Walgreens’ December Sales Rose Higher Despite New Generic Drugs
Walgreen’s (NYSE:WAG) same-store sales rose by 6.1 percent in December, according to the Wall Street Journal. Interestingly, even as the company reported higher pharmacy sales, certain other factors such as the introduction of a new wave generic drugs, as well as fewer flu vaccines hurt pharmacy sales. New generic drugs in particular have recently put a lot of pressure on pharmacy sales growth as more and more consumers shift toward generic options.
Walgreen’s non-pharmacy item sales rose 2.5 percent, and consumers’ basket-size increased as well by 3.8 percent. Same-store customer traffic, however, fell 1.3 percent. Sales for pharmacy items rose even more so than front-end, non-pharmacy items in December, by 9 percent, and similarly, same-store prescriptions filled rose by 5.3 percent.
The company’s total December sales rose 7.2 percent to $7.2 billion. The company also closed six stores in December, but it opened five and acquired three more; one of the five opening was a re-location, reports the Wall Street Journal.