The big 10
Here, we present this years top 10 U.S. and Canadian drugstore chains. Rankings were developed using total company sales for each drugstore chains most recently completed fiscal year. All sales figures are expressed in U.S. dollars. Unless otherwise noted, the numbers cited were reported in documents published by the listed companies.
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1. CVS Caremark, Woonsocket, R.I.
In February, CVS/pharmacy said it made a "vast array" of changes to its Gold Emblem brand – which includes a wide variety of snacks, desserts, beverages and groceries – to offer customers more options, better taste and a contemporary look. Products in the revamp included nuts, trail mixes, chips, pretzels, dried fruits, candies, cookies, spices, juices, condiments, baking essentials and breakfast bars.
Updates to the relaunched brand include a contemporary identity and package redesign that embodies the commitment to meeting a very high taste standard. Packaging now incorporates nutritional information on the front to "empower shoppers to make informed purchasing decisions," CVS/pharmacy explained.
Four months later, CVS/pharmacy announced that it was adding an extension of premium products to the Gold Emblem brand under the CVS Gold Emblem Select name. Products bearing the new Gold Emblem Select label are made with premium ingredients, artisanal techniques and distinctive flavors. First to be rolled out under the new label was a line of globally sourced 100 percent Arabica coffees.
The retailer also announced the launch of Total Home in May, a store brand home-care product line built on performance, reliability and premium quality. The line includes a wide range of products for everyday home care – ranging from cleaning and cooking to organizing – that has "undergone rigorous quality testing to offer customers exceptional, reliable options at a 15 to 20 percent savings compared to popular national brands." The 150-plus items include facial and bath tissue, paper towels, trash bags, food storage necessities, kitchen and bathroom cleaners, bulbs, extension cords and more
Store brands: CVS, CVS Earth Essentials, CVS Gold Emblem, CVS Gold Emblem Select, Essence of Beauty, Just the Basics, Nuance Salma Hayek, Petcentral, Total Home and more.
2. McKesson Corp., San Francisco
In April, McKesson Corp. announced that it renewed its current distribution agreement with CVS Caremark. "We are extremely pleased to continue our long-standing relationship with CVS Caremark," said Paul Julian, executive vice president, group president, McKesson Corp. "McKessons comprehensive supply chain solutions continue to help CVS Caremark ensure the highest levels of product availability and product integrity, empowering CVS Caremark to provide outstanding pharmaceutical care for its customers."
Store brands: Health Mart, McKesson, Sunmark.
3. Cardinal Health, Dublin, Ohio
In March, Cardinal Health announced that its pharmaceutical distribution contact with Walgreens, which is scheduled to expire at the end of August, will not be renewed. The news came at about the same time that Walgreens announced its agreement to enter, with Alliance Boots GmbH, into a long-term partnership with AmerisourceBergen to help the two retail companies benefit from greater scale and global opportunities (see "Walgreen Co." entry for more information). Sales to Walgreens – one of Cardinals two largest customers – generated approximately 21 percent of consolidated revenue for Cardinals fiscal 2012.
One month later, Cardinal announced that it signed new agreements to supply pharmaceuticals to a network of CVS Caremarks retail pharmacies and distribution centers through mid-2016. The stores and distribution centers serviced under the new agreement are essentially the same as those serviced in the prior agreement.
Store brands: Leader, Medicap, Medicine Shoppe, Preferred Plus Pharmacy (Kinray).
4. Walgreen Co., Deerfield, Ill.
Seven months after announcing their establishment of a strategic partnership to create the first global pharmacy-led health and wellbeing enterprise, Walgreen Co. and Alliance Boots said they entered into an "innovative, long-term partnership" with AmerisourceBergen Corp., a Valley Forge, Pa.-based company that provides drug distribution and related services. The companies said the relationship will enable Walgreens, Alliance Boots and AmerisourceBergen to benefit from greater scale and global opportunities, and to work together on programs to improve service levels and efficiencies while reducing costs and increasing patient access to pharmaceuticals.
On the store brand side of things, last November, Walgreens introduced Ology, a brand of everyday products that provides customers with "healthier lifestyle options," the retailer announced via its Private Brands blog. Covering categories such as baby care, personal care and household cleaners, Ology was said to be, at the time of its launch, the first "nationally accessible and affordable brand formulated to be a safer alternative" to leading national brands.
