Content about In this Issue

Increases in the prices of prescription drugs have far outpaced the rate of general inflation over the years, as increases in the prices of branded and specialty drugs have offset decreases in the prices of generics, according to a new report by AARP’s research arm.


The study, conducted by AARP’s Public Policy Institute, found that the cumulative change in drug prices from 2005 to 2009 was almost double the rate of inflation. As a result, the average annual cost of drug therapy continued to rise.


While the in-store experience is still important to many shoppers, greater consumer adoption of emerging technologies is undoubtedly reshaping the retail landscape. Today, stores are just one part of a larger, more connected consumer experience. For retailers, this means they must rethink how they can transform stores, strategies and operating models into a store of the future: Store 3.0.


Within the past month, two Ohio-based traditional retailers announced plans to test-market automated retail vending machines. It’s not so much thinking outside of the box as it is figuring out how to get that box to where the consumers are, wherever they are — the airport, the hospital, convention centers, exercise facilities, on a college campus or in a hotel. 


ILKLEY, WEST YORKSHIRE, U.K. — Morrisons, the large U.K.-based supermarket chain, wanted to get closer to its customers. The result was M Local, its new 3,000-sq.-ft., freestanding, convenience food format. In developing the new store, Morrisons identified four key issues U.K. customers have with convenience stores: lack of fresh food options; poor overall quality and value; difficult to shop; and poorly stocked.

CVS Caremark is reinventing pharmacy and unlocking the full potential of its distinctive model. The company is doing this by capitalizing on what Larry Merlo, president and CEO, has referred to as “integration sweet spots,” which are capabilities unique to CVS Caremark’s integrated model. In this issue of DSN, we explore what we believe are 10 keys to driving growth across CVS' network and transforming the retail health landscape.

In the Feb. 7, 2011, issue, Drug Store News named three major issues that would define 2011 for the world of generic drugs. Those issues were drug safety, generic user fees and patent settlements.

On Jan. 1, Walgreens’ contract with Express Scripts expired, and millions of Walgreens customers covered by ESI were forced to either move their pharmacy business or come up with some other way to stick with Walgreens. Drug Store News interviewed Walgreens president and CEO Greg Wasson on what the company is doing to hold on to those customers and how it is appealing to payers.

CHICAGO — Walgreens in early January brought the latest example of its flagship retail pharmacy to life in Chicago. And, like it’s counterpart in New York, the interactive technology really sets the store apart from traditional retail pharmacy experiences. Two endcaps across from the pharmacy feature interactive touchscreens — one features information on smoking cessation, the other on heart health. Adjacent to the pharmacy’s pick-up window is a self-serve prescription checkout that dispenses a patient’s prescriptions.


NEW YORK — Duane Reade continues to raise the bar and reshape how consumers shop consumables at drug stores with its revamped 24-hour location at 52nd Street and Broadway in New York.


To better reflect the needs of the neighborhood, which is brimming largely with tourists and business travelers, Duane Reade transformed the former 3,100-sq.-ft. Duane Reade Express store into a 20,000-sq.-ft. health, beauty and daily living destination.


The National Community Pharmacists Association recently unleashed a new front-end program that has seen more than 20% growth in test pilots. 
Driving that program is 35-year retail veteran Gabe Trahan, NCPA senior director of store operations and marketing. Drug Store News caught up with Trahan to discuss the kinds of tools that can be 
accessed as part of the new program. 


DSN: What are the primary elements?


MIAMI — Navarro Discount Pharmacy recently celebrated the opening of its 30th store in Homestead, Fla., in the Homestead Pavilion Shopping Center. The store further differentiates the retailer from its competition and caters to the Hispanic market with its mix of ethnic products, such as chili peppers, piñatas and Jumex nectars.