Walgreens on Thursday reported an approximate 150 basis-point negative impact on prescriptions filled based on prescription transfers, and other trend analysis of prescriptions managed by Express Scripts, as the chain posted its first monthly earnings statement following the discontinuation of Walgreens' relationship with Express Scripts.
Retailers will report weak December front-end sales growth across the drug channel as continued inflation likely was offset by the slow start to the flu season and disappointing overall traffic and volume growth, Credit Suisse research analyst Ed Kelly suggested in a note published Tuesday.
Trips are up, but baskets are down, Kroger reported Friday morning, along with positive second-quarter results. Gas sales also are up with the decline in fuel prices, which is an item Kroger continues to use as a stickiness factor with its loyalty card program.
Walgreens’ stock was trading up 30 cents to $43.03 on the New York Stock Exchange mid-morning on Wednesday thanks to favorable same-store sales growth of 4.8% for the month of June versus an analyst consensus estimate of 2.8%.
Analysts already are speculating dire outcomes if the price of a gallon of gas eclipses $5 this summer on account of Middle East turmoil today. Any additional strains on the supply chain system, such as increased operational costs as high as 20%, would only make matters worse.
This year’s upcoming $29 billion wave of margin-friendly generic pharmaceuticals will be as big a growth catalyst for supermarket pharmacies as it will be for their pureplay drug store cousins, Credit Suisse research analyst Ed Kelly stated in a note published Thursday.