Walgreens And Rite Aid Looking Good In June

July 3, 2014

June was a good month for two of the nation’s largest drugstore operators.  Walgreens reported sales of $6.3 billion for the month, an increase of 8.9% as compared to the same month in fiscal 2013, while Rite Aid realized a 3.9% same-store sales increase for the four weeks ended June 28.

Total front-end sales at Walgreens increased 1.6% in June compared with the same month in fiscal 2013, while comparable store front-end sales increased 1.3%.  Customer traffic in comparable stores decreased 2% while basket size increased 3.3%.

Prescriptions filled at comparable stores increased by 7.3% in June and increased 4.7% on a calendar day-shift adjusted basis.  June 2014 had one additional Monday and one fewer Saturday compared with June 2013.  These calendar shifts positively impacted prescriptions filled at comparable stores by 260 basis points.

June pharmacy sales increased by 13.4%.  Comparable store pharmacy sales increased 11.3% and increased by a calendar day-shift adjusted 6.7%.  Calendar day-shift adjusted comparable store pharmacy sales were negatively impacted by 140 basis points due to generic drug introductions in the last 12 months.  Pharmacy sales accounted for 65.2% of total sales for the month.

Sales in comparable stores increased by 7.5% in June.  Calendar day shifts positively impacted total comparable sales by 170 basis points.  Generic drug introductions in the last 12 months negatively impacted total comparable sales by 90 basis points.

Calendar 2014 year-to-date sales for the first six months were $38.1 billion, an increase of 5.9%.  Fiscal 2014 year-to-date sales for the first 10 months were $63.7 billion, an increase of 6%.

Walgreens opened 15 stores during June, including three relocations and closed 13.  Nearly all of the June store closings were part of the company’s previously announced efforts to optimize its asset base by closing a total of 76 drug stores.

Meanwhile, Rite Aid saw June front-end same-store sales increase 0.9%.  Pharmacy same-store sales, which included an approximate 169 basis points negative impact from new generic introductions, increased 5.4%.  Prescription count at comparable stores increased 3.5% over the prior-year period.

Total drug store sales for the four-week period increased 3.5% to $2 billion.  Prescription sales accounted for 68.4% of drug store sales, and third party prescription sales represented 97.5% of pharmacy sales.

Same-store sales for the 17-week period ended June 28 increased 3.3% over the prior-year period.  Front-end same store sales increased 0.2% while pharmacy same store sales increased 4.6%.  Prescripion count at comparable stores increased 2.6% over the prior-year period. 

Total drug store sales for the 17 weeks ended June 28, 2014 increased 2.8% with sales of $8.4 billion.  Prescription sales represented 68.4% of total drug store sales and third party prescription sales represented 97.4% of pharmacy sales.

Source: Retailing Today