Front-end February sales decelerating despite strong cold season

NEW YORK — Front-end sales across the drug channel decelerated for the period ended Feb. 14 despite a robust cough, cold and flu sector, Ed Kelly, Credit Suisse research analyst, reported Tuesday as part of Credit Suisse's monthly "Drugstore Trend Tracker" report. 

 

"Industry sales were flat vs. last month's 1.3% growth, but we estimate sales rose 2.7% (vs. last month's adjusted 4% growth), excluding a 270 bps negative impact from lower tobacco sales," Kelly wrote, citing Nielsen data. "The HBA dept., which includes OTC drugs, saw continued high growth (plus 6% year over year), as did the cough/cold remedies category (plus 10.7% year over year vs. 12.5% last month)."

 

Overall, front-end volumes were down 3.4%, Kelly said. And though promotional levels were on par as compared to the prior month, they were up year over year. "Product sold on promotion in the drug store channel represented 40% of sales, up about 156 basis points year over year, and about in line with last month," Kelly reported.