Also in the non-foods sector, Walgreens introduced the No7 Men skincare products, part of the UKs leading skincare brand No7 created by Boots, at Walgreens and Duane Reade stores and on
drugstore.com and US.Boots.com. The debut marks the first nationwide Boots product launch for Walgreens with UK-based Alliance Boots since the two companies formed a strategic partnership.
Said to be an internationally acclaimed range of skincare products, No7 products are hypo-allergenic, dermatologically tested and backed by science – and retail at an affordable price. Products include No7 Men Protect & Perfect Intense Moisturiser with SPF 15, No7 Men Energising Face Wash, No7 Men Energising Hair & Body Wash and more.
As for food, Walgreens saw two flavors of Good & Delish ice cream created in a competition on "All-Star Celebrity Apprentice," a television show sponsored by the retailer. Trace Adkins and Penn Jillette participated in the shows challenge to create unique flavors of premium ice cream that are available only at Walgreens and Duane Reade stores. Adkins created the Maple Macadamia Mash-Up flavor, and Jillette invented the Vanilla & Chocolate Magic Swirtle. Viewers were asked to help determine which celebritys charity of choice would receive an additional $100,000 donation from Walgreens by heading to their local Walgreens the week the episode aired and purchasing their favorite celebrity flavor. The top-selling flavor would influence which celebritys charity of choice would receive the donation. Ultimately, Adkins ice cream and charity pick, the American Red Cross, came out on top.
Store brands: Walgreens: Nice!, Good & Delish, Living Solutions, Ology, Pet Shoppe, Studio 35, Savings with a Smile, Walgreens, Well at Walgreens, Walgreens Photo and more. Duane Reade: Apt. 5, Apt. 5 Goes Green, Duane Reade, Good & Delish, Nice!, Pet Shoppe, Prevail, Savings with a Smile, Walgreens and more.
5. Rite Aid, Camp Hill, Pa.
Last December, Rite Aid introduced an exclusive line of Forever Fit home fitness products from fitness expert Denise Austin. The 33-product line, available across the chain, represents an entirely new approach to fitness that focuses on maintaining and improving ones health and wellness to accomplish lifes daily activities, the company said.
According to Rite Aid, Austin designed Forever Fit to address the everyday health and fitness needs of people who are seeking a way to work out at home. The line embodies the "active aging" approach to fitness and is designed to help reduce the risk of osteoporosis, muscle strain and joint stiffness while increasing balance, flexibility and cardiovascular health.
All products in the line are categorized into one of four categories, based on the associated health benefit: balance and flexibility; heart health; fitness and support; and toning and strength, Rite Aid said. The line includes unique items such as a balance board and deluxe walking kit, wrist weights with thumb loops, dumbbells and Pilates stretch bands. Each product comes with recommended workouts created by Austin.
Store brands: PharmAssure, Pure Spring, Rite Aid, Rite Aid Pantry, Rite Aid Renewal, Simplify, Tugaboos and more.
6. Shoppers Drug Mart, Toronto
In 2012, Shoppers Drug Mart celebrated its 50th anniversary. From Sept. 8 through the rest of the month, the retailer held a celebration in stores with a multitude of special promotions and offers, a National Makeover Weekend (which took place on Sept. 8 and 9) and a nationwide contest offering Canadians the chance to win cars, trips and shopping sprees –the largest prize pool in the retailers history.
During the celebration, Shoppers Drug Mart launched the limited-edition 50th Anniversary Collection under its Quo Cosmetics brand. Said to be "60s-inspired," the lineup featured an anniversary-themed beauty palette and a commemorative 10-brush set. Also launched were six limited-edition Glitter FX nail polish shades under the Quo by ORLY brand.
The retailer also published a single-issue magazine to celebrate its anniversary. Titled Lets Celebrate, the publication featured 50 inspiring ideas to help consumers live better. The 70-page magazine included staff and customer profiles, health news, a look back at five decades of beauty trends, and more than $50 in coupons.
Store brands: Baé, Bio-Life, EasyPix, Everyday Market, Life Brand, Etival Laboratoire, Nativa, Quo Cosmetics, Simply Food, Simply Food Good for Life and more.
7. Katz Group, Edmonton, Alberta
In January, Katz Groups Rexall division, which is based in Mississauga, Ontario, announced the launch of Be.better, its new flagship private brand. The line of more than 100 products rolled out at the 300-plus corporate Rexall and Rexall Pharma Plus stores in Canada.
