Costco focuses on Rx as U.S. sales soar
Many analysts have voiced concern that despite numerous indications of a slow, but healthy, economic recovery in the United States, growth in the number of jobs has lagged, even as it has exceeded economists’ expectations.
But another indicator that the economy is picking up speed is U.S. sales growth at Costco Wholesale, the members-only mass merchandiser based in Issaquah, Wash. For fiscal 2010, sales at the company’s 424 U.S. stores — which the company officially calls warehouses — were $59.6 billion, compared with $56.5 billion in 2009.
Most of the company’s sales come from its famous bulk-sized packages of various consumer packaged goods and such products as furniture and food. But prescriptions at the pharmacies still accounted for a steady percentage of sales, at $1.5 billion, while nonprescription pharmacy items, like over-the-counter drugs, had sales of $1.7 billion.
The company also has ramped up online pharmacy retailing. “Costco continues to expand physical infrastructure and continues to make improvements to the online ordering experience for pharmacy customers,” Costco SVP pharmacy Vic Curtis told Drug Store News. “With mail-order, specialty and retail business growing nicely year over year, the further integration of e-commerce solutions is important for Costco members.”
Costco also has introduced such initiatives as the Costco Member Prescription Program for uninsured Americans and the Costco Pharmacy Benefit Partnership, a prescription benefit program. In addition, the retailer has plans to introduce such services as refill reminders and automatic refills.
“Even though we rate at or near the top in customer surveys, we think we can do even better,” Curtis said. “This not only includes the in-warehouse experience, but also with regard to making it easier to use Costco pharmacy online refills [and] pickup in warehouse, status check [and] pickup reminders.”