Monday, July 9, 2007

Power of Prescriptions

Walgreen's recently announced their quarterly earnings and reported that prescription sales lifted their profits 20%.

We wrote about the resiliency the major drug store chains have had in defending their turf against Wal-Mart in last month's BoomerMarketingNews, our paid newsletter.

In that piece we shared findings from the BIGresearch Consumer Intentions & Actions study from April 2007, that showed how traditional national chains were preferred for prescription drugs three to one over Wal-Mart.

Our point is that Boomers (and other consumers) will pay for "trusted advice." We expect to see more of it in other retail categories as a way to beat back Wal-Mart (witness Best Buy's dedicated appliance expert on duty in every store and even online).

This is a trend to watch, especially with Boomers growing older -- as Walgreen's CEO noted: "The growth opportunity we have ahead of is exciting," said Chief Executive Officer Jeffrey A. Rein. "With the first of 78 million Baby Boomers turning 65 in 2011, the demand for pharmacy services will get bigger and bigger," he predicted.

Yet another trend to watch.

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Here is where you'll find information referenced in the book, as well as updates, news and perspectives from Matt Thornhill and John Martin, founders of the Boomer Project.