Credit Suisse: Drug channel front-end sales benefit from earlier Easter

NEW YORK — An earlier Easter holiday this year helped boost sales significantly across the drug store channel, Ed Kelly, Credit Suisse research analyst, reported in a research note published Wednesday. 

 

"Drug store front-end sales growth, as reported by Nielsen, returned to positive territory in the period  ended April 11, but likely benefited from the pull forward of Easter to April 5 this year from April 20 last year," Kelly noted. "Industry sales growth of 2.5% was well above last month's minus 1%. We estimate sales grew 5.2% excluding an estimated 270 basis point negative impact from lower tobacco sales (vs. last month's adjusted 1.7% growth)."

 

Sales of health and beauty items were up 4.5% year-over-year vs. growth of 2.4% last month and sales of cough-cold remedies were up 13.7% year-over-year vs. growth of 12.7%. 

 

"Candy was one of the strongest sales growth categories, likely a result of Easter moving into the period," Kelly added.