Kmart has long maintained that its low-cost prescription medicine program is superior to Wal-Mart's $4 generics plan. Its plan, Kmart maintains, is more convenient because it covers 90 days worth of meds for just $15. Wal-Mart's plan and others that have matched it, offer a 30-day supply of generics for $4.
Now, Kmart is intent on further differentiating from the competition by offering consumers who fill a prescription at one of its pharmacies the option of buying 10 popular over-the-counter (OTC) private label medicines for just $1 each.
The items sold, under the American Fare brand, include ibuprofen, children's pain reliever, nasal decongestant, cough suppressant, cold and allergy tablets. The 10 items normally retail from $1.49 to $4.49.
"We're not aware of anyone else that's doing this so we really do think it's innovative," Mark Doerr, vice president of Kmart Pharmacy, told Reuters.
Discussion Question: Will the combination of Kmart's 90-day Rx generics program with its $1 OTC private label offer be enough to cause consumers to switch to the chain's pharmacies from other retailers? How effective do you think this program will be in driving Kmart's Rx and OTC medicine business?