In this Issue

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.

Thrifty White Pharmacy has been around in one form or another since the 1880s, but you wouldn’t know its age by the Plymouth, Minn.-based chain’s efforts at bringing its engagement-focused patient care to as many patients as possible. At the start of this year, the company — which Drug Store News named its Pharmacy Innovator of the Year in 2016 — unveiled its new Healthy Outcomes Diabetes Support Program, through which it partners with employers and providers in the communities its stores serve to help maximize health outcomes among diabetic patients.

Drug chains are editing existing product assortments to clear more space for up-and-coming brands that court back shoppers who may have migrated to specialty stores. Several categories are heating things up in the beauty aisles, especially Korean beauty. Kline research reveals the category is growing at a 30% annual clip, and chains are seeking the right items to introduce more shoppers to the innovative and effective Korean entries.

The retail behemoth of Bentonville, Ark., wants to lead Americans to better health habits, better nutritional choices and longer, healthier lives. It’s an ambitious mission for any retail chain, but given its long reach into the nation’s heartland, its enormous marketing clout and its massive consumer drawing power, Walmart’s ability to boost the nation’s health and longevity index may be unmatched by any other single entity save the U.S. government.