PLEASANTON, Calif. — Safeway's rollout of $4 generic drugs this month aims to boost convenience and savings, said a company spokesperson.
While the timing of the program is a welcome bonus to shoppers, who are being strained by high food and fuel prices, compared to other retail competitors, Safeway is late to the table with its program.
Safeway introduced the program, which includes 300 generic drugs, in its Texas division in March. It was made available in Chicago, District of Columbia, Virginia, Maryland, Delaware, Pennsylvania and New Jersey on June 11. The program will be under evaluation before further expansion, the spokesperson said.
Wal-Mart Stores, Bentonville, Ark., set the $4 generic drug standard two years ago and reaped favorable public recognition. The discounter reported it saved its customers $610 million in the program's first year. Other national and regional supermarkets and discounters quickly followed Wal-Mart's lead.
Bruce Kneeland, a pharmacy consultant, Valley Forge, Pa., said Safeway is on the defensive with its $4 generics. “I don't believe those who implement this practice in the future will succeed in attracting new customers — but I do think they will need to implement a comparable program just to stay even.”
He noted Safeway will have to measure whether the program will help or hurt Safeway's bottom line. “You have to pick up traffic in order to make this work,” he said.