In this Issue

Bartell Drugs has more than 60 stores sprinkled throughout the Puget Sound region, with each location featuring its own distinct neighborhood vibe and products. It’s a chain with an eye on growth and innovation, and a string of initiatives in the works, yet it never loses sight of its deep Northwest roots.

There is no question that one of the top nonprescription categories contributing to both sales and foot traffic right now is allergy. According to IRI data, sales of nasal sprays — the category that captures all of the latest nasal corticosteroid Rx-to-OTC switches, such as Flonase and Nasacort — are up 10.2% to $1.2 billion across total U.S. multi-outlets for the 52 weeks ended Feb. 19.

McKesson’s Health Mart pharmacy network last year unveiled its Health Mart Pathway to Better Performance and Profit program, which represents a strategic roadmap that helps its 4,800 member independent pharmacies navigate their business in such a way that it not only boosts clinical metrics, but financial performance as well. Already, more than 44% of all Health Mart pharmacies have adherence metrics that rank in the top 20%, Crystal Lennartz, chief pharmacist at Health Mart, told Drug Store News.

The nation’s leading warehouse club operator continues to push into new markets with a determined expansion program both in the United States and internationally. In the process, Costco Wholesale also is extending its reach into the market for pharmacy and preventive health services, surging past the 500 mark in total pharmacies operating in the United States and expanding its menu of health screenings, immunizations and clinical-care offerings.

Legislation pending in both houses of Congress regarding DIR, or direct and indirect remuneration, fees are giving hope to drug stores and two of the industry’s largest advocacy groups that pharmacy benefits management companies will stop retroactively reducing payments.

“DIR fees pick the pockets of community pharmacies and their patients,” National Community Pharmacists Association CEO Douglas Hoey wrote last month in an opinion piece in Morning Consult, an online service that provides daily email updates on Congress.

If Fred’s CEO Mike Bloom has his way, the Fred’s Pharmacy of today won’t be the Fred’s of tomorrow. The retailer — currently operator of 601 discount general merchandise stores with 350 store and pharmacy locations — announced in December 2016 that it will acquire a minimum of 865 divested Rite Aid stores should the U.S. Federal Trade Commission approve the proposed Walgreens Boots Alliance-Rite Aid merger. (The transaction had not been approved as of press time.) If approved, Fred’s would become the third-largest drug store retailer.

To paraphrase Mark Twain, reports of the eventual demise of independent community pharmacy are exaggerated. Not just exaggerated, but wildly inaccurate.

Giant supermarket operator Kroger views health and wellness as an area for long-term investment, a point underscored by its purchase last year of specialty pharmacy ModernHEALTH. Even as it faces headwinds related to food deflation, Kroger is keeping an eye on growth opportunities in its expansive market area, which includes 35 states and the District of Columbia.