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Drug Therapy
All three of the drug chains have implemented major private-label upgrades.
Among the efforts:
• Walgreens is on track to double its private-label sales to $8 billion within the next five to seven years.
To do so, the drug chain is in the midst of a major private-label consolidation that will pare the 75-brand program down to just a few core lines. Key to the effort was the recent launch of Nice, a 300-item line of grocery and household products.
At the same time, the Deerfield, Ill., chain is phasing out many second- and third-tier private brands.
• CVS: Store-brand sales could account for a whopping 20% of front-end sales at CVS within the next few years. The drug store chain is on track to achieve that goal, with store brands currently comprising 17.5% of front-end sales.
CVS recently introduced Nuance Salma Hayek, a line of skincare, cosmetics, haircare and body products. The brand is a partnership between CVS and Hayek, a film actress/director/producer.
CVS has other new offerings. Last year, the chain launched Just the Basics, a 100-item line of household, beauty, baby, personal care and other basics.
• Rite Aid Corp. recently announced that its private-brand penetration increased to 16.8% from 15.6% last year.
Over the past year, Rite Aid has introduced several new lines, including Renewal personal care and beauty line, Pantry foods and household goods, Tugaboos baby line and Simplify, a value-priced brand.
