Download as PDF, PPTX
Uploaded byRetailNet Group - an Accential Company
RNG Key Players in the Future of Drug Channel (1) (1)
The document discusses the strategic initiatives and plans of several major pharmacy retailers. Walgreens aims to transform into a health and wellness destination through initiatives like expanding pharmacy services, enhancing store experience, and testing new store formats. CVS focuses on driving pharmacy growth, differentiating its front store, and leveraging its integrated assets. Rite Aid emphasizes growing its wellness offerings, expanding healthcare services, investing in store renovations, and improving the customer experience.
More Related Content
Similar to RNG Key Players in the Future of Drug Channel (1) (1)
RNG Key Players in the Future of Drug Channel (1) (1)
- 1. We Bring theFuture to the Present Future of the Drug Channel Key Players Hannah Donoghue | [email protected]
- 2. Walgreens Key StrategicInitiatives to Drive Growth 2 Source: Walgreens Investor Relations Create a Well Experience Transform the Role of Community Pharmacy Establish an Efficient Global Platform
- 3. New Health &Freshness Store…New Departmentalization, Communication, Categorization and Merchandise 3 Source: RNG Store Tour Database
- 4. Walgreens Well ExperienceStrategy - Several Key Innovation Points In-store 4 Community Pharmacy - Engagement Exceptional Customer Service New Checkout Experience Enhanced Beauty Updated Exterior Branding Updated Décor & Wayfinding High-touch Services Expanded Fresh Assortment Expanded Refrigeration & Adult Bev Source: Walgreens
- 5. 2020 Re-Think –How to Transform Today’s Drugstore Into New Health & Daily Living Destination 5 Expanded Pharmacy Look Boutique Fresh Food to Go Juice/ Smoothie Bar Fro-Yo Bar Nail Bar Health Solutions Urban Living Source: RNG Store Tour Database; USA Today
- 6. Create a WellExperience Flagship Locations Across US –Test & Learn Innovation Centers 6 Source: RNG Store Tour Database
- 7. New Fixtures &Gondolas – Modular Redefining Convenience for On the Go Shoppers 7 Reach-In Coolers Source: Walgreens
- 8. Continuing the Innovation- First Ever Net Zero Energy Retail Store & New Zen Balanced Living format 8 Source: Walgreens
- 9. Transforming Role toCommunity Pharmacy •8.6 mil immunizations and vaccinations administered in FY13 •398 Take Care clinics rebranded as Healthcare Clinics •Expanded services to include diagnosis and treatment of 4 chronic diseases •Increased 90-day at retail penetration & announced Smart90 with Express Scripts •Established partnership with Theranos •Formed strategic relationship with Health Systems, ACOs and Cystic Fibrosis Services, Inc. 9 Comprehensive Care Differentiated Experience Strategic Partnerships Source: Walgreens Investor Relations
- 10. Pharmacy - Changingthe Engagement Model 10 Pharmacists in front of counter – encourages interaction between Pharmacist & Patients Refill prescriptions through self-serve kiosks next to pharmacy Source: RNG Store Tour Database; Chain Drug Review; Walgreens
- 11. Walgreens Key Takeaways 11 1 2 3 4 Shift to community pharmacy – increased engagement, expanded services, labor model, advisor Expect constant innovation in store experience / services to adapt to changing consumer needs Walgreens uniquely positioned with Alliance Boots – global lead in defining well Investing in learning – testing through flagships, category lifecycle management
- 12. CVS Key StrategicInitiatives to Drive Growth 12 Source: CVS Investor Relations Drive Pharmacy Growth Differentiate the Front End Store Network Growth
- 13. Capitalizing on IntegratedModel & Assets 13
- 14. Pharmacy Growth Drivenby Political / Policy & Technologic STEIP Drivers 14
- 15. Initiatives Aimed toDrive Personalization 15
- 16. Digital Integration -Key to Personalization •Focus of digital has been with pharmacy to date –Creating integrated experience •Widely used app –Usefulness driven by pharmacy refill option •Leverage social media •Aggressive mobile plan –Retail time inventory check –Drug interaction check –Mobile personalized circular Current Future •Digital drives personalized experience –Personalized Savings –My Weekly Ad •Growth of digital commerce – endless aisle •Continue enhancing mobile capabilities
- 17. Digital Innovation –CVS iPad App – Endless Aisle Concept 17
- 18. Changing the WayBrands Engage 18
- 19. MyCVS Store Clustering– Segmented / More Targeted Offering Source: CVS Investor Relations
- 20. 2 – 3%Annual Sq. Ft Expansion plus International Growth 20 Source: CVS Investor Relations; RetailNet Group database
- 21. CVS Key Takeaways 21 1 2 3 4 Expanding role of patient care changing drug retailers’ role in total health care – e.g. acquisition of Coram Personalization - ExtraCare, My Weekly Ad International acquisition is interesting but not critical – acquired top 10 player in Brazil, learning opportunity Expect further segmentation and development of clustering to drive more targeted offering
- 22. Rite Aid KeyStrategic Initiatives 22 1 2 3 4 Growth of Wellness+ Expanding Health Care Offering Investing in Stores Continuing to Find Efficiencies 5 Improving the Customer Experience Source: Rite Aid Investor Relations
- 23. Higher Scripts ConsumptionCombined with Aging Boomers Population = Opportunity Age Script per Capita 0‐18 5.6 19‐44 7.7 45‐54 15.5 55‐64 23.5 65‐74 29.7 75‐84 34.6 85+ 34.6 Source: NACDS Goldman Sachs Global Investment Research, 2010; RetailNet Group database
- 24. Wellness 65+: Offeringa Hyper-Targeted Loyalty Program 24 •New points on co-pays for govt. scripts •Exclusive sale day (20% off) Value Benefit •Medication reviews, POC compliance, Medicare D plan reviews, blood pressure screenings and pharmacy services review •Monthly themed health & wellness events aligned with wellness 65+ Wednesdays Targeted Bundling of Pharmacy & Clinical Services •Top-market mobile event tour •Increased community outreach activation of wellness ambassadors •Advanced CRM segment and 1:1 marketing plans Extensive Customer Engagement Source: Rite Aid Investor Relations
- 25. Investing in Stores– Almost Half of CapEx Going to Remodels Conversions to Genuine Wellbeing Stores 25 Source: Rite Aid Investor Relations
- 26. Genuine Well-being –Wellness Store Renovations 1,019 Stores Completed as of Aug. 31, 2013 26 Source: Rite Aid Investor Relations
- 27. Integrating Digital intoMerchandising 27
- 28. Rite Aid KeyTakeaways 28 R 1 2 3 4 Wellness / Genuine Well-being stores critical to RAD turnaround – labor changes with Wellness Ambassadors Capital discipline will be a key strategic initiative – invest in store renewal, grow in place Focus on strengthening relationship with customers – win with seniors RAD behind WAG / CVS from a total health offering POV but focusing efforts on improving