Industry Updates: Drug Stores and HBC Chains – February 2014

Personnel Updates:

Mark Panzer, president and CEO Pharmaca Integrative Pharmacy, will be leaving Pharmaca in pursuit of an opportunity at Sears Holding Company.

Weis Markets has named Jonathan Weis as President and CEO. Weis will retain his role as company vice chairman. Weis has been serving as the company’s interim CEO. In his new role, Weis will oversee all aspects of the company’s retail, supply chain, merchandising, human resources, information technology, finance, real estate and manufacturing operations.

Financial Focus:

CVS Caremark Corp. reported fiscal 2013 sales of $126.761 billion.

Industry Insight:

CVS Caremark announced that by October 1^st, 2014, all 7,600 of its retail locations would no longer be selling tobacco products.  Terminating these sales will cost CVS an estimated $2 billion in annual revenue.  “We came to the decision that cigarettes and providing health care just don’t go together in the same setting,” CVS CEO Larry J. Merlo said.

Walgreens‘ 24/7 flagship store on New York City’s Union Square had a grand re-opening on January 23 according to a company press release. The store, which opened in 2001, has been renovated to feature Walgreens’ Well Experience format. The new design includes an advanced checkout system, an expanded beauty and care section and Web Picket, which allows customers to order online and pickup purchases in-store.

Mergers and Acquisitions:

Hy-Vee, Inc. agreed to purchase Amber Pharmacy, a specialty pharmacy solutions provider based in Omaha, NE which it has partnered with since 2010. This acquisition allows Hy-Vee to expand its current specialty pharmacy business, providing customers with increased specialty options, access and affordability.

Real Estate:

The Little Clinic continues is expanding this month with openings inside Kroger stores in the Cincinnati region and Louisville, Ky.