Walgreens and CVS still lead the pack when it comes to where adults go most often to get prescriptions filled. Both, however, must be hearing Walmart's footsteps based on a new study from BIGresearch that shows the retailer and its $4 plan for generics cutting into drugstore's share of market.
According to BIGresearch's July Retail Ratings Report, Walmart increased its share of the store shopped most often for prescriptions by two percentage points from the same period a year earlier. The latest numbers show Walmart at 10.4 percent in 2008 versus 8.4 percent in 2007.
Walgreens' share fell from 15.2 percent in July 2007 to 14.4 percent this year. CVS saw its market share slip four-tenths of a point, dropping to 13.2 percent this July.
Walmart is doing particularly well among consumers making $50,000 a year or less, according to the BIGresearch numbers. The chain's share of this market was up 1.8 percent from last July while Walgreens (down 2 percent) and CVS (down 1.8 percent) both gave up ground. Today, Walmart and Walgreens are in a virtual dead heat for consumers in this economic demographic with a 13.8 percent share. CVS has 12.2 percent of the market.
Discussion Question: What is your takeaway from the BIGresearch numbers if you're Walgreens, CVS and Walmart? Are the changes in shopping behavior being made by consumers now likely to stick when the economy improves?
[Author's commentary] All three of these chains may need to look out for Holiday Pharmacy. The one-store independent in Holiday, Fla. is attempting to outdo the big guys by offering about 100 generic prescription medicines for $1 while selling 30-day supplies of 400 others for $4.