Pharmacy Factoids From Old SWOT Analysis

I found this on the Internet while looking for something else.  It’s a SWOT analysis (from about 2007) about Walgreens.  You can tell it was written by someone who doesn’t understand all the industry dynamics.  There’s no mention of mail order as a threat.  There’s no discussion of PBMs.  There’s no discussion of the value of specialty pharmacy.  It’s pretty focused on the pure play retail strategy.  Frankly, I’m pretty disappointed…BUT

What I did find interesting were some facts about the industry:

  • Walgreens fills an average of 256 Rxs / day per store (in 2006) versus 100 Rxs / day per independent and 180 Rxs per day per chain.
  • Walgreens (at the time) had drive-thru pharmacies at 80% of their stores and 30% of stores were open 24-hours per day.
  • Free-standing stores generate 30% more in sales than pharmacies located in strip malls.
  • 64% of Walgreen’s sales are generated by Rx (2005 analysis).
  • A customer spends 10 minutes in the store if including an Rx purchase; 8 minutes if no Rx purchase.
  • Only 30% of shoppers make impulse purchases.
  • The average non-pharmacy store purchase in 2001 was $19.38. 
  • The average American visits a grocery store 2.2x per week but a drugstore once a month.

In case you don’t know what a SWOT analysis is…

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