The Drug Store Shopper - US - February 2015
“Retail channel lines continue to blur with more outlets like mass merchandisers and supermarkets clambering to become consumers’ primary destinations for their drug store needs including OTC and prescription medications. Traditional drug stores can no longer afford to be just drug stores, and should continue evolving their positioning as health and wellness authorities to capture a greater share of younger shoppers highly interested in more effectively managing their health, and who will drive the future of the market.”
– Diana Smith, Senior Research & Apparel Analyst
This report answers the following questions:
- Are older consumers really drug stores’ core customers?
- What role do Hispanics play in the current drug store retailing environment?
- How can drug stores continue to solidify their commitment to consumers’ health and well-being?
The growth in total US retail sales is being influenced by growing populations of key demographic groups – namely adults 55+ and Hispanics. Lingering obesity rates will continue to impact the market as well as the effects of more people now having health care coverage as a result of the Affordable Care Act being implemented. While increasing competition from other channels like mass merchandisers and grocery chains are encroaching on traditional drug stores’ territory, most people still visit drug store pharmacies to fill prescriptions. Retail health clinics have low visitation rates at present but represent an opportunity for future growth as the number of clinics in the US continues to expand.
For the purposes of this report, Mintel has defined a drug store as a retail store where a primary component of the store is a pharmacy, selling prescription medicine and staffed with a pharmacist. Other categories commonly found at drug stores include over-the-counter medicine, beauty and personal care, household needs, and a limited selection of food. When referring to “drug stores,” this report primarily considers those that are traditional drug stores (such as Walgreens, CVS, Rite Aid, etc), not including other retailers with pharmacies such as grocery stores, warehouse clubs, or mass merchandisers. These other retailers are also discussed in the report as locations consumers may shop for drug store items, yet are not referred to as “drug stores.”
While the drug store retailing market is expected to continue growing over the next five years, increased competition from other channels like mass merchandisers, grocery stores, and warehouse clubs that increasingly offer pharmacies and retail health clinics will continue to be a threat to traditional drug stores. The aging US population as well as growth from Hispanics and the spillover effects from the rollout of the Affordable Care Act should benefit the market in the near-term.
Take a look inside a sample report
Mintel’s consumer reports deliver insight and expert analysis into key consumer trends and behaviour in your marketplace, in addition to an overview of the market data and key brands. Mintel’s consumer reports provide you with easily digestible information to guide your future innovation and move your business forward.Download now
What you get
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
Market reports provide appendices of data to support the research and insight produced. Our tables of data are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.
* This is a sample representation of the report layout and does not reflect the research included in this report.
Why buy from us?
Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.
Buy now and you'll have instant access to the information you need to make the right decisions.
Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.
A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.