figure 97: Any item purchased online at a drug store, by gender, November 2014
Figure 98: Any item purchased online at a drug store, by age, November 2014
Figure 99: Any item purchased online at a drug store, by race/Hispanic origin, November 2014
Figure 100: Any item purchased online at a drug store, by household income, November 2014
Retail health clinics – visitation/satisfaction
Figure 101: Retail health clinics visited for treatment for self in last 12 months, By area, November 2014
Figure 102: Satisfaction regarding treatment/service received at retail health clinic, by age, November
2014
Cold and flu reported incidences
Figure 103: Average percentage of American adults reporting having the flu on any given day vs. those
reporting having a cold on any given day, By month, January 2015
Attitudes toward drug store shopping
Figure 104: Attitudes toward drug store shopping, by age, November 2014
Influencers to encourage more drug store shopping
Figure 105: Factors that would influence more frequent drug store shopping, by household income,
November 2014
APPENDIX – SOCIAL MEDIA
Key social media metrics
Figure 106: Key social media metrics for select drug store retailers, Jan. 2015
Online conversations
Figure 107: Online mentions for select drug store retailers, by week, Jan. 12, 2014-Jan. 11, 2015
Brand usage or awareness
Figure 108: Brand usage or awareness, November 2014
Figure 109: Walgreens usage or awareness, by demographics, November 2014
Figure 110: CVS usage or awareness, by demographics, November 2014
Figure 111: Duane Reade usage or awareness, by demographics, November 2014
Figure 112: Rite Aid usage or awareness, by demographics, November 2014
Figure 113: Drugstore.com usage or awareness, by demographics, November 2014
Figure 114: Walmart (drug store items only) usage or awareness, by demographics, November 2014
Activities done
Figure 115: Activities done, November 2014
Figure 116: Walgreens – Activities done – I have looked up/talked about this brand online on social
media, by demographics, November 2014
Figure 117: Walgreens – Activities done – I have contacted/interacted with the brand online on social
media to, by demographics, November 2014
Figure 118: Walgreens – Activities done – I follow/like the brand on social media because, by
demographics, November 2014
Figure 119: Walgreens – Activities done – I have researched the brand on social media to, by
demographics, November 2014
Figure 120: CVS – Activities done – I have looked up/talked about this brand online on social media, by
demographics, November 2014
Figure 121: CVS – Activities done – I have contacted/interacted with the brand online on social media
to, by demographics, November 2014
Figure 122: CVS – Activities done – I have researched the brand on social media to, by demographics,
November 2014
Figure 123: Rite Aid – Activities done – I have looked up/talked about this brand online on social media,
by demographics, November 2014
Figure 124: Walmart (drug store items only) – Activities done – I have looked up/talked about this brand
online on social media, by demographics, November 2014
Figure 125: Walmart (drug store items only) – Activities done – I have contacted/interacted with the
brand online on social media to, by demographics, November 2014
Figure 126: Walmart (drug store items only) – Activities done – I follow/like the brand on social media
because, by demographics, November 2014
Figure 127: Walmart (drug store items only) – Activities done – I have researched the brand on social
media to, by demographics, November 2014
APPENDIX – TRADE ASSOCIATIONS
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

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