Products in the line – which are said to be carefully selected and designed to help Canadians live, feel and be better – include better-for-you snacks, environmentally friendly cleaning products, gluten-free vitamins, vegetarian probiotics and salon-quality hair-care products with natural oils. The key features and benefits of every Be.better product are clearly identified by the check marks found on the front of packaging, making it easier than ever for customers to make better choices, Rexall explained.
Store brands: Be.better, KIT, Nosh & Co., Rexall and more.
8. Jean Coutu Group, Longueuil, Quebec
Last November, Jean Coutu announced the launch of its online boutique at jeancoutu.com, which offers "wonderful gift sets" for the holiday season. Among the collection of gift sets offered by the boutique are skincare items, "trendy" makeup products, perfumes with "enchanting fragrances" and more. The boutique is accessible year-round, and its offerings are enhanced as months and seasons pass.
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At the same time, Jean Coutu also announced the launch of its new website. Although the website is said to be "entirely revamped" – offering customers a better navigational experience to help them learn about in-store services, product offerings and more – it continues to offer the functionalities with which customers are familiar, including the Health Record, online photo printing, and the retailers newsletter and weekly flyer.
In April, Jean Coutu completed the sale of 72,500,000 of its 178,401,162 common shares of Rite Aid, selling them at an average price of $2.20 per share for a net proceed of $158.5 million. The sale of the shares brought the companys interest in Rite Aids outstanding common shares down to 11.7 percent.
Store brands: Caudalie, Duo Stem, Opiela, Personelle, Personelle BéBé, Personelle Essentiels Beauté, Roger & Gallet, Sol-Fine Colorline, The Balm and more.
9. Uniprix Group, Montreal
Uniprix celebrated its 35th anniversary through a number of initiatives in 2012. In June, the retailer unveiled a new logo with a "trendier, more dynamic design" sporting curves and contours, symbolizing the companys "vitality and growth."
In September, Uniprix launched a single-run magazine that was inserted in Les Affaires, a French-language business newspaper. In the magazine, the companys management, head office staff, pharmacist-owners and various other partners expressed their "strong sense of belonging to the banner." The retailer also mailed a special-edition "jumbo" panoramic insert to celebrate the anniversary. Developed by Montreal-based TC Transcontinental for large companies seeking immediate visibility to promote an exceptional product, a special anniversary, etc., the insert – called Panoramax – was said to be unlike any other advertising insert "ever been seen before in Canada." It made its debut as Uniprixs 35th anniversary insert.
At about the same time, Uniprix said it would launch a promotion in partnership with TVA and Canadas "On Connaît la Chanson," a Canadian version of international game show "Dont Forget the Lyrics!" From Sept. 27 through Oct. 24, the retailer offered featured products of the week in its stores and invited patrons to enter the "Uniprix 35 ans, ca se fete en chansons!" sweepstakes, in which three people were awarded VIP tickets to see the show. The winners names were announced during a special Uniprix episode of the show, which took place Nov. 8.
And in December, Uniprix finished off its year-long anniversary celebration by announcing the rebranding of two banners. Unipharm stores rebranded under the Uniprix Santé name, and all Uniclinique stores and most Clinique Santé stores rebranded under the Uniprix Clinique name, the retailer said.
Store brands: Echosline, Option+, Option+ Nature.
10. London Drugs, Richmond, British Columbia
In November 2012, London Drugs launched a new website and e-commerce store after 18 months of extensive planning and investment. According to the retailer, it made a variety of navigational improvements and added two key differentiators: the ability for customers to pick up products ordered online at any London Drugs brick-and-mortar store, and a shopping "finder" assistant that helps users find the right beauty care products, cameras and computers by asking questions and tailoring its responses to their answers.
The new e-commerce store educates visitors with expert advice directly from the product buyers and experts at London Drugs, matching the in-store shopping experience and customer service at its brick-and-mortar locations, the retailer stated. The e-commerce store is equipped to accept debit cards, PayPal and all other major forms of payment. It also comes in a mobile version, offers software downloads and integrates the retailers social media channels and Bazaarvoice ratings and reviews, which allows customers to view a product and share their thoughts, ask questions and provide answers about the item.
Store brands: Certified Data, London Drugs, London Home, London Orchard, London Plantation, London Premiere and more.