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We recently visited Walmart’s Supercenter in Rogers, Arkansas. As one of its key locations for testing new initiatives, the store features the retailer’s pharmacy of the future concept.

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Brazil-based drugstore operator, RaiaDrogasil, reports 15.3% revenue growth to BRL4.2bn (US$1.1bn) in the quarter from 1st January 2019 to March 31st 2019.

Boosted by new store openings

RaiaDrogasil reports 15.3% revenue growth to BRL4.2bn (US$1.1bn)in the quarter from 1st January 2019 to March 31st 2019. The retailer also achieved a LFL growth of 5.6% in Q1.

The strong result was boosted by 48 net store openings, taking the retailer’s store estate to 1,873 stores.

Online sales also contributed to the positive result, particularly driven by a 40% increase in sales through click & collect, a fulfilment options which was rolled out to its full store estate in 2018. Strong online performance is a reflection of the retailer's ongoing digital transformation programme.

The result marks another positive performance for the drugstore operator. In February, the retailer reported 12.0% growth in sales to BRL15.5bn (US$4.0bn) and a LFL result of 2.7% for FY2018.

The news follows RaiaDrogasil’s announcement in February that it is set to acquire Drogaria Onofre, formerly controlled by CVS Health Corp, for an undisclosed sum. In 2018, Drogaria Onofre, which operates 50 stores in Brazil, announced total sales of BRL479.4m (US$124m).

A positive outlook

RaiaDrogasil is set to expand its estate further, with a total of 240 new store openings planned in 2019. The store expansion is designed to boost its presence in the market, acquire new customers and drive growth for the business.

The retailer will also continue to leverage its extensive customer data to drive its digital strategy further, designed to boost financial results in the year ahead. In February the retailer reported an extensive database of 30.6mn active customers, which account for 94% total sales.

 

Want to know more?

Retail Analysis subscribers can read and download our latest insight on Drugstores here.
 

We round up the latest sustainability developments in health and beauty from The Body Shop, dm and Rossmann. 

The Body Shop: in-store recycling scheme

In an effort to tackle plastic pollution, The Body Shop has launched a recycling scheme enabling shoppers to return their empty plastic packaging. The scheme is available to shoppers in the UK, Australia, France, Germany and Canada.

As an incentive, loyalty card members will also receive a reward worth £5 when they return any five empty bottles, tubs, tubes or pots.

To support the launch, the retailer also created a portrait of a female waste-picker, which showcased at Borough Market on 10th – 11th May. The portrait was created using 1,500 recycled plastic items collected by waste-pickers in Bengaluru and is designed to help them receive fairer pay.

The move follows the news the health and beauty specialist Superdrug had launched Beauty Bank drop points at a selection of its stores.

Dm: packaging-free refill stations

German-based drugstore operator dm is trialling packaging-free liquid refill stations in two of its stores in Prague. The stores involved in the trial are located in Cerný Most and Chodov shopping centres.

The offer is available across laundry detergent, dish soap, and other liquid cleaning products from eco-friendly brand Tierra Verde’s yellow and blue range.

Customers can purchase refillable 1 litre or 1.5 litre containers from dm for a price of 20 crown, which can be used at the stations an unlimited amount of times.

The launch follows a successful trial of packaging-free refill stations in a selection of its stores in Austria.

The retailer is taking a test and learn approach in the Czech Republic. Further roll out will depend on the success of the trial.

The move aligns with dm’s ongoing sustainability efforts. The retailer jointly founded the ‘Recyulate’ programme earlier this year, and maintains focus on provision of sustainable private label products, such as its No Planet B range made of 97% recycled plastic.

Rossmann and dm collaborating on recycling logos

Rossmann and dm are set to launch recycling logo for plastics, identifying how easily shoppers can dispose of products in a sustainable way.

The logos feature across both private label ranges, as well as products from leading manufacturers including Biersdorf and Henkel.

The packaging will share what proportion of recycled plastic it contains.

The move is designed to provide greater clarity for shoppers and influence shopper behaviour at the point of purchase, encouraging more sustainable decisions.

 

Want to know more?

Retail Analysis subscribers can read and download our latest insight on drugstores here.

Retail Analysis subscribers can read and download our latest insight on dm here.

Retail Analysis subscribers can read and download our latest insight on Rossmann here here.

Following the launch of three pilot HealthHUB stores in Houston earlier this year, CVS Health has announced plans to open up to 1,500 of these stores over the next three years.

Creating a convenient healthcare destination

The new HealthHUB format was developed following the retailer’s $69bn acquisition of Aetna, a leading healthcare insurance company. The business imagined an opportunity to develop a new healthcare model and customer experience for healthcare services, optimising the strengths of both companies. The aim has been to create a “convenient health care destination” for consumers, blending existing pharmacy support programs and its MinuteClinic services with a new, broader offer. This helps to drive traffic to the CVS Pharmacy locations, creating compelling reasons to visit.

Source: IGD Research

Following the success of the initial stores, the retailer plans to develop the concept in around 1,500 of its existing CVS Pharmacy locations by the end of 2021. Key areas for development this year include Atlanta, Philadelphia, Southern New Jersey and Tampa, along with additional stores in Houston.

Source: IGD Research

Extended range of healthcare services

Key elements of the HealthHUB include new product categories, digital tools, on-demand health kiosks and a broader range of health care services. Over 20% of store space is dedicated to health services including durable medical equipment and product and service combinations for sleep apnea and diabetes care. The store also offers one-on-one and group counselling on nutritional health, led by a licensed dietitian. Customers can also use iPads at Learn Tables to explore health and wellness apps and shop for an extended range of products online.

Source: IGD Research

’Care Concierge’ role to engage with customers

The HealthHUB is led by a ‘Care Concierge’ to engage with customers around the new service offerings. This includes helping them to navigate the store and events and connecting them to in-store healthcare providers. CVS professionals can make us of new Wellness Rooms, while community partners can host group events including health-focused and yoga classes.

Source: IGD Research

Building resilience against digitised healthcare

Drugstore retailers are increasingly looking to broaden the products and services they offer. In part this is being driven by demographic trends but also a desire to be more resilient against the anticipation of stronger online-based competition in the future. Following a successful pilot between CVS and SmileDirectClub, enabling customers to be fitted for invisible braces, the initiative is to be expanded to hundreds of stores. Walgreens has also opened a dental office in one of its stores in Florida, while in Chicago, it has been piloting a vision clinic.

Source: IGD Research

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