Special Reports Archive

Chain pharmacies and independent pharmacies each have their advantages and disadvantages. Chains generally follow a top-down business model that requires all stores to be roughly identical in terms of their look and services, but they can offer those services to customers around the country. Independents’ services usually are limited to one or a handful of locations in a single geographic area, but they have more freedom in terms of their mix of products and services.


Many analysts have voiced concern that despite numerous indications of a slow, but healthy, economic recovery in the United States, growth in the number of jobs has lagged, even as it has exceeded economists’ expectations.


But another indicator that the economy is picking up speed is U.S. sales growth at Costco Wholesale, the members-only mass merchandiser based in Issaquah, Wash. For fiscal 2010, sales at the company’s 424 U.S. stores — which the company officially calls warehouses — were $59.6 billion, compared with $56.5 billion in 2009.


Bartell Drugs, a family-owned regional chain since 1890, has still got it. The chain has brought together health and personal care by sponsoring health and beauty events, the first of which happened in October 2010 and featured health screenings, cosmetic demonstrations and hairstyling tips. Another event is scheduled for the fall.


The Midwest is known for flat landscapes and fertile farm fields stretching to the horizon, but it also is home to one of the country’s oldest and most successful mass merchandise chains — one with a long history of strong emphasis on pharmacy programs.


Where a growing number of chains have adopted generic discount programs, Meijer has taken to giving many drugs away for free. The list of medications that customers can obtain at no charge now includes metformin for Type 2 diabetes, prenatal vitamins and most antibiotics.


Supervalu operates under the maxim that the pharmacy division exists as the “solution center for the sick and destination for the healthy.” In other words, Supervalu pharmacy endeavors to be that retail rarity: all things to all people. If it has something to do with health and wellness, treatments or prevention, Supervalu has an answer. 


Armed with the positioning line, “It’s Time To Get Better,” Sav-Mor Drug Stores continues to emphasize the big difference between its network of franchised locations and the corporate mentality of the chain operations.


To that end, its most recent radio and television campaign positioned the pharmacies against the large national chains. The customer-
service-focused campaign established the Sav-Mor pharmacist as “your personal pharmacist” along with the idea that “nobody cares more for the customer than the owner.”



One way for a supermarket to convey its health-and-wellness commitment to customers is to build a marketing campaign around it. 


In Harris Teeter’s case, the campaign is “Yourwellness.” Now in its sixth year, the initiative offers “evidence-based guidance on important health issues” and help with nutritional choices throughout the store, according to the company.


It has been a challenging few years for Walmart among ongoing sales difficulties, restructuring of senior leadership and the pursuit of a new, yet familiar, strategic direction. Despite all the turmoil and the constant media attention it received, Walmart’s health-and-wellness business unit remained a steady performer through 2010.