In this Issue

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DALLAS — Eighty-two-year-old independent Dougherty’s Pharmacy is operating a pharmacy inside the Forest Park Medical Center, which it opened in August. The pharmacy’s decor includes Italian tile wall treatments, a wavy wall behind the cash wrap and works by local Dallas artists.

Increases in the prices of prescription drugs have far outpaced the rate of general inflation over the years, as increases in the prices of branded and specialty drugs have offset decreases in the prices of generics, according to a new report by AARP’s research arm.


The study, conducted by AARP’s Public Policy Institute, found that the cumulative change in drug prices from 2005 to 2009 was almost double the rate of inflation. As a result, the average annual cost of drug therapy continued to rise.


Within the past month, two Ohio-based traditional retailers announced plans to test-market automated retail vending machines. It’s not so much thinking outside of the box as it is figuring out how to get that box to where the consumers are, wherever they are — the airport, the hospital, convention centers, exercise facilities, on a college campus or in a hotel. 


In January, specialty pharmacy group contracting organization Armada Health Care introduced ApproveRx, a Web-based system that it says will greatly streamline the prior authorization process and already has been adopted by Amber Pharmacy. Meanwhile, the company also is gearing up for the Armada Summit at the Wynn Las Vegas Hotel in May. Recently, Drug Store News spoke with Armada CEO Larry Irene about these recent developments.


DSN: How did Armada develop the ApproveRx 
system? 


While the in-store experience is still important to many shoppers, greater consumer adoption of emerging technologies is undoubtedly reshaping the retail landscape. Today, stores are just one part of a larger, more connected consumer experience. For retailers, this means they must rethink how they can transform stores, strategies and operating models into a store of the future: Store 3.0.


“How does that help me sell more cases, pallets and truckloads?” That’s a question I have been asked repeatedly, particularly as the world of retail pharmacy has evolved to play a larger role in health care. With that, the business that we cover in Drug Store News has become incredibly more complicated.


ILKLEY, WEST YORKSHIRE, U.K. — Morrisons, the large U.K.-based supermarket chain, wanted to get closer to its customers. The result was M Local, its new 3,000-sq.-ft., freestanding, convenience food format. In developing the new store, Morrisons identified four key issues U.K. customers have with convenience stores: lack of fresh food options; poor overall quality and value; difficult to shop; and poorly stocked.