Active flu season serves as tailwind behind Rite Aid January sales

CAMP HILL, Pa. — Rite Aid on Thursday reported a 4.8% increase in same-store sales for the four weeks ended Jan. 24, benefiting in part from a strong flu season to date. 

 

Rite Aid's January front-end same-store sales increased 2.9%. 

 

According to Credit Suisse research analyst Ed Kelly, overall drug store front-end sales growth, as reported by Nielsen, accelerated for the period ended Jan. 17 with industry sales rising 1.1% vs. last month's 2.1% decline. "The HBA dept., which includes OTC drugs, saw its highest growth - plus 6% year-over-year - since the '12/'13 flu season," Kelly noted. "Underlying trends clearly improved with the help of strong OTC performance in the midst of an active flu season."

 

Pharmacy same-store sales, which included an approximate 114 basis points negative impact from new generic introductions, increased 5.7%. Prescription count at comparable stores increased 3.5% over the prior-year period.

 

Total drug store sales for the four-week period increased 4.3% to $2 billion. Prescription sales accounted for 70.3% of drug store sales, and third party prescription sales represented 97.3% of pharmacy sales.

 

Same-store sales for the 47-week period ended Jan. 24 increased 4.4% over the prior-year period. Front-end same-store sales increased 1.2% while pharmacy same-store sales increased 5.9%. Prescription count at comparable stores increased 3.6% over the prior-year period.

 

Total drug store sales for the 47 weeks ended Jan. 24 increased 3.9% with sales of $23.8 billion. Prescription sales represented 68.7% of total drug store sales, and third party prescription sales represented 97.5% of pharmacy sales.