|Last Quarterly Update:||10/28/2013|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry sell prescription drugs, over-the-counter medications, health and beauty products, and general merchandise from physical retail locations. Major companies include Walgreens, CVS Caremark, and Rite Aid (all based in the US), along with Rexall and Shoppers Drug Mart (Canada), Grupo Casa Saba (Mexico), China Nepstar (China), AS Watson (Hong Kong), Matsumotokiyoshi (Japan), Phoenix and Celesio (Germany), and Alliance Boots (Switzerland).
Global pharmacy sales are expected to reach $1.4 trillion by 2017, driven by the aging of the population and increased health awareness, according to Lucintel.
The US drug stores industry includes about 45,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $235 billion.
Demand is driven by the aging of the US population and advances in medical treatment. The profitability of individual companies depends on access to medical insurance groups. Large companies have economies of scale in purchasing and in access to large groups of customers. Small companies can compete effectively through convenient location or special merchandising. The US industry is concentrated: the 50 largest companies generate about 70 percent of revenue.
Chain stores account for about 50 percent of the US retail prescription market, according to IMS Health. Independent drug stores account for about 20 percent, pharmacies at supermarkets for 12 percent, mail services for 6 percent.
Drug stores that also sell general merchandise compete with grocery stores, discount department stores, ...
Would you or your company benefit from having unlimited access to First Research's industry intelligence tools?Learn More About Subscription Options