In this Issue

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.

While Rite Aid and Walgreens Boots Alliance continue to work toward a merger of their two operations in the coming year, 2016 marked several milestones for Rite Aid. In the past year, the company has converted almost half of its store base to the highly successful Wellness store format.

With 981,000 prescriptions dispensed in 2016, independent specialty pharmacy operator Diplomat Pharmacy’s 8% script growth over 2015 was the result of the company’s continued efforts to move into and expand its existing presence in several markets — in part through strategic acquisitions of independent companies demonstrating best practices. Driven by its oncology and infusion divisions, the company’s growth brings with it more access to specialty drugs that have limited distribution.

Purveyors of health products have been riding the baby boomer wave for some time now, and it doesn’t appear to be cresting any time soon. According to the Population Reference Bureau, the number of Americans ages 65 years old and older is projected to more than double from 46 million today to more than 98 million by 2060, and the 65-and-older age group’s share of the total population will rise to nearly 24% from 15%.

(To view the full Category Review, click here.)