Maximizing front-end, convenience gives chains holiday edge

Drug Store News, Dec 16, 2002 by Molly Prior

Given consumers' relentless focus on stretching their holiday budgets this year, the discounters, namely Wal-Mart and Costco, are expected to lead the industry through the holiday. Although several big-box retailers are a ready blaming the degree of industrywide price deflation, particularly in food and general merchandise categories, for soft holiday sales.

However, November results did paint a rosier outlook for drug retailers over several of their retail contemporaries, such as department stores. CVS same-store sales rose 10.2 percent from a year-earlier period, with the front-end inching up 0.7 percent. Industry leader Walgreen Co. saw total sales in November grow 12.1 percent to $2.5 billion, with total same-store sales rising 7 percent from the year-earlier period.

While the holidays are not make or break for the drug channel, from the look of things, namely drug stores bursting at the seams with holiday goods and December circulars littered with rebates, the drug retailers are poised to take advantage of the spoils of the season, no matter how